U.S. federal audit finds Puerto Rico awaiting billions of dollars nearly a decade after deadly hurricane

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)

SAN JUAN, Puerto Rico — A U.S. federal audit released Wednesday found that only 25 per cent of some US$14 billion in federal funds obligated for Puerto Rico’s power grid after Hurricane Maria razed it almost a decade ago has reached the U.S. territory.

Of the $11 billion obligated by the U.S. Federal Emergency Management Agency alone, some $2.7 billion has been disbursed, mostly for things like equipment, materials and architecture and engineering design costs, according to the U.S. Government Accountability Office.

Obligated funds means the government is legally bound to disburse that money for a specific purpose.

The 86-page report is based on an audit from August 2024 to June 2026. It was released by U.S. Democratic lawmakers.

“The people of Puerto Rico have waited nine years for their government to keep its word,” Rep. Jared Hoffman, a California Democrat, said in a statement. “They watched billions get appropriated and almost none of it arrive.”

Hurricane Maria struck Puerto Rico in September 2017 as a powerful Category 4 storm, knocking out power in some neighbourhoods for almost a year – the longest outage in U.S. history. An estimated 2,975 people died in the storm’s sweltering aftermath.

Two weeks before Maria hit, Hurricane Irma swiped past the island’s northeast corner as a Category 5 storm, also knocking out power.

The grid was further destabilized by a series of strong earthquakes that struck southern Puerto Rico in late 2019 and early 2020.

Multiple issues delay progress

Chronic blackouts prompted Puerto Rico’s governor to declare a state of emergency in April 2025, but outages persist, with about half of those incidents blamed on vegetation overrunning transmission and distribution lines.

As of February, only 400 miles (640 kilometres) had been cleared using federal funds out of 16,000 planned miles (26,000 kilometres), according to the report. Overall, nearly 2,800 miles (4,500 kilometres) of lines were cleared in fiscal year 2025, according to Luma Energy, a private company overseeing the transmission and distribution of power in Puerto Rico. It currently is facing a lawsuit by the island’s government seeking to terminate its contract; the company has since counter sued.

The report noted that staff turnover; project review processes it described as “onerous;” and the financial state of Puerto Rico’s Electric Power Authority – which is still struggling to restructure more than $10 billion in debt – are preventing progress.

One move that further delayed the release of funds was when former Homeland Security Secretary Kristi Noem implemented a policy in June 2025 that DHS expenditures over $100,000 be personally approved by that office. The rule was rescinded in April by new Homeland Security Secretary Markwayne Mullin.

Many funds allotted but few disbursed

As of December 2025, nine large FEMA-funded projects were completed, most of them related to generation; 133 projects remain at different stages.

The agency also has obligated about $1.3 billion to 24 critical generation projects, seven of which have been completed.

The report noted that repair work often means planned outages and finding replacement parts can take up to two years.

Of the $2.9 billion allotted by the U.S. Department of Housing and Urban Development to modernize and repair the grid, only about $589 million had been disbursed as of February.

Meanwhile, of the $1 billion obligated by the U.S. Department of Energy, about $255 million has been disbursed, the report found.

Some $365 million originally allotted for solar energy projects have since been redirected to the power grid, for “practical fixes and emergency repairs” according to department officials interviewed by auditors.

The U.S. Department of Energy also canceled up to $350 million in grants under a solar access program, the report noted.

It did disburse all $1.2 million slated for hubs aimed at providing vulnerable communities in Puerto Rico with electricity during disasters.

DHS says Puerto Rico ‘ultimately responsible’

The U.S. Government Accountability Office called on FEMA to update guidance to reflect flexibilities and on the U.S. Department of Energy to clarify roles and responsibilities, and create a collaboration plan.

“Given the complexity of funding, the numerous players involved, and the various plans for grid recovery, extensive co-ordination across Puerto Rico and federal entities is vital,” the report states.

The U.S. Department of Energy and the U.S. Department of Homeland Security concurred with the recommendations, although the latter noted that “the government of Puerto Rico is ultimately responsible for developing a comprehensive solution and rebuilding the electrical grid.”

Dánica Coto, The Associated Press