The Herald Bulletin

Overnight Update

Nation & World

September 27, 2013

Feds direct $100M in grants to help broke Detroit

DETROIT — The U.S. government directed more than $100 million in grants Thursday to help bankrupt Detroit tear down vacant buildings and spur job growth, but the help falls far short of the wider bailout some city leaders had sought.

Gene Sperling, chief economic adviser to President Barack Obama, said the administration scrounged through the federal budget and found untapped money that "either had not flowed or had not gotten out or not directed to the top priorities for Detroit."

But considering the Motor City is at least $18 billion in debt, it will take a far larger infusion of cash or historic deals with bond holders, insurance companies and other creditors to correct the problem.

Sperling will join on Friday in Detroit three other top Obama aides — U.S. Attorney General Eric Holder, Transportation Secretary Anthony Foxx and HUD Secretary Shaun Donovan. The closed meeting also will include city and state leaders, and the emergency manager leading Detroit through the largest municipal bankruptcy in U.S. history.

The Obama administration repeatedly has signaled it won't offer a massive federal bailout like the one credited with helping rescue Chrysler and General Motors.

"There is not going to be a bailout," Democratic U.S. Sen. Carl Levin told The Associated Press on Wednesday. "We have enough problems with the federal deficit. We need to be creative and look at existing programs. There are still some funds there."

The funding announced by Sperling will include $65 million in Community Development Block Grants for blight eradication, $25 million in a public-private collaboration for commercial building demolition and nearly $11 million in funds to ensure working families can live in safe neighborhoods.

Holder will announce $3 million that, in part, will be used to hire new police officers. About $25 million also will be expedited to Detroit to hire about 140 firefighters and buy new gear.

Text Only
Nation & World
  • Economy [Duplicate] US job growth eases but tops 200K for a sixth month A sixth straight month of solid 200,000-plus job growth in July reinforced growing evidence that the U.S. economy is accelerating after five years of sluggish expansion.

    August 1, 2014 2 Photos

  • Israel pushes deeper in Gaza after soldier seized Backed by tank fire and airstrikes, Israeli forces pushed deep into southern Gaza on Friday, searching for an Israeli army officer believed to be captured by Hamas fighters during deadly clashes that shattered an internationally brokered cease-fire.

    August 1, 2014

  • Gas Prices [Duplicate] Rare summer relief for gasoline prices The gasoline price roller coaster is running a strange course this summer.

    August 1, 2014 1 Photo

  • news_immigratonreform.jpg House GOP weighs tough new immigration bills

    House Republicans pushed legislation on Friday that would clear the way for eventual deportation of more than 500,000 immigrants brought here illegally as kids and address the surge of immigrants at the U.S.-Mexico border.

    August 1, 2014 1 Photo

  • Semi crash coats I-465 in butter

    A semitrailer has overturned on an Indianapolis interstate, spilling what police say are 45,000 pounds of packages of butter and other dairy products.

    August 1, 2014

  • Investigators make it to Ukraine jet crash site

    As fighting raged in eastern Ukraine, an international team of investigators on Thursday reached the crash site of the Malaysia Airline Flight 17 and got a first look at where it was brought down by a missile two weeks ago.

    July 31, 2014

  • Ticket me Elmo? NYC mulls law for impersonators

     New York City officials are turning up the heat on Elmo, Cookie Monster and Statue of Liberty impersonators — Times Square costumed characters who often demand money for posing in photos with tourists.

    July 30, 2014

  • US economy grew at strong 4 percent rate in spring

    After a dismal winter, the U.S. economy sprang back to life in the April-June quarter, growing at a fast 4 percent annual rate on the strength of higher consumer and business spending.

    July 30, 2014

  • Broken water main floods UCLA; 5 people rescued

    A broken water main near the UCLA campus Tuesday sent a geyser of water some 30 feet into the air, trapping people in underground parking garages and covering some of the best-known parts of campus in water, including the school's famed basketball arena.

    July 30, 2014

  • Study: 35 percent in US facing debt collectors

    More than 35 percent of Americans have debts and unpaid bills that have been reported to collection agencies, according to a study released Tuesday by the Urban Institute.

    July 29, 2014