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GAO Audit Finds Only a Quarter of $14 Billion for Puerto Rico Power Recovery Has Been Spent

Stalled federal spending has left Puerto Rico dependent on unreliable power.

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 Government Accountability Office report, which was released Wednesday, found roughly 25 percent of about $14 billion obligated for grid recovery after Hurricane Maria had been disbursed to Puerto Rico.
  • FEMA had disbursed about $2.7 billion of $11 billion it obligated, HUD had released about $589 million of $2.9 billion, and DOE had released about $255 million of $1 billion while redirecting $365 million from solar projects and canceling up to $350 million in solar grants.
  • The GAO said slow progress stems from staffing turnover, lengthy and onerous project reviews, PREPA’s unresolved multi‑billion‑dollar debt, procurement delays for parts and required planned outages, and a DHS policy that had required secretary approval for large expenditures before it was rescinded in April 2026.
  • On-the-ground work has lagged: only about 400 miles of lines were cleared with federal funds by February against a 16,000‑mile plan while Luma Energy reports wider clearing totals and remains in litigation with Puerto Rico’s government.
  • GAO recommended clearer FEMA guidance and a DOE collaboration plan; both agencies agreed with the steps, but the report warns that without faster coordination and spending the territory faces prolonged outages, higher bills for residents, and the risk that rebuilding could stretch for years.