The Jubilee Blog

Senate Passes Puerto Rico Nutritional Assistance in Farm Bill

Puerto Rico Housing Assistance Fails in Senate

The US Senate voted for Puerto Rico disaster relief in the form of food assistance with the passage of the "Farm Bill." The Agriculture and Nutrition Act of 2018 included Senators Marco Rubio and Kirsten Gillibrand's amendment to fund Puerto Rico's Nutritional Assistance Program. 

“More than 700,000 people in Puerto Rico will benefit from the amendment from Senators Rubio and Gillibrand in the Farm Bill," noted Eric LeCompte, Executive Director of Jubilee USA. LeCompte's organization lobbied Congress on the amendment and issued an action alert to secure support for the amendment. “The hurricanes pushed more than half of the island's people into poverty. The food assistance passed in the Senate is urgently needed."

Senators Rubio and Gillibrand introduced the nutritional assistance amendment to the Farm Bill that allows up to $635 million to be spent on Puerto Rico's version of SNAP or the Supplemental Nutrition Assistance Program.

A bill proposed by Senator Bill Nelson of Florida to extend FEMA housing assistance was blocked in the Senate ahead of Thursday's Farm Bill vote. Nelson's Disaster Housing Assistance Act, S2880, sought to establish a pilot program for long-term rental assistance for families affected by natural disasters. FEMA housing assistance will end tomorrow, June 30.

"US citizens continue to suffer across Puerto Rico. The hurricanes ravaged an island already suffering from a severe debt crisis," said LeCompte. "Congress needs to stop petty debates and get relief aid as quickly as possible to the people suffering on the island."

The House passed their version of the agriculture bill last week. A Senate and House conference committee will reconcile the differences between the two bills before it heads to President Trump's desk.

Read Jubilee USA's Puerto Rico Farm Bill Action Alert

New Student Loan Rule Sides with For-Profit Colleges

"If implemented, these rules place a greater burden on students to prove their case for debt relief when for-profit colleges mislead or defraud them," stated Jubilee USA Executive Director Eric LeCompte. LeCompte's organization supported 2016 federal regulations that allowed students to receive debt relief after the collapse of two for-profit schools, ITT Technical Institute and Corinthian Colleges.

Because the bar would be higher for students to prove their case for debt relief under the new rule, the Trump Administration argues federal student debt relief would be reduced by $13 billion over 10 years. The regulations now face a 30 day open federal comment period. If the Administration finalizes the rules, they could go into affect in 2019.

Proyecto de ley del Senado DE EE.UU. le ofrece a Puerto Rico un alivio en su deuda

Una legislación nueva del Senado de EE.UU. le ofrece opciones más a Puerto Rico para recortar su deuda. Los senadores Elizabeth Warren (D-MA), Bernie Sanders (I-VT), Kirsten Gillibrand (D-NY), Ed Markey (D-MA) and Kamala Harris (D-CA) presentaron el proyecto de ley intitulado “Ley para el Alivio a Territorios de EE.UU.”. Si el Congreso de EE.UU. aprobara esta ley, los territorios de los EE.UU. que hayan experimentado un desastre natural, podrían cualificar para recibir un alivio en su deuda.

“Puerto Rico continúa luchando con los resultados causados por los huracanes Irma y María” señaló Roberto O González Nieves, OFM, Arzobispo Metropolitano de San Juan de Puerto Rico. “El impacto de los huracanes fue más agudo en la isla por la la crisis de la deuda pública y las políticas de austeridad fiscal implantadas. Legislación como la presentada en este proyecto de ley, puede proveernos más opciones para obtener un alivio en nuestra deuda y a su vez proveer un incremento en la transparencia en las finanzas públicas de nuestra isla”.

El proyecto de ley también crea una comisión para auditar la deuda, de modo tal, que se puedan identificar las causas de esta última.  Territorios de EE.UU., como por ejemplo Puesto Rico, podrían cualificar para el alivio en su deuda, si dos de los siguientes tres criterios se cumplen. Veamos. Primero, si el territorio ha sufrido una disminución en su población. Segundo, si se encuentra recibiendo ayuda federal para desastres naturales. Tercero, si el total de la deuda por persona excede los $15,000. 

Tanto Puerto Rico como las Islas Vírgenes probablemente cumplen con los requisitos de elegibilidad del proyecto de ley del Senado de EE.UU.  

“Más allá del alivio en su deuda, tanto Puerto Rico como las Islas Vírgenes, necesitan que el Congreso autorice más fondos de ayuda para desastres, para poder reconstruir una infraestructura capaz de soportar tormentas futuras” señaló Eric LeCompte, Director Ejecutivo de Jubilee USA. LeCompte también funge como experto en deuda pública para las Naciones Unidas y a su vez colabora con líderes religiosos de Puerto Rico en busca de una solución para la crisis de la deuda publica en la isla. “Sin un recorte significativo de la deuda publica de Puerto Rico, la esperanza para reducir la alta tasa de pobreza infantil en la isla es muy poca, no menos importante, tan poco se podría alcanzar un crecimiento económico sustentable”. 

Lea la “Ley para el Alivio a Territorios de EE.UU 2018”

Read this release in English

Senate Bill Offers Debt Relief for Puerto Rico

New Senate legislation offers additional options for Puerto Rico to cut its debt. Senators Elizabeth Warren (D-MA), Bernie Sanders (I-VT), Kirsten Gillibrand (D-NY), Ed Markey (D-MA) and Kamala Harris (D-CA) introduced the US Territorial Relief Act. If Congress passes the act, US Territories that experience natural disasters could qualify for debt relief.

"Puerto Rico continues to struggle with the aftermath of Hurricanes Maria and Irma," noted Puerto Rico Archbishop Roberto González Nieves. "The hurricanes were made worse by debt crisis and austerity policies. Legislation such as this, can provide us more options for debt relief and greater transparency in the finances of our island."

The bill also creates an audit commission to study the causes of the debt. US Territories, like Puerto Rico, would qualify for relief if two of three criteria are met. The specific criteria refer to population decrease, receiving federal disaster aid and the total debt per person exceeds $15,000.

 
Both Puerto Rico and the US Virgin Islands likely meet the Senate Bill's eligibility requirements.

“Beyond debt relief, Puerto Rico and the US Virgin Islands still need Congress to authorize more disaster aid to rebuild to withstand the coming storms," stated Jubilee USA Executive Director Eric LeCompte. LeCompte serves on United Nation debt expert groups and works with Puerto Rico religious leaders on resolving the debt crisis. "Without seriously cutting Puerto Rico's debt there is little hope for reducing the high child poverty rate, let alone seeing sustainable economic growth."

Read the U.S. Territorial Relief Act of 2018 

Lea este comunicado de prensa en​ ​español

Treasury Takes Aim at Shell Companies

The US Treasury is calling for greater scrutiny into the use of "anonymous" shell companies. Last week, Treasury Secretary Steven Mnuchin urged Congress to quickly pass legislation to make the identity of shell company owners available to law enforcement. 

"Corrupt public officials and scams that exploit vulnerable communities use shell companies to hide their money," noted Eric LeCompte the Executive Director of Jubilee USA, a religious development group. "Congress should pass legislation like the Corporate Transparency Act to protect the vulnerable and shed more light into this secretive world."

The Corporate Transparency Act would disclose the name of the owner who benefits from the shell corporation. In the House, the act was introduced by Representatives Peter King (R-NY) and Carolyn Maloney (D-NY). Senators Marco Rubio (R-FL) and Ron Wyden (D-OR) are lead sponsors of the Senate companion bill.

Mnuchin's public comments come as Treasury's Financial Crimes Enforcement Network (FinCEN) targets money laundering through anonymous shell companies in high-end real-estate deals. FinCEN requires the true identity of a shell company owner be disclosed in real-estate transactions in Florida, New York, Texas, California and Hawaii.