Oversight Board and Government Submit Jointly Developed $13 Billion Budget for Fiscal Year 2026
Governor Jenniffer González Colón’s administration and the Oversight Board together developed a budget that is compliant with Puerto Rico’s Fiscal Plan for fiscal year 2026. The $13 billion budget increased 1.5% over the fiscal year 2025 budget.
Oversight Board Executive Director Robert F. Mujica, Jr., said: “This budget reflects the knowledge we have today – and Puerto Rico’s fiscal reality today. The budget illustrates that the fiscal responsibility we instilled in previous years puts the Commonwealth in a better position to respond to the changing federal funding landscape.”
The compliant budget was submitted to Puerto Rico’s Legislative Assembly for voting.
The proposed budget includes $8.6 billion for education, public safety, healthcare, and pension payments, reinforcing commitments to important services. Including special revenue and federal funds, the consolidated budget for Puerto Rico in fiscal year 2026 totals $32.6 billion. The new fiscal year begins on July 1, 2025.
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Report Analyses Use of Federal Funds and Their Impact in Puerto Rico
The Oversight Board released a report outlining the importance of federal funds in the Puerto Rico Government’s budget. The report shows that federal funds support vital public services that help the most vulnerable Puerto Ricans, 40% of whom live below the poverty line.
Key areas supported by federal funds include education, Medicaid, housing, nutrition assistance programs, and disaster relief. Nearly half of the budget for the Puerto Rico Department of Education (PRDE) depends on federal funds, while Plan Vital, the Government’s health insurance program, also relies heavily on federal funds.
“Continued reliance on federal funding and the uncertainty surrounding both non-recurring and recurring federal funds due to evolving federal policies will require the Commonwealth to closely monitor and respond to the current landscape,” states the report.
Currently, Puerto Rico receives $15.4 billion in federal funds, including one-time allocations. The total represents 46% of the budget for the Puerto Rico Government for fiscal year 2025.
The Oversight Board continues to call on the Puerto Rico Government to be proactive in finding solutions to the risks and challenges related to the expiration or reduction of federal funding for the Island. In a letter to the Office of Management and Budget (OMB), the Oversight Board said it would support the establishment of a Centralized Office for Federal Fund Oversight that would track how federal funds are used “allowing the Government to plan effectively and avoid disruptions to essential services.”
Read more in this article published in El Vocero.
The Oversight Board is committed to working alongside OMB and the Puerto Rico Government to develop a long-term sustainability plan that will help the Government continue providing essential services while transitioning to long-term fiscal responsibility.
Oversight Board Discusses Current Budget Outlook at its 48th Public Board Meeting
The Oversight Board held its 48th Public Board Meeting to discuss the current budget process and the impact of federal funding on Puerto Rico.
In his update to Board members, Executive Director Robert F. Mujica, Jr., said: “The economic and fiscal policy changes being advanced at the federal level of government have moved into sharper focus, and those changes present both challenges and opportunities for Puerto Rico.”
For example, more than $500 million in federal monies is at stake for the Puerto Rico Department of Education, he said.
The federal government’s recent policy changes could also present opportunities for Puerto Rico, for example, President Donald Trump’s goal to bring manufacturing back to the United States from abroad. “Puerto Rico could well benefit from those trade and economic policy changes,” Mujica added.
Watch the 48th Public Board Meeting here.
Oversight Board Holds First Economic Forecast Symposium
The Oversight Board held the first Economic Forecast Symposium to establish a transparent and public macroeconomic forecasting process to assist the Oversight Board, the Governor, and the Legislature in reaching a consensus on Puerto Rico’s five-year economic outlook that would inform and guide future fiscal and budget planning.
A group of six panelists, financial experts and economists, from the U.S. and Puerto Rico gave an overview of the economic outlook for the coming years, to help inform and guide future decisions by the Government and the Oversight Board on budgets, fiscal plans and more.
“Economic and revenue forecasting are critical for fiscal and budget planning,” said the Oversight Board’s Executive Director Robert F. Mujica, Jr. “It’s important for the Government and the Oversight Board to hear different perspectives and views on the U.S. and Puerto Rico economies going forward. That will help us develop a realistic and effective budget.”
Watch the complete recording of the economic symposium here.
Stakeholder engagement:
May 29, 2025
May 21, 2025
Oversight Board Executive Director Robert F. Mujica, Jr., met with members of Network, a professional women’s organization in Puerto Rico, and discussed various issues, including the debt restructuring of the Puerto Rico Electric Power Authority (PREPA) and the current opportunities and challenges in the local economy.
May 12, 2025
Oversight Board Member Cameron McKenzie visited public schools in Toa Alta and Toa Baja and met with teachers. They discussed the current challenges facing the public education system and the impact of possible budget constraints on day-to-day operations. McKenzie visited the Tomás (Maso) Rivera Morales High School in Toa Alta and Carmen Barroso Morales Elementary School in Toa Baja.
May 7, 2025
Oversight Board members Cameron McKenzie, John Nixon, and Betty Rosa, and Executive Director Robert F. Mujica, Jr., visited two sites in Cataño: The New York Foundling, to learn about its Head Start and Early Head Start programs, and the construction of the Mega Center, a major development that is set to play a key role in the area’s future economic growth.
Cataño Mayor Julio Alicea Vasallo led the board members on a tour of the Cataño Bay Waterfront and discussed the development that has brought renewed activity to this area just across the bay from Old San Juan.
May 6, 2025
April 8, 2025
In a meeting at the Oversight Board’s offices, Oversight Board Deputy Executive Director Arnaldo Cruz and Health Secretary Víctor Ramos discussed the findings of the Healthcare Workforce Study, commissioned by the Oversight Board, and how to align the agency’s priorities and initiatives with the report’s findings. One of the essential elements of the healthcare system is its workforce. The study identifies the gaps in Puerto Rico’s healthcare system workforce, so that public policy decisions on this issue can be made based on reliable data.
April 4, 2025
Oversight Board Member Cameron McKenzie and Deputy Executive Director Arnaldo Cruz discussed the current state of Puerto Rico’s healthcare workforce at the P.R. Chamber of Commerce’s 2025 Health Insurance Conference. “It’s not as simple as saying we don’t have enough doctors and nurses,” said McKenzie, a former Chamber president. “There is serious misalignment between workforce demand and supply across multiple healthcare professional sectors.” He called on the government, healthcare stakeholders, and local communities to collaborate towards improving healthcare in Puerto Rico.
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