Oversight Board Authorizes Access To Emergency Reserve For Expenditures Related To Drought Emergency

San Juan, PR – August 5, 2026 – The Financial Oversight and Management Board for Puerto Rico announced today that it authorized the Puerto Rico Government to access the Emergency Reserve for expenses related to Governor Jenniffer González Colón’s Executive Order declaring a state of emergency throughout Puerto Rico due to low rainfall and declining reservoir levels.

The Emergency Reserve was established under the Fiscal Plan for Puerto Rico to enable the Puerto Rico Government to respond to unexpected emergencies and natural disasters. The reserve has strict rules that ensure the Government can use the funds only for emergencies, not for other government expenses.

“The Fiscal Plan established the Emergency Reserve exactly for moments like this, when the Government must respond quickly to support Puerto Rico’s wellbeing,” said Oversight Board Executive Director Robert F. Mujica, Jr. “The general fund budget fully funded the Emergency Reserve, and the Government is now in a position to provide immediate and critical relief to help the people of Puerto Rico cope with this emergency.”

Access to the Emergency Reserve is intended to expedite the Government’s response to the current drought and is limited to addressing immediate needs and actions outlined in the Executive Order, such as supply, storage, and distribution of potable water through tanker trucks; the installation and operation of mobile water purification and potabilization systems; the establishment of temporary distribution centers; and any other logistical support necessary to preserve essential public services and protect the public health and welfare of the people of Puerto Rico.