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Federal Audit Finds Only 25% of $14 Billion for Puerto Rico Grid Reached the Island

Slow federal disbursements tied to agency bottlenecks leave reconstruction underfunded, prolonging outages.

FILE - A utility pole with loose cables towers over the home of Jetsabel Osorio in Loiza, Puerto Rico, Thursday, Sept. 15, 2022. (AP Photo/Alejandro Granadillo,File)
FILE - Puerto Rico Electric Power Authority workers repair distribution lines damaged by Hurricane Maria in the Cantera community of San Juan, Puerto Rico, Oct. 19, 2017. (AP Photo/Carlos Giusti, File)

Overview

  • The U.S. Government Accountability Office released an 86‑page audit Wednesday that found roughly 25% of about $14 billion obligated for Puerto Rico’s power grid after Hurricane Maria has been disbursed to the territory.
  • The audit shows large shortfalls by agency: FEMA has disbursed about $2.7 billion of $11 billion obligated, HUD about $589 million of $2.9 billion, and DOE about $255 million of $1 billion.
  • Auditors identified causes that slowed spending, including high staff turnover, lengthy project review processes, PREPA’s more than $10 billion debt restructuring, long lead times for parts, and a June 2025 DHS rule requiring senior signoff that was rescinded in April 2026.
  • DOE redirected roughly $365 million from planned solar work to emergency grid repairs and canceled up to $350 million in solar access grants, and clearing of vegetation on transmission lines has seen limited use of federal funds with only 400 federally funded miles cleared of a 16,000‑mile plan.
  • The GAO urged clearer agency roles and updated FEMA guidance; DOE and DHS concurred with recommendations while DHS emphasized that Puerto Rico’s government remains responsible for a comprehensive rebuild and officials warn outages and slow project delivery will continue to affect residents.