Federal Audit Reveals Slow Disbursement of Hurricane Maria Recovery Funds in Puerto Rico

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A federal audit reveals that only a fraction of the federal funds allocated for rebuilding Puerto Rico's power grid post-Hurricane Maria has been disbursed, raising concerns over delays and mismanagement.

SAN JUAN, PUERTO RICO — A recent federal audit has highlighted significant delays in the disbursement of federal funds intended for the recovery of Puerto Rico’s power grid following the devastation caused by Hurricane Maria nearly a decade ago. The audit revealed that merely 25% of the approximately $14 billion in federal funds obligated for the territory has been allocated, with only $2.7 billion disbursed by the U.S. Federal Emergency Management Agency (FEMA) for essential expenses such as equipment, materials, and architecture and engineering design costs, as stated by the U.S. Government Accountability Office (GAO).
The report spans from August 2024 to June 2026 and was released by Democratic lawmakers in the U.S. Congress. Rep. Jared Hoffman of California expressed the frustration of Puerto Rican residents, stating, "The people of Puerto Rico have waited nine years for their government to keep its word. They watched billions get appropriated and almost none of it arrive." This statement underscores the urgency of the situation, as residents have been left in distress since Hurricane Maria struck in September 2017 as a Category 4 storm, leading to unprecedented power outages in some areas that lasted nearly a year—the longest outage recorded in U.S. history. The aftermath of the storm also saw an estimated 2,975 fatalities.
The power grid's instability has been exacerbated by a series of strong earthquakes in late 2019 and early 2020, which further compromised the infrastructure. In response to the ongoing power issues, Puerto Rico's governor declared a state of emergency in April 2025, yet blackouts continue, with half of the incidents attributed to vegetation overgrowth affecting transmission and distribution lines. According to the audit report, only 400 miles of the 16,000 miles planned for clearance had been completed using federal funds by February. In the fiscal year 2025, Luma Energy, the private company responsible for the island's power transmission and distribution, managed to clear nearly 2,800 miles of lines. However, Luma Energy is currently embroiled in legal disputes with the Puerto Rican government, which is seeking to terminate its contract, while Luma has counter-sued.
The report identified several factors contributing to the slow progress, including high staff turnover, burdensome project review processes, and the precarious financial situation of Puerto Rico’s Electric Power Authority, which is grappling with over $10 billion in debt. A policy instituted by former Homeland Security Secretary Kristi Noem in June 2025 requiring personal approval for DHS expenditures exceeding $100,000 further delayed funding disbursements, though this policy was rescinded in April by the new Secretary of Homeland Security, Markwayne Mullin.
As of December 2025, only nine significant FEMA-funded projects have been completed, primarily related to power generation, while 133 projects are at various stages of development. FEMA has obligated around $1.3 billion for 24 critical generation projects, with seven already completed. The report indicated that repair work often necessitates planned outages, and sourcing replacement parts can take as long as two years.
In addition to the $11 billion from FEMA, the U.S. Department of Housing and Urban Development had allocated $2.9 billion for grid modernization and repair, of which only about $589 million had been disbursed by February. Meanwhile, the U.S. Department of Energy allocated $1 billion, with approximately $255 million disbursed, according to the audit findings. Notably, $365 million originally designated for solar energy initiatives has since been redirected towards the power grid to address immediate needs and repairs. Additionally, the Department of Energy canceled up to $350 million in grants for a solar access program.
The Department of Energy has successfully disbursed all $1.2 million designated for hubs intended to provide electricity to vulnerable communities during emergencies. The GAO has urged FEMA to revise its guidance to incorporate more flexible approaches and recommended that the Department of Energy clarify its roles and responsibilities while developing a collaborative plan. The Department of Energy and the U.S. Department of Homeland Security have acknowledged these recommendations, yet the latter emphasized that the Puerto Rican government holds the primary responsibility for devising a comprehensive strategy for rebuilding the electrical grid.

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