Allocates Previously Unbudgeted Revenue to Close Out the Fiscal Year; Provides funding for Prior Year Unfunded Education Liabilities, Additional Capital Funding for Municipalities and Other Services
San Juan, PR – June 30, 2026 – The Financial Oversight and Management Board for Puerto Rico announced that it certified the Commonwealth of Puerto Rico’s revised budget for the current fiscal year that ends on June 30, 2026. This revised fiscal year 2026 budget reflects previously unbudgeted revenues from the current fiscal year as a normal part of the year end budget closeout process.
The revised budget is certified as a budget developed by the Oversight Board because the Governor and the Legislative Assembly did not reach a consensus on the conditions governing the disbursement of the proposed appropriation for the Municipal Road Improvement Plan and did not agree to the Oversight Board’s proposed alternative framework.
The revised budget includes $35 million for these road improvement funds based on the Oversight Board proposed structured framework of roadway mileage, road conditions, and each municipality’s ability to pay. The proposed framework also provides for notification to the Puerto Rico Legislative Assembly of the proposed allocations.
In addition, the revised budget includes several items that will further stabilize Puerto Rico, including:
- A $222 million increase in the Rate Stabilization Reserve of currently $683 million. The reserve, under the custody of the Puerto Rico Department of Treasury, is intended to stabilize electricity rates under the Puerto Rico Electric Power Authority’s Plan of Adjustment.
- An additional $90 million for the Department of Education. Uncertainties remain whether the funding requested by the Government and approved by the Oversight Board for fiscal year 2026 will fully address prior period obligations in certain programs, including the urgent need to appropriately fund Special Education.
- An additional $33 million to fund the Agricultural Enterprises Development Administration’s Coffee Program. The program continues to face a structural deficit and a 5-year projection of revenues and expenses for the Coffee Program is necessary to understand its impact on future General Fund spending requirements and priorities.