Gov. Charles Turnbull finished his visit to Washington, D.C. this week by seeking Congressional support for the cancellation of the territory’s multi-million dollar hurricane loan debt.
Turnbull met with Sen. Frank Murkowski (R-Alaska), chairman of the Senate Energy Committee, and the committee’s ranking member, Sen. Jeff Bingaman (D-New Mexico) to rally support for the cancellation of the more than $200 million the V.I. government owes the Federal Emergency Management Agency for disaster loans following Hurricanes Hugo and Marilyn.
Almost exactly a year ago, Turnbull made a similar trip to Washington when he met with former FEMA Director James Lee Witt.
Last year, Congress, at the behest of the Turnbull administration, modified the FEMA loans to make them eligible for debt relief under the Federal Credit Reform Act. Turnbull said he hopes Congress’ modification of the loans will allow them to be canceled for a fraction of their original amount.
For example, FEMA approved a loan to the Virgin Islands government not to exceed $89 million in 1990 following Hurricane Hugo the year before.
Last year, Washington also upped the federal/local match in grant funds to 90/10 from 75/25 for assistance to the territory following Marilyn in 1995.
Turnbull also met with Rep. Joe Skeen (R-New Mexico), the chairman of the House Interior Appropriations Subcommittee. Approval from Skeen’s subcommittee is needed in order to appropriate the funds to cancel the loans.
"I am very encouraged by the support I received on both the Senate and House sides," Turnbull said. "It is a complicated legal process, but I believe we are getting close to a favorable resolution."
At the end of January 2000, former President Bill Clinton increased the share of disaster assistance for damage caused by Hurricane Georges in 1998 and Lenny in 1999. That move took the territory off the hook for more than $2 million in matching funds.
