U.S. spending bill tackles border, election security: source

FILE PHOTO: U.S. border patrol officers are pictured near a prototype for U.S. President Donald Trump's border wall with Mexico, behind the current border fence in this picture taken from the Mexican side of the border in Tijuana, Mexico

By Richard Cowan

WASHINGTON (Reuters) – A federal government spending deal being worked out in the U.S. Congress includes additional funding to boost border security, protect the upcoming elections in November and rebuild aging infrastructure, a source familiar with the negotiations said on Wednesday.

While the source said a final overall spending agreement had not been reached, other Republican and Democratic congressional aides have told Reuters that leaders plan to unveil their agreement on the $1.3 trillion spending bill later on Wednesday.

Lawmakers in the Republican-controlled Congress have until Friday night to reach a deal before a lapse would force federal agencies to suspend operations. The current plan would provide for government funding through Sept. 30, after a series of short-term funding measures implemented since last fall.

Republican leaders in the House and Senate said on Tuesday they were close to a deal and hoped to complete legislation by Friday as they worked to overcome divisions over several thorny issues such as President Donald Trump’s proposed border wall.

So far, the package provides $1.6 billion for some fencing along the U.S. border with Mexico and other technological border security efforts, the source said.

Trump had sought $25 billion for a full wall, but negotiations fell through to provide more money in exchange for protections for “Dreamers,” young adults who were brought illegally into the United States as children.

The spending plan also provides $307 million more than the Trump administration’s request for the FBI to counter Russian cyber attacks, and $380 million for U.S. states to improve their technology before November’s congressional election, according to the source.

U.S. intelligence agencies have concluded that Russia sought to meddle in the 2016 presidential election campaign, and intelligence chiefs said last month that Russia will seek to interfere in the midterm elections this year by using social media to spread propaganda and misleading reports. Russia has denied any interference.

The planned spending measure allocates $10 billion for spending on infrastructure such as highways, airports and railroads. It also includes money for the so-called Gateway rail tunnel connecting New York and New Jersey, the source said.

Trump has threatened to veto the bill if the Gateway project is included. While its funds remain, they are directed through the U.S. Department of Transportation, rather than provided directly, Politico reported.

Additionally, lawmakers’ added $2.8 billion to address opioid addiction, the source said.

One potential stumbling block includes gun-related provisions prompted by a mass shooting at a Florida high school on Feb. 14 that killed 17 students and faculty members. On Tuesday, as another shooting swept over a high school in Maryland, House Speaker Paul Ryan said lawmakers were still discussing a proposal to improve federal background checks for gun purchases.

Another issue tying up negotiations was tax treatment for grain co-ops versus corporate producers, according to Politico.

(Reporting by Richard Cowan, Susan Heavey, Lisa Lambert; Editing by Doina Chiacu, Bernadette Baum and Frances Kerry)

In a first, U.S. blames Russia for cyber attacks on energy grid

An electrical line technician works on restoring power in Vilonia, Arkansas April 29, 2014. REUTERS/Carlo Alle

By Dustin Volz and Timothy Gardner

WASHINGTON (Reuters) – The Trump administration on Thursday blamed the Russian government for a campaign of cyber attacks stretching back at least two years that targeted the U.S. power grid, marking the first time the United States has publicly accused Moscow of hacking into American energy infrastructure.

Beginning in March 2016, or possibly earlier, Russian government hackers sought to penetrate multiple U.S. critical infrastructure sectors, including energy, nuclear, commercial facilities, water, aviation and manufacturing, according to a U.S. security alert published Thursday.

The Department of Homeland Security and FBI said in the alert that a “multi-stage intrusion campaign by Russian government cyber actors” had targeted the networks of small commercial facilities “where they staged malware, conducted spear phishing, and gained remote access into energy sector networks.” The alert did not name facilities or companies targeted.

The direct condemnation of Moscow represented an escalation in the Trump administration’s attempts to deter Russia’s aggression in cyberspace, after senior U.S. intelligence officials said in recent weeks the Kremlin believes it can launch hacking operations against the West with impunity.

It coincided with a decision Thursday by the U.S. Treasury Department to impose sanctions on 19 Russian people and five groups, including Moscow’s intelligence services, for meddling in the 2016 U.S. presidential election and other malicious cyber attacks.

Russia in the past has denied it has tried to hack into other countries’ infrastructure, and vowed on Thursday to retaliate for the new sanctions.

‘UNPRECEDENTED AND EXTRAORDINARY’

U.S. security officials have long warned that the United States may be vulnerable to debilitating cyber attacks from hostile adversaries. It was not clear what impact the attacks had on the firms that were targeted.

But Thursday’s alert provided a link to an analysis by the U.S. cyber security firm Symantec last fall that said a group it had dubbed Dragonfly had targeted energy companies in the United States and Europe and in some cases broke into the core systems that control the companies’ operations.

Malicious email campaigns dating back to late 2015 were used to gain entry into organizations in the United States, Turkey and Switzerland, and likely other countries, Symantec said at the time, though it did not name Russia as the culprit.

The decision by the United States to publicly attribute hacking attempts of American critical infrastructure was “unprecedented and extraordinary,” said Amit Yoran, a former U.S. official who founded DHS’s Computer Emergency Response Team.

“I have never seen anything like this,” said Yoran, now chief executive of the cyber firm Tenable, said.

A White House National Security Council spokesman did not respond when asked what specifically prompted the public blaming of Russia. U.S. officials have historically been reluctant to call out such activity in part because the United States also spies on infrastructure in other parts of the world.

News of the hacking campaign targeting U.S. power companies first surfaced in June in a confidential alert to industry that described attacks on industrial firms, including nuclear plants, but did not attribute blame.

“People sort of suspected Russia was behind it, but today’s statement from the U.S. government carries a lot of weight,” said Ben Read, manager for cyber espionage analysis with cyber security company FireEye Inc.

ENGINEERS TARGETED

The campaign targeted engineers and technical staff with access to industrial controls, suggesting the hackers were interested in disrupting operations, though FireEye has seen no evidence that they actually took that step, Read said.

A former senior DHS official familiar with the government response to the campaign said that Russia’s targeting of infrastructure networks dropped off after the publication in the fall of Symantec’s research and an October government alert, which detailed technical forensics about the hacking attempts but did not name Russia.

The official declined to say whether the campaign was still ongoing or provide specifics on which targets were breached, or how close hackers may have gotten to operational control systems.

“We did not see them cross into the control networks,” DHS cyber security official Rick Driggers told reporters at a dinner on Thursday evening.

Driggers said he was unaware of any cases of control networks being compromised in the United States and that the breaches were limited to business networks. But, he added, “We know that there is intent there.”

It was not clear what Russia’s motive was. Many cyber security experts and former U.S. officials say such behavior is generally espionage-oriented with the potential, if needed, for sabotage.

Russia has shown a willingness to leverage access into energy networks for damaging effect in the past. Kremlin-linked hackers were widely blamed for two attacks on the Ukrainian energy grid in 2015 and 2016, that caused temporary blackouts for hundreds of thousands of customers and were considered first-of-their-kind assaults.

Senator Maria Cantwell, the top Democrat on the Senate Energy and Natural Resources Committee, asked the Trump administration earlier this month to provide a threat assessment gauging Russian capabilities to breach the U.S. electric grid.

It was the third time Cantwell and other senators had asked for such a review. The administration has not yet responded, a spokesman for Cantwell’s office said on Thursday.

Last July, there were news reports that the Wolf Creek Nuclear Operating Corp, which operates a nuclear plant in Kansas, had been targeted by hackers from an unknown origin.

Spokeswoman Jenny Hageman declined to say at the time if the plant had been hacked but said that there had been no operational impact to the plant because operational computer systems were separate from the corporate network. Hageman on Thursday said the company does not comment on security matters.

John Keeley, a spokesman for the industry group the Nuclear Energy Institute, said: “There has been no successful cyber attack against any U.S. nuclear facility, including Wolf Creek.”

(Reporting by Dustin Volz and Timothy Gardner, additional reporting by Jim Finkle; Editing by Tom Brown, Alistair Bell and Cynthia Osterman)

Trump budget plan to seek funds for border wall, infrastructure, opioid treatment

Copies of the President Trump's FY 2019 budget proposal are delivered to the U.S. House Budget Committee offices on Capitol Hill in Washington, U.S. February 12, 2018.

By Ginger Gibson

WASHINGTON (Reuters) – President Donald Trump will unveil his second budget on Monday, seeking to make good on his promise to bolster military spending and requesting funds for infrastructure, construction of a wall along the border with Mexico and opioid treatment programs.

The budget plan, which is viewed largely as suggestions by Congress, which has the constitutional authority to decide spending levels, will likely draw criticism from conservatives who worry that Republicans are embracing deficit spending.

The proposal will include $200 billion for infrastructure spending and more than $23 billion for border security and immigration enforcement, Mick Mulvaney, who heads the administration’s budget office, said in a statement on Sunday night.

It will also provide “for a robust and rebuilt national defense,” he said.

But the statement added that the proposal would recommend cuts that would lower the deficit by $3 trillion over 10 years.

“The budget does bend the trajectory down,” Mulvaney told the “Fox News Sunday” program earlier on Sunday. “It does move us back towards balance. It does get us away from trillion-dollar deficits.”

The budget request will be delivered to Congress only days after Trump signed off on a bipartisan spending agreement hammered out by lawmakers that will increase domestic spending by $300 billion over two years – including $165 billion in defense spending and $131 billion in non-military domestic spending.

The White House plans to amend its request to take into account the higher spending levels in the agreement that passed on Friday, a senior official in the Office of Management and Budget said.

Mulvaney said on Sunday all that money did not need to be spent.

“These are spending caps,” Mulvaney said. “They are not spending floors. You don’t have to spend all that.”

The spending deal will add to the annual budget deficit, which will now exceed $1 trillion in 2019, said the Committee for a Responsible Federal Budget watchdog group.

Trump’s previous budget was criticized for recommending cuts to spending to achieve deficit reduction that ultimately even members of his own Republican Party thought were untenable.

“I hope the budget that we see is workable and recognizes the landscape we’re in,” said Senator Lisa Murkowski, a Republican member of the Appropriations Committee. “A lot of times, what you have is a budget that even the Cabinet secretaries can’t defend.”

DEFICIT DEBATE

“The president’s budget is always a list of pretty good suggestions. It’s not ‘the’ budget,” said Senate Budget Chairman Mike Enzi.

This year’s budget is likely to stoke debates about deficits that began when Congress passed a tax overhaul in December. The tax cuts in the legislation contained no corresponding reductions in spending and instead relied on arguments that the lower rates would stoke economic growth.

Trump’s budget will include a number of economic forecasts and is expected to rely on estimates that the economy will keep growing at a rapid pace for the foreseeable future.

Such forecasts could obscure the level of deficit spending, said Robert Greenstein, president of the progressive Center for Budget Policy and Priorities.

“It’ll essentially be another budget gimmick, alongside rosy economic assumptions, to make the deficit smaller than it will actually be,” Greenstein said.

The budget proposal will include two key elements – $18 billion over two years for Trump’s long-promised border wall and $200 billion in federal funds to spur $1.5 trillion in infrastructure investments over the next 10 years with state, local and private partners, Mulvaney’s statement said.

Trump promised during the 2016 campaign that Mexico would pay for the border wall, which the Mexican government has insisted it will not do.

Democrats oppose the wall, which Trump has said is aimed at keeping out illegal immigrants and drug smugglers.

The budget will also seek some $13 billion in new funding over the next two years to combat the opioid epidemic.

In addition, it will request $85.5 billion for veterans’ health, the administration said.

(Reporting by Ginger Gibson; Additional reporting by David Morgan and Katanga Johnson; Editing by Doina Chiacu and Peter Cooney)

UK defence minister says Russia looking to cause thousands of deaths in Britain

Russian President Vladimir Putin meets with employees during a visit to the Gorbunov Aviation factory in Kazan, Russia January 25, 2018. Sputnik/Alexei Nikolsky/Kremlin via

LONDON (Reuters) – Britain’s defence minister warned that Russia was looking to damage the British economy by attacking its infrastructure, a move he said could cause “thousands and thousands and thousands of deaths”, The Telegraph newspaper reported.

Relations between Russia and Britain are strained. Prime Minister Theresa May last year accused Moscow of military aggression and in December, Foreign Secretary Boris Johnson said there was evidence showing Russian meddling in Western elections.

Britain has also scrambled jets in recent months to intercept Russian jets near the United Kingdom’s airspace.

“The plan for the Russians won’t be for landing craft to appear in the South Bay in Scarborough, and off Brighton Beach,” defence minister Gavin Williamson, tipped as a possible successor to May, was quoted as saying by The Telegraph.

“What they are looking at doing is they are going to be thinking ‘How can we just cause so much pain to Britain?’. Damage its economy, rip its infrastructure apart, actually cause thousands and thousands and thousands of deaths, but actually have an element of creating total chaos within the country.”

The Kremlin, which under Vladimir Putin has clawed back some of the global influence lost when the Soviet Union collapsed, has denied meddling in elections in the West. It says anti-Russian hysteria is sweeping through the United States and Europe.

Williamson said Russia was look at ways to attack Britain.

“Why would they keep photographing and looking at power stations, why are they looking at the interconnectors that bring so much electricity and so much energy into our country,” he was quoted as saying.

“If you could imagine the domestic and industrial chaos that this would actually cause. What they would do is cause the chaos and then step back.”

“This is the real threat that I believe the country is facing at the moment,” he said.

The Russian Defence Ministry said on Friday that Williamson’s comments showed he had lost his understanding of what was reasonable, RIA news agency reported.

“It is likely he has lost his grasp on reason,” RIA quoted ministry spokesman Igor Konashenkov as saying.

(Reporting by Costas Pitas; editing by Stephen Addison)

Schumer calls on Trump to appoint official to oversee Puerto Rico relief

Senate Minority Leader Charles Schumer (D-NY) departs after a full-Senate briefing by Deputy U.S. Attorney General Rod Rosenstein at the U.S. Capitol in Washington

By Pete Schroeder

WASHINGTON (Reuters) – Charles Schumer, the top Democrat in the U.S. Senate, called on President Donald Trump on Sunday to name a single official to oversee and coordinate relief efforts in hurricane-ravaged Puerto Rico.

Schumer, along with Representatives Nydia Velàzquez and Jose Serrano, said a “CEO of response and recovery” is needed to manage the complex and ongoing federal response in the territory, where millions of Americans remain without power and supplies.

In a statement, Schumer said the current federal response to Hurricane Maria’s impact on the island had been “disorganized, slow-footed and mismanaged.”

“This person will have the ability to bring all the federal agencies together, cut red tape on the public and private side, help turn the lights back on, get clean water flowing and help bring about recovery for millions of Americans who have gone too long in some of the worst conditions,” he said.

The White House did not immediately respond to a request for comment.

The Democrats contended that naming a lone individual to manage the government’s relief efforts was critical, particularly given that the Federal Emergency Management Agency is already stretched thin from dealing with other crises, such as the aftermath of Hurricane Harvey in Texas and the wildfires in California.

The severity of the Puerto Rico crisis, where a million people do not have clean water and millions are without power nearly a month after Hurricane Maria made landfall, demand a single person to focus exclusively on relief and recovery, the Democrats said.

Forty-nine people have died in Puerto Rico officially, with dozens more missing. The hurricane did extensive damage to the island’s power grid, destroying homes, roads and other vital infrastructure. Now, the bankrupt territory is struggling to provide basic services like running water, and pay its bills.

“It’s tragically clear this Administration was caught flat footed when Maria hit Puerto Rico,” said Velàzquez. “Appointing a CEO of Response and Recovery will, at last, put one person with authority in charge to manage the response and ensure we are finally getting the people of Puerto Rico the aid they need.”

On Thursday, Trump said the federal response has been a “10” on a scale of one to 10 at a meeting with Puerto Rico Governor Ricardo Rossello.

The governor has asked the White House and Congress for at least $4.6 billion in block grants and other types of funding.

Senator Marco Rubio called on Congress to modify an $18.7 billion aid package for areas damaged by a recent swath of hurricanes to ensure that Puerto Rico can quickly access the funds.

 

(Reporting by Pete Schroeder; Editing by Lisa Von Ahn and Diane Craft)

 

White House wants to help states, cities offload infrastructure

FILE PHOTO: An automobile travels in a carpool lane along the highway system into Los Angeles, California, U.S. August 10, 2017. REUTERS/Mike Blake

By David Shepardson

WASHINGTON (Reuters) – U.S. President Donald Trump’s administration told state and local officials on Wednesday that it will use its infrastructure plan to create incentives for the private sector to finance or take over public entities like bridges, tunnels and highways.

Transportation Secretary Elaine Chao and White House budget director Mick Mulvaney told about 150 transportation officials at the White House the administration wants the private sector to play a bigger role in managing and financing public infrastructure.

Mulvaney said the administration wants to give states and cities “incentives to move stuff you might own off of your books and into the private sector.”

He said that would result in states and cities “getting more money to do new stuff.”

The administration has said it wants to spend $200 billion on infrastructure over 10 years, an amount the administration hopes will encourage another $800 billion in infrastructure investment by the private sector, but has not offered a detailed plan. The administration will need congressional approval, and some members of Congress in both parties do not expect to take up the issue until 2018.

“The largest piece of the package is going to be wrapped around incentives,” Mulvaney said.

He said the incentives will work well in densely populated urban areas in airport, bridge, tunnel, port and other projects. It is harder for rural areas to have private sector-backed projects, citing the lack of potential “cash flow,” Mulvaney said. For example, a bridge in a rural area would have less traffic and potentially less likely be a candidate for private funding.

He said the administration plans to target some funds solely for rural infrastructure projects that may not work as private sector-backed projects.

Chao said the plan is not yet final but said states and cities that secure some private-sector financing “will be given higher-priority access to new federal funds.”

Democrats want more direct federal spending. Senate Democratic Leader Charles Schumer has pointed out that the Trump budget unveiled in May cuts $206 billion in infrastructure spending across several Cabinet departments, including $96 billion in planned highway trust fund spending.

“$200 billion is a lot – but it is not $5 trillion, so you still want to be smart with it,” Mulvaney said.

The three-prong infrastructure plan will also include backing for big “transformative” projects, Mulvaney said. Trump wants to look at new ways to build bridges, tunnels and ports.

“The president is very interested in trying to find that transformative, infrastructure technology, that is this close to being ready for market,” Mulvaney said.

(Reporting by David Shepardson; Editing by Jonathan Oatis)

New York commuters endure start of ‘summer of hell’

Commuters wait for track announcements at New York's Pennsylvania Station which began track repairs causing massive disruptions to commuters in New York City, U.S., July 10, 2017.

By Barbara Goldberg and Gabriella Borter

NEW YORK (Reuters) – New York City commuters endured the start to a “summer of hell” on Monday, when track repairs at the nation’s busiest rail hub caused rerouted trains, packed platforms and lengthy delays for tourists, financiers and the working class in the U.S. business capital.

Thousands of riders were funneled into chaotic train depots, but the more apocalyptic warnings proved overstated as other commuters sailed into midtown Manhattan with relative ease, in part because of a substantial public awareness campaign.

State Governor Andrew Cuomo had predicted the partial shutdown at New York’s Pennsylvania Station would cause a “summer of hell” for the 600,000 who ride the train in and out of the station beneath Madison Square Garden.

The national passenger rail corporation Amtrak and regional commuter train operators New Jersey Transit Corp and the Long Island Rail Road all converge on Penn Station. All three canceled some services, rerouted others, and warned travelers to expect delays throughout the duration of the repairs, which began on Monday and are scheduled to be done Sept. 1.

“Welcome to hell,” read the front page of Monday’s New York Post.

The upgrades created disruptions which are expected to cost Manhattan employers about $14.5 million for each hour that commuters are delayed, according to an estimate by the Partnership for New York City.

Rerouted trains dumped masses of passengers at transfer stations such as Hoboken, New Jersey, as many sought alternate routes into the city, including buses, ferries and cars.

“Compared to Europe, I feel like we’re living in the Third World,” said Mark Van Wagner, an artist and art dealer who takes the Long Island Rail Road from Bellport, New York.

The commuter crunch highlights lagging investment in U.S. infrastructure, and especially in New York City, which is dependent on mass transit.

Getting into the city had already been problematic for those who live in the suburbs and in some cases made worse by service interruptions in the city’s creaky subway system.

Even so, Amtrak reported most of its trains ran on time or close to it, and travelers heeded the increased public service announcements and Amtrak representatives who were posted in Penn Station.

While congestion and delays were evident at some points, those on unaffected trains reported a relatively smooth ride.

“I didn’t feel any change. I’ve been using LIRR for the past 11 years and it’s been good,” said Tamer Seoud, chief financial officer for the non-profit Lutheran Social Services of New York.

NJ Transit workers use tape on placards as people arrive to the Hoboken Terminal in New Jersey, U.S., July 10, 2017.

NJ Transit workers use tape on placards as people arrive to the Hoboken Terminal in New Jersey, U.S., July 10, 2017. REUTERS/Eduardo Munoz

At Hoboken station, transit workers bellowed instructions such as “tickets out!” and “this way to 39th street ferry!”

“The plans we put into effect seemed to be working,” New Jersey Transit spokesman Charles Ingoglia said. “And most importantly, our customers seemed to have done their homework and made their choices quickly this morning and got about their business.”

Social media users made a meme of the summer of hell, with J.H. Swanson (@jh_swanson) predicting it would be followed by the “autumn of purgatory.”

Arielle K. (@NYCMermaid1121) tweeted her summer of hell survival kit: “water, oatmeal pack, phone charger & Xanax.”

 

(Additional reporting by Andrew Hofstetter and Amy Tennery; Writing by Daniel Trotta; Editing by Bernadette Baum and Jonathan Oatis)

 

Trump budget to give first look at infrastructure plan

President Donald Trump's FY2018 budget is seen during printing process at the Government Publishing Office in Washington, U.S., May 19, 2017. REUTERS/Yuri Gripas

WASHINGTON (Reuters) – President Donald Trump will propose $200 billion in infrastructure spending over 10 years in his first budget on Tuesday – funding the administration believes will boost private, state and local spending on projects, a White House official said on Friday.

The infrastructure plan, first reported by Bloomberg News, is likely to include funding to encourage state and local governments to lease assets to the private sector to generate funding for other projects.

Trump has long pledged a $1 trillion, 10-year plan to modernize U.S. roads, bridges, airports, the electrical grid and water systems, but has so far been vague on how much of the spending would come from the federal government.

Trump, who leaves on Friday for his first foreign trip, will miss the roll-out of his full budget. He was to meet with his budget director, Mick Mulvaney, on Friday before departing.

The budget will also include details about Trump’s proposals to cut foreign aid and boost military spending. It could provide clues on his plan to cut taxes.

The Washington Post reported that the budget will include funds for a program to give parents six weeks of paid leave after the birth or adoption of a child, expected to cost about $25 billion a year.

While Trump can propose programs, Congress ultimately controls spending and rarely approves White House budget plans as proposed.

Republicans control both the Senate and House of Representatives, but were lukewarm to Trump’s initial “skinny budget” plan for fiscal 2018, released in March.

(Reporting by Roberta Rampton and David Alexander; Editing by Bernadette Baum and Dan Grebler)

U.S. governors want say on Trump’s infrastructure plan

President Donald Trump

CHICAGO (Reuters) – U.S. governors are flagging hundreds of “shovel-ready” projects they regard as high-priority for President Donald Trump’s plan to fix the nation’s infrastructure.

Scott Pattison, executive director of the bipartisan National Governor’s Association, said on Monday his group, at the request of the White House, has assembled a list of 300 projects costing billions of dollars from 43 states and territories, with more expected to come.

“The good part from a bipartisan standpoint is there seems to be full consensus that we have a lot of infrastructure problems in the U.S., a lot of maintenance issues, also things that need building,” he said in an interview.

In his inaugural address Friday, the Republican president said the nation’s infrastructure “has fallen into disrepair and decay.”

“We will build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation,” Trump said.

White House Press Secretary Sean Spicer on Monday told reporters that “infrastructure continues to be a huge priority.”

The American Society of Civil Engineers’ infrastructure report card has estimated the United States needs to invest $3.6 trillion by 2020.

Pattison said while it was still early in the process, disagreements are likely over how to fund infrastructure. He added that governors want “all the tools” to be made available, including cash, municipal bonds, public-private partnerships and federal matching programs.

“One of the biggest issues that has to be faced is that the gas tax has been primarily the way in which we funded a lot of our transportation projects, and that’s a declining revenue source,” Pattison said.

Governors also want to make sure their project priorities are immune from congressional earmarking, Pattison said, adding that states have developed “robust” prioritization programs.

(Reporting by Karen Pierog; Editing by Matthew Lewis)

Nepal says need more aid for quake rebuilding

A man works to rebuild a house a year after the 2015 earthquakes in Bhaktapur

By Gopal Sharma

KATHMANDU (Reuters) – Aid-dependent Nepal needs $7.86 billion over five years, $1.17 billion more than earlier estimates, to rebuild homes and infrastructure destroyed by the deadly earthquake in 2015, the government said on Thursday.

In total, 9,000 people were killed across Nepal in the 7.8 magnitude quake, which the government said had affected 2.8 million of the Himalayan nation’s 28 million population.

International donors, who pledged $4.1 billion for reconstruction last year, have been left frustrated as little of that fund has been spent because of haggling between political parties, leading to a delay in helping millions of survivors.

Authorities said the increase in the amount of aid required was due to a larger scale of destruction than initially projected.

The Red Cross says four million people are still living in poor-quality temporary shelters, posing a threat to their health.

“The increased requirement of funds is due to a rise in the number of people affected,” Prime Minister K.P. Oli told lawmakers in Kathmandu.

“The government will construct community houses and move survivors who are living in the open to roofed shelters,” Oli said.

Reconstruction of private homes will be completed in two years, he added, urging donors to provide additional support for rebuilding.

(Reporting by Gopal Sharma; Editing by Toby Davis)