AGP Executive Report

Disaster Recovery Funding: Gov. Jenniffer González Colón announced FEMA approved $108.9M for 14 Puerto Rico recovery and reconstruction projects, including $107.1M to modernize and stabilize the power grid in Vieques, Culebra, and parts of the mountainous and western regions. Energy & Courts: PREPA asked a federal judge to dismiss a lawsuit tied to a cancelled $5.9B temporary power generation contract, arguing the case should be handled under Title III bankruptcy proceedings. Local Economic Push: The DDEC is inviting entrepreneurs to apply for its “Digital Store Academy,” offering training and support to build e-commerce stores and boost online sales via Shopify. Military Readiness: Fort Buchanan named Berenisse Z. Rodriguez as director of Plans, Training, Mobilization and Security, overseeing installation readiness, emergency management, and security operations. Government Oversight: Puerto Rico Senate President denounced $8.7M in public funds given to fugitive Raúl Rocha as “scandalous and unacceptable.” Business & Compliance: Pharma-Bio Serv reported higher revenues for the quarter ended July 31, 2026, alongside improved net results.

Municipal Tax Fight Reaches Puerto Rico Supreme Court: The PR Supreme Court ruled taxpayers don’t have to exhaust municipal administrative remedies when they’re challenging a municipality’s legal authority to impose a tax (not the amount owed), in Continental Lord Inc. v. Municipio Autónomo de Morovis. Police Retirement Benefits Lawsuit: APUL and retired officers sued the Government Retirement Board and related entities, alleging eligible ex-officers were shortchanged or excluded under rules tied to the 50% salary guarantee. Streetlight Restoration Deal-Making: House Speaker Carlos “Johnny” Méndez Nuñez will host a Thursday summit with seven mayors to roll out the first collaboration agreements under Law 174-2026 for repairing and modernizing public lighting. Blue-Economy Infrastructure Moves Forward: Demolition began at Roosevelt Roads in Ceiba to clear the way for a Marine Business, Research & Innovation Center, funded by DDEC. Aviation Safety Fallout Linked to San Juan Route: Amazon paused operations with cargo carrier 21 Air after a Miami crash that killed five; the flight had arrived from San Juan. Local Governance & Culture: The Institute of Puerto Rican Culture announced the program for its 56th International Theater Festival, honoring Rafael Fuentes, with productions starting Oct. 22.

Federal Oversight Fight: A U.S. District Court in Puerto Rico permanently blocked President Trump’s attempted firings of three Federal Oversight and Management Board members, converting an earlier preliminary injunction into lasting relief and keeping the board intact while the case proceeds. Puerto Rico Senate & Public Money: Senate President Thomas Rivera Schatz escalated scrutiny of Miss Universe spending, saying the $8.7M public allocation is “scandalous” while Culebra’s medical services still need about $200,000 to keep operating. Puerto Rico Governance & Water: Puerto Rico’s water crisis continues to deepen, with drought conditions pushing reservoirs toward critical levels and renewed debate over drought-response tactics. Public Safety & Infrastructure: Multiple earthquakes hit Puerto Rico and the U.S. Virgin Islands over 24 hours, with USGS reporting no tsunami threat. Tech/Privacy (Local Impact): Apple Wallet’s ID feature requires different iOS versions by location, including Puerto Rico, where the minimum iOS level is higher than in most states. Legal/Justice (Broader): A new report alleges climate-litigation groups have run a coordinated effort to influence how judges understand climate cases, raising fresh questions about neutrality in the courtroom.

Puerto Rico Senate Budget Clash: Senate President Thomas Rivera Schatz is denouncing the $8.7 million in public funds tied to Miss Universe, saying it’s “scandalous and unacceptable” and pressing for answers—especially as Culebra residents and officials warn medical services are under strain. Local Governance & Public Services: Rivera Schatz is now spotlighting Culebra’s healthcare funding gap, arguing $200,000 is not enough and demanding resources be found to keep services running. Energy & Procurement Politics: A new securities-fraud class-action notice tied to Flotek Industries points to a Puerto Rico Electric Power Authority (PREPA) natural gas project, raising questions about disclosures and project partners as PREPA’s energy crisis continues. Accountability & Oversight: The Miss Universe controversy is also being linked to broader scrutiny of public spending priorities, with senators pushing for where the money went and how it aligns with urgent local needs. Crisis Watch: Earthquakes continued to rattle Puerto Rico and the Virgin Islands over the past day, with USGS reporting multiple quakes and no tsunami threat.

Puerto Rico Water Policy: The House Economic Development Committee held a hearing on House Resolution 106 to explore desalination as a backup water source for future droughts, with lawmakers stressing it should add redundancy—not replace reservoirs or leak-reduction efforts. Energy & Accountability: A federal court filing urges dismissal of a Puerto Rico-related lawsuit by a U.S. Army lieutenant colonel seeking $10.5 million, arguing the court lacks jurisdiction. Legislative Oversight: Puerto Rico lawmakers are pushing desalination and other options as the island’s water crisis deepens, while separate reporting highlights ongoing scrutiny of public spending tied to the Miss Universe pageant. 9/11 Remembrance in Puerto Rico: Fort Buchanan and the Puerto Rico Senate marked the 25th anniversary of Sept. 11 with ceremonies that emphasized community-military readiness partnerships and passing remembrance to younger generations. Seismic Activity: USGS reported 13 earthquakes across Puerto Rico and the Virgin Islands in 24 hours, with no tsunami threat. Local Institutions: Fort Buchanan and Bayamón city leaders strengthened an emergency management partnership, aiming to improve readiness and response coordination.

Energy & Water Security: Puerto Rico lawmakers are pushing desalination as a backup water source, with a House committee hearing weighing redundancy, costs, and modular options as drought pressure mounts. Oversight & Public Spending: Senators are demanding answers over Puerto Rico’s $8.7 million public funding for Miss Universe 2026, after Univision reported questions about how the money was organized and monitored, including calls for an independent audit. Legal/Regulatory: The U.S. federal government urged a Puerto Rico court to dismiss a $10.5 million lawsuit by an Army lieutenant colonel, arguing the court lacks jurisdiction. Local Governance & Emergency Readiness: Fort Buchanan and Bayamón officials met to strengthen emergency management coordination ahead of future crises, emphasizing readiness beyond the installation gate. Aviation & Public Safety: Investigators continue probing an Amazon cargo crash in Miami involving a flight that departed San Juan, while Puerto Rico-linked headlines also highlight the political friction that followed the incident. Energy Market/Business: A securities lawsuit was filed against Flotek Industries tied to its Puerto Rico Electric Power Authority-related power project.

Water Security Push: Puerto Rico lawmakers are weighing desalination as a backup water source, with a House committee hearing focused on adding redundancy as drought risk and reservoir capacity losses continue. Local Governance & Emergency Readiness: Fort Buchanan and Bayamón officials met to strengthen emergency management coordination ahead of future crises, emphasizing relationship-building before disasters hit. Public Accountability: Puerto Rico senators are pressing for answers over public funding for Miss Universe 2026, after Univision reported concerns about how the $8.7 million was handled and monitored. Federal Court Fight: The U.S. government urged a Puerto Rico federal court to dismiss a $10.5 million tort lawsuit by an Army lieutenant colonel, arguing the court lacks jurisdiction. Aviation & Safety Oversight: Investigators continue probing an Amazon cargo plane crash at Miami International Airport that overran the runway after departing from San Juan, with reports of five deaths and five injuries; the FAA and NTSB are still working to determine causes. Commemoration & Community Memory: Puerto Rico marked the 25th anniversary of 9/11 with ceremonies at the Capitol and Fort Buchanan, highlighting the island’s military ties and the responsibility of remembrance.

Water Crisis: Puerto Rico’s drought is deepening fast, with reservoir levels dropping below thresholds and the Aqueduct and Sewer Authority forced to ration supplies—sparking pressure on households that can’t store water and pushing residents to seek bottled water or community distribution. Justice System Oversight: New Progressive Party Sen. Ángel Toledo López filed Senate Resolution 595 to launch a sweeping legislative investigation into how Puerto Rico’s justice system operates, with power to summon witnesses and review agencies from DOJ to courts and corrections. Gun Rights Ruling: The Puerto Rico Police Bureau reversed course after an appeals fight by CODEPOLA, restoring a woman’s gun license after it had been withheld due to her medical cannabis authorization. Labor: Veteran public-sector labor leader Federico Torres Montalvo died this week, remembered for decades of organizing and leadership across state workers’ unions. PREPA/Contracts & Legal Risk: A securities class action notice targets Flotek Industries over claims tied to a Puerto Rico Electric Power Authority project, with a lead-plaintiff deadline set for late October. Security/Tech Crime: A Ukrainian lawyer tied to the Conti ransomware operation was sentenced in U.S. federal court; the case notes Conti victims included Puerto Rico.

Drought Emergency: Puerto Rico’s wet season failed to arrive as expected, and the island went from no drought to extreme drought in months, triggering water shortages and rationing; the governor declared a state of emergency in late July and the U.S. approved a drought disaster declaration covering more than two dozen municipalities. Health Infrastructure: Mayagüez is pushing ahead with a $6M+ modernization of Hospital San Antonio (Mayagüez Medical Center San Antonio), targeting inpatient beds, the Pediatric Intensive Care Unit, maternity, and the operating room to expand specialized care in the west. Federal Head Start Rulemaking: PRFAA says a proposed federal Head Start performance standards overhaul is still just a proposal, with public comments open through Oct. 6, and highlights Puerto Rico’s FY2025 Head Start funding and enrollment footprint. Church Leadership: Pope Leo XIV appointed Franciscan Father Gerardo Antonio Vargas Cruz as coadjutor bishop for the Fajardo-Humacao diocese, setting up an automatic succession when the current bishop retires. Legal/Workplace Rights: A New York lawsuit challenges a 2025 ICE raid at a nutrition bar factory in Cayuga County, naming sheriffs and federal agents and including a Puerto Rico-born U.S. citizen among plaintiffs. Security & Schools: A student at Sunnyside High School in Arizona was arrested after staff found a handgun and ammunition on campus, with charges including possession of a firearm on school grounds.

Water Policy Under Pressure: The EPA has tentatively approved Puerto Rico’s updated drinking-water reporting rules, but residents still face rationing as the public has until Oct. 9, 2026 to request a hearing. Drought Response Debate: A former member of the island’s Drought Committee says cloud-seeding is unreliable and “didn’t work,” warning it can’t be controlled to hit Puerto Rico’s catchment zones. Local Governance & Infrastructure: While San Juan residents report months of unreliable service, activists criticize government inaction and point to projects that could increase water demand. Housing Finance: Three Puerto Rican credit unions—SagradaCoop, Camuy Cooperativa, and LarCoop—have joined the Federal Home Loan Bank System to expand low-cost liquidity for homeownership lending. Public Safety & Justice: Puerto Rico’s Justice Department charged a man in the death of nurse Jennifer Marie Torres Castro in Caguas, alleging mechanical asphyxiation and severe trauma. Environment & Land Use: Former Mayagüez district senator Migdalia González Arroyo urged DNER to clarify the deteriorating, closed Mayagüez Zoo and transfer it to the municipality. Economy & Costs: Truckers’ union leaders warn diesel price hikes and toll increases could trigger work stoppages. Federal Oversight: Puerto Rico’s drinking-water rule change lands as the governor’s drought emergency continues.

Aviation & Accountability: The NTSB says cockpit audio from the Sept. 6 Amazon Prime Air crash in Miami includes repeated pilot comments about excessive speed in the final moments, alongside alerts like “Too low, terrain,” as investigators continue interviewing the crew and the wife of a victim pursues a wrongful-death suit. Disaster Response & Safety: New flight-recorder details describe throttles being advanced to go-around thrust after touchdown, with no sign (so far) of speed brakes or thrust reversers, keeping questions focused on landing decisions and runway safety. Local Economic Development: The Puerto Rico Economic Development Bank approved a $360,000 loan for VIP Food Dorado LLC to open an Ichiban Japanese Steak House in Dorado, targeting 25 direct jobs. Federal Funding for Resilience: Gov. Jenniffer González-Colón announced FEMA obligations of $21.3 million for 13 Puerto Rico reconstruction, recovery, mitigation, and resilience projects. Tourism Outreach: Discover Puerto Rico held a Central-South tourism gathering in Cayey to connect local businesses with visitor-trend data and marketing resources. Military Community: Fort Buchanan hosted a Newcomers Fair to link soldiers and civilians with services and resources across the installation.

Deep-Seabed Mining Pushback: Mariana Islands, American Samoa, Puerto Rico, and the U.S. Virgin Islands urged Gov. David Apatang to formally oppose a Northern Mariana Islands deep-seabed mining lease sale, asking him to use territorial authority to suspend/terminate the process and extend public participation. PREPA Control Fight: The Puerto Rico Chamber of Commerce opposed any government move to return PREPA to operational control, saying the island needs an executable energy agenda with costs, metrics, and implementation—not more diagnosis. UPR Workers’ Strike: The University of Puerto Rico Workers’ Union said its strike will continue indefinitely after a weekend moratorium expired, citing failure to comply with arbitration over employee health insurance. Senate Aqueduct Land Clash: Senate President Thomas Rivera Schatz warned a House bill that would let PRASA expropriate land tied to community aqueduct systems is unlikely to gain Senate support. PREPA Leadership Update: Gov. González-Colón named Fernando Osorio Caño as PREPA interim head after Zapata’s resignation. Local Economy & Waste: Salinas Mayor highlighted a new Recicladora del Norte facility, expanding recycling and value-added services. Aviation Safety Watch (Puerto Rico-linked): Investigators detailed how an Amazon cargo jet from Puerto Rico overran a Miami runway, with NTSB data pointing to a late go-around attempt and no speed brakes/thrust reversers; pilots were to be interviewed and victims identified.

Aviation Safety & Accountability: The NTSB says data from the Amazon Prime Air crash at Miami International Airport suggests pilots initiated a go-around seconds before the Boeing 767 overran the runway, with no sign speed brakes or thrust reversers were used; investigators will interview both surviving pilots and later release cockpit voice recorder details. Victims Identified: Miami-Dade authorities identified five people killed on the ground—inside a van used by aircraft cleaners—while five others were injured, including two still in critical condition. Puerto Rico Link: The cargo flight had been returning from San Juan, Puerto Rico, underscoring how island travel and logistics can be pulled into mainland emergencies. Local Impact: Airport operations have been partially restored, but two runways remained closed as the investigation continues, keeping flight cancellations and delays in play. Education Benchmark: A new PISA 2025 report highlights El Salvador’s gains and notes Puerto Rico among the region’s improving performers.

Municipal Recovery & Housing/Infrastructure: First Gentleman José Yovín Vargas Llavona and Housing Secretary Luis Augusto Martínez Román inaugurated a $2.6M renovation of Naguabo’s municipal parking garage in the traditional urban center, funded largely by CDBG-DR and supported by FEMA, adding safer access, upgraded lighting, and accessibility ramps for about 7,167 residents. Tourism & Regional Links: The Virgin Islands launched the Boston Whaler Takeover (Sept. 4–7), bringing Puerto Rico boat owners to extend tourism beyond “Christmas in July.” Financial Services & Compliance: The Puerto Rico Financial Services Forum opened registration for Nov. 2–3 at the Sheraton, highlighting banking/insurance leaders and topics like AI in insurance, AML/sanctions, fintech, and digital assets. Elections/Politics: A legislator warns Trump’s mail-voting crackdown could disrupt Puerto Rico’s 2028 elections. Legal/Power Sector: Shareholder firms are pushing Flotek Industries’ PREPA-related securities fraud cases after reports that a major PREPA contract was canceled. Public Safety & Aviation: Investigators continue probing an Amazon Prime Air cargo crash at Miami International Airport that killed five and injured five; the NTSB says the victims were in vehicles struck on the ground, with flight recorders recovered and cause still undetermined. Culture/Pagesants: Miss Universe Eastern CEO Nawat Itsaragrisil alleges Puerto Rico’s government is effectively locked into funding the 2026 pageant with public money tied to political pressure.

Aviation & Public Safety: The NTSB recovered the Amazon Prime Air Boeing 767 flight data recorder and cockpit voice recorder after Sunday’s runway overrun at Miami International Airport that killed five people on the ground and injured five others; investigators say the plane struck a van carrying seven cleaning-crew workers and then hit an SUV outside the airport perimeter, with the crew surviving, while officials stress the cause won’t be determined until the investigation is complete. Travel Disruptions: The crash triggered a ground stop and major flight delays/cancellations at MIA as runways reopened and recovery continued. Puerto Rico Angle: The aircraft arrived from San Juan, Puerto Rico, making the incident a direct hit to the island’s air-travel links. Business/Tech: Separately, On Point Strategy launched “Impact Visibility Hub,” an AI tool aimed at helping private, nonprofit, and government clients track KPIs and grant/operations performance. Local Economy: Puerto Rico’s tourism industry says the island’s water crisis hasn’t significantly reduced visitor flow or hotel occupancy, pointing instead to other factors like airline changes and broader economic conditions.

Aviation Tragedy: Federal investigators are zeroing in on what went wrong in the Amazon Prime Air Boeing 767 crash at Miami International Airport, after the plane overran Runway 30, struck vehicles near a perimeter road, and killed at least five people while injuring five more; the NTSB says it will examine whether the aircraft touched down too late and whether landing speed and distance played a role, with the crash prompting a major emergency response and flight disruptions. Puerto Rico Link: The cargo flight departed from Luis Muñoz Marín International Airport in San Juan, underscoring the island’s role in the route network. Local Business/Consumer Impact: On the island, Puerto Rico auto insurers are adjusting products and services as vehicle prices, interest rates, and repair costs rise, aiming to better protect consumers and manage risk. Business Leadership: CROEM Alumni endorsed entrepreneur Sheila Otero for president-elect of the United Retailers Center of Puerto Rico (CUD), citing her long involvement and focus on digital transformation for small and midsize businesses.