U.S. Virgin Islands Governor Albert Bryan Jr. has sharply criticized the Department of Housing and Urban Development (HUD) after the agency suspended procurements related to the territory's housing finance authority. The suspension stems from concerns over alleged fraud and abuse tied to nearly $2 billion in disaster-recovery aid.
Bryan, a Democrat, described HUD's action as a "shock" and characterized the agency's communication as "unprofessional." He asserted that the issues surrounding the U.S. Virgin Islands' disaster recovery have been "sensationalized" and that the suspension constitutes an "overreach."
During a public briefing, Bryan questioned the timing and handling of the announcement, suggesting it could be a "political stunt" coinciding with the start of early voting in the territory's gubernatorial election, for which he is term-limited. He specifically questioned why the news became public and why Fox News obtained it, given his administration's claims of addressing issues.
"We'll be appealing [HUD’s suspension] and then get into the bottom of what exactly is generating this kind of harsh motives in the Virgin Islands," Bryan stated.
When a reporter pointed out that a separate HUD report indicated the Virgin Islands Housing Finance Authority's risk management practices remained "below the lowest desired level" as recently as March 2025, Bryan acknowledged that the audit cited in HUD's suspension notice had concluded some time ago. He maintained that issues, such as a $6.2 million cost that had been previously addressed, were dated.
Bryan indicated he had reviewed the letter from HUD Deputy Secretary Scott Turner and argued that the territory has made significant progress on several recovery projects. He also commented on the high costs associated with some public housing units, suggesting that one unit could cost $1 million, which he deemed "crazy."
In a separate statement, Bryan noted that many of the matters outlined in HUD's letter "reflect issues that have been known for some time." He added that the Virgin Islands Housing Finance Authority has undertaken "significant corrective actions" since many of these findings were first identified. He emphasized the importance of handling the process in a way that protects the residents and does not disrupt critical housing and disaster-recovery programs.
Bryan also mentioned that his administration had previously addressed "weaknesses" at the Virgin Islands Housing Finance Authority early in his term, citing capacity planning as a factor that had "slowed the recovery considerably from their view."
HUD's suspension occurs as Secretary Scott Turner plays a prominent role on the White House Task Force to Eliminate Fraud, part of a broader administration effort to curb the abuse of taxpayer funds. The agency's action targets procurements involving nearly $2 billion in disaster aid, a move that has drawn sharp criticism from the governor.
