AGP Executive Report

PREPA Bond Fight: The First Circuit rejected Puerto Rico Electric Power Authority bondholders’ $8.5B claim, upholding a lower-court ruling that the central government’s 2022 plan of adjustment barred the trustee from reviving certain objections. Drought Relief Expansion: Gov. Jenniffer González-Colón announced USDA expanded Puerto Rico’s federal drought disaster declarations, adding 31 municipalities as primary disaster areas and 22 as contiguous areas, unlocking more USDA Farm Service Agency emergency loan eligibility. Election Security: CISA released its 2026 Election Infrastructure Security Plan, promising stronger threat-sharing with election officials after staffing and funding cuts raised concerns about weaker federal support. Tourism Oversight: Puerto Rico’s Tourism Company submitted Senate-requested documents on the Miss Universe 2026 hosting agreement, saying it will keep monitoring compliance as preparations continue for the November event. Immigration Due Process Pressure: A Haitian pastor deported after legal efforts to halt removal was returned to Haiti, highlighting how advocates say Haitians with pending cases are facing faster removals after the end of TPS. Sports/Local Interest: Guyana edged Puerto Rico 1-0 in the Nations League opener, while PBA’s Ginebra confirmed Jordan Murphy as an import replacement as the Governors’ Cup resumes.

Housing Pressure in Bayamón: Puerto Rico Senate Vice President Carmelo Ríos Santiago convened an emergency meeting with landlords, mayors, and the Housing Secretary after a sharp rental spike, citing one- to two-bedroom rents now ranging roughly from $800 to $2,700 and two-bedroom averages jumping from about $750 in 2020 to about $1,300 today. Lobbying Rules Under PROMESA Exit: Financial Oversight and Management Board Executive Director Robert Mujica Jr. urged lawmakers to modernize Puerto Rico’s lobbying laws, warning the island still lacks a comprehensive statute and still permits practices like contingency fees and contract extensions that most U.S. jurisdictions restrict. Education Funding and Pension “Promises”: Mujica also criticized the Education Department over budget strain as pandemic-era federal funds expire, and flagged 18 pending pension measures as “promises” spanning decades. Small Business Tax Fight (“crudita”): The United Retailers Center (CUD) pushed the Senate to cut and phase out the “crudita” excise tax, arguing it ripples through the supply chain and hits SMEs beyond the pump. Local Business Outreach: CUD’s newly elected president, Sheila Otero Rivera, said her “CUD de tu pueblo” outreach will expand visits, training, and coordination with municipal economic offices to address permit, utility, and tax burdens. US Postal Deadlines for PR: USPS set 2026 holiday “send by” dates for Puerto Rico/territories, including Ground Advantage and First-Class by Dec. 16–17 and Priority/Express by Dec. 18–19.

Puerto Rico Energy & Environment: Steri-Tech agreed to a $700,000 Clean Air Act settlement tied to ethylene oxide emissions at its Salinas sterilization facility, with a proposed consent decree requiring at least 99.99% emission reductions and tighter controls, pending public comment and court approval. Puerto Rico Courts & Governance: A Puerto Rico federal judge is weighing arguments in an antitrust case tied to a shuttered soccer league, where attorneys say an unpaid $24,000 sanction shouldn’t end the suit against FIFA and affiliates. Puerto Rico Politics & Elections: The Puerto Rico Senate is set to address rising housing rental costs in an upcoming meeting, as lawmakers review federal funds and push policy responses. Miss Universe in Puerto Rico: The Puerto Rico Tourism Company says its legal team is evaluating allegations by Miss Universe CEO Nawat Itsaragrisil about handling of funds and contracts for the 2026 pageant, without ruling out legal action. Public Services: USPS released 2026 holiday shipping deadlines, including recommended “send by” dates for Puerto Rico and territories to arrive before Dec. 25. Defense & Trade: Bloomberg reports gaps in public voyage reporting for Jones Act waivers, including voyages involving Puerto Rico, complicating oversight as reporting rules tighten.

Puerto Rico Senate Oversight: The Senate held hearings on how the administration manages and uses federal funds, with community groups pushing for faster, less burdensome processes so programs for families don’t stall. Housing Costs: Senate Vice President Carmelo Ríos will convene landlords, mayors, and the Housing Secretary after rents—especially in the Bayamón area—jumped from about $750 (2020) to roughly $1,300 today. Rainwater Guidance Bill: Rep. Tatiana Pérez Ramírez filed House Bill 1434 to expand public education on safe residential rainwater harvesting, aiming to help families cope with droughts and service interruptions. Energy Crisis & PREPA Deal: A securities-law alert references Flotek’s 10-year PREPA contract tied to Puerto Rico’s energy crisis, as investors weigh legal deadlines. Economy Watch: A new analysis says Puerto Rico’s July activity improved for a second month, but the broader contraction trend hasn’t structurally reversed. Holiday Shipping Reminder: USPS says packages to Puerto Rico should be mailed earlier for Christmas delivery (Ground Advantage by Dec. 16).

Housing Costs: Puerto Rico Senate Vice President Carmelo Ríos will convene landlords, mayors, and the Housing Secretary to tackle the sharp rise in rental prices, citing a jump from about $750 for a two-bedroom in 2020 to roughly $1,300 today, especially around the Bayamón district. UN Week in New York: President José Raúl Mulino is in New York for the UN General Assembly with seven ministers in his delegation, with the government still withholding the full support staff list. Energy & Courts: A U.S. judge dismissed Michigan’s antitrust climate lawsuit against major oil firms, noting the link to alleged overcharges was too weak; the ruling cites similar dismissals, including in Puerto Rico. Banking Fallout: The ex-CEO of failed Nodus International Bank, Tomás Niembro Concha, was sentenced to 112 months and ordered to forfeit over $16.9M for wire-fraud and sanctions-evasion related to Venezuela. Medicaid Drug Pricing: All 50 states, D.C., and Puerto Rico have signed on to the federal “GENERIOUS” Medicaid drug-pricing model, aimed at lowering costs via foreign-price alignment. Local Governance Watch: Puerto Rico’s Supreme Court is set to rule on DACO chief’s eligibility to run for Cataño mayor. Shipping Practicalities: USPS set 2026 holiday mailing deadlines, with Puerto Rico and territories advised to mail Ground Advantage by Dec. 16 and other services by Dec. 17-19.

Cataño Mayoral Eligibility Fight: Three Cataño assembly members asked Puerto Rico’s Supreme Court to order Consumer Affairs Secretary Hiram Torres Montalvo to resign before running in Sunday’s special election, arguing the electoral code bars him while still in office; the lower court dismissed the case for lack of standing and said the resignation rule doesn’t apply to special elections, and the appeal is now headed for an emergency push before voting. PREPA Contract Fallout: Former PREPA executive Mary Carmen Zapata Acosta testified she signed the controversial Power Expectations emergency generation contract without knowing consortium signatures were allegedly invalid or unauthorized, while also saying PREPA was excluded from key early procurement steps; the hearing continues scrutiny of the failed $5B, 400MW temporary power deal. Surveillance Oversight: The ACLU of Puerto Rico urged lawmakers to hold public hearings on bills that would expand surveillance—video requirements for alcohol licensees, cybercrime criminalization, and automated license plate readers—warning against “hyper-surveillance.” Housing Costs Watch: Puerto Rico mortgage rates may start rising this week after a Federal Reserve rate hike, with local banking adjustments expected soon. Water Crisis Relief: Puerto Ricans in Florida, including Boricua de Corazón in Tampa, are organizing water deliveries and donations as the island’s rationing crisis persists. Energy Governance: Former PREPA leader Zapata Acosta described energy czar Josué Colón Ortiz’s management style as “dictatorial,” alleging withheld information during the Power Expectations contracting controversy.

Energy & Governance: Puerto Rico Gov. Jenniffer González-Colón was elected Chair of the Southern States Energy Board for 2026–27, highlighting grid resilience, generation upgrades, and battery storage as the island modernizes its power system. FEMA Recovery: González-Colón also announced $23.33M in FEMA obligations for 10 Puerto Rico recovery and reconstruction projects, including fire-pump design work at the Aguirre Generation Complex and improvements tied to schools and municipal roads. Public Health: A new U.S. modeling update says the 13th COVID-19 wave is cresting nationally but still spreading across at least 40 states and territories, with Puerto Rico among the higher active-infection rates. Elections & Law: A First Circuit ruling struck down Puerto Rico’s emergency-era “fake news” criminal law, reinforcing First Amendment limits during government-declared crises. Media Industry: Two major Puerto Rican newspapers, El Nuevo Día and Primera Hora, will end print editions and go digital-only. International Spotlight: A Miss Universe franchise dispute involving Puerto Rico’s upcoming pageant in San Juan has put six Southeast Asian countries in limbo. Justice & Finance: The ex-CEO of Puerto Rico’s Nodus International Bank was sentenced to nine years for fraud and sanctions-evasion related to Venezuela.

Most-Favored Nation Drug Pricing: Puerto Rico is set to join the Trump administration’s Medicaid Most-Favored-Nation model, matching internationally benchmarked prescription prices—while critics flag concerns about the secrecy of the underlying deals. Water Crisis Push: The U.S. House passed the Water Resources Development Act of 2026 with 11 Puerto Rico-focused priorities, including higher federal authorization for drinking water and sewerage and flood-control work. Recovery Still Depends on Federal Funds: Nine years after Hurricane Maria, Puerto Rico remains in a long recovery phase, still relying on federally allocated recovery money, with damage estimates spanning from tens to well over $100B depending on the study. OAS Voting Rights Stalemate: An OAS human-rights complaint over Puerto Rico’s voting rights still has no ruling after two decades, despite hearings and repeated follow-ups. Local Governance: Camuy approved an ordinance banning alcohol consumption at gas stations and nearby areas, with fines for violations. Trade & Economic Development: A Puerto Rico foreign-trade zones report says key FTZ space and capacity aren’t fully used, pointing to room to expand SME import, storage, and export activity. Energy Leadership: Gov. Jenniffer González will attend the Southern States Energy Board meeting, with the secretary of state acting as governor in her absence.

Medicaid Drug Pricing Push: CMS says all 50 states plus DC and Puerto Rico applied to join its Most-Favored-Nation Medicaid model, aiming to cut drug costs and projecting $64.3B in savings over 10 years. Miss Universe Financial Dispute: Miss Universe Organization franchise head Nawat Itsaragrisil surfaced an email claiming the pageant entered “crisis mode” over supplier funding, including a Puerto Rico-linked $1M payment request. Local Economy Watch: Puerto Rico’s unemployment rate rose to 6.1% in August, adding pressure as lawmakers weigh recovery timelines. Water & Infrastructure: Coverage highlights Puerto Rico’s ongoing water crisis and civic gaps, while separate reporting notes federal action moving water infrastructure priorities through Congress. Governance & Oversight: The Puerto Rico Senate continues investigating the “Crudita” oil tax, as officials face renewed scrutiny over transparency and public funds. Public Safety/Border: CBP and Puerto Rico police interdict a human smuggling event near Culebra, detaining a family of three. Military Posture: The U.S. plans to redeploy MQ-9 Reaper drones to Latin America as operations expand against cartel activity.

Medicaid Drug Pricing Push: President Trump says all 50 states, D.C., and Puerto Rico will join his most-favored-nation model for Medicaid, aiming to align net drug prices with those paid in other developed countries via manufacturer rebates—framed as a major cost-saver for states and a midterms talking point. Miss Universe Contract Fight: Puerto Rico’s hosting of Miss Universe is tied up in a legal/business dispute as Miss Universe Organization claims some franchise agreements aren’t recognized, while Thailand’s Nawat Itsaragrisil insists the excluded delegates remain eligible and will travel to San Juan. Water & Civic Stress: A report on affordability finds mayors across the U.S. and Puerto Rico flag rising living costs since 2025, with housing the top pressure point. Public Safety/Border: CBP and Puerto Rico police reportedly interdict a human smuggling event near Culebra. Security & Military Posture: The U.S. is redirecting MQ-9 Reaper drones from Africa Command to Latin America as operations against drug cartels are expected to expand.

Medicaid Drug Pricing Push: President Trump says all 50 states, D.C., and Puerto Rico will join his “most-favored-nation” Medicaid drug pricing model (GENEROUS), with White House claims of major savings and rebates tied to manufacturer agreements. Puerto Rico Jobs Snapshot: Puerto Rico’s seasonally adjusted unemployment rate rose to 6.1% in August (up from 6% in July), with unemployment estimated at 76,000 and year-over-year employment and labor force participation increasing. Hurricane Maria Recovery Deadline: Resident Commissioner Pablo José Hernández and House Democrats introduced a bill to extend FEMA disaster recovery project deadlines for Puerto Rico to 2035, aiming to reduce bureaucratic delays. Water Crisis Pressure: A new report highlights ongoing water rationing and service disruptions tied to drought and aging infrastructure, pointing to accountability and transparency gaps. Regional Security: The U.S. is reportedly shifting MQ-9 Reaper drones from Africa to Latin America as operations expand against drug cartels. Sports & Politics Crosscurrent: Puerto Rico’s national team is set to face Guyana in the Concacaf Nations League on Sept. 24, underscoring the island’s continued regional presence.

Medicaid Drug Pricing Push: President Trump says all 50 states, DC, and Puerto Rico will join his “most-favored-nation” Medicaid drug plan (GENERIOUS), aiming to cut prescription costs via manufacturer rebates and projecting major savings for states and the federal government. Puerto Rico Jobs Watch: Puerto Rico’s seasonally adjusted unemployment rate rose to 6.1% in August (from 6.0% in July), with unemployment estimated at 76,000 and labor force participation ticking up. Hurricane Maria Recovery Deadline: Resident Commissioner Pablo José Hernández and House Democrats introduced a bill to extend FEMA disaster-recovery completion deadlines for Puerto Rico to 2035, citing bureaucratic hurdles and project-by-project expiration dates. Water Crisis Accountability: A new report highlights how drought and aging infrastructure are driving rationing and service disruptions, with advocates pointing to a long-standing accountability and transparency gap. Local Governance/Utilities: Cidra mayor asks regulators to halt a potential disconnection by LUMA, while the oversight board says PREPA’s debt plan remains confirmable. Immigration/Community Tensions: Allentown police investigate flyers near Dieruff High School with anti-immigrant and anti-Puerto Rican rhetoric. Sports & Culture: Arecibo’s Nestor Bravo faces Mexico’s Isaac “Pitbull” Cruz in San Diego, while Puerto Rico’s Concacaf Nations League matchup vs. Guyana is set for Sept. 24.

Medicaid Drug Pricing Push: President Trump says all 50 states, DC, and Puerto Rico will join his “most-favored-nation” Medicaid drug pricing plan (GENEROUS), aiming to cut Medicaid drug costs via manufacturer rebates; the White House projects major savings over 10 years, while details on which drugs are covered remain limited. Puerto Rico Hosting & Scrutiny: As Puerto Rico prepares to host Miss Universe, a high-stakes dispute inside the Miss Universe Organization escalates, with MUO factions trading threats and possible country exclusions—raising fresh questions about authority and public money tied to the event. Seismic Update: A magnitude 4.8 earthquake struck near Guanica, triggering a tsunami information statement that reported no tsunami threat to Puerto Rico or nearby islands. Border & Public Safety: U.S. Customs and Border Protection and Puerto Rico Police intercepted a suspected human smuggling case near Culebra, detaining a family unit and charging the vessel operator. Local Community & Culture: Fort Buchanan held a suicide prevention event focused on connection and resources, while Willimantic marked the 25th anniversary of Julia de Burgos Park with Puerto Rican cultural programming.

Miss Universe Power Struggle: The Miss Universe Organization faction tied to Raul Rocha revoked the franchise agreement with Nawat Itsaragrisil’s group, arguing it lacks authority to use the brand—while the dispute also raises questions about Puerto Rico event funds and eligibility for delegates. Energy & Public Oversight: La Fortaleza rejected LUMA’s proposed rate hike and demanded executive salary transparency, as PREB reviews the request. Consumer Protection Probe: Puerto Rico Senate will investigate social-media property raffles, focusing on DACO compliance, prize disclosure, and whether winners face undisclosed tax burdens. Grid Contract Scrutiny: A House committee hearing into temporary power generation contracts continues as Gothams Energy sends a cease-and-desist after testimony tied to procurement concerns. Economic Development & Jobs: DDEC backed eight Puerto Rican companies at the Americas Food & Beverage Show in Miami, and Warmkraft Puerto Rico announced a $16M Mayagüez investment to treat military uniforms and create about 65 jobs. Defense & Trade: US cleared a $24.3B F-35 sale to Saudi Arabia, while Puerto Rico’s defense supply chain gets a local boost via Warmkraft. Labor Market Shift: Puerto Rico’s self-employment continues to grow, driven by flexibility and post-pandemic entrepreneurship. Health Policy: Reuters reports Trump’s Medicaid most-favored-nation drug pricing model will expand to all 50 states, DC, and Puerto Rico. Cybersecurity Watch: ESET says China-aligned FamousSparrow deployed a new backdoor targeting government entities across Latin America, including Puerto Rico. Corporate Leadership: Destilería Serrallés named Martin Guzman CEO, signaling a push for continued brand growth.

Water Infrastructure Push: The U.S. House approved WRDA 2026, including 11 Puerto Rico water-resource priorities that expand Army Corps of Engineers work on flood control, coastal protection, and drinking/wastewater systems—authorization rises from $35M to $75M, though projects still need later appropriations. Federal Oversight & Power: A securities-law probe is underway into Flotek Industries after it announced a long-term PREPA power-generation deal that was later terminated, raising questions about what investors were told. Agriculture Policy: Puerto Rico’s federal agriculture bill track advanced as the Senate Agriculture Committee approved its Farm Bill version, aiming to modernize programs and support producers and rural communities. Security & Human Rights: A Haiti human-rights report details the Kenscoff massacre, citing security failures and institutional gaps as gangs attacked, killing at least 164 and kidnapping more than 70. Cybersecurity: Researchers say China-aligned hackers (FamousSparrow) are using a new backdoor, SparroWocky, to target government entities across Latin America, including Puerto Rico. Logistics & Trade: Estes Express Lines plans nearly $56M in cross-border/offshore freight expansion, citing capacity growth for markets including Puerto Rico.

Puerto Rico Senate Oversight: The Senate kept digging into the “crudita” oil tax in a public hearing, with the Institute of Statistics urging rigorous, transparent comparisons so lawmakers can separate the tax’s impact from global fuel costs and margins. Energy & Municipal Services: Cidra Mayor Delvis Pagán Clavijo asked the Puerto Rico Energy Bureau to stop LUMA from disconnecting municipal facilities while a dispute over a $319,216.88 balance is reviewed. PREPA Restructuring: The Financial Oversight and Management Board told a federal judge PREPA’s debt plan is still confirmable even after key creditor support collapsed, arguing the restructuring could be cheaper to approve if its legal positions hold. Medicaid Funding Risk: Puerto Rico warned Congress that Medicaid could face a massive funding drop in 2027 unless the current federal agreement is extended or made permanent, threatening care for nearly 1.3 million residents. Water Crisis & Governance: A SOMOS conference op-ed questioned how leaders can meet in Puerto Rico while the island’s drought and rationing leave hundreds of thousands without reliable water. Local Data Watch: W Journal reported Puerto Rico’s vehicle fleet keeps growing even as the population shrinks, highlighting a “fewer people, more cars” paradox.