A federal audit released Wednesday revealed that Puerto Rico has received only 25% of approximately $14 billion in federal funds designated for its power grid following Hurricane Maria, which devastated the island nearly a decade ago. The U.S. Government Accountability Office (GAO) reported that of the $11 billion obligated by the U.S. Federal Emergency Management Agency (FEMA), only about $2.7 billion has been disbursed. These disbursements were primarily for equipment, materials, and design costs.
Hurricane Maria struck Puerto Rico in September 2017 as a Category 4 storm, causing widespread power outages that lasted for nearly a year in some areas, marking the longest in U.S. history. The storm and its aftermath are estimated to have caused 2,975 deaths. This was preceded by Hurricane Irma, a Category 5 storm that grazed the island's northeast corner two weeks prior, also leading to power disruptions. The island's electrical infrastructure was further weakened by a series of powerful earthquakes in late 2019 and early 2020.
Persistent blackouts led Puerto Rico's governor to declare a state of emergency in April 2025. However, outages continue, with vegetation overgrowing transmission and distribution lines contributing to about half of these incidents. As of February, only 400 miles of 16,000 planned miles of lines had been cleared using federal funds, according to the GAO report. Luma Energy, the private company managing power transmission and distribution, reported clearing nearly 2,800 miles of lines in fiscal year 2025. The Puerto Rican government is currently engaged in a lawsuit to terminate Luma Energy's contract, with the company filing a countersuit.
According to the audit, progress is hindered by factors including staff turnover, a cumbersome project review process, and the ongoing financial struggles of Puerto Rico’s Electric Power Authority, which is still working to restructure over $10 billion in debt. A policy implemented in June 2025 by former Homeland Security Secretary Kristi Noem, requiring personal approval for DHS expenditures over $100,000, further delayed fund releases until it was rescinded in April by current Secretary Markwayne Mullin.
As of December 2025, nine major FEMA-funded projects, mostly related to power generation, were completed, with 133 projects remaining in various stages. FEMA has also obligated about $1.3 billion for 24 critical generation projects, seven of which are finished. The report indicated that repair work often necessitates planned outages, and procuring replacement parts can take up to two years.
The U.S. Department of Housing and Urban Development had allotted $2.9 billion for grid modernization and repairs, but only about $589 million had been disbursed by February. The U.S. Department of Energy obligated approximately $1 billion, with about $255 million disbursed. Officials noted that some $365 million initially intended for solar energy projects have been redirected to the power grid for immediate repairs. The Department of Energy also canceled up to $350 million in grants under a solar access program, though it did disburse all $1.2 million for hubs designed to provide electricity to vulnerable communities during disasters.
The GAO recommended that FEMA update its guidance to incorporate existing flexibilities and that the Department of Energy clarify roles and responsibilities while developing a collaborative plan. The audit concluded, "Given the complexity of funding, the numerous players involved, and the various plans for grid recovery, extensive coordination across Puerto Rico and federal entities is vital." Both the Department of Energy and the Department of Homeland Security agreed with the recommendations. However, the Department of Homeland Security stated that "the government of Puerto Rico is ultimately responsible for developing a comprehensive solution and rebuilding the electrical grid."