Senators Ask, Can Territory Lose Billions?

Could the federal government cut funding for a half-built hospital? This concern was raised at Thursday’s Committee on Disaster Recovery, Infrastructure, and Planning hearing, as recent executive orders from President Donald Trump seek to slash federal spending. The Federal Emergency Management Agency (FEMA) is currently obligated to spend over $23 billion on disaster relief in the territory.

Adrienne Williams-Octalien, director of the Office of Disaster Recovery, told senators her biggest concern is that the territory would not show enough progress in projects that include rebuilding schools, hospitals, and utility infrastructure, and funding would be deobligated. Another concern Williams-Octalien had about Trump’s executive orders was the cutting of staff at federal agencies. She said that federal agencies often took a long time to approve payments because those agencies did not have enough staff to process the approvals quickly.

The Virgin Islands government has already felt some effect from Trump’s actions. When he froze all spending, the territory could not draw down promised funds.

Sen. Marvin Blyden said he was “very alarmed” when he read published reports that the Housing and Urban Development Department Secretary Scott Turner would lay off 50 percent of the agency’s employees.