President Obama committing $320 million to bail out Detroit.

They’re trying to pretend it’s not a bailout since they’re not actually asking Congress for money and instead using grants and money from cuts to other programs.  That’s all well and good, but it’s still a bailout.

U.S. President Barack Obama is committing at least $320 million to revive bankrupt Detroit, primarily through grants and other programs, to raze blighted buildings, hire police and firefighters and improve transit.

A delegation from Washington led by Attorney General Eric Holder, Housing and Urban Development Secretary Shaun Donovan and Transportation Secretary Anthony Foxx will meet with Michigan and city officials today.

“We’re going to continue to support the efforts under way in Detroit and ensure the federal government is an active partner in supporting the revitalization of the city,” Gene Sperling, director of the National Economic Council and head of an interagency working group on Detroit, said in a statement.

Detroit, once an auto-manufacturing powerhouse, declared the largest U.S. municipal bankruptcy in history on July 18 after years of decline in which its population fell by more than half, to 700,000 from 1.8 million. The city has more than $18 billion in long-term obligations and is plagued by unreliable buses, broken street lights and long waits for police and ambulances. Emergency Manager Kevyn Orr took over city finances in March.

http://www.bloomberg.com/news/2013-09-27/obama-set-to-deliver-320-million-to-aid-bankrupt-detroit.html

 

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2 responses to “President Obama committing $320 million to bail out Detroit.

  1. Thanks for reading and posting DetroitFamily.

    From the article:

    “The White House will commit $150 million for demolition of blighted properties and neighborhood redevelopment, in federal and other funds.”

    “Grants of $65 million and $25.4 million from public and private sources will be used to tear down and refurbish buildings. Detroit has almost 70,000 empty and abandoned homes and 80,000 empty lots, amounting to 20 square miles of vacant land, about the size of Manhattan, according to a Detroit Future City report.”

    “The Obama administration also announced $3 million from the Justice Department for additional police officers, establishing a bike patrol and supporting youth anti-violence programs. The Federal Emergency Management Agency will expedite access to $25 million to hire 150 firefighters and to buy equipment.”

    It sounds like the federal government is now essentially running Detroit.

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