The Trump administration said Monday it has not considered making loan guarantees to companies in which workers have been laid off by companies with terminated or terminated contracts, a move that would put them at risk of being kicked out of the country if they don’t repay the loans.
“The U.S. does not intend to issue any loan guarantees for such companies,” the Department of Housing and Urban Development said in a statement.
The Trump team did not respond to a request for comment.
The announcement comes amid mounting criticism of the Obama administration’s handling of the fallout from the 2016 hurricanes and the wildfires.
The U.K. government has said it will provide more than $1 billion in loans to help companies affected by the disasters.
The White House is seeking to keep the U.N. agency that was responsible for overseeing the payments from having to pick up the tab for the loans, but the Trump administration has said the payments should be made to U.NSO.
That agency is headed by a former Trump appointee, who has said she is not comfortable with the way the U,N.
“If the United Nations were to step up and issue a loan guarantee for a U.s. company, it would be an enormous red flag to me that they would have any intention of doing so,” said Kevin Drum, a former Obama administration spokesman.
The loan guarantees come amid growing concern about the viability of the U.,N.
and its efforts to help victims of the disasters, particularly those who were forced to flee their homes.
The loans are a way for the UNSO to cover the costs of providing the emergency aid to companies.
The money would help companies avoid paying tax on profits earned after they have laid off workers.
“We do not have any plans at this time to provide loan guarantees in these circumstances,” the statement said.