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FAA approves AT&T drone in Puerto Rico for cellular service

(Reuters) – The U.S. Federal Aviation Administration on Friday said it had approved a request by AT&T Inc to use a new drone known as the Flying Cow or Cell on Wings to help restore cellular service in Puerto Rico in the wake of Hurricane Maria.

The Pulse Vapor 55 drone functions like a cell tower in the sky, providing voice, data and internet service, the FAA said. It flies up to 200 feet above the ground, covering an area of 40 square miles.

Puerto Rico’s wireless and broadband communications networks, along with its power grid, were devastated after Hurricane Maria made landfall in September. The U.S. territory has struggled to regain communications services. As of Thursday, 39 percent of cell sites remained out of service, the U.S. Federal Communications Commission said.

The drone resembles a miniature helicopter and is fitted with LTE radios and antennas and is tethered to ground-based electronics and power systems, the FAA said.

The FAA exemption was needed because the drone exceeds the 55-pound weight limit required to operate under the government’s small drone rule. AT&T will use the drone as a temporary cell service solution while it rebuilds permanent infrastructure on the island.

In another innovative effort to restore communications in Puerto Rico, experimental communications balloons provided by Alphabet Inc, in collaboration with AT&T and T-Mobile US Inc, began operating in October.

The “Project Loon” balloon project is delivering limited internet connectivity to LTE enabled phones in the hardest-hit areas of Puerto Rico and Alphabet said on Nov. 9 the project had delivered basic internet connectivity to more than 100,000 people on the island.

The FCC approved Alphabet’s application to provide emergency cellular service to Puerto Rico using up to 30 balloons.

The company said it did not expect to use that many, however, since each balloon can provide internet service to an area of roughly 5,000 square kilometers, or 1,930 square miles. Puerto Rico’s area is 3,515 square miles.

The Loon project is part of an innovation lab within Alphabet that the company calls X, previously known as Google X.

(Reporting by David Shepardson; Editing by Tom Brown)

White House plans to seek another $45 billion in U.S. hurricane aid

By David Shepardson

WASHINGTON (Reuters) – The White House plans to ask the U.S. Congress on Friday for about $45 billion in additional aid for disaster relief to cover damage from hurricanes that struck Puerto Rico, Texas and Florida and other disaster damage, a congressional aide said on late Thursday.

The request would be significantly short of what some government officials say is needed.

Puerto Rico Governor Ricardo Rossello on Monday requested $94.4 billion from Congress to rebuild the island’s infrastructure, housing, schools and hospitals devastated by Hurricane Maria. The state of Texas earlier this month submitted a request for $61 billion in federal aid.

Last month, Congress approved $36.5 billion in emergency relief for Puerto Rico and other areas hit by recent disasters and said it planned to seek another round of funding after it reviewed requests from federal agencies and state and U.S. commonwealth governments.

Puerto Rico sought $31.1 billion for housing, followed by $17.8 billion to rebuild and make more resilient the power grid.

Senator John Cornyn, a Texas Republican, said late Thursday at a congressional hearing his staff had been briefed on the White House that would be released on Friday that he called “wholly inadequate” but he did not disclose the precise amount.

He said the White House had also “short-changed” funding for wildfires that have struck the western United States. The October disaster assistance bill included $576.5 million for wildfire-fighting efforts.

The White House did not immediately respond to a request for comment late Thursday.

(Reporting by David Shepardson; Editing by Sandra Maler)

Puerto Rico’s path to restore power shifts after Whitefish exit

By Jessica Resnick-Ault and Scott DiSavino

NEW YORK (Reuters) – Efforts to restore electricity to Puerto Rico nearly six weeks after Hurricane Maria are shifting as the island’s utility and its regulators, along with U.S. authorities, removed a key contractor and moved to triple the funding of another.

The U.S. Army Corps of Engineers, which is leading the federal power restoration effort, said it plans to boost the size of a key contract awarded to Fluor Corp by $600 million, to $840 million, according to a government filing.

The Army Corps said it was modifying the contract to ensure “continued execution of the critical repair and restoration of the electric power grid in Puerto Rico.”

It comes a day after Puerto Rican Governor Ricardo Rossello and the Puerto Rico Electric Power Authority (PREPA) said they would cancel a $300 million contract with Whitefish Energy Holdings, after an uproar over the deal’s provisions and the tiny Montana company’s lack of experience with projects of such a large size.

Fluor, which declined comment, was already in the process of bringing in people to help restore transmission and distribution of power to the U.S. territory. Hurricane Maria knocked out power to all 3.4 million residents of Puerto Rico, and only about 30 percent of power has been restored nearly six weeks later.

The Army Corps’ action on Monday signals that Fluor is now the primary contractor on Puerto Rico. The Army Corps awarded the original $240 million Fluor contract. The more controversial Whitefish contract was handled directly with PREPA.

The Whitefish deal came under fire after it was revealed last week that the terms were obtained without a competitive public bidding process. Residents, local officials and U.S. federal authorities all criticized the arrangement.

Conflict over who should lead the process of restoration and oversee PREPA has hampered efforts. PREPA, the island’s bankrupt power utility, and the governor have argued that the utility should maintain control, while a fiscal control board created by U.S. Congress last year to restructure the island’s finances has also jockeyed for control.

“PREPA and the governor of Puerto Rico and the administration here need to make a decision on who is in charge of PREPA,” said Ariel Horowitz of Synapse Energy Economics, a consultant to Puerto Rico’s energy regulator.

Puerto Rico’s energy commission, a small regulatory board tasked with overseeing PREPA, has the option of assigning an independent adviser to monitor progress in restoring the grid, but has not done so yet.

ISOLATION A PROBLEM

Currently, there are about 400 subcontracting crews on the island working to bring back power. Rossello said he wants to have 1,000 crews by Nov. 8, leaning on so-called mutual aid from utilities in New York and Florida, which have crews on the island.

Getting assistance from other utilities, which usually help one another after storms, may continue to be complicated by Puerto Rico’s isolation and lack of investment in its system.

A private sector source, who could not be named, said the transition from Whitefish, should it be handled smoothly, will hopefully accelerate the restoration of power. He said PREPA’S goal of restoring 95 percent of power by mid-December – a full three months after the hurricane – is slow for a typical utility.

PREPA did not respond to a request for comment.

Whitefish said it has completed significant work on two major transmission lines that crossed over the mountains of Puerto Rico. A person familiar with PREPA’s operations said on Monday that Whitefish would complete work on critical lines despite the cancellation of the contract.

Several other utilities are on the island, as well as private contractors that include Southern Co’s PowerSecure unit and Fluor.

An Army Corps spokesman said the Corps is not currently planning on hiring those reporting to Whitefish, but the subcontractors – Fluor and PowerSecure – might. Officials at Fluor and Southern did not comment on that possibility.

JEA, the municipal utility for Jacksonville, Florida, said it would keep its crew of about 40 people on the island, even if it no longer reports to Whitefish.

(Reporting by Jessica Resnick-Ault and Scott DiSavino; Additional reporting by Nick Brown; Editing by David Gaffen and Leslie Adler)

Tiny Montana firm’s Puerto Rico power deal draws scrutiny

A pick up from Montana-based Whitefish Energy Holdings is parked as workers (not pictured) help fix the island's power grid, damaged during Hurricane Maria in September, in Manati, Puerto Rico October 25, 2017. REUTERS/Alvin Baez

By Susan Heavey, Richard Cowan and Scott DiSavino

WASHINGTON/NEW YORK (Reuters) – Federal emergency officials raised “significant concerns” on Friday about a $300 million contract between Puerto Rico’s storm-hit power utility and a tiny Montana firm, as Democratic lawmakers stepped up calls for an investigation of the deal.

The Federal Emergency Management Agency said in a statement that after its initial review it “has not confirmed whether the contract prices are reasonable” under the agreement between Puerto Rico Electric Power Authority and Whitefish Energy Holdings, a two-year-old firm with just two full-time employees.

The contract between PREPA and Whitefish was awarded without a competitive bidding process.

Whitefish spokesman Ken Luce said the deal was secured when its chief executive and co-owner, Andy Techmanski, flew to Puerto Rico on Sept. 26, six days after Hurricane Maria tore into the bankrupt U.S. territory and knocked out power to all 3.4 million residents.

The contract, and the slow restoration of power on the island, has raised questions about who is effectively managing PREPA’s response to the hurricane, as about 75 percent of homes and businesses still lack electricity after several weeks.

Jose Roman, interim chairman of Puerto Rico’s Energy Commission, said the commission is looking into how Whitefish got the contract as part of a larger investigation to “determine the prudence of the actions of PREPA; not just the Whitefish contract,” he said.

PREPA did not respond to requests for comment.

Puerto Rico’s financial oversight board earlier this week said it would appoint an emergency manager to oversee PREPA, though that has met with pushback from Governor Ricardo Rossello, who may challenge such an effort in court.

It took more than a week after Maria hit the island for a damage assessment to be completed by PREPA, the chronically underfunded state utility. Eventually, FEMA put the U.S. Army Corps of Engineers in charge of short-term power restoration.

ZINKE: I HAD “NOTHING TO DO” WITH CONTRACT

A growing number of U.S. lawmakers have raised questions about the contract, the slow pace of power restoration, and Interior Secretary Ryan Zinke’s connections with Whitefish.

Representative Raul Grijalva, the senior Democrat on the Natural Resources Committee, and Representative Peter DeFazio, the top Democrat on the Transportation Committee, asked the Department of Homeland Security’s inspector general in a letter to investigate the contract’s execution, its terms, and “whether there was any political impetus behind the contract.”

The representatives noted that Whitefish is based in Zinke’s hometown and that Zinke’s son once worked for Whitefish. The letter also stated that a Whitefish financial backer, HBC Investments, was founded by Joe Colonnetta, a contributor to President Donald Trump’s campaign, as well as “many other Republican candidates.”

Zinke said in a release that “I had absolutely nothing to do with Whitefish Energy receiving a contract in Puerto Rico.” After the initial contract was awarded, “I was contacted by the company, on which I took no action,” he said.

White House spokesman Raj Shah said that the administration’s “understanding” was that the contract was awarded solely by PREPA, and they are “not aware of any federal involvement” in the deal.

U.S. Senate Democrats urged FEMA and the U.S. Army Corps of Engineers in a letter to unify efforts to restore power on the island.

They also called on FEMA and PREPA to name a top official to oversee all electrical contracts, and urged federal officials to more quickly clear crews from two companies, Fluor Corp <FLR.N> and PowerSecure, so they can begin restoration work.

Several utilities are involved in restoration, including Fluor, Whitefish, JEA, New York Power Authority, and others. Whitefish and its subcontractors have more than 300 people on the island, Luce said.

Techmanski first got in touch with PREPA following Hurricane Irma, during a bidding process to repair damages from that storm, which hit Puerto Rico two weeks before Maria, Luce said.

A copy of the contract surfaced online Thursday night, raising more questions, particularly over language blocking oversight of costs and profits.

“In no event shall PREPA, the Commonwealth of Puerto Rico, the FEMA administrator, the Comptroller General of the United States or any other authorized representatives have the right to audit or review the cost and profit elements,” said the document, published by several media outlets, whose authenticity was confirmed by Democratic staffers for the Natural Resources Committee.

House Democratic Leader Nancy Pelosi called for the immediate termination of the contract, saying “no federally-funded contract should be immune from routine oversight or circumvent a federal audit.”

Costs listed for hourly wages ranged in the hundreds of dollars and daily per diems of more than $330 for accommodations and nearly $80 for food, according to the “bid schedule” published online. The document put the cost of one-way airline flights for employees at $1,000.

Luce defended the deal, saying the company welcomed an audit or questions from Washington. “The contract was done in good faith with PREPA,” he said.

Rossello has also defended the contract, even as he ordered an audit. Initial results of the audit are expected to be released later on Friday, according to NBC News.

(Reporting by Susan Heavey, Richard Cowan, Timothy Gardner; additional reporting by Scott DiSavino, Jessica Resnick-Ault and Nicholas Brown; editing by Tom Brown and Diane Craft)

House panels seek documents on Puerto Rico utility deal

WASHINGTON (Reuters) – A U.S. congressional committee on Thursday set a Nov. 2 deadline for the Puerto Rico Electric Power Authority (PREPA) to provide information related to its $300 million contract with a small Montana firm to repair damage to the utility’s infrastructure caused by Hurricane Maria.

“Specifically, the size and terms of the contract, as well as the circumstances surrounding the contract’s formation, raise questions regarding PREPA’s standard contract awarding procedures,” the chairman of the House Natural Resources Committee, Rob Bishop, said in a letter to PREPA’s executive director, Ricardo Ramos.

Media reports that Whitefish Energy Holdings entered the contract with PREPA to fix the utility’s power grid raised questions among Democrats in Congress and others when it was disclosed that the Montana firm won the contract without a competitive bidding process.

The two-year-old company had only two full-time employees and was rapidly hiring workers to tackle the job of patching up the destroyed power grid that has left most of the U.S. territory without electricity for weeks following the destructive hurricane.

While Bishop’s letter said emergency circumstances could “necessitate” emergency relief contracts, “Transparency and accountability in government contracting, however, is not to be compromised.”

Separately, U.S. Representatives including Greg Walden, a Republican, and Frank Pallone, a Democrat, asked Whitefish in a letter to provide documents related to the contract to the Energy and Commerce committee before Nov. 9.

Whitefish founding partner Ken Luce said his company appreciated the efforts to gather information so lawmakers have “confidence in the overall process to support the people of Puerto Rico” and Whitefish’s capabilities.

And two Democratic U.S. senators urged the head of a congressional watchdog office to probe the PREPA contract, saying they were concerned about the bidding process and potential high costs.

Senators Maria Cantwell and Ron Wyden wrote a letter to Eugene Dodaro, the U.S. comptroller general at the non-partisan Government Accountability Office, a copy of which was seen by Reuters.

The senators said they were also concerned about reports of “contemporaneous communications between Whitefish and senior members of the federal executive branch, including Secretary of the Interior Ryan Zinke,” as the contract was being discussed.

A Washington Post report this week said the chief executive of Whitefish, Andy Techmanski, and Zinke acknowledged that they know each other and that one of the secretary’s sons worked at one of Techmanski’s construction sites. Both Zinke’s office and Techmanski said the secretary had no role in Whitefish securing the contract.

The Interior Department did not immediately respond to a request for comment on the senators’ letter.

Puerto Rico Governor Ricardo Rossello has defended the contract saying it was necessary to put workers in place quickly. Whitefish, which has hired workers mostly through subcontracts, has called criticism “unfounded.”

(Reporting by Richard Cowan, Timothy Gardner and Nick Brown in New York; Editing by Richard Chang and Tom Brown)

Puerto Rico oversight panel seeks outside manager for power utility PREPA

Workers from Montana-based Whitefish Energy Holdings help fix the island's power grid, damaged during Hurricane Maria in September, in Manati, Puerto Rico October 25, 2017. REUTERS/Alvin Baez

By Nick Brown

NEW YORK (Reuters) – The federal board overseeing Puerto Rico’s finances said on Wednesday it intends to appoint an outside manager to lead the island’s power utility, PREPA, in cleanup efforts following Hurricane Maria.

But Puerto Rico’s government is pushing back on the move, and may challenge it in court as an unauthorized power grab, according to a source familiar with Governor Ricardo Rossello’s thinking.

The board, in a written statement, announced “intent to appoint” retired U.S. Air Force Colonel Noel Zamot as PREPA’s chief transformation officer.

Zamot, who has worked with the board in a separate capacity, would be responsible for expediting reconstruction efforts, the board said.

U.S. lawmakers have criticized PREPA’s hiring of Montana-based Whitefish Energy Holdings to help fix the island’s power grid, decimated when Hurricane Maria made landfall on Sept. 20. Some Congress members were concerned that Whitefish was hired without a bidding process, and despite the fact that the two-year-old firm had only two full-time employees.

The controversy reawakened feelings among lawmakers and Puerto Rican investors that officials at PREPA are not competent to lead the quasi-public utility, whose $9 billion debt load pushed it into bankruptcy in July.

The storm cut power to the entire island. As of Monday, just 18 percent had been restored, according to U.S. Department of Energy data.

The board’s announcement on Wednesday was also reigniting an ongoing power struggle between Puerto Rico’s government and the board appointed last year to manage the island’s precarious finances.

Created under a federal Puerto Rico rescue law known as PROMESA, the board is to help Puerto Rico regain access to capital markets after it filed the largest-ever U.S. government bankruptcy in May.

The island, trudging through a decade-long recession, has $72 billion in debt and near-insolvent public health and pension systems.

Rossello and the board have clashed, including on austerity measures like public employee furloughs.

In a statement on Wednesday, Rossello said the board’s powers are limited by law to financial issues, while management of island agencies “rests exclusively on democratically elected officials.”

“Puerto Rico will be zealous in defending the people from any action that seeks to undermine this process,” Rossello said in a statement in Spanish.

The source familiar with Rossello’s thinking told Reuters his administration may challenge in court the board’s authority to appoint an outside manager at PREPA.

“It might have to be challenged in court, and the government is willing to go that way,” said the source, who was not authorized to speak to media and requested anonymity.

Rossello’s administration separately has its own concerns about Whitefish and the lack of transparency surrounding its PREPA contract, and plans to investigate those issues, the source said.

(Reporting by Nick Brown; Editing by James Dalgleish and David Gregorio)

Lloyd’s of London estimates Maria claims of $900 mln, cuts Harvey, Irma estimates

Buildings damaged by Hurricane Maria are seen in Lares, Puerto Rico, October 6, 2017. REUTERS/Lucas Jackson

LONDON (Reuters) – Lloyd’s of London estimated net claims of $900 million for Hurricane Maria, which caused devastation in Puerto Rico last month, the specialist insurance market said on Monday.

Lloyd’s also revised down its net claims estimates for hurricanes Harvey and Irma, which hit the United States in recent weeks, to $3.9 billion from initial estimates of $4.5 billion.

Insurers and reinsurers are counting the costs of the three hurricanes, which together with earthquakes in Mexico and wildfires in California, are adding up to a heavy year for natural catastrophe losses.

Lloyd’s said it had already paid $900 million in claims for the three hurricanes.

“We are experiencing one of the most active hurricane seasons this century,” Jon Hancock, Lloyd’s performance management director said.

“While it is clear that these catastrophes will bear a heavy toll, the claims are spread across the entire Lloyd’s market, which has total net financial resources of 28 billion pounds ($36.92 billion).”

Hancock said that while Lloyd’s was cutting its earlier estimates for Harvey and Irma, “this is a developing situation and there continues to be a high degree of uncertainty around any claims estimate”.

(Reporting by Carolyn Cohn; editing by Maiya Keidan)

Schumer calls on Trump to appoint official to oversee Puerto Rico relief

Senate Minority Leader Charles Schumer (D-NY) departs after a full-Senate briefing by Deputy U.S. Attorney General Rod Rosenstein at the U.S. Capitol in Washington

By Pete Schroeder

WASHINGTON (Reuters) – Charles Schumer, the top Democrat in the U.S. Senate, called on President Donald Trump on Sunday to name a single official to oversee and coordinate relief efforts in hurricane-ravaged Puerto Rico.

Schumer, along with Representatives Nydia Velàzquez and Jose Serrano, said a “CEO of response and recovery” is needed to manage the complex and ongoing federal response in the territory, where millions of Americans remain without power and supplies.

In a statement, Schumer said the current federal response to Hurricane Maria’s impact on the island had been “disorganized, slow-footed and mismanaged.”

“This person will have the ability to bring all the federal agencies together, cut red tape on the public and private side, help turn the lights back on, get clean water flowing and help bring about recovery for millions of Americans who have gone too long in some of the worst conditions,” he said.

The White House did not immediately respond to a request for comment.

The Democrats contended that naming a lone individual to manage the government’s relief efforts was critical, particularly given that the Federal Emergency Management Agency is already stretched thin from dealing with other crises, such as the aftermath of Hurricane Harvey in Texas and the wildfires in California.

The severity of the Puerto Rico crisis, where a million people do not have clean water and millions are without power nearly a month after Hurricane Maria made landfall, demand a single person to focus exclusively on relief and recovery, the Democrats said.

Forty-nine people have died in Puerto Rico officially, with dozens more missing. The hurricane did extensive damage to the island’s power grid, destroying homes, roads and other vital infrastructure. Now, the bankrupt territory is struggling to provide basic services like running water, and pay its bills.

“It’s tragically clear this Administration was caught flat footed when Maria hit Puerto Rico,” said Velàzquez. “Appointing a CEO of Response and Recovery will, at last, put one person with authority in charge to manage the response and ensure we are finally getting the people of Puerto Rico the aid they need.”

On Thursday, Trump said the federal response has been a “10” on a scale of one to 10 at a meeting with Puerto Rico Governor Ricardo Rossello.

The governor has asked the White House and Congress for at least $4.6 billion in block grants and other types of funding.

Senator Marco Rubio called on Congress to modify an $18.7 billion aid package for areas damaged by a recent swath of hurricanes to ensure that Puerto Rico can quickly access the funds.

(Reporting by Pete Schroeder; Editing by Lisa Von Ahn and Diane Craft)

Plane by plane, New York greets Puerto Ricans displaced by hurricane

By Jonathan Allen

NEW YORK (Reuters) – There were only a few minutes left before baggage carousel No. 4 jolted to life at John F. Kennedy International Airport, soon to be ringed with people coming from Puerto Rico on one-way tickets they never would have bought if not for the hurricane.

Moving at a canter, Emily Pagan and three colleagues from various New York state government agencies carted their fold-up table halfway down the Terminal 5 arrivals hall, setting it up by the carousel against a pillar.

They had volunteered to help orient the latest batch of the tens of thousands of Puerto Ricans that New York officials estimate will flee from the lingering devastation wrought a month ago by Hurricane Maria.

Many are expected to stay for months – or years – and some forever, in a largely reluctant wave of migration abetted by the spare mattresses and couches of the one million Puerto Ricans who already call the New York area home.

“A lot of them are saying they came to start a new life here because they lost everything,” Pagan said on her third day of greeting arrivals from the U.S. territory, where the power grid and water supply remain in disarray.

She tried to make the makeshift help desk look nice, centering a bowl of mints and squaring off the piles of leaflets about health and job resources.

A clipboard wedged into her elbow, Pagan hurried up to anyone who looked like they were waiting for relatives from the island, flipping between English and Spanish: “Hi, I’m Emily, and I represent the state.”

Lissette Feliciano, who had driven down from Bridgeport, Connecticut, was among those grateful for a leaflet. Then bags began thudding onto the carousel and the automatic doors slid open to admit her 10-year-old nephew, sporting an Incredible Hulk T-shirt, alongside her youngest sister, Madeline Feliciano.

The nephew, Carlos, grinned as he was nuzzled by his aunt. It was their first time leaving the island. They never expected an airplane cabin would be so cold, he said, shivering.

“I’m so-so,” his mother said, looking daunted.

Many Puerto Rican families are divided between those who prefer the island’s warmth and those who cannot understand why one would not move to the mainland’s hustle, as Lissette did seven years ago. But the storm put those disagreements on hold.

“Four days, no running water,” Madeline said of their hometown, Isabela. She did not know when they could return.

“They’ll stay with me until we can find something for her,” said Lissette, who had already found a bilingual school for Carlos.

They headed out, with Madeline and Carlos added to the tally on Pagan’s clipboard.

People gravitated toward Pagan and her purple top bearing the logo of New York’s Office of Temporary and Disability Assistance, where she normally works as a compliance officer.

Born in Puerto Rico, Pagan, 42, listened to the accounts of each new arrival that made her beautiful native island seem unfamiliar: no water, no power, no green left on the tropical trees, no sort of place where a child or grandparent could thrive.

“It’s heartbreaking,” she said between flights. But she tried to put on a welcoming face, slipping lollipops to children before moving on to the next family. She was yet to meet anyone without relatives to stay with, but younger adults seemed worried about finding jobs in a place where they had never planned to live.

Pagan cooed at the green eyes of a 7-year-old boy called Jayden with a Transformers backpack. “You speak English!” she said after the boy squirmed at the compliment. “You understand everything I say!”

Jayden’s father, Joemil Ramirez, was returning to New York City, where he was raised, for only three weeks, partly for its functional telephone network. Much of that time he expected to spend making calls trying to salvage his hurricane-ravaged restaurant in Rincon. But when he returned, he would be leaving behind Jayden, who would move in with the boy’s mother, from whom Ramirez was separated.

“There’s no place for him to be, no school,” Ramirez said. “It’s a situation I wouldn’t give to my own worst enemy.”

Genoveva Mendez, 48, watched the carousel from her wheelchair. She had been undergoing physical therapy three times a week following a stroke, but Maria halted that.

“We had to force her,” said her daughter, Jessenia Lalama. Mendez had refused the offer of a ticket to New York for weeks.

“I like the island, the island’s beautiful,” Mendez said, becoming tearful at the memory of her home before the hurricane.

When the hall emptied, a lone suitcase remained on the carousel as Pagan and her colleagues carried their table back to the corner, ready to greet the next day’s flights.

(Reporting by Jonathan Allen; Editing by Daniel Wallis and Dan Grebler)

Trump says he will work with Congress on more aid for Puerto Rico

By Roberta Rampton

WASHINGTON (Reuters) – President Donald Trump said on Thursday he will work with the U.S. Congress to approve grants and loans to help rebuild Puerto Rico after it was devastated by Hurricane Maria a month ago.

Already mired in debt after years of recession, the U.S. territory faces storm-related damages that some estimates have pegged as high as $95 billion, and has asked the federal government to make exceptions to rules that typically require states and local governments to shoulder part of the cost of recovery.

Trump did not give any specifics about how much money the government may give or loan to the cash-strapped territory, home to 3.4 million U.S. citizens.

“I have given my blessing to Congress, and Congress is working with you and your representatives on coming up with a plan and a payment plan and how it’s all going to be funded. Because you are talking about some substantial numbers,” Trump said to Puerto Rico Governor Ricardo Rossello at the beginning of an Oval Office meeting.

Trump and some of his top aides suggested last week that there would be limits to how much help Puerto Rico could expect from Washington. But on Thursday, the president’s remarks were broadly supportive.

The hurricane laid waste to the island’s power grid, destroying homes, roads and other vital infrastructure. The bankrupt territory is still struggling to provide basic services like running water. An oversight board charged with resolving Puerto Rico’s debt crisis has said the island’s government would run out of money by the end of the month without help.

Trump emphasized that repayment of federal loans and other storm-related debt owed by Puerto Rico would come before repayment of the island’s existing $72 billion in debt.

“Any money that’s put in by people – whether it’s public or private – they’re going to want to come in first position,” Trump said.

“We’re going to coming before – far before – any existing debt that’s on the island,” he said.

Trump declined to opine on whether the process would be easier if Puerto Rico were a state rather than a territory – a hot-button political issue on the island.

“You’ll get me into trouble with that question,” he told a reporter.

SENATE TO VOTE

While in Washington, Rossello also met with Senate leaders. The Senate is expected to vote in coming days on an aid package that includes $18.7 billion for the Federal Emergency Management Agency, which has been helping Texas, Florida, Puerto Rico, and the U.S. Virgin Islands recover from three massive hurricanes.

Some senators would like to see more funds added to that package, Senator John Thune, a member of the Republican leadership, told reporters.

Senator Marco Rubio, a Republican from Florida who has been deeply involved in discussions over the aid, said earlier on Thursday that he wants to tweak the bill so the island could more quickly access funds.

Congress is expected to consider another aid package by the end of December, but that could be too late for the island, which currently has no tax revenue, Rubio said.

“I know from experience the further away we get from these hurricanes, the less of a sense of urgency there is,” Rubio said.

Rossello has asked the federal government for approval to use disaster aid to cover a broad range of costs. He has also asked the White House and Congress for at least $4.6 billion in block grants and other types of funding.

“The reality is that we still need to do a lot more for the people of Puerto Rico and that’s why we’re meeting,” Rossello said.

“This is not over, not over by a long shot.”

(Reporting by Roberta Rampton, Additional reporting by Richard Cowan, Makini Brice and Doina Chiacu; Editing by Dan Grebler and Rosalba O’Brien)

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