As The Hill reports, the White House has committed $300 million in funding to help the now bankrupt city of Detroit.
Top Obama administration officials will head to Detroit on Friday (Sept 27) to announce nearly $320 million in federal and private aid as the city grapples with the largest municipal bankruptcy in American history.
“We’re going to continue to support the efforts underway in Detroit and ensure the federal government is an active partner in supporting the revitalization of the city," Sperling said. "This effort is about lifting up Detroit, and committing to a shared, long-term investment that will enable the businesses and residents in Detroit to expand opportunity and renew this world-class city.”
The aid, which comes from existing federal spending that is being expedited, pledged and re-purposed, is designed to improve the safety and security of Detroit, which has been devastated by a rapid population decline — and corresponding loss of tax receipts.
In July, White House press secretary Jay Carney said the bankruptcy was “something local leaders and creditors are going to have resolve, but we will be partners in an effort to assist the city and the state as they move forward.”
But he indicated that there would be no large-scale bailout coming. Detroit owes its creditors some $18.5 billion in debt.
“The issue here of the insolvency and dealing with that is one that Detroit and Detroit’s creditors will have to resolve," Carney said. "We will be of assistance in general, both in terms of policy as well as just being a partner with Detroit as Detroit finds its way and moves forward in the coming weeks, months and years."
Yes, $300 million in aid is a tear drop in a lake considering the city is some $19 billion upside down. However, it is my opinion that the federal government may be conjuring some plan to bail out the city and this move represents a toe in the water before they jump in. The statement from White House Press Secretary Carney stating "there would be no large-scale bailout coming" sticks out to me. This may be my own bias but I have learned that when a government official says we are not going to something, they most certainly are planning on it.
Top Obama administration officials will head to Detroit on Friday (Sept 27) to announce nearly $320 million in federal and private aid as the city grapples with the largest municipal bankruptcy in American history.
“We’re going to continue to support the efforts underway in Detroit and ensure the federal government is an active partner in supporting the revitalization of the city," Sperling said. "This effort is about lifting up Detroit, and committing to a shared, long-term investment that will enable the businesses and residents in Detroit to expand opportunity and renew this world-class city.”
The aid, which comes from existing federal spending that is being expedited, pledged and re-purposed, is designed to improve the safety and security of Detroit, which has been devastated by a rapid population decline — and corresponding loss of tax receipts.
In July, White House press secretary Jay Carney said the bankruptcy was “something local leaders and creditors are going to have resolve, but we will be partners in an effort to assist the city and the state as they move forward.”
But he indicated that there would be no large-scale bailout coming. Detroit owes its creditors some $18.5 billion in debt.
“The issue here of the insolvency and dealing with that is one that Detroit and Detroit’s creditors will have to resolve," Carney said. "We will be of assistance in general, both in terms of policy as well as just being a partner with Detroit as Detroit finds its way and moves forward in the coming weeks, months and years."
Yes, $300 million in aid is a tear drop in a lake considering the city is some $19 billion upside down. However, it is my opinion that the federal government may be conjuring some plan to bail out the city and this move represents a toe in the water before they jump in. The statement from White House Press Secretary Carney stating "there would be no large-scale bailout coming" sticks out to me. This may be my own bias but I have learned that when a government official says we are not going to something, they most certainly are planning on it.
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