In a recent press conference held by the Puerto Rico Department of State, officials addressed the pressing issue of unspent federal funds and the challenges facing ongoing reconstruction projects. As of September 2024, approximately $17 billion remains unutilized from a total allocation of $18 billion, raising concerns about the potential loss of these funds if projects are not advanced in a timely manner.

The discussion highlighted that while funds are "obligated," meaning they are earmarked for specific projects, they are not yet spent. This distinction is crucial, as it underscores the risk of losing funding if projects remain in planning or design phases without moving to contract signing. Currently, there are nearly 20,000 projects in various stages of development, with many at risk of losing federal support if deadlines are not met.

Officials emphasized the importance of timely project execution, noting that FEMA has the authority to deny extensions for projects that do not progress. The potential for losing funding is compounded by the fact that the incoming administration is already engaging with federal representatives to secure necessary extensions and support for ongoing projects.

Another significant point raised was the shortage of labor in the construction sector, which has been a major hurdle in advancing reconstruction efforts. Officials acknowledged that the lack of available contractors has led to unfilled bids and delays. Attempts to address this issue, including requests for special work visas, have been met with limited success, as federal responses have been restrictive.

As the community looks ahead, the outcomes of these discussions will be critical in determining how effectively Puerto Rico can utilize federal funds to support its recovery and reconstruction efforts. The administration's proactive approach in Washington aims to ensure that the necessary resources are available to meet the pressing needs of the island's infrastructure and housing projects.