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Reuters
Reuters
Politics
Roberta Rampton

U.S. loan to Puerto Rico a start, but more aid to come: official

A sunken sailboat is seen ahead of a demolished dock following Hurricane Maria in Fajardo, Puerto Rico October 11, 2017. REUTERS/Lucas Jackson

WASHINGTON (Reuters) - The U.S. federal government is working on a long-term plan to help Puerto Rico rebuild after Hurricane Maria tore up the island territory's power grid and other infrastructure three weeks ago, an administration official said on Wednesday.

The U.S. House of Representatives is set to vote on Thursday on a disaster relief bill that includes a $4.9 billion loan for Puerto Rico and the U.S. Virgin Islands as part of a $36.5 billion package to help Americans recover from hurricanes and wildfires.

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

But the loan is intended to be a short-term measure to help the cash-strapped island territory pay urgent bills, the official said, speaking on condition of anonymity.

"The Community Disaster Loan cannot and does not address the recovery, rebuilding and future of Puerto Rico, which the administration intends to address with a more long-term solution in concert with the Puerto Rican government, oversight board, court and Congress," the official said.

The broader package set for the House vote includes $576.6 million for wildfire efforts, $16 billion for the National Flood Insurance program and a provision enabling low-income Puerto Ricans to receive emergency nutrition assistance.

A road is seen washed away by Hurricane Maria, outside the municipality of Barranquitas outside San Juan, Puerto Rico October 11, 2017. REUTERS/Shannon Stapleton

House Speaker Paul Ryan is set to travel to Puerto Rico on Friday with a bipartisan group of lawmakers to see the hurricane damage, a spokesman said.

The White House last week asked government agencies to begin estimating how much money is needed to help hurricane-hit states and territories recover and rebuild.

Puerto Rico, home to 3.4 million American citizens, is in a particular bind, already grappling with nearly $72 billion in debt before Hurricane Maria - the worst storm in almost a century - hit its shores. Estimates of the cost to its economy range as high as $95 billion.

A couple embraces next to the Santa Maria Magdalena de Pazzis Cemetery weeks after Hurricane Maria struck Old San Juan, Puerto Rico, October 11, 2017. REUTERS/Shannon Stapleton

Puerto Rico's Governor Ricardo Rossello has asked for $4.6 billion as a "down payment on hurricane recovery efforts," including $3.2 billion in block grants.

The oversight board charged with resolving Puerto Rico's debt crisis told the U.S. Treasury Department that the island's government would run out of money at the end of the month without help.

The loan is earmarked for payroll and pensions, but cannot be used for debt service.

Men drink beers while sitting amongst boats and coconut palms washed up by Hurricane Maria in Fajardo, Puerto Rico October 11, 2017 REUTERS/Lucas Jackson

(Additional reporting by Richard Cowan and Makini Brice; editing by Jeffrey Benkoe, Bill Trott and G Crosse)

People are seen in silhouette at sunset leaving the San Felipe del Morro Fortress weeks after Hurricane Maria struck Old San Juan, Puerto Rico, October 11, 2017. REUTERS/Shannon Stapleton
A boy jumps down from a boat washed up on shore by Hurricane Maria in Fajardo, Puerto Rico October 11, 2017. REUTERS/Lucas Jackson
A gas station sits in ruins, after Hurricane Maria, in the municipality of Naranjito outside San Juan, Puerto Rico October 11, 2017. REUTERS/Shannon Stapleton
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