Funding battle looms as Texas sees Harvey damage at up to $180 billion

U.S. Treasury Secretary Steven Mnuchin has challenged Congress to raise the government's debt limit in order to free up relief spending for Hurricane Harvey, a disaster that the governor of Texas said had caused up to $180 billion in damage.

Harvey, which came ashore on Aug. 25 as the most powerful hurricane to hit Texas in more than 50 years, has killed an estimated 50 people, displaced more than 1 million and damaged some 200,000 homes in a path of destruction stretching for more than 480 km kilometers.

As the city of Houston and the region's critical energy infrastructure began to recover nine days after the storm hit, the debate over how to pay for the disaster played out in Washington.  

Texas Governor Greg Abbott estimated damage at $150 billion to $180 billion, calling it more costly than Hurricanes Katrina or Sandy, which devastated New Orleans in 2005 and New York in 2012.

The administration of President Donald Trump has asked Congress for an initial $7.85 billion for recovery efforts, a fraction of what will eventually be needed.

Even that amount could be delayed unless Congress quickly increases the government's debt ceiling, Mnuchin said, as the United States is on track to hit its mandated borrowing limit by the end of the month unless Congress increases it. 

"Without raising the debt limit, I am not comfortable that we will get money to Texas this month to rebuild," Mnuchin told Fox News.

Republican lawmakers, who control both houses of Congress, have traditionally resisted raising the debt ceiling, but linking the issue to Harvey aid could force their hand with people suffering and large areas of the fourth-largest U.S. city under water.

Beyond the immediate funding, any massive...

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