In 2017, Hurricane Maria caused widespread devastation in Puerto Rico, resulting in an 11-month blackout in some areas. Since then, the federal government has obligated $14 billion to repair and modernize the island’s electrical grid. However, a recent federal audit by the Government Accountability Office (GAO) reveals that approximately 75 percent of these funds—around $10.7 billion—remain undisbursed as of mid-2026.

The Federal Emergency Management Agency (FEMA) has been identified as the slowest in releasing funds, having disbursed only $2.7 billion out of $11.1 billion obligated. According to the GAO, only nine FEMA-funded projects were completed by December 2025, while 249 projects remain at various stages of completion. Additionally, federal funding has cleared just 400 miles of the 16,000 miles planned for vegetation clearing to protect the grid.

Delays are partly attributed to Puerto Rico’s aging infrastructure. Stakeholders told the GAO that replacement parts for generation assets often require "reverse engineering or long wait times, sometimes up to 2 years." Luma, the island’s power operator, has emphasized substations as critical for grid stability, yet only one of 32 FEMA-obligated substation projects—totaling nearly $482 million—has been completed.

The island’s antiquated power plants struggled to meet about a third of peak electricity demand last year, underscoring the urgency of upgrades. Meanwhile, over 10 percent of Puerto Rico’s electricity is now generated by rooftop solar panels, as residents seek to mitigate grid instability.

The GAO report also notes ongoing environmental and historic preservation reviews contributing to delays. For the first time, bulk propane shipments have been sent to Puerto Rico from Texas and Pennsylvania, reflecting efforts to diversify energy sources.

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