Federal audit finds Puerto Rico awaiting billions of dollars nearly a decade after deadly hurricane
Summary
A federal audit found that nearly a decade after Hurricane Maria hit Puerto Rico, only about 25% of the $14 billion in federal funds for the island’s power grid has been spent. The funds are meant to repair and upgrade the electricity system after the hurricane severely damaged it, but many delays and problems have slowed the progress.Key Facts
- Hurricane Maria struck Puerto Rico in September 2017, causing massive power outages lasting almost a year.
- About $14 billion was legally committed by the U.S. government to fix Puerto Rico’s power grid after the hurricane.
- Only around 25% of that money, roughly $3.5 billion, has actually been spent so far.
- The U.S. Federal Emergency Management Agency (FEMA) obligated $11 billion, with only $2.7 billion disbursed to date.
- Delays are due to staff turnover, complicated project reviews, the poor financial health of Puerto Rico’s Electric Power Authority, and strict new spending approval rules that were recently rescinded.
- Puerto Rico’s power authority still has over $10 billion in debt and faces challenges in restructuring it.
- Vegetation overrunning power lines causes about half the current power outages.
- The private company managing power lines, Luma Energy, is involved in legal disputes with the Puerto Rican government.
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