AGP Executive Report

Disaster Funding: FEMA approved more than $91M in Puerto Rico Public Assistance projects, including $39.7M for PREPA power-line vegetation clearing after Hurricane Maria and $5.1M for PRASA repairs to the Barrancas Water Treatment Plant. Cost Pressures: Water and electricity price hikes are squeezing Puerto Rico businesses, with retailers and restaurants warning that higher operating costs could push more firms toward closures. Local Culture & Economy: DDEC and the Institute of Puerto Rican Culture honored 19 artisans to kick off Puerto Rican Artisan Month, spotlighting awards from Master Artisan to Young Artisan. Tourism Growth: Puerto Rico is the Caribbean’s fastest-growing cruise destination in early 2026, with 740,471 passengers in Q1—up 51.6% year over year—boosting overnight stays and spending. Sports & Community: Team Canada beat Puerto Rico in international basketball, advancing to the next round. Regional/US Policy Watch: A Reuters report says a US crackdown on illegal vapes—backed by attorneys general including Puerto Rico—has pushed payment networks and retailers to issue compliance warnings.

Puerto Rico Economy & Utilities: Water and electricity price hikes are squeezing Puerto Rico businesses, with retailers and restaurants warning that higher operating costs could force closures and hit household budgets. Puerto Rico Business & Culture: DDEC and the Institute of Puerto Rican Culture recognized 19 artisans as Puerto Rican Artisan Month kicked off, highlighting awards for master and traditional craftspeople. Tourism & Travel: New first-quarter cruise data show Puerto Rico is the Caribbean’s fastest-growing cruise destination, up 51.6% year over year to 740,471 passengers through January–March. Public Safety & Consumer Protection: Reuters reports Fiserv and major service-station operators, including BP, warned U.S. partners to stop processing illegal vape sales after a broader crackdown backed by attorneys general, including Puerto Rico authorities. U.S. Politics (Local Angle): Four candidates are seeking the U.S. House seat for Washington’s 2nd Congressional District, with affordability and healthcare central to their campaigns. Civic Discourse: NYC Mayor Zohran Mamdani used America’s 250th anniversary speech to argue patriotism means confronting flaws, not “love it or leave it.”

Water Crisis & Infrastructure: Puerto Rico lawmakers introduced a package to tackle reservoir deterioration and restore storage capacity, including a joint resolution directing PRASA, DRNA, and PREPA to pursue federal dredging funds and a ten-year dredging plan plus watershed reforestation and erosion controls. Hurricane Maria Aid Delays: A watchdog audit says Puerto Rico is still waiting on billions promised for Hurricane Maria recovery, with major gaps tied to slow project reviews, staffing issues, and FEMA capacity limits. Power Grid & Debt: Separate reporting highlights Puerto Rico’s ongoing struggle with power-company debt restructuring and the federal board’s push for a large settlement to restructure the grid’s finances. Governance & Corruption: A Puerto Rico Treasury employee pleaded guilty to a bribery conspiracy tied to about $5 million in lost tax revenue, involving manipulation of tax systems and false submissions. Public Safety & Courts: Federal court developments continue to shape immigration detention policy, while Puerto Rico’s own legal system also faces scrutiny over administrative and compliance timelines. International Spotlight: U.S.-Cuba tensions resurfaced as Havana accused Washington of pressuring other governments to end healthcare cooperation with Cuba. Regional Humanitarian Response: The Venezuela earthquake response remains strained as international rescue efforts wind down and humanitarian needs grow, with World Central Kitchen feeding survivors and first responders.

Water Crisis: Puerto Rico is still reeling from a prolonged water supply breakdown that began mid-June after a major Superaqueduct leak, triggering additional outages that hit hundreds of thousands across the San Juan metro and forcing tankers, National Guard support, and temporary distribution measures. Oversight & Money: A federal audit says Puerto Rico has received only a fraction of Hurricane Maria power-grid recovery funds nearly a decade later, with FEMA obligations far outpacing actual disbursements. Public Utilities Pressure: PRASA could face court sanctions if a water pact with San Juan is breached, raising the stakes for compliance as residents deal with service disruptions. Debt & Finance: Banco Popular led a $600M Metropistas debt refinancing with local banks, while a separate federal board effort pitches a $3B settlement to restructure Puerto Rico power company debt. Governance & Courts: Puerto Rico’s Supreme Court upheld a mandatory judicial retirement age, a reminder that institutional rules continue to shape the island’s political and legal landscape. Federal Policy Spillover: U.S. Supreme Court action on mandatory detention and birthright citizenship is driving national legal uncertainty that will also affect Puerto Rico residents and families tied to immigration and citizenship questions.

Budget Oversight: The Financial Oversight and Management Board certified a revised FY2026 Puerto Rico budget, but said it can’t yet count toward PROMESA’s balanced-budget termination requirement because it’s separate from the already-certified FY2027 budget. Public Utilities & Courts: San Juan Mayor Miguel Romero Lugo asked a court to appoint a special commissioner over PRASA’s alleged failure to provide reliable potable water under a service pact, warning of potential contempt fines. Labor Policy: Puerto Rico’s Department of Labor and Human Resources will roll out “Desempleo Digital” and an Employer Portal in August to move unemployment claims and payments online via direct deposit. Federal Accountability: A new federal audit found only 25% of about $14B obligated for Puerto Rico’s power grid after Hurricane Maria has reached the island, raising fresh scrutiny of long-delayed recovery funds. Education Contract Scrutiny: PDP Senate Minority Leader Luis Javier Hernández Ortiz filed a resolution to investigate a reported $38M TANF-funded contract tied to NOLA Education LLC and the “Star Academy” plan, including questions about ADSEF’s role and a 2025 trip by the family secretary. Humanitarian Logistics: A coalition in Puerto Rico sent the first flight of nearly 7,000 pounds of earthquake relief supplies to Venezuela, with more phases planned. Immigration-Rights Leadership: Kica Matos, a Puerto Rico-born immigrant rights advocate, is highlighted for her national racial justice work and influence.

Puerto Rico Federal Agenda: A coalition of Puerto Rico business groups wrapped up a weeklong Washington mission pushing a unified federal agenda on tax reform, healthcare, economic development, manufacturing, and infrastructure, aiming to shape proposals for the island’s next legislative session. Venezuela Relief Logistics: U.S. Southern Command says more than 900 U.S. troops are operating in Venezuela for earthquake response, with about 800 more stationed in Puerto Rico and Curaçao to support logistics, including search-and-rescue and restoring airport capacity. Telecom Support for Crisis: Liberty extended free international calls from Puerto Rico to Venezuela through July 5 for mobile customers, to help families stay connected during the emergency. Power Debt Settlement: A federal control board is pitching a $3B settlement to restructure Puerto Rico’s power company debt, a major governance and financial-policy flashpoint. Local Courts & Governance: Puerto Rico’s Supreme Court upheld the mandatory judicial retirement age, a ruling with direct implications for the island’s judiciary staffing and administration. Business & Finance: A Puerto Rico-licensed bank, Arival, announced stablecoin-based payment capabilities via its regulated partner network, targeting cross-border commerce needs.

Fiscal Oversight: Puerto Rico’s Financial Oversight and Management Board rejected the government’s FY2027 budget plans for the University of Puerto Rico and COSSEC, then certified its own budgets—renewing the long-running fight over UPR pension funding and compliance under PROMESA. Public Safety Payments: Gov. Jenniffer González Colón announced the first distribution of $6.9M from the Puerto Rico Police Retirement Trust to about 1,571 retired officers affected by Law 3 of 2013. Courts: The Puerto Rico Supreme Court upheld the constitutional mandatory judicial retirement age of 70, rejecting a challenge by the judicial association and judges seeking to block enforcement. Local Government vs. Environment: Camuy sued DNER after a stop-work order halted $550,000 ARPA-funded coastal rehab work at Peñón Brusi. Power Crisis: The Oversight Board pitched a $3B settlement to bondholders to restructure PREPA’s power-company debt, aiming to close the long fiscal chapter. US-Military/Regional Relief: Reuters reports the US deployed 900+ troops inside Venezuela and about 800 more from Puerto Rico and Curaçao for earthquake search-and-rescue and logistics, including MQ-9 drone support.

Puerto Rico Power Restructuring: The federal oversight board says it has offered bondholders a new $3B settlement to restructure more than $10B in debt tied to Puerto Rico’s power company, topping a prior offer by $1.4B and aiming to resolve about $8.5B in claims. San Juan Municipal Finance: San Juan plans to borrow $356M via general obligation refinancing notes and bonds to fund 14 public improvement projects, with rates tied to U.S. Treasury benchmarks and maturities extending to 2051. Tourism & Economy: Disney Cruise Line’s newest ship, Disney Destiny, made its first San Juan call, with expected spending of $1.6M+ through next year as the ship schedules multiple transit visits. Local Travel Disruption: An American Airlines flight from San Juan to Charlotte was diverted to Miami after turbulence injured one passenger. Legal/US Politics With Puerto Rico Links: The DOJ opened an investigation into Sen. Ruben Gallego’s alleged campaign finance misuse, including trips billed to Puerto Rico, while Supreme Court disclosures again spotlighted Puerto Rico-linked concert tickets and book income. Sports/Community: Puerto Rico’s National Guard presence in Washington continues ahead of July Fourth, as other states debate limits on deployment.

PROMESA at 10 Years: A new look at Puerto Rico’s post-crisis decade says the island cut debt by 58% to about $31B since the Obama-era PROMESA law created a federal oversight board—while critics argue the board’s veto power still limits elected control over budgets. Water, Power, and Politics: The same roundup ties today’s governance strain to normalized blackouts, major water-main failures leaving tens of thousands without service, and a corruption-and-meddling scandal that triggered top resignations. Courts and Voting Rules: The U.S. Supreme Court upheld states’ ability to count mail-in ballots received after Election Day if postmarked by then—protecting grace periods in places including Puerto Rico. Data-Breach Standing: The 1st Circuit rejected a Puerto Rico hospital ransomware class action, saying the plaintiff couldn’t plausibly link a fraudulent cellphone account to the breach, underscoring strict standing requirements. Local Church Leadership: Ponce’s diocese announced Bishop-designate Geraldo Ramírez Torres after Pope Leo XIV accepted the retirement of Bishop Rubén Antonio González Medina. Public Health/Online Sales: Shopify’s ban on all vaping products drew praise from AGs, including Puerto Rico’s broader U.S. policy environment around youth nicotine risk. Venezuela Relief Spillover: Puerto Rico-linked humanitarian attention continues as World Central Kitchen reports on the Venezuela quake response and the widening crisis.

US Supreme Court & Elections: In a 5-4 ruling, the Supreme Court upheld states’ ability to count mail-in ballots postmarked by Election Day even if they arrive afterward, preserving “grace period” rules ahead of the fall midterms. Judiciary Transparency: New financial disclosures show multiple justices earning millions from book deals and teaching, including reports of concert tickets tied to a Puerto Rican record label. Puerto Rico Church: Ponce’s new bishop-designate Geraldo Ramírez Torres thanked God after Pope Leo XIV named him to succeed Bishop Rubén Antonio González Medina. Local Culture & Identity: New York Mayor Zohran Mamdani honored Puerto Rican icon Toñita Cay at Toñita Fest with a custom Puerto Rico flag artwork by Bronx designer Edwin Reyes. Sports Betting Probe: Former NBA players Malik Beasley and Ed Davis were indicted in a federal gambling investigation alleging bribery and insider betting tied to game performance. Venezuela Earthquake Aid: Florida Task Force firefighters were deployed to support US search-and-rescue operations after the quakes, with teams including personnel from Palm Beach County.

Municipal Infrastructure: The Senate approved a measure letting municipalities enter agreements with the private operator of Puerto Rico’s electricity transmission and distribution network to install, repair, maintain, and modernize public street lighting—while keeping the Energy Bureau’s supervisory power. Local Finance Fight: The PDP denounced San Juan’s $323.7M bond issue approved by the Financial Oversight and Management Board, arguing it mainly refinances old debt and pushes a balloon payment onto future residents. Homelessness Data: A new ASSMCA count found youth homelessness and housing instability far higher than prior estimates, identifying 204 youths ages 18–24 as homeless or in unstable housing. Humanitarian Response: Puerto Rico’s Department of State is coordinating aid for Venezuela earthquake victims, working with agencies, the National Guard, the Ports Authority, and community groups to set up collection centers and delivery channels. Sports Tourism: Puerto Rico will host the 2026 Caribbean Horse Racing Series in December at Hipódromo Camarero in Canóvanas, citing a $1M government allocation as key to winning the bid. Elections 2026 Tools: A new online “Territorial Review” feature tracks senators’ records for Election 2026, expanding beyond Guam to other U.S. territories including Puerto Rico. Travel & Connectivity: Contour Airlines says it’s exploring new Caribbean routes using Puerto Rico as a hub to connect islands without direct U.S. access.

Tourism & Air Connectivity: Contour Airlines says it’s evaluating new Caribbean routes with Puerto Rico as a hub, aiming to add destinations in the coming months after reporting 7,000+ passengers between PR and St. Maarten/Dominica. Local Government & Public Services: Puerto Rico’s oversight and infrastructure theme shows up in a dispute over water outages—Morovis and PRASA reportedly settled—while another item flags an EPA allocation of $2M to rehabilitate contaminated land in four Puerto Rican municipalities. Budget & Oversight: The Senate approved, with amendments, a $13.18B operational budget for FY 2026–2027, and the Comptroller backed measures to modernize oversight and registration of government contracts. Public Safety & Emergency Response: Fort Buchanan is strengthening emergency preparedness through a full-scale tabletop exercise, as Puerto Rico continues to build readiness capacity. Culture & Identity: Bad Bunny’s London shows keep spotlighting Puerto Rico’s global pull, with major mainstream coverage of his Spanish-only performances and PR pride messaging.

Venezuela Disaster Response: As Venezuela’s death toll climbs and rescue access tightens around La Guaira, the U.S. is deploying “whole-of-government” help—urban search-and-rescue teams, canines, and a $150M assistance fund—after USAID was gutted and disaster aid was shifted under the State Department. Local Puerto Rico Connections: U.S. officials say Puerto Rico rescuers are part of the international effort, including canines and medical personnel, underscoring the island’s role in regional emergency support. Avelo Expands Puerto Rico Flights: Avelo will add nonstop service from Tweed-New Haven to Aguadilla (Nov. 19) and Houston (Sept. 21), boosting direct travel options for Puerto Rico’s west coast and Connecticut’s Puerto Rican community. Puerto Rico Business Push: Trópiko’s Creole-inspired fast-food concept is expanding beyond Hato Rey, with a new Dorado location planned and an international opening in Medellín, Colombia. Citizenship Fight: Idaho AG Labrador’s push to limit birthright citizenship is back in the spotlight as Republicans press the Supreme Court to overturn long-settled Fourteenth Amendment interpretations. Powerball in Puerto Rico: Powerball’s $348M jackpot draw notes that Puerto Rico residents can buy tickets at licensed retailers, regardless of nationality. UAW Politics: The UAW convention in Detroit is drawing scrutiny and internal leadership challenges, with Puerto Rico delegates among those shaping union policy. Boxing Spotlight: Puerto Rico’s Xander Zayas faces Jaron “Boots” Ennis in a high-profile bout after Ennis’ recent win over Zayas.

Disaster Response: Venezuela’s earthquake search entered a third day as La Guaira access was tightened with permits, while families reported few state rescue teams and growing reliance on neighbors and international crews; officials put the toll at least 920 dead and more than 51,000 missing, with aid groups stressing the critical first 48–72 hours. International Aid: National Assembly President Jorge Rodríguez said Puerto Rico is among the international responders, citing “canines from Puerto Rico” and listing doctors, rescuers, and security personnel from Curaçao, Argentina, Qatar, and Barbados, alongside thousands of rescuers and tons of equipment. Local Business Expansion: Trópiko, a Creole-inspired fast-food brand founded in Hato Rey, is pushing beyond Puerto Rico with a new Dorado location and plans to open in Medellín, Colombia, aiming to export “the essence of Puerto Rico” to an international market. Sports & Governance: Puerto Rico’s Cooperativa de Seguros Múltiples received an A.M. Best rating upgrade to A (stable outlook), while Pep Boys’ Alan M. Cruz Nieves was appointed to Puerto Rico’s Board of Examiners and Automotive Mechanics. Culture & Identity: The viral Toñita’s Hat returns for 2026 with a new Latin America-themed design tied to Toñita Fest, continuing the push for representation through fashion.

Disaster Response: Venezuela’s rescue window is shrinking as the country enters the third day after back-to-back 7.2 and 7.5 earthquakes, with officials tightening access to La Guaira and families reporting a shortage of state rescuers while death tolls climb and thousands remain missing. Local Security & Readiness: Fort Buchanan in Puerto Rico held a full-scale emergency tabletop exercise with municipal, federal, and medical partners to test coordinated response and mission readiness. Legal & Accountability: Ateneo de Manila University says it will provide legal support to student managers and utility staff facing hazing charges tied to a deadly team-building incident, as authorities recommend charges. Puerto Rico Economy & Oversight: Cooperativa de Seguros Múltiples received an A.M. Best rating upgrade to A with a stable outlook, while Puerto Rico’s Senate approved a $13.18B operational budget for FY 2026–2027 and the Comptroller backed measures to modernize oversight of government contracts. Public Services: LUMA rejected a counterclaim and framed it as political, and PRASA and Morovis reached a settlement over ongoing water outages.

Military Readiness: Fort Buchanan in Puerto Rico hosted a full-scale emergency tabletop exercise with Bayamón, the FBI, the Puerto Rico Medical Center, the Puerto Rico National Guard, and Army Reserve units to rehearse whole-of-government response, protect lives, and keep mission-essential operations running. Local Governance & Oversight: Puerto Rico’s government contract oversight gets a boost as the Comptroller backs measures to modernize how contracts are monitored and registered. Water & Utilities: Morovis and PRASA reached a settlement over ongoing water outages, aiming to stabilize service for residents. Legal Accountability: A civil lawsuit alleges FirstBank Puerto Rico helped enable Jeffrey Epstein’s sex-trafficking operation, claiming the bank maintained accounts for Epstein entities and delayed required suspicious activity filings. Disaster Watch: A magnitude 5.0 quake near Isla Mona prompted no tsunami threat for Puerto Rico or the U.S. Virgin Islands, with officials urging residents to stay alert for aftershocks. Public Safety & Community: Fort Buchanan also held a retirement ceremony honoring Sgt. 1st Class Jorge Luis Feliciano Echevarria after 20 years of active-duty service.