Presidential Candidates Make First Stops in Puerto Rico, Denounce Reported Attempts by the Trump Administration to Block Aid

The 2020 presidential elections are barely two years away, and candidates for the Democratic presidential nomination have already begun making San Juan one of their go-to stops. Former San Antonio Mayor and Secretary of Housing and Urban Development (HUD), Julián Castro, traveled to Puerto Rico and gave a speech before an audience of prominent Latino leaders and Members of the Congressional Hispanic Caucus on the same day he announced his presidential candidacy. He also made remarks on The View criticizing President Donald Trump’s decision to oppose $600 million in additional emergency Nutritional Assistance Program (PAN in Spanish) funding for the Island after the House passed an emergency supplemental bill.

This week also saw Senator Elizabeth Warren (D-MA) hold a town hall at the historic Tapia Theater in Old San Juan. The morning before her visit she released a letter to the White House and HUD demanding answers on the Statement of Administration Policy (SAP) opposing the nutritional assistance funding and seeking clarity on reports stating that White House Chief of Staff Mick Mulvaney ordered a stop to hurricane relief funding for the Commonwealth.

As Leader McConnell is set to bring legislation to reopen the government for a vote, advocates for Puerto Rico were further alarmed since the disaster relief portion of the legislation does not include the House-passed language extending the $600 million in PAN funding for the Island.

Opportunity Zones Attract Attention, Potential Investors to the Island

The regulatory and financial structure of opportunity zones (OZ) is already clear, and supporters believe it’s time to match projects with investors if Puerto Rico wants to get the most out of this federal program. That is the vision behind the Opportunity Zone Investors Conference Puerto Rico, which is scheduled to be held on January 30th starting at 1:00 p.m. at the Condado Vanderbilt hotel, according to its producer Richard Santana, leader of the Colectivo 360 firm. They have already confirmed that several qualified funds from Puerto Rico and the continental United States will appear, including Somera Road, Propel Fund, and Sikari Luxe. In addition, the event appeals to individual investors seeking avenues for capital deployment and the deferral of federal tax payments.

The event will also feature presentations from public sector leaders, such as the Secretary of Economic Development and Trade, Manuel Laboy, to highlight the advantages of local incentives and a pipeline of high impact projects. The OZs—created by the federal tax reform law passed in late 2017—are a mechanism for individuals and companies to reinvest unrealized capital gains in economically depressed communities. Investing in OZs through qualified funds allows investors to defer federal taxes for a minimum of 10 years. More than 94% of the Island is classified as an OZ.

Puerto Rico Authorities Caught Off Guard by Trump Opposition to Emergency Food Assistance, Reported Use of Hurricane Funding for Border Wall

Last week Governor Ricardo Rosselló, Resident Commissioner in Congress Jenniffer González and the rest of the political class in Puerto Rico were surprised with the Trump administration’s official announcement that it opposed a bill passed by the House that would, among other provisions, provide $600 million in additional funding for Puerto Rico’s SNAP equivalent, the Nutritional Assistance Program (PAN in Spanish). The statement by the Office of Management and Budget described the funding provision as “excessive and unnecessary,” without providing evidence for its claim.

The Governor responded on the same day via Facebook, in a video asking President Trump for a meeting to discuss what Rosselló believed was “inaccurate” information passed on to the President regarding the use of federal hurricane disaster funding. According to reports, Trump was told a false allegation that Puerto Rico was using hurricane dollars to pay off the Island’s $70 billion public debt and subsequently ordered the hold on federal relief funding. This sparked the resignation of a HUD Deputy Secretary, who reportedly chose to step down rather than carry out White House Chief of Staff Mick Mulvaney’s order to discontinue the funding.

The Trump administration also reportedly asked the Defense Department to identify more than $13 billion in Army Corps of Engineers funding for Puerto Rico hurricane reconstruction, and other projects, and repurpose it to build President Trump’s Southern Border wall. Rosselló later threatened to sue the Trump Administration if it moved forward with its plans. González said she would meet with White House officials this week to discuss both matters.