His decision, which facilitates the allocation of federal fiscal resources to subnational governments, responds to the consequences of the passage of Hurricane Otis on Oct. 24 and 25, an event that left at least 46 citizens dead and 58 missing people.
Among the most affected localities by the hurricane are Acapulco, Coyuca de Benitez, and Chilpancingo, which is the capital of Guerrero.
Otis made landfall as a category 5 hurricane in Guerrero, where it broke the record for cyclone intensification in Mexico. Authorities are currently coordinating search and rescue efforts in Acapulco, one of the country's most tourist destinations.
On Wednesday, the AMLO administration announced the allocation of US$3.4 billion for repairs and humanitarian assistance in Guerrero. The Fitch agency, however, estimated catastrophic losses caused by Otis at US$16 billion.
The Mexican Welfare Secretary estimates that 222,000 homes are affected, of which 50,000 are completely destroyed. Starting this week, the AMLO administration will provide homeowners of the affected homes with amounts ranging from US$445 to US$3,343.
AMLO also promised to "get Acapulco back on its feet" before Christmas. However, business chambers estimate that it will take about two years for the reconstruction of this coastal city.