An aid package organised in Washington is on its way to Detroit aimed at helping the bankrupt city cover the cost of basic services such as its police and fire departments, reports said on Friday.
The package was valued at nearly $300 million and comes from federal and state accounts, private businesses and charitable foundations. The funds include money for destroying some of the estimated 78,000 abandoned buildings in the city and hiring as many as 150 firefighters.
Attorney General Eric Holder, who visited the city Friday, announced $1.9 million to cover the hiring of 10 additional Police Officers. Other funding is designated for improving transportation and safety.
In addition, several charitable groups will put millions of dollars into entrepreneurship and creating jobs, the Detroit Free Press said.
Gene Sperling, the Head of President Barack Obama’s National Economic Council, said the administration had found “significant resources” that can be unlocked tp have significant impact on the economy of Detroit.
Detroit, saddled with billions of dollars in debt, filed for bankruptcy protection in July. The city, the centre of the US auto industry, has a population of about 700,000, ranking it 18th-largest in the US. It was once the fourth-largest city in the US with a population of 2 million.