In November 2022, the Government Accountability Office (GAO) described Puerto Rico’s long-term recovery from Hurricane María as the largest and most complex in U.S. history. The Washington Post reported in January 2020 that while Puerto Rico was still waiting for funds to be obligated for resilient reconstruction, earthquakes continued to impact the island’s southwest region. In September 2021, the Center for a New Economy noted that the COVID-19 pandemic delayed efforts to rebuild after Hurricane María. To this, we must add the damage caused by Hurricane Fiona in September 2022.

Considering all of this—along with the government’s bankruptcy and population decline—there is no doubt that the past several years have brought enormous challenges for our island. However, as we recently marked seven years since the greatest natural disaster Puerto Rico has ever faced, it’s appropriate to review the progress made, the challenges ahead, and the opportunities to continue rebuilding the island’s infrastructure with federal disaster recovery funds.

First, in its April 2024 report, FEMA noted that “efforts to assist in reconstruction (after the 2020 earthquakes and Hurricanes María and Fiona) are enabling unprecedented recovery. In coordination with the Government of Puerto Rico, the pace of recovery has picked up in recent years, as new infrastructure, permanent repairs, and reconstruction can be seen across the island.” FEMA also emphasized that “Puerto Rico should serve as an example for other states and territories in terms of innovation and leading an unprecedented recovery. By working with the Government of Puerto Rico to identify and remove recovery barriers, FEMA is actively supporting COR3’s Working Capital Advance program, launched in 2022.”

These statements don’t happen in a vacuum. Since 2021, public policies and strategic plans have been implemented to keep reconstruction moving forward. The construction sector itself has confirmed that projects are moving and funds are flowing—from the electric grid and water and sewer systems, to roads, bridges, schools, universities, health centers, public housing, ports, airports, government buildings, and sports and recreational facilities, among other types of infrastructure.

As of June 2024, there were more than 9,500 permanent works funded by $11.9 billion in FEMA funds at some stage of execution, led by state agencies, municipalities, and nonprofit entities. Of those, around 3,700 were under construction. Over 3,500 permanent projects have already been completed—a significant increase compared to December 2020. Regarding cash flow, COR3 disbursed $2.04 billion in 2023, a 345% increase over what was disbursed in 2020—all in compliance with federal requirements.

The GAO stated that while Puerto Rico’s recovery has advanced, several challenges remain—from inflation and labor shortages to the fact that many FEMA funds have yet to be obligated. Targeted strategies and initiatives are currently being implemented to address these obstacles effectively. On the other hand, the U.S. Congress must amend federal laws and regulations to simplify disaster recovery processes. These actions will be key to turning challenges into opportunities and further accelerating the pace of reconstruction.