Puerto Rico faces potential loss of billions in FEMA funding for recovery projects
November 21, 2024 | Transition 2024 - 2025, Puerto Rico
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Puerto Rico is navigating a complex recovery process following Hurricane María, with significant discussions emerging from a recent government meeting held by the Departamento de Estado. The meeting highlighted the status of over 23,000 projects aimed at rebuilding the island, with a total funding allocation of $18 billion. However, the majority of these projects remain in various stages of planning and design, raising concerns about potential funding losses if deadlines are not met.
As of September 2024, there are 10,860 projects in planning, 3,894 in the design phase, and 5,155 either under construction or in the bidding process. Only 461 projects have been completed. The officials emphasized that while FEMA has been cooperative in granting extensions for project timelines, the risk of losing funding looms if progress is not demonstrated.
The meeting underscored the importance of justifying the need for extensions, as FEMA has the authority to deny further time, which could jeopardize thousands of projects still in the pipeline. Officials expressed confidence in their ongoing relationship with FEMA, citing that all extension requests have been approved thus far. However, they acknowledged the challenges posed by the scale of the recovery effort, which is expected to take years.
The discussion also touched on the distribution of funds among key agencies, revealing that approximately 73% of the funds are concentrated in the Electric Power Authority, the Aqueduct Authority, the Department of Education, and Public Housing. Despite the slow disbursement rates—ranging from 2.3% to 25.7% across these agencies—officials remain optimistic about meeting funding deadlines, especially with a deadline set for September 2027.
In conclusion, the meeting highlighted the critical need for continued progress in project execution to secure federal funding and ensure the successful recovery of Puerto Rico. The officials are committed to navigating the complexities of this long-term recovery, drawing comparisons to past disasters while striving to avoid similar prolonged timelines.
As of September 2024, there are 10,860 projects in planning, 3,894 in the design phase, and 5,155 either under construction or in the bidding process. Only 461 projects have been completed. The officials emphasized that while FEMA has been cooperative in granting extensions for project timelines, the risk of losing funding looms if progress is not demonstrated.
The meeting underscored the importance of justifying the need for extensions, as FEMA has the authority to deny further time, which could jeopardize thousands of projects still in the pipeline. Officials expressed confidence in their ongoing relationship with FEMA, citing that all extension requests have been approved thus far. However, they acknowledged the challenges posed by the scale of the recovery effort, which is expected to take years.
The discussion also touched on the distribution of funds among key agencies, revealing that approximately 73% of the funds are concentrated in the Electric Power Authority, the Aqueduct Authority, the Department of Education, and Public Housing. Despite the slow disbursement rates—ranging from 2.3% to 25.7% across these agencies—officials remain optimistic about meeting funding deadlines, especially with a deadline set for September 2027.
In conclusion, the meeting highlighted the critical need for continued progress in project execution to secure federal funding and ensure the successful recovery of Puerto Rico. The officials are committed to navigating the complexities of this long-term recovery, drawing comparisons to past disasters while striving to avoid similar prolonged timelines.
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