The Central Office for Recovery, Reconstruction and Resilience (COR3) is managing three disasters: Hurricane María (2017), the southern earthquakes (2020), and the COVID-19 pandemic (2020). No other U.S. state or territory is currently responding to multiple major disasters within such a short time frame.

To manage recovery, FEMA channels applications through its Individual Assistance and Public Assistance programs. In the case of Public Assistance, FEMA applies the National Delivery Model: in general, damages to eligible facilities are inspected and estimated, and the scope and cost for repair, restoration, and/or eligible replacement is defined. FEMA then obligates the funds, taking into account environmental factors, historic preservation, risk mitigation, private insurance, and timelines for completion, among others. Once a project is obligated, it means FEMA has approved the funds, and the work can proceed.

Who can apply? Central government agencies, public corporations, certain private nonprofit organizations, and municipalities. Once obligated, COR3 becomes the recipient and administrator of the funds, while the applicant becomes the subrecipient. COR3 provides technical assistance to applicants at every step to ensure progress and compliance.

Each Public Assistance project is classified as either an emergency (temporary work) or permanent work (long-term reconstruction). Emergency work includes debris removal and protective measures. Permanent work includes roads and bridges, water control facilities, public buildings and their contents, public utilities, and parks, recreational areas, and other facilities. FEMA also provides funding for the administrative expenses of obligated grants.

Additionally, each disaster includes a cost share between FEMA and the state. For Hurricane María, FEMA provides 90% for permanent work. The remaining 10%, thanks to an agreement between FEMA and the federal Department of Housing, is covered by CDBG-DR funds administered by Puerto Rico’s Department of Housing, subject to applicable compliance. For the earthquakes, FEMA covers 75%, and the remaining 25% must be provided by the subrecipient. The Government of Puerto Rico has created a matching fund to cover the state share.

Who carries out the work?
The subrecipient is responsible for implementing each project as agreed with FEMA. This includes procurement and bidding processes, managing contracts—whether for engineering and architecture or construction—submitting reimbursement requests to COR3, and completing and closing out the projects. COR3 provides technical assistance, processes disbursement requests submitted by subrecipients, and closes out projects with FEMA in accordance with federal and state requirements. For this reason, COR3 maintains policies, procedures, and internal controls, operates a digital platform for disbursement management, and oversees the Recovery.pr transparency portal.

FEMA also has the Hazard Mitigation Grant Program (HMGP). Unlike Public Assistance, which generally restores facilities to pre-disaster conditions, this program aims to save lives and reduce the cost of future disasters through investments in facilities or areas not necessarily damaged in the disaster. For this purpose, FEMA allocated $4 billion for Hurricane María (75% FEMA and 25% from CDBG-MIT funds). Hazard mitigation projects target coastal erosion, landslides, structural repairs, energy, flood control, and other eligible activities.

Where do we stand today in the recovery? For Hurricane María, FEMA has obligated approximately $4.9 billion for 1,462 emergency projects, over $20.3 billion for 5,836 permanent work projects, and $950 million for administrative expenses. Roughly $4.5 billion in projects remain to be obligated, most of which are permanent works.

How are projects distributed?
• Puerto Rico Electric Power Authority: $9.5 billion
• Puerto Rico Aqueduct and Sewer Authority: $3.7 billion
• Department of Education: $2.1 billion
Other entities include:
• University of Puerto Rico: $337 million
• Department of Transportation and Public Works: $323 million
• Department of Recreation and Sports: $94 million
• Department of Health: $45 million
• Department of Natural and Environmental Resources: $28 million
• Puerto Rico Industrial Development Company (PRIDCO): $52 million
• Roosevelt Roads Redevelopment Authority: $32 million
• Public Buildings Authority: $21 million

Among the 78 municipalities, approximately $1.9 billion has already been obligated. There are also nonprofit entities such as churches, schools, and hospitals with permanent work projects.

Under Hazard Mitigation, FEMA has obligated approximately $1.14 billion for Hurricane María. Notable projects include the Safe Room and Emergency Operations Center for the Department of Public Safety, an electric generation system for the Luis Muñoz Marín Airport, and the Eco-Exploratory science museum.

As for recovery from the southern earthquakes, FEMA has obligated $275 million (federal share), of which $250 million is for emergency work. This year is critical for advancing the obligation of permanent work in the earthquake-affected areas.