Puerto Rico Grid Recovery: Limited Progress Toward Stability and Opportunities Exist to Improve Federal Assistance
Fast Facts
Over the last 9 years, a series of natural disasters have disrupted the recovery of Puerto Rico’s electricity grid. More recently, power outages have become more frequent. There are about $14 billion in funds available for grid recovery and modernization projects.
But very little of it has been disbursed, and there hasn't been much progress toward grid stability. Few projects using federal funds have been finished.
Challenges include cumbersome project review processes, staff turnover, project funding complexities, and uncertainty among entities involved in grid recovery.
Our recommendations aim to address these challenges.
FEMA-Funded Pole Replacement and Streetlight Repair Project in the Municipality of Coamo, Puerto Rico
Lineworker standing on bucket truck high in the air, reaches up to a pole while working on replacing it.
Highlights
What GAO Found
The Department of Homeland Security’s (DHS) Federal Emergency Management Agency (FEMA), the Department of Housing and Urban Development (HUD), and the Department of Energy (DOE) have obligated about $14 billion for Puerto Rico’s grid recovery and modernization since 2017, but limited funding has been disbursed. About $2.7 billion of about $11.1 billion obligated by FEMA has been disbursed since 2017, largely for equipment and materials and architecture and engineering. In addition to FEMA, HUD and DOE obligated about $2.3 billion and $937 million respectively. However, most of these funds have not been disbursed. Moreover, DOE has reallotted or canceled about $715 million originally for community and low-income households’ solar projects to address grid stability and other needs yet to be determined.
Limited progress has been made toward grid stability in key areas using federal assistance, with nine large FEMA projects complete. Key areas include repairing select transmission lines; modernizing operations; and clearing vegetation from transmission and distribution lines. Stakeholders cited clearing vegetation as an urgent priority; however, as of February 2026, about 400 miles had been cleared using federal funds out of 16,000 miles planned for vegetation clearing.
Examples of Overgrown Vegetation Near Power Lines in Puerto Rico
According to stakeholders GAO interviewed, several factors are hindering progress, including project review processes, staff turnover, the complexity of project funding, the Puerto Rico Electric Power Authority’s (PREPA) financial condition, and uncertainty around entities involved in recovery. Subsequent disasters and compounding events have also complicated the recovery. However, opportunities exist to improve federal assistance. For example, FEMA’s review process involves conducting required environmental and historic preservation reviews that some stakeholders said can extend the review process by months or years. FEMA has taken steps to streamline the process, such as by adopting categorical exclusions, but it has not updated guidance to reflect these flexibilities. Also, objectives, and roles and responsibilities of key entities are not fully documented, and a formal coordination mechanism that includes all relevant Puerto Rico and federal entities does not exist. Given the complexity of funding and the numerous stakeholders involved, documenting roles and responsibilities, and establishing a coordination mechanism could help enhance efficiency.
Why GAO Did This Study
In 2017, hurricanes knocked out Puerto Rico's electricity grid, causing an 11-month blackout. Since 2017, a series of disasters—including earthquakes in 2019 and 2020 and Hurricane Fiona in 2022—have disrupted the recovery of Puerto Rico’s electricity grid. In recent years, power outages have become more frequent, including a total blackout in April 2025, that lasted almost 2 days.
The federal government has appropriated billions of dollars to support Puerto Rico’s grid recovery and modernization. FEMA, HUD, and DOE support Puerto Rico’s grid recovery by providing financial assistance. GAO was asked to examine federal efforts to support Puerto Rico’s grid recovery and modernization. This report examines (1) the financial assistance that FEMA, HUD, and DOE have provided to support Puerto Rico’s grid recovery since 2017; and (2) how FEMA, HUD, and DOE financial assistance has supported Puerto Rico’s grid recovery and modernization, and any factors hindering progress.
GAO analyzed relevant documents and data; conducted a site visit; and interviewed federal and Puerto Rico officials as well as representatives from contractors operating and maintaining PREPA facilities and assets, including LUMA Energy and Genera PR.
Recommendations
GAO is making five recommendations— three to FEMA, and two to DOE— including that FEMA update guidance to reflect any flexibilities, such as categorical exclusions. GAO is also recommending that DOE, in coordination with other entities, clarify objectives, roles, and responsibilities; and establish a mechanism for collaboration. DHS and DOE agreed with GAO’s recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Emergency Management Agency | The Acting Administrator of FEMA should update its guidance to provide information on potential flexibilities that could be used to streamline the environmental and historic preservation review process, such as categorical exclusions. (Recommendation 1). |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Federal Emergency Management Agency | The Acting Administrator of FEMA should take steps to help ensure sufficient and consistent resources are available to conduct environmental and historic preservation reviews. (Recommendation 2). |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Federal Emergency Management Agency | The Acting Administrator of FEMA, to the extent that FEMA implements broader reforms to federal disaster assistance, should take steps to identify and communicate opportunities to streamline its programs funding grid recovery in Puerto Rico, including trade-offs and any statutory changes required. (Recommendation 3). |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy, in coordination with FEMA, HUD, and the Government of Puerto Rico, should clarify objectives, roles, and responsibilities for collaboration by, for example, updating or establishing a new memorandum of understanding for collaboration among federal and Puerto Rico entities to reflect current roles, responsibilities, and objectives. (Recommendation 4). |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy, in coordination with FEMA and HUD, should take steps to establish a mechanism to support coordination among federal and Puerto Rico entities involved in Puerto Rico's grid recovery and modernization. (Recommendation 5). |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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