The Status of Puerto Rico’s Recovery and Ongoing Challenges Following Hurricanes Irma and María: FEMA, SBA, and HUD Assistance
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The Status of Puerto Rico’s Recovery and
Ongoing Challenges Following Hurricanes Irma
and María: FEMA, SBA, and HUD Assistance
November 13, 2020
Congressional Research Service
https://crsreports.congress.gov
R46609
SUMMARY
The Status of Puerto Rico’s Recovery and
Ongoing Challenges Following Hurricanes Irma
and María: FEMA, SBA, and HUD Assistance
Three years after Hurricanes Irma and María, Puerto Rico is still recovering from the devastation
to communities, homes and property, businesses, and infrastructure that was caused by the
hurricanes. At the same time, Puerto Rico has faced destruction caused by an earthquake swarm,
which began in 2019 and is continuing into 2020, as well as the Coronavirus Disease 2019
(COVID-19) pandemic. These consecutive disasters have complicated response and recovery for
each incident.
Many types of federal assistance were authorized to support Puerto Rico’s recovery efforts
following the hurricanes, and the provision of assistance is ongoing. This report focuses on the
assistance provided by three federal agencies: the Federal Emergency Management Agency
(FEMA), the U.S. Small Business Administration (SBA), and the U.S. Department of Housing
and Urban Development (HUD). These programs provided grants, loans, and other forms of
assistance to the Government of Puerto Rico and its local governments (referred to as
municipios), certain private nonprofit organizations, businesses, and individuals and households.
Some of these programs supported short- and intermediate-term recovery efforts, and some
continue to support Puerto Rico’s long-term recovery. Many other federal assistance programs
were also authorized to support Puerto Rico’s recovery following these major disasters; however,
this report does not address funding provided by other federal agencies (including the U.S. Army
Corps of Engineers, the U.S. Department of Agriculture, the U.S. Department of Transportation,
and the U.S. Department of Education).
Members of Congress have raised serious concerns about the pace of Puerto Rico’s recovery;
inequities in the deployment of federal personnel to Puerto Rico and the delivery of assistance,
including through the FEMA Public Assistance (PA) program; the timely provision of federal
assistance; and delayed, partial, or improper federal payments and reimbursements, among other
concerns described in this report.
R46609
November 13, 2020
Elizabeth M. Webster,
Coordinator
Analyst in Emergency
Management and Disaster
Recovery
Michael H. Cecire
Analyst in
Intergovernmental
Relations and Economic
Development Policy
Diane P. Horn
Analyst in Flood Insurance
and Emergency
Management
Joseph V. Jaroscak
Analyst in Economic
Development Policy
Natalie Keegan
Analyst in American
Federalism and Emergency
Management Policy
Erica A. Lee
Analyst in Emergency
Management and Disaster
Recovery
Congress has taken an active role in supporting Puerto Rico’s hurricane recovery efforts by
conducting oversight and appropriating funding for recovery. For example, Congress passed the
Bipartisan Budget Act of 2018 (BBA of 2018), which required the development of Puerto Rico’s
Bruce R. Lindsay
recovery plan and instructed the Government of Puerto Rico to submit regular reports to
Analyst in American
Congress about the status of its recovery activities and progress towards implementing its
National Government
recovery plan. Congressional committees have also conducted numerous hearings and published
reports focused on the recovery efforts following Hurricanes Irma and María. Additionally, at the
request of Congress, the U.S. Government Accountability Office has authored multiple reports
focused exclusively or substantially on Puerto Rico’s recovery. In 2020, the Government of
Puerto Rico and FEMA reported an increase in the pace, number, and dollar amounts of Public Assistance project obligations
(almost all of the funds for reconstruction and replacement of physical structures or permanent work were obligated during
September 2020). Further, Congress passed three supplemental appropriations acts that included a total of $35.4 billion in
HUD Community Development Block Grant—Disaster Recovery (CDBG-DR) assistance (through BBA of 2018 and two
other acts). Of the total amount provided in these three supplemental appropriations acts (i.e., $35.4 billion), Puerto Rico’s
allocation was $20.2 billion. However, Puerto Rico had only expended approximately $20.6 million in CDBG-DR funds,
which represents approximately 0.1% of all appropriated funds, according to a March 2020 report. A significant amount of
project work remains to be done, and a significant amount of the obligated and appropriated funding remains to be spent,
including related to the PA and CDBG-DR projects and funding. This is also true of FEMA’s Hazard Mitigation Grant
Program (HMGP), the total available funding to Puerto Rico for which is $3.5 billion. However, by September 2020, FEMA
had only obligated approximately 1.1% of the HMGP funds for Puerto Rico for Irma and María, and no HMGP funds have
yet been disbursed for either hurricane. Meanwhile, other disasters, such as the earthquake swarm that began in 2019,
continue to affect Puerto Rico and its recovery, by delaying the progress and increasing costs of ongoing hurricane recovery
work.
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The Status of Puerto Rico’s Recovery Following Hurricanes Irma and María
Many challenges to Puerto Rico’s ongoing hurricane recovery efforts and future disaster preparedness remain. Frequent
policy and rule-making changes in pilot and non-statutory programs, such as FEMA’s PA Section 428 Alternate Procedures
and HUD’s CDBG-DR program, may have generated confusion and contributed to recovery delays. Further, low
participation rates in insurance programs and an inconsistent application of current building codes for hurricane-related
projects jeopardize community resilience. These challenges, and others described in this report, may also affect other states,
territories, and tribal governments, and considerations for Congress are discussed.
This report is intended to provide information to help inform Congress’s understanding of the status of Puerto Rico’s
recovery, including a recap of the above-listed forms of federal assistance provided to Puerto Rico, as well as considerations
for improving these and future recovery efforts. To that end, this report begins by describing the impact Hurricanes Irma and
María had on Puerto Rico, and the roles of the Government of Puerto Rico and of the federal government in administering
and implementing disaster recovery programs. It describes in detail the support provided by the above-listed federal
assistance programs, and it discusses the recovery challenges Puerto Rico may face in the future. Additionally, the
Appendices to this report describe Puerto Rico’s ongoing earthquake swarm and how it has affected Puerto Rico’s recovery
efforts following the 2017 hurricanes; sources of recovery program data; detailed information on building codes; and
additional Congressional Research Service products on topics relevant to understanding the underlying federal assistance
programs and the status of disaster recovery in Puerto Rico.
The data included in this report were obtained at different times, with most dating to September and October, 2020. The dates
associated with the data are noted. This report may be updated if warranted.
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Contents
Introduction ..................................................................................................................................... 1
Major Disasters Affecting Puerto Rico Between 2017 and 2020 .............................................. 2
Hurricane Irma .................................................................................................................... 3
Hurricane María .................................................................................................................. 4
Relationship Between the Government of Puerto Rico and the Federal Government in
Delivering Assistance ............................................................................................................. 7
Role of the Government of Puerto Rico.............................................................................. 7
Role of Federal Agencies .................................................................................................. 10
Federal Assistance Provided to Puerto Rico Following Hurricanes Irma and María ..................... 11
Sources of Federal Recovery Program Funding ..................................................................... 12
FEMA Public Assistance ......................................................................................................... 14
Status of Public Assistance Projects for Hurricane Recovery ........................................... 21
Public Assistance Issues and Challenges .......................................................................... 25
FEMA Mitigation and Rebuilding After Natural Disasters ..................................................... 31
Mitigation Assistance Overview ....................................................................................... 31
Hazard Mitigation Grant Program .................................................................................... 32
Hazard Mitigation Grant Program Funding to Puerto Rico .............................................. 32
Mitigation Issues and Challenges ..................................................................................... 33
Assistance to Individuals and Households .............................................................................. 35
FEMA Individual Assistance Overview............................................................................ 36
Emergency Sheltering and IHP Assistance Provided After the Hurricanes ...................... 37
Other Forms of Individual Assistance Provided ............................................................... 39
Ongoing Housing Recovery Through HUD’s CDBG-DR Program ................................. 40
Issues and Challenges Regarding the Future Delivery of Housing Assistance ................. 44
Small Business Administration Disaster Loan Program ......................................................... 45
SBA Home Disaster Loans ............................................................................................... 46
SBA Business Disaster Loans ........................................................................................... 46
SBA Disaster Loans: 2017 Hurricanes.............................................................................. 47
SBA Disaster Loan Policy Considerations........................................................................ 49
HUD Community Development Block Grant—Disaster Recovery and—Mitigation ............ 50
Assistance Overview......................................................................................................... 51
Assistance Provided .......................................................................................................... 53
CDBG–DR and –MIT Assistance Committed .................................................................. 54
Potential Issues with CDBG–DR and –MIT Assistance ................................................... 54
Insurance ................................................................................................................................. 56
National Flood Insurance Program ................................................................................... 56
Insurance Claims in Puerto Rico After the 2017 Hurricanes ............................................ 57
Insurance Issues and Challenges ....................................................................................... 58
The Future of Recovery in Puerto Rico and Considerations for Congress.................................... 60
Challenges to Delivering Disaster Assistance in Puerto Rico ................................................. 61
Pre-Disaster Condition of Critical Infrastructure .............................................................. 62
Puerto Rico’s Vulnerability to Multiple Hazards .............................................................. 62
Insufficient Insurance Coverage ....................................................................................... 63
Consecutive Disasters Complicate Response and Recovery Efforts ................................ 64
Design Standards and Building Codes .............................................................................. 65
Puerto Rico’s Location Outside of the Continental United States .................................... 66
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Causes for Delays in the Provision of Federal Assistance to Puerto Rico .............................. 67
Strained Local and Federal Capacity ................................................................................ 68
Public Assistance Funding and Reimbursement Process .................................................. 68
Delivery of Hazard Mitigation Grant Program Funding ................................................... 69
Considerations for Improving the Recovery Process .............................................................. 70
Promulgating Regulations for Public Assistance Alternative Procedures ......................... 70
Codifying CDBG-DR ....................................................................................................... 70
Additional Technical and Direct Assistance ..................................................................... 71
Delivery of Assistance for Compound Disasters .............................................................. 72
Integration of Mitigation Funding .................................................................................... 72
Availability of Information on Hazard Mitigation Grant Program and Public
Assistance Funding and Projects ................................................................................... 73
Increasing Access to Program Data and Project Status Information................................. 73
Agency Oversight.................................................................................................................... 74
Conclusion ..................................................................................................................................... 76
Figures
Figure 1. Wind Speeds Affecting Puerto Rico Caused by Hurricanes Irma and María ................... 6
Figure 2. Alternative and Standard Public Assistance Procedures ................................................ 20
Figure 3. Public Assistance Reimbursement Process .................................................................... 21
Figure 4. Public Assistance Obligations Per Month/Year.............................................................. 23
Figure A-1. Significant Seismic Events in Puerto Rico................................................................. 79
Figure A-2. Seismic Activity in Puerto Rico ................................................................................. 81
Tables
Table 1. Sources of Recovery Program Funding ........................................................................... 12
Table 2. Statutory Authorities for Public Assistance ..................................................................... 14
Table 3. Public Assistance Alternative Procedures as Implemented in Puerto Rico ..................... 17
Table 4. Statutory Authorities for Individual Assistance ............................................................... 36
Table 5. SBA Business Disaster Loans .......................................................................................... 47
Table 6. SBA Home Disaster Loans .............................................................................................. 48
Table 7. Hurricane María Loan Processing Times ........................................................................ 50
Table 8. Allocation of CDBG-DR Funds Designated to Puerto Rico to Address Unmet
Needs and Mitigation Activities Related to Hurricanes Irma and María ................................... 54
Table A-1. SBA Business Disaster Loans ...................................................................................... 86
Table A-2. SBA Home Disaster Loans .......................................................................................... 86
Table B-1. Sources of Discrete Disaster Recovery Program Data ................................................ 89
Table B-2. Sources of Aggregated Disaster Recovery Program Data ........................................... 92
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Appendixes
Appendix A. Overview of the Earthquakes Affecting Puerto Rico Beginning in 2019 ................ 77
Appendix B. Tracking Recovery Program Funding and the Status of Work ................................. 88
Appendix C. Building Codes ......................................................................................................... 94
Appendix D. CRS Resources on Disaster Recovery Assistance and Puerto Rico’s
Recovery................................................................................................................................... 101
Contacts
Author Information...................................................................................................................... 102
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Introduction
September 2020 marked the three-year anniversary of the significant destruction caused in Puerto
Rico by Hurricanes Irma and María. This report focuses on Puerto Rico’s recovery from these
disasters, with consideration given to additional disasters that have compounded and complicated
its recovery efforts, including an ongoing earthquake swarm and the Coronavirus Disease 2019
(COVID-19) pandemic.1
The Government of Puerto Rico has received significant federal assistance in the recovery effort,
primarily from:
the Federal Emergency Management Agency (FEMA) (part of the U.S.
Department of Homeland Security (DHS));
the U.S. Small Business Administration (SBA); and
the U.S. Department of Housing and Urban Development (HUD).
This report does not address the funding and assistance provided by other federal agencies (to
include the U.S. Army Corps of Engineers, the U.S. Department of Agriculture, the U.S.
Department of Transportation, and the U.S. Department of Education). Appendix D lists
additional Congressional Research Service (CRS) products on topics relevant to understanding
the underlying federal assistance programs and the status of disaster recovery in Puerto Rico. For
example, additional information on the restoration of Puerto Rico’s power grid can be found in
CRS Report R45263, Puerto Rico—Status of Electric Power Recovery, by Richard J. Campbell,
and CRS Insight IN10785, Puerto Rico and Electric Power Restoration from Hurricane Maria,
by Richard J. Campbell; and the status of U.S. Army Corps of Engineers work can be found in
CRS Insight IN10764, 2017 Hurricanes and Army Corps of Engineers: Background for Flood
Response and Recovery, by Nicole T. Carter and Charles V. Stern. Additionally, this report does
not address issues related to Puerto Rico’s political status (more information on this topic may be
found in CRS Report R44721, Political Status of Puerto Rico: Brief Background and Recent
Developments for Congress, by R. Sam Garrett).
Appendix A provides specific information on the earthquakes that began in 2019 and the
assistance that has been provided through FEMA and the SBA.
Appendix B describes the sources of recovery data that may be referenced to help inform an
understanding of the status of specific recovery programs being used to support Puerto Rico’s
recovery efforts and work. However, this report does not independently estimate the total amount
of assistance required for Puerto Rico to recover, nor does it independently estimate the amount
of recovery work that remains to be completed.
1 For example, see “FEMA [Federal Emergency Management Agency] Administrator Pete Gaynor approved Puerto
Rico for a FEMA grant under the Lost Wages Assistance program. FEMA’s grant funding will allow Puerto Rico to
provide $300 per week—on top of their regular unemployment benefit—to those unemployed due to COVID-19”
(Federal Emergency Management Agency (FEMA), “FEMA Announces Lost Wages Grant for Puerto Rico,” news
release HQ-20-283, October 7, 2020, https://www.fema.gov/press-release/20201007/fema-announces-lost-wages-grantpuerto-rico). On March 27, 2020, the President declared a major disaster under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (P.L. 93-288, as amended) authorizing Public Assistance Category B (emergency
protective measures) for Puerto Rico due to the Coronavirus Disease 2019 (COVID-19) pandemic (FEMA, “Puerto
Rico; Major Disaster and Related Determinations,” 85 Federal Register 21874, April 20, 2020). The declaration was
amended to add Individual Assistance limited to Crisis Counseling (FEMA, “Puerto Rico; Amendment No. 2 to Notice
of a Major Disaster Declaration,” 85 Federal Register 35326, June 9, 2020).
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Appendix C provides detailed information on building codes, which are referenced particularly
in the context of Puerto Rico’s rebuilding efforts, including as they relate to assistance provided
by the Public Assistance and Hazard Mitigation Assistance programs.
Acronyms
Puerto Rico and Federal Departments/Agencies:
COR3—Central Office of Recovery, Reconstruction, and Resiliency (Puerto Rico)
DHS—U.S. Department of Homeland Security
FEMA—Federal Emergency Management Agency
GAO—U.S. Government Accountability Office
HUD—U.S. Department of Housing and Urban Development
P3—Public-Private Partnerships Authority (Puerto Rico)
SBA—U.S. Small Business Administration
Programs and Funding Sources:
CDBG-DR—Community Development Block Grant-Disaster Recovery (HUD)
CDBG-MIT—Community Development Block Grant-Mitigation (HUD)
DRF—Disaster Relief Fund (FEMA)
HMGP—Hazard Mitigation Grant Program (FEMA)
IA—Individual Assistance (FEMA)
NFIP—National Flood Insurance Program (FEMA)
PA—Public Assistance (FEMA)
Major Disasters Affecting Puerto Rico Between 2017 and 2020
Puerto Rico has received presidential declarations of emergency and major disaster under the
Stafford Act2 for Hurricanes Irma and María, as well as other natural disasters, including other
hurricanes,3 an ongoing swarm of earthquakes,4 and the COVID-19 pandemic.5 Puerto Rico’s
recovery efforts from these events are ongoing.
2 Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act; P.L. 93-288, as amended; 42 U.S.C.
§§5121 et seq.).
3 FEMA’s “Declared Disasters” webpage, available at https://www.fema.gov/disasters/disaster-declarations, includes
information on other emergencies and major disasters that have affected Puerto Rico, such as Tropical Storm Isaias (see
FEMA, “Puerto Rico Tropical Storm Isaias (DR-4560-PR),” https://www.fema.gov/disaster/4560). For additional
information regarding hurricanes, including how they form and are categorized, see the National Oceanic and
Atmospheric Administration’s (NOAA’s) website on “Hurricanes,” available at https://www.noaa.gov/education/
resource-collections/weather-atmosphere/hurricanes.
4 FEMA, “Puerto Rico Earthquakes (DR-4473-PR),” https://www.fema.gov/disaster/4473. For additional information
regarding earthquakes, including what earthquakes are and how they are measured, see the U.S. Geological Survey’s
(USGS’s) website on “The Science of Earthquakes,” available at https://www.usgs.gov/natural-hazards/earthquakehazards/science/science-earthquakes?qt-science_center_objects=0#qt-science_center_objects.
5 FEMA, “Puerto Rico Covid-19 Pandemic (DR-4493-PR),” https://www.fema.gov/disaster/4493. Additional
information regarding the nation’s response to COVID-19 can be found by visiting the websites for federal agencies,
including FEMA’s COVID-19 Response website, available at https://www.fema.gov/disasters/coronavirus (for
additional information see CRS Report R46326, Stafford Act Declarations for COVID-19 FAQ, by Elizabeth M.
Webster, Erica A. Lee, and William L. Painter).
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The following sections briefly describe Hurricanes Irma and María, which caused substantial
physical damage to infrastructure, homes, and businesses, and resulted in significant loss of life in
2017.
Hurricane Irma
Hurricane Irma was a category 5
hurricane when it passed just north of
Puerto Rico on September 6, 2017. The
damage in Puerto Rico was caused by
tropical-storm-force winds and
significant rainfall, which resulted in:
“near-total” losses of electricity
and water;
damage to homes;
damage to businesses;
collapsed structures;
uprooted trees; and
three reported indirect deaths.6
Hurricane Terminology and Definitions
“The Saffir-Simpson Hurricane Wind Scale is a 1 to 5 rating
based on a hurricane’s sustained wind speed. This scale
estimates potential property damage.”
category 5 hurricane = sustained winds of ≤157 miles
per hour (mph)
tropical-storm-force winds = maximum sustained winds
of 39 to 73 mph
Source: National Oceanic and Atmospheric Administration (NOAA),
“Saffir-Simpson Hurricane Wind Scale,” https://www.nhc.noaa.gov/
aboutsshws.php; NOAA, “Tropical Cyclone Climatology,”
https://www.nhc.noaa.gov/climo/.
Figure 1 displays the wind speeds and the track of the hurricane.
The National Oceanic and Atmospheric
Administration (NOAA) issued a
hurricane warning for Puerto Rico,
Vieques, and Culebra on September 5,
2017. President Donald J. Trump
declared an emergency under the
Stafford Act on September 5, 2017,
which initially authorized Public
Assistance Categories A and B
(assistance for debris removal and
emergency protective measures,
respectively).7 The hurricane warning
was discontinued on September 7,
2017.8
The Archipelago of Puerto Rico
Puerto Rico is comprised of several islands. The main island is
named Puerto Rico. Other islands in the Puerto Rico
archipelago include the adjacent islands of Vieques (which is
also a municipio—defined below) and Culebra (also a
municipio), among others. “Under the jurisdiction known as
Puerto Rico are approximately 140 insular geostructures,
including islands, islets and keys of various sizes and
magnitudes that border the coasts of the main island.”
Source: Harrison Flores Ortiz, “Archipelago of Puerto Rico,” in the
Encyclopedia of Puerto Rico Online, Puerto Rican Endowment for the
Humanities, https://enciclopediapr.org/encyclopedia/archipelago-ofpuerto-rico/.
6 John P. Cangialosi, Andrew S. Latto, and Robbie Berg, “Tropical Cyclone Report: Hurricane Irma,” National
Hurricane Center, AL112017, June 30, 2018, pp. 3, 5, 12, and 14, https://www.nhc.noaa.gov/data/tcr/
AL112017_Irma.pdf. More specifically, Hurricane Irma’s eye tracked about 50 nautical miles north of San Juan, Puerto
Rico, on September 6, 2017, just before 0000 UTC (Universal Time Coordinated) on September 7, 2017. The highest
wind speed reported as 48 knots (kt) (or approximately 55.2 miles per hour (mph)), with a gust of 64 kt (or
approximately 73.6 mph) at 2230 UTC on September 6, 2017.
7 FEMA, “Puerto Rico Hurricane Irma (EM-3384-PR),” https://www.fema.gov/disaster/3384; and FEMA, “Puerto
Rico; Emergency and Related Determinations,” 82 Federal Register 44647, September 25, 2017.
8 The incident period was closed on September 7, 2017 (FEMA, “Puerto Rico; Amendment No. 1 to Notice of an
Emergency Declaration,” 82 Federal Register 44640, September 25, 2017; and FEMA, “Puerto Rico; Amendment No.
3 to Notice of a Major Disaster Declaration,” 82 Federal Register 44641, September 25, 2017). The incident period is
defined as “[t]he time interval during which the disaster-causing incident occurs. No Federal assistance under the Act
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The President declared a major disaster on September 10, 2017.9 This decision was expedited
because Hurricane Irma was of such severity and magnitude that the need for supplemental
federal assistance was apparent even prior to the completion of a joint Preliminary Damage
Assessment (PDA).10 The major disaster declaration authorized Individual Assistance, expanded
Public Assistance in the designated areas, and authorized Hazard Mitigation throughout Puerto
Rico.11 Additionally, the President’s major disaster declaration enabled the U.S. Small Business
Administration (SBA) to provide SBA Disaster Loans, including Physical Loans for homeowners,
businesses, and nonprofit organizations, and Economic Injury Disaster Loans (EIDLs) for
businesses and nonprofit organizations.12
Hurricane María
Two weeks after Hurricane Irma, a second hurricane made landfall in Puerto Rico. Hurricane
María was a category 4 hurricane (with wind speeds just below the category 5 threshold) when it
came ashore in Puerto Rico on September 20, 2017, and lingered for several hours. Strong winds,
as well as powerful storm surge, heavy rainfall, and severe flooding resulted in:
loss of power (80% of utility poles and all transmission lines were downed);13
loss of cell service;
loss of water;
extensive damage to or the destruction of buildings;
extensive damage to or the destruction of homes;
blown off roofs;
sunken boats;
extensive damage to roads;
shall be approved unless the damage or hardship to be alleviated resulted from the disaster-causing incident which took
place during the incident period or was in anticipation of that incident....” (44 C.F.R. §206.32(f)). For more
information, see CRS Report R41981, Congressional Primer on Responding to and Recovering from Major Disasters
and Emergencies, by Bruce R. Lindsay and Elizabeth M. Webster.
9 FEMA, “Puerto Rico Hurricane Irma (DR-4336-PR),” https://www.fema.gov/disaster/4336; FEMA, “Preliminary
Damage Assessment Report: Puerto Rico—Hurricane Irma,” FEMA-4336-DR, September 10, 2017,
https://www.fema.gov/sites/default/files/2020-03/FEMA4336DRPR_Expedited.pdf; and FEMA, “Puerto Rico; Major
Disaster and Related Determinations,” 82 Federal Register 44639, September 25, 2017.
10 FEMA, “Preliminary Damage Assessment Report: Puerto Rico—Hurricane Irma,” FEMA-4336-DR, September 10,
2017, https://www.fema.gov/sites/default/files/2020-03/FEMA4336DRPR_Expedited.pdf.
11 FEMA, “Puerto Rico; Major Disaster and Related Determinations,” 82 Federal Register 44639, September 25, 2017.
Initially, the municipios of Culebra and Vieques were authorized for Individual Assistance and Public Assistance.
Additional areas were then added for Individual Assistance, including Canóvanas, Loíza, Dorado, Fajardo, Toa Baja,
Cataño, Luquillo, and Vega Baja; and additional areas were added for Public Assistance, including Adjuntas,
Canóvanas, Carolina, Guaynabo, Juncos, Loíza, Luquillo, Orocovis, Patillas, Utuado, Aguas Buenas, Barranquitas,
Bayamón, Camuy, Cataño, Ciales, Comerío, Hatillo, Jayuya, Las Piedras, Quebradillas, Salinas, San Juan, Vega Baja,
Yauco, Dorado, Guarabo, and Naguabo (FEMA, “Puerto Rico; Amendment No. 1 to Notice of a Major Disaster
Declaration,” 82 Federal Register 44639, September 25, 2017; FEMA, “Puerto Rico; Amendment No. 2 to Notice of a
Major Disaster Declaration,” 82 Federal Register 44632, September 25, 2017; and FEMA, “Puerto Rico; Amendment
No. 4 to Notice of a Major Disaster Declaration,” 82 Federal Register 46816, October 6, 2017).
12 U.S. Small Business Administration (SBA), “Presidential Declaration of a Major Disaster for the Commonwealth of
Puerto Rico,” 82 Federal Register 43441, September 15, 2017.
13 By the end of 2017, which was several months after Hurricane María made landfall in Puerto Rico, nearly half of its
residents lacked power.
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downed, splintered, and defoliated trees;14 and
2,975 “total excess mortality” for the period of September 2017 through February
2018 (this is Puerto Rico’s official death toll, which is based on an independent
study by the George Washington University Milken Institute School of Public
Health that was commissioned by former-Governor Ricardo Rosselló Nevares).15
Figure 1 displays the wind speeds and the track of the hurricane.
NOAA issued a hurricane warning for Puerto Rico, Vieques, and Culebra on September 18, 2017.
The President declared an emergency under the Stafford Act on September 18, 2017, which
initially authorized Public Assistance Categories A and B (assistance for debris removal and
emergency protective measures, respectively).16
The President declared a major disaster on September 20, 2017.17 As with Hurricane Irma, this
decision was expedited because Hurricane María was of such severity and magnitude that the
need for supplemental federal assistance was apparent even prior to the completion of a joint
Preliminary Damage Assessment (PDA).18 The hurricane warning was discontinued on
September 21, 2017.19
14 Richard J. Pasch, Andrew B. Penny, and Robbie Berg, “Tropical Cyclone Report: Hurricane Maria,” National
Hurricane Center, February 14, 2019, AL152017, pp. 2, and 4-8, https://www.nhc.noaa.gov/data/tcr/
AL152017_Maria.pdf (hereinafter Pasch, Penny, and Berg, “Tropical Cyclone Report: Hurricane Maria”). In 1928, a
category 5 hurricane made landfall in Puerto Rico, and Hurricane María is the strongest hurricane to make landfall in
Puerto Rico since then. Hurricane María crossed near Yabucoa on Puerto Rico’s southeast coast around 1015 UTC on
September 20, 2017. The highest wind speed was reported as 135 kt (or approximately 155.4 mph), weakening to 95 kt
(or approximately 109.3 mph) by the time Hurricane María emerged into the Atlantic Ocean around 1800 UTC on
September 20, 2017.
15
The George Washington University Milken Institute School of Public Health, with the University of Puerto Rico
Graduate School of Public Health, estimated the excess mortality post-hurricane to be 2,975 (The George Washington
University’s Milken Institute School of Public Health, Ascertainment of the Estimated Excess Mortality from
Hurricane María in Puerto Rico, project report, August 28, 2018, https://publichealth.gwu.edu/sites/default/files/
downloads/projects/PRstudy/
Acertainment%20of%20the%20Estimated%20Excess%20Mortality%20from%20Hurricane%20Maria%20in%20Puert
o%20Rico.pdf). Puerto Rico commissioned the Milken Institute School of Public Health “to conduct an independent
analysis to ... determine the loss of life ... [resulting from] Hurricane Maria. The hurricane took the lives of 2,975. ...
based on that fact, ... [Puerto Rico] adjusted the official death toll” (La Fortaleza, Oficina De La Gobernadora,
“Authorized statement of the Governor of Puerto Rico, Ricardo Rosselló,” September 13, 2018,
https://www.fortaleza.pr.gov/content/authorized-statement-governor-puerto-rico-ricardo-rossell-5). There are other
death toll estimates that are both lower than and higher than that adopted by Puerto Rico. For example, the Government
of Puerto Rico initially estimated the death toll at 64 people. Additionally, a study initiated by the Harvard T.H. Chan
School of Public Health, Harvard University, and published in the New England Journal of Medicine, estimated a total
of 4,645 excess deaths during the period from September 20 through December 31, 2017 (Nishant Kishore et al.,
“Mortality in Puerto Rico after Hurricane Maria,” New England Journal of Medicine, online, May 29, 2018,
https://www.nejm.org/doi/full/10.1056/NEJMsa1803972).
16 FEMA, “Puerto Rico Hurricane Maria (EM-3391-PR),” https://www.fema.gov/disaster/3391; and FEMA, “Puerto
Rico; Emergency and Related Determinations,” 82 Federal Register 45874-45875, October 2, 2017.
17 FEMA, “Puerto Rico Hurricane Maria (DR-4339-PR),” https://www.fema.gov/disaster/4339; FEMA, “Preliminary
Damage Assessment Report: Puerto Rico—Hurricane Maria,” FEMA-4339-DR, September 20, 2017,
https://www.fema.gov/sites/default/files/2020-03/FEMA4339DRPR_Expedited.pdf; and FEMA, “Puerto Rico; Major
Disaster and Related Determinations,” 82 Federal Register 46820, October 6, 2017.
18 FEMA, “Preliminary Damage Assessment Report: Puerto Rico—Hurricane Maria,” FEMA-4339-DR, September 20,
2017, https://www.fema.gov/sites/default/files/2020-03/FEMA4339DRPR_Expedited.pdf.
19 The incident period was closed on November 15, 2017 (FEMA, “Puerto Rico; Amendment No. 2 to Notice of an
Emergency Declaration,” 82 Federal Register 61768, December 29, 2017; FEMA, “Puerto Rico; Amendment No. 6 to
Notice of a Major Disaster Declaration,” 82 Federal Register 61787, December 29, 2017).
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The major disaster declaration authorized Individual Assistance and expanded Public Assistance
in the designated areas, and Hazard Mitigation throughout Puerto Rico.20 Additionally, the major
disaster declaration enabled the provision of SBA Disaster Loans, including Physical Loans for
homeowners, businesses, and nonprofit organizations, and EIDLs for businesses and nonprofit
organizations.21
In addition to the FEMA grants and direct assistance authorized pursuant to the President’s major
disaster declarations for Hurricanes Irma and María, Congress ultimately appropriated
$20,223,446,230 in recovery funding for Puerto Rico through HUD’s Community Development
Block Grant-Disaster Recovery (CDBG-DR) and Community Development Block GrantMitigation (CDBG-MIT) programs through multiple pieces of enacted legislation (see Table 8 for
the allocation of CDBG-DR directed to Puerto Rico).
Figure 1. Wind Speeds Affecting Puerto Rico Caused by Hurricanes Irma and María
Sources: Created by CRS using data from the National Oceanic and Atmospheric Administration–National
Ocean Service, the Humanitarian Data Exchange–British Red Cross Mapping Team, and Esri Data and Maps
2018.
Notes: Hurricane Irma passed to the north of Puerto Rico, but Hurricane María’s path passed directly over
Puerto Rico’s main island, and significantly affected the principal other islands of Vieques and Culebra.
20 FEMA, “Puerto Rico; Major Disaster and Related Determinations,” 82 Federal Register 46820, October 6, 2017.
Initially, Public Assistance Categories A and B were authorized for all of Puerto Rico. Subsequently, Public Assistance
Categories C-G, permanent work, were authorized for all of Puerto Rico (FEMA, “Puerto Rico; Amendment No. 4 to
Notice of a Major Disaster Declaration,” 82 Federal Register 53515, November 16, 2017). Individual Assistance was
ultimately authorized for all of Puerto Rico through amendments to the declaration (FEMA, “Puerto Rico; Amendment
No. 2 to Notice of a Major Disaster Declaration,” 82 Federal Register 47569, October 12, 2017).
21 SBA, “Presidential Declaration of a Major Disaster for the Commonwealth of Puerto Rico,” 82 Federal Register
45349, September 28, 2017.
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Relationship Between the Government of Puerto Rico and the
Federal Government in Delivering Assistance
Defining Municipios
The United States takes a “bottom up” approach
to emergency management, meaning that
Puerto Rico has 78 municipalities, the Spanish term
for which is “municipios.” Municipios are second
disaster response and recovery begin at the
order administrative divisions, which are run by
“local” level. To that end, the Government of
mayors, and they are the primary legal subdivision of
Puerto Rico and its municipios manage disaster
Puerto Rico. Municipios are “geographic, urban and
response and recovery, except in the most
suburban, adjacent areas governed by the same local
extraordinary circumstances. When Puerto
government.... They are equivalent to the ‘county’....”
The municipalities of Puerto Rico are referred to as
Rico’s resources and capacity were
municipios throughout this report.
overwhelmed by Hurricanes Irma and María,
then-Governor Rosselló Nevares requested
Source: Mercedes Casablanca, “About the Municipalities:
federal assistance. The role of the federal
Yesterday and Today,” in the Encyclopedia of Puerto Rico
government is to supplement the efforts and
Online, Puerto Rican Endowment for the Humanities,
https://enciclopediapr.org/encyclopedia/sobre-losresources of the Government of Puerto Rico and
municipios-ayer-y-hoy/.
its municipios, and disaster relief organizations
Notes: The Government of Puerto Rico’s website includes
through the provision of assistance via federal
a directory of municipios, available at https://www2.pr.gov/
22
recovery programs. The government of Puerto
Directorios/Pages/DirectoriodeMunicipios.aspx.
Rico and the federal government have different
roles and responsibilities in administering these programs and supporting Puerto Rico’s recovery
efforts, which are described below.
Role of the Government of Puerto Rico
Puerto Rico is responsible for establishing and implementing its recovery plan, managing various
federally-funded recovery programs, and meeting federal grants requirements, per congressional
and federal requirements. These responsibilities are described below.
Former-Governor Ricardo Rosselló Nevares established the Central Office of Recovery,
Reconstruction, and Resiliency (COR3) through Executive Order OE-2017-6523 to implement
Puerto Rico’s recovery plan, entitled Transformation and Innovation in the Wake of Devastation:
An Economic and Disaster Recovery Plan for Puerto Rico (hereinafter Economic and Disaster
Recovery Plan for Puerto Rico).24 COR3 “acts as the oversight function for the Governor’s Office
to verify compliance of the use of all disaster recovery grant funding [including FEMA
22 42 U.S.C. §5122(2). For more information on federal response and recovery, see CRS Report R41981,
Congressional Primer on Responding to and Recovering from Major Disasters and Emergencies, by Bruce R. Lindsay
and Elizabeth M. Webster.
23 Government of Puerto Rico, Executive Order of the Governor of Puerto Rico, Hon. Ricardo A. Rosselló Nevares, To
Create the Central Recovery and Reconstruction Office of Puerto Rico, Administrative Bulletin No. OE-2017-65,
October 23, 2017 (to access the Executive Order, visit the website of the Gobierno de Puerto Rico, Departamento de
Estado, available at https://www.estado.pr.gov/en/executive-orders/); see also Central Office of Recovery,
Reconstruction, and Resiliency (COR3), Transformation and Innovation in the Wake of Devastation: An Economic and
Disaster Recovery Plan for Puerto Rico, August 8, 2018, p. iv, https://recovery.pr/documents/pr-transformationinnovation-plan-congressional-submission-080818.pdf (hereinafter COR3, Economic and Disaster Recovery Plan for
Puerto Rico). The Executive Order OE-2017-65 names the Central Recovery and Reconstruction Office, which is now
known as COR3.
24 COR3, Economic and Disaster Recovery Plan for Puerto Rico, p. viii. COR3 is a division of the Puerto Rico PublicPrivate Partnerships (P3) Authority. The website of the Puerto Rico Public-Private Partnerships Authority (P3) is
available at https://aafaf.pr.gov/p3/.
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assistance].... The COR3 office maintains an oversight and coordination role across all federal
funding streams.”25 Further, COR3 maintains a “Transparency Portal” website (described in
Appendix B), which is intended to make recovery information related to Hurricanes Irma and
María publicly available.26
Separately, the Puerto Rico Department of Housing (PRDOH) was appointed by the Governor to
administer the Community Development Block Grant-Disaster Recovery (CDBG-DR) program,
in close collaboration with COR3.27 Thus, PRDOH is responsible for HUD grant management,
and CDBG-DR-funded program implementation and compliance (for which there are also
program guidance documents that align with the Economic and Disaster Recovery Plan for
Puerto Rico).28 PRDOH reports information on the use of CDBG-DR funds to COR3, and this
information is included in required reports to Congress (described below).29
Puerto Rico’s Goals for Recovery
The Bipartisan Budget Act of 2018 (BBA of 2018), which provided relief funding through
congressional appropriations in the wake of the 2017 hurricanes, includes requirements to support
congressional oversight of Puerto Rico’s recovery progress. The BBA of 2018 required the
Governor of Puerto Rico to submit a report to Congress describing the plan for economic and
disaster recovery, to include Puerto Rico’s priorities, goals, and expected outcomes.30 It also
requires regular progress reports (every 180 days), which are made public.31 The Government of
Puerto Rico, with support from FEMA and the Homeland Security Operational Analysis Center
(HSOAC), developed the Economic and Disaster Recovery Plan for Puerto Rico.32 The four core
areas that define the vision for Puerto Rico’s recovery, as outlined in the plan, are:
1. Society: which is focused on promoting an educated, healthy, and sustainable
society;
2. Economy: which is focused on ensuring rebuilding and restoration efforts
promote sustainable economic growth and social transformation, and contribute
to an economy that is more “vibrant and competitive” and can provide job
growth and personal advancement opportunities;
25 Puerto Rico Department of Housing (PRDOH), Puerto Rico Disaster Recovery Action Plan for the Use of CDBG-DR
Funds in Response to 2017 Hurricanes Irma and María, Amendment 3, February 24, 2020, p. 8, https://cdbg-dr.pr.gov/
en/download/action-plan-amendment-3-nonsubstantial-amendment-effective-on-february-24-2020/ (hereinafter
PRDOH, Action Plan for the Use of CDBG-DR Funds (Amendment 3)).
26 Governor of Puerto Rico to U.S. Congressional Leaders, Third Congressional Status Report on the Economic and
Disaster Recovery Plan, January 29, 2020, https://recovery.pr/documents/Puerto_Rico_Third_Report_to_Congress.pdf
(hereinafter Governor of Puerto Rico, Third Congressional Status Report).
27 PRDOH, Action Plan for the Use of CDBG-DR Funds (Amendment 3), p. v.
28 PRDOH, Action Plan for the Use of CDBG-DR Funds (Amendment 3), p. 8.
29 Section 21210 of the Bipartisan Budget Act of 2018 (BBA of 2018; P.L. 115-123); and PRDOH, Action Plan for the
Use of CDBG-DR Funds (Amendment 3), p. 8.
30 Section 21210 of the BBA of 2018 (P.L. 115-123).
31 See, for example, Government of Puerto Rico, Fourth Congressional Status Report, which is required by Section
21210(c) of the BBA of 2018 (P.L. 115-123). Government of Puerto Rico, Fourth Congressional Status Report on the
Economic and Disaster Recovery Plan, August 3, 2020, p. 2, https://recovery.pr/documents/
Congressional%20Report%20073020[2].pdf (hereinafter Government of Puerto Rico, Fourth Congressional Status
Report).
32 COR3, Economic and Disaster Recovery Plan for Puerto Rico, p. viii.
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3. Resilience: which is focused on future disaster response and recovery through
preparedness (individual, business, community, and government), and mitigation
(e.g., improved codes and standards); and
4. Infrastructure: which is focused on modern, sustainable, resilient design and
reconstruction of critical infrastructure.33
The plan also sets forth the recovery activities to achieve long-term recovery, including shorterterm (1-2 year) objectives, such as:
reestablishing energy, telecommunications, water, and transportation systems;
repairing or rebuilding residential structures;
improving emergency preparedness; and
clarifying responsibility for infrastructure and services.34
Further, the plan sets forth longer-term (3-11 year) objectives, such as:
encouraging economic growth;
revitalizing urban centers;
improving infrastructure and social services to meet the current and future
population’s needs;
rebuilding infrastructure to modern codes and standards; and
enhancing recovery and daily operational decisionmaking resources for the
public and private sectors.35
In total, the recovery plan identifies 276 courses of action (or individual goals)—grouped into
Capital Investments and Strategic Initiatives—to achieve Puerto Rico’s recovery goals.36 The
federal assistance programs, described in the “Federal Assistance Provided to Puerto Rico
Following Hurricanes Irma and María” section of this report, support Puerto Rico’s efforts to
achieve its recovery goals.
Puerto Rico’s Responsibilities as a Federal Grant Recipient
In addition to orchestrating the disaster recovery process at the state and substate level, the
Government of Puerto Rico serves as the primary grant recipient for federal disaster assistance,
such as FEMA’s Public Assistance program. The primary grant recipient plays a role in vetting
projects for eligibility and in coordinating with FEMA on project development and
implementation. The primary grant recipient is also responsible for ensuring compliance with all
federal requirements, including ensuring that subgrantees and subcontractors of the primary grant
recipient comply with the statutory and regulatory requirements of the federal assistance.37 The
primary grant recipient is also responsible for ensuring that any conditions placed on the federal
assistance, such as cost-share requirements, are met—regardless of whether the primary grant
33 COR3, Economic and Disaster Recovery Plan for Puerto Rico, pp. ix, and 4-5.
34 COR3, Economic and Disaster Recovery Plan for Puerto Rico, pp. 8-9.
35 COR3, Economic and Disaster Recovery Plan for Puerto Rico, pp. 8-9.
36 Letter from Ricardo Rosselló Nevares, Governor of Puerto Rico, to Leader McConnell, Senator, Minority Leader
Schumer, Senator, and Speaker Pelosi, Representative, and Minority Leader McCarthy, Representative, February 4, p.
2, 2019, https://recovery.pr/documents/Letter_Gov_Rossello_to_Congressional.pdf.
37 For more information on federal grants management, see CRS Report R42769, Federal Grants-in-Aid
Administration: A Primer, by Natalie Keegan.
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recipient directly expended the funds or passed them through to be expended by subgrantees or
subcontractors.
Role of Federal Agencies
Federal agencies are supporting the disaster recovery efforts of Puerto Rico. One of the federal
government’s primary recovery functions is to perform grants management, categorized as
financial management, program administration, and grant oversight.38 Further, federal grant
administration activities include:
providing guidance on the use of funds, as well as technical assistance to grant
recipients;
reviewing activities conducted under the terms of the grant award;
reviewing and approving changes in the scope of work to be done under the grant
agreement; and
assessing compliance with program and financial reporting requirements.39
Federal agencies also investigate allegations of waste, fraud, and abuse in the use of federal
assistance, and are required to conduct risk assessments to identify risks of improper payments
under grant programs and to implement additional grant management procedures to reduce that
risk.40 For purposes of administering aid under the Stafford Act, Puerto Rico is considered a
“state”41 by federal agencies, and, as such, is subject to the same statutory and regulatory
requirements as states.42 Federal agencies conduct risk assessments to review the financial
integrity of the state with respect to managing federal funding to determine whether there is a
high risk of waste, fraud, and abuse in the use of the federal grant award.43 Though FEMA does
not have a formal process for designating a grantee as “high risk,” it implemented a manual
review of reimbursement requests several times during the recovery period for payments
requested under the Public Assistance program (this is further discussed in the “Public Assistance
Obligation and Disbursement” section) to mitigate the risk of waste, fraud, and abuse. Because
manual review of reimbursements requires an additional step in the processing of reimbursement
payments, this may have caused additional delay in the processing of payments to Puerto Rico.
HUD also conducts risk assessments of grantees, but has established criteria to make a high-risk
grantee determination that may result in additional monitoring and oversight.44
38 Financial management activities are generally conducted by the agency’s finance personnel and include tracking
expenditures made under the terms of a grant award and disbursing grant funds. Program administration is often
undertaken by agency program specialists and involves monitoring grant recipient activities (e.g., compliance with the
terms of the grant award. With regard to oversight, the offices of inspector general (OIG) have broad authority to
conduct audits and investigations of federal grant programs to assess the efficiency and effectiveness of the programs
and to reduce waste, fraud, and abuse. For more information on federal grants administration, see CRS Report R42769,
Federal Grants-in-Aid Administration: A Primer, by Natalie Keegan.
39 For more information, see the Office of Management and Budget’s (OMB’s) Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards, codified in 2 C.F.R. Part 200, available at
https://www.grants.gov/learn-grants/grant-policies/omb-uniform-guidance-2014.html.
40 Improper Payments Elimination and Recovery Improvement Act, P.L. 112-248.
41 42 U.S.C. §5122(4).
42 44 C.F.R. §59.1.
43 2 C.F.R. §200.205(1).
44 For additional information related to the U.S. Department of Housing and Urban Development (HUD) high-risk
considerations, see U.S. Government Accountability Office (GAO), Disaster Recovery: Better Monitoring of Block
Grant Funds Is Needed, GAO-19-232, March 2019, pp. 34-35, https://www.gao.gov/assets/700/697827.pdf.
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Federal Assistance Provided to Puerto Rico
Following Hurricanes Irma and María
The following sections describe select forms of federal assistance that were authorized to support
Puerto Rico following Hurricanes Irma and María, and the sources of funding for such programs.
First, brief overviews of each program are provided, organized by the agency that delivers the
assistance. This is followed by an overview of the sources of federal recovery program funding.
The section concludes with more in-depth information, which is organized according to each
specific program. The program-specific sections include a brief overview of the work that has
been completed and the work that remains to be completed. Additionally, a few program-specific
considerations that may be of interest to Congress are included.
The presidential major disaster declarations under the Stafford Act authorized the Federal
Emergency Management Agency to provide the following disaster assistance:
Public Assistance (PA), which provides grants to Puerto Rico and its local
governments, as well as certain private nonprofit organizations, for emergency
protective measures and debris removal operations, as well as the repair or
replacement of eligible public and nonprofit facilities;45
Individual Assistance (IA), which provided direct aid to affected individuals and
households for housing assistance and other needs, crisis counseling, case
management services, legal services, and disaster unemployment assistance;46
and
Hazard Mitigation Grant Program (HMGP) funding, which supports mitigation
and resiliency projects and programs across Puerto Rico.47 Hazard mitigation
funding is intended to save lives, preserve property, reduce the need for
temporary shelter, lower costs associated with disaster recovery, and facilitate
economic recovery after a disaster.48
In addition to assistance authorized pursuant to the major disaster declarations, the National Flood
Insurance Program (NFIP) paid flood insurance claims to program participant policyholders.
Property owners or renters may elect to purchase a flood insurance policy, either through the
NFIP or from private companies. In the case of Puerto Rico, however, there were low rates of
NFIP and private flood insurance participation when Hurricane María made landfall.
(FEMA consolidated the grants of assistance provided for Hurricanes Irma and María for
purposes of program administration.49)
45 FEMA, “Public Assistance: Local, State, Tribal and Private Non-Profit,” https://www.fema.gov/public-assistance-
local-state-tribal-and-non-profit.
46 For more information, see CRS Report R46014, FEMA Individual Assistance Programs: An Overview, by Elizabeth
M. Webster; see also FEMA, “Individual Disaster Assistance,” https://www.fema.gov/individual-disaster-assistance.
47 FEMA, “The Hazard Mitigation Grant Program Guide for State/Local Governments,” https://www.fema.gov/grants/
mitigation/hazard-mitigation/governments.
48 Multihazard Mitigation Council, National Institute of Building Sciences, Natural Hazard Mitigation Saves, 2017
Interim Report, Washington, DC, December 2017, p. i, https://www.nibs.org/page/reports.
49 For administrative purposes, FEMA consolidated Public Assistance work and obligations for either incident that was
initiated on or after September 17, 2017, into the declaration for Hurricane María, DR-4339. Alejandro R. De La
Campa, FEMA Federal Coordinating Officer, to Governor Ricard A. Rosselló Nevares, “FEMA-4336-DR-PR and
FEMA-4339-DR-PR,” memorandum, October 6, 2017, provided to CRS by FEMA Congressional Affairs staff.
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The presidential major disaster declarations under the Stafford Act authorized the Small Business
Administration to provide disaster assistance through the SBA Disaster Loan Program, which
provided Physical Loans for homeowners, businesses, and nonprofit organizations, and EIDLs for
businesses and nonprofit organizations.
Following Hurricanes Irma and María, Congress, in a series of separate legislative actions,
appropriated recovery funding for Puerto Rico through the Department of Housing and Urban
Development Community Development Block Grant-Disaster Recovery (CDBG-DR) and
Community Development Block Grant-Mitigation (CDBG-MIT) programs (see Table 8 for the
allocation of CDBG-DR directed to Puerto Rico under P.L. 115-56, P.L. 115-123, and P.L. 116-20
to address unmet needs and mitigation activities).50
Sources of Federal Recovery Program Funding
The President and Congress authorized various forms of FEMA, SBA, and HUD assistance to
support the recovery efforts of Puerto Rico, as listed in Table 1 and described below.
Table 1. Sources of Recovery Program Funding
Agency
Program
Funding Source(s)
FEMA
Public Assistance (PA)
Disaster Relief Fund
FEMA
Hazard Mitigation Grant Program (HMGP)
Disaster Relief Fund
FEMA
National Flood Insurance Program (NFIP)
Policy Premiums
Annual Appropriations
Borrowing from the U.S. Treasury
FEMA
Individual Assistance (IA)
Disaster Relief Fund
SBA
Disaster Loan Program
SBA Disaster Loan Account
HUD
Community Development Block GrantDisaster Recovery (CDBG-DR)
Community Development Block GrantMitigation (CDBG-MIT)
Supplemental Appropriations:
P.L. 115-56
P.L. 115-123
P.L. 116-20
Sources: Compiled by CRS based on program funding data from FEMA, the SBA, and HUD.
Notes: For more information on assistance provided to Puerto Rico following Hurricanes Irma and María, see
CRS Report R45084, 2017 Disaster Supplemental Appropriations: Overview, by William L. Painter.
Federal funding for disaster recovery is provided through a combination of annual and
supplemental appropriations. The most well-known of these appropriations is the Disaster Relief
Fund (DRF): a “no-year appropriation” that funds FEMA’s activities under the Stafford Act,
Available to Members and congressional staff upon request. FEMA also consolidated the Individual Assistance data for
the hurricanes (email from FEMA Congressional Affairs staff, September 10, 2020).
50 On February 7, 2020, the House of Representatives passed Emergency Supplemental Appropriations for Disaster
Relief and Puerto Rico Disaster Tax Relief Act, 2020, H.R. 5687, which would include additional CDBG-DR funds
and provide flexibilities for the use of funds previously appropriated and allocated in response to Hurricanes Irma and
María. The bill has been placed on the Senate Legislative Calendar under General Orders.
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including disaster response and recovery.51 The DRF is used to pay for FEMA’s PA, IA, and
HMGP programs.52
SBA disaster loans are provided through the SBA Disaster Loan Account, which is funded via
annual and supplemental appropriations.53
CDBG-DR and CDBG-MIT funding is provided via supplemental appropriations.
The following sections provide a more in-depth overview of the assistance programs provided by
FEMA, the SBA, and HUD. Some of these programs supported short- and intermediate-term
recovery efforts in Puerto Rico, including certain forms of:
FEMA Public Assistance (PA);
FEMA Individual Assistance (IA); and
SBA disaster loans.
Others continue to support Puerto Rico’s long-term recovery efforts, such as some forms of:
FEMA PA;
FEMA’s Hazard Mitigation Grant Program (HMGP); and
HUD’s Community Development Block Grant—Disaster Recovery and—
Mitigation (CDBG-DR and CDBG-MIT, respectively).
These ongoing programs support many types of recovery work, including repairing or rebuilding
public infrastructure, mitigating against the threat of future disasters, and assisting with
community and individual recovery. Further, these programs connect in various ways. For
example, in addition to supporting infrastructure-related projects, the HUD CDBG-DR program
is continuing the housing recovery efforts that began with assistance provided through FEMA’s
PA and IA programs.
The following sections provide program-specific overviews. First, programs that provide
assistance to government entities and nonprofit organizations are described, followed by
programs that provide assistance to individuals and businesses, and then a combination of
government entities and individuals. It begins with FEMA’s PA program, which was the first
form of federal assistance authorized to support Puerto Rico’s disaster response and recovery
efforts.54 The report then describes FEMA-funded mitigation. These sections are followed by an
overview of assistance to individuals and households, which includes assistance provided by
FEMA, the SBA, and HUD. Then, SBA assistance is described, followed by HUD assistance. The
section concludes by describing insurance that supported individual recovery efforts.
51 For more information on the Disaster Relief Fund (DRF), see CRS Report R45484, The Disaster Relief Fund:
Overview and Issues, by William L. Painter.
52 Unlike other FEMA programs, the National Flood Insurance Program (NFIP) does not rely on congressional
involvement, nor is a presidential declaration under the Stafford Act required to allow policyholders to file claims.
Instead, the NFIP is funded in three ways: (1) receipts from the premiums of flood insurance policies, including fees
and surcharges; (2) direct annual appropriations for part of the costs of the flood hazard mapping and risk analysis
program; and (3) borrowing from the U.S. Treasury when funding is insufficient to pay the NFIP’s obligations (e.g.
insurance claims) (U.S. Department of Homeland Security (DHS), FEMA Budget Overview FY2020, FEMA—NFIP –
4).
53 For more information on the SBA Disaster Loan Account, see CRS Insight IN11433, Supplemental Appropriations:
SBA Disaster Loan Account, coordinated by Bruce R. Lindsay.
54 FEMA, “Puerto Rico; Emergency and Related Determinations,” 82 Federal Register 44647, September 25, 2017;
FEMA, “Puerto Rico; Emergency and Related Determinations,” 82 Federal Register 45874-45875, October 2, 2017.
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FEMA Public Assistance55
FEMA’s Public Assistance (PA) Program provides supplemental financial assistance to states,
tribes, and territories, as well as certain private nonprofit organizations, when authorized as part
of an emergency or major disaster declaration by the President under the Stafford Act.56 Public
Assistance for “emergency work” includes financial and direct assistance for debris removal and
emergency protective measures undertaken in immediate response to a hazard.57 Public
Assistance for “permanent work” provides assistance to repair, reconstruct, and replace disasterdamaged public and eligible nonprofit facilities to facilitate long-term recovery.58 Table 2 lists the
categories of PA work.
Table 2. Statutory Authorities for Public Assistance
Stafford Act Sections
Category of
Assistance
What It Provides
Section 407
Category Aa
Emergency Work: Debris Removal
Section 403
Category Ba
Emergency Work: Emergency Protective Measures
Section 406 or Section 428
Category Cb
Permanent Work: Roads/Bridges
Section 406 or Section 428
Category Db
Permanent Work: Water Control Facilities
Section 406 or Section 428
Category Eb
Permanent Work: Buildings/Equipment
Section 406 or Section 428
Category Fb
Permanent Work: Utilities
Section 406 or Section 428
Category Gb
Permanent Work: Parks, Recreational, and Other Facilities
Source: FEMA, Public Assistance Program and Policy Guide (PAPPG), FP 104-009-2, April 2018, https://recovery.pr/
documents/PAPPG_3.1_508_FINAL_5-4-2018.pdf (effective for declarations for the 2017 hurricanes and 20192020 earthquakes).
Notes: The Public Assistance (PA) categories of assistance (i.e., Categories A-G) do not align with the
numbering in Section 403 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act,
P.L. 93-288, as amended; 42 U.S.C. §§5121 et seq.).
a. This type of assistance may be made available if authorized pursuant to a presidential declaration of
emergency or major disaster.
b. This type of assistance may only be made available if authorized pursuant to a presidential declaration of
major disaster.
Public Assistance provides financial assistance for at least 75% of eligible costs for both urgent
response and long-term recovery needs. In certain catastrophic situations, the President may
increase the federal cost share; the federal cost share may also be increased legislatively.59
Remaining costs are generally paid by nonfederal sources, unless the statute authorizing the funds
55 For more information on FEMA’s Public Assistance (PA) program, contact Erica A. Lee, Analyst in Emergency
Management and Disaster Recovery.
56 For general information on FEMA’s Public Assistance program, see CRS In Focus IF11529, A Brief Overview of
FEMA’s Public Assistance Program, by Erica A. Lee.
57 Assistance for PA emergency protective measures is authorized under Stafford Act Sections 402, 403, 418, 419, and
502; 42 U.S.C. §§5170a, 5170b, 5185, 5186, and 5192. Assistance for PA debris removal is authorized under Stafford
Act Sections 407, 428, and 502; 42 U.S.C. §§5173, 5189f, and 5192.
58 Assistance for PA permanent work is authorized under Stafford Act Sections 406 and 428; 42 U.S.C. §§5172 and
5189f. See 44 C.F.R. §206.220 for general eligibility for Public Assistance. See also 44 C.F.R. §206.226 for federal
regulations on restoration of damaged facilities.
59 44 C.F.R. §206.47.
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explicitly provides that they may be applied to cost sharing requirements of other federal
programs.60 For example, when appropriated, Community Development Block Grant funding for
disaster assistance (CDBG-DR) may be used to cover FEMA non-federal cost share amounts.
The President authorized Public Assistance “emergency work” in emergency declarations issued
for the 2017 hurricanes.61 The major disaster declaration for Hurricane María additionally
authorized PA “permanent work” throughout Puerto Rico’s 78 municipios.62 In acknowledgement
of the severity and magnitude of the hurricanes’ impact, the President amended the initial major
disaster declaration for Hurricane María to increase the federal cost share for “emergency work”
to 100% for a limited period of time.63
For the 2017 hurricanes, the Government of Puerto Rico is designated as the PA Recipient.64
Then-Governor Ricardo Rosselló Nevares delegated responsibility for PA administration to the
Central Office of Recovery, Reconstruction and Resiliency (COR3) in 2017.65 The Government
of Puerto Rico and municipio agencies, as well as eligible nonprofits (hereinafter Applicants),
submit applications for funding for specific projects to both COR3 and FEMA.66 For example, the
Puerto Rico Electric Power Authority (PREPA) submitted applications for specific PA projects as
an Applicant.67 COR3, as the Recipient, and FEMA together assist Applicants in project
formulation and review of eligibility requirements.
Section 428 Alternative Procedures
On November 5, 2017, the President amended the major disaster declaration for Hurricane María
in Puerto Rico. The President’s amendment stated that Puerto Rico had elected to administer
Public Assistance for all permanent work large projects (in FY2017, those above $123,100) for
Hurricane María recovery according to Stafford Act Section 428—Alternative Procedures
(hereinafter Alternative Procedures).68 In recognition of Puerto Rico’s use of Alternative
60 See, for example, Section 406 of the Stafford Act, 42 U.S.C. §5172, which states “Except as provided in paragraph
(2), the Federal share of assistance under this section shall be not less than 75 percent of the eligible cost of repair,
restoration, reconstruction, or replacement carried out under this section.” On the use of federal funds to meet
nonfederal cost shares, see 44 C.F.R. §200.306(b)(5).
61 FEMA, “Puerto Rico; Emergency and Related Determinations,” 82 Federal Register 44647, September 25, 2017;
FEMA, “Puerto Rico; Emergency and Related Determinations,” 82 Federal Register 45874-45875, October 2, 2017.
62 “Puerto Rico; Amendment No. 4 to Notice of a Major Disaster Declaration,” 82 Federal Register 53515, November
16, 2017.
63 “Puerto Rico; Amendment No. 1 to Notice of a Major Disaster Declaration,” 82 Federal Register 46816, October 6,
2017.
64 2 C.F.R. §200.86.
65 Government of Puerto Rico, Executive Order of the Governor of Puerto Rico, Hon. Ricardo A. Rosselló Nevares, To
Create the Central Recovery and Reconstruction Office of Puerto Rico, Administrative Bulletin No. OE-2017-65,
October 23, 2017. To access the Executive Order, visit the website of the Gobierno de Puerto Rico, Departamento de
Estado, available at https://www.estado.pr.gov/en/executive-orders/, or visit
https://noticiasmicrojuris.files.wordpress.com/2017/10/oe-2017-065.pdf.
66 Per 2 C.F.R. §200.93, a Subrecipient is an Applicant that receives a subaward from a pass-through entity [here, the
Recipient] to carry out part of a federal program. FEMA refers to Subrecipients as Applicants, defined as entities
responsible for PA Projects. See 44 C.F.R. §206.22 for eligibility of Public Assistance Applicants, and FEMA, Public
Assistance Program and Policy Guide, FP 104-009-2, effective June 1, 2020, pp. 22, 42-47. See also 44 C.F.R.
§§206.220-228 for federal regulations regarding eligibility for public assistance.
67 See PR Electric Power Authority, Applicant ID 000-UA2QU-00, in FEMA, OpenFEMA, “Public Assistance
Applicants,” downloaded August 17, 2020, https://www.fema.gov/openfema-data-page/public-assistance-applicants.
68 FEMA, “Puerto Rico; Amendment No. 5 to Notice of a Major Disaster Declaration,” 82 Federal Register 53514,
November 16, 2017. In FY2017, large projects were defined as those that exceed $123,100. FEMA, “Per Capita Impact
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Procedures at this scale, the President increased the federal cost share for all PA projects for
Hurricane María from 75% to 90%, except those previously authorized at 100%.69 The cost share
increase was conditioned on the use of Alternative Procedures for all large, permanent work
projects, among several other requirements.70
The Sandy Recovery Improvement Act (SRIA) amended the Stafford Act to authorize Alternative
Procedures in the wake of Hurricane Sandy in 2012, in order to reduce costs, reward timely and
adept completion of PA projects, and allow Applicants to complete projects on basis of need
rather than pre-disaster design.71 Unlike the standard procedures that govern PA projects, in which
the awards are based on the costs of the actual work undertaken, under Alternative Procedures,
the awards are capped based on up-front and mutually agreed-to estimates of the cost of the work
to be done. Congress authorized Alternative Procedures as a pilot program and allowed FEMA to
waive the standard rulemaking process in order to expeditiously implement the new procedures.72
FEMA has instead issued guidance on Alternative Procedures. To address the specifics of Puerto
Rico’s complex recovery, FEMA issued three iterations of guidance on PA Alternative Procedures
and established policy changes in official letters to COR3. The GAO found that the lack of clear,
consistent, and accessible guidance sometimes generated confusion and contributed to recovery
delays in Puerto Rico.73
Congress has repeatedly expressed concern over whether Puerto Rico voluntarily elected to use
Alternative Procedures,74 as required by the Stafford Act.75 Though FEMA previously
implemented Alternative Procedures on a project-by-project basis elsewhere in the United States,
Indicator and Project Thresholds,” https://www.fema.gov/public-assistance-indicator-and-project-thresholds. For
general information on the Public Assistance program and a description of Section 406 and Section 428 program
procedures, see FEMA, Public Assistance Program and Policy Guide (PAPPG), FP 104-009-2, April 2018,
https://www.fema.gov/media-library-data/1591036773793-4b7a09fc1680e09984629fc3ea77467a/
PAPPG_3.1_508_FINAL_5-4-2018_ARCHIVED.pdf (effective for declarations for the 2017 hurricanes and 20192020 earthquakes).
69 FEMA, “Puerto Rico; Amendment No. 5 to Notice of a Major Disaster Declaration,” 82 Federal Register 53514,
November 16, 2017.
70 FEMA, “Puerto Rico; Amendment No. 5 to Notice of a Major Disaster Declaration,” 82 Federal Register 53514,
November 16, 2017.
71 The Sandy Recovery Improvement Act (SRIA), P.L. 113-2, 127 Stat. 39; Stafford Act Section 428. The Public
Assistance Program Alternative Procedures are codified at Section 1102 of SRIA; 42 U.S.C. §5189(f).
72 Section 1102 of SRIA, P.L. 113-2, 127 Stat. 41, as codified at 42 U.S.C. §5189f(f), Section 428(f) of the Stafford
Act.
73 GAO, Puerto Rico Hurricanes: Status of FEMA Funding, Oversight, and Recovery Challenges, GAO 19-256, March
2019, https://www.gao.gov/assets/700/697528.pdf (hereinafter GAO, Puerto Rico Hurricanes 2019); and GAO, Puerto
Rico Disaster Recovery: FEMA Actions Needed to Strengthen Project Cost Estimation and Awareness of Program
Guidance, GAO 20-221, February 2020, pp. 27-29, https://www.gao.gov/assets/710/704282.pdf (hereinafter GAO,
FEMA Actions).
74 Letter from Peter A. DeFazio, Ranking Member, Committee on Transportation and Infrastructure, Bennie G.
Thompson, Ranking Member, Committee on Homeland Security, and Frank Pallone, Jr., Ranking Member, Committee
on Energy and Commerce, to William B. “Brock” Long, FEMA Administrator, March 20, 2018; Letter from Senators
Robert Menendez, Sherrod Brown, Elizabeth Warren, and Catherine Cortez Masto, to Kathy Kraniger, OMB Program
Associate Director, July 10, 2018, pp. 2-3; Rep. DeFazio, U.S. Congress, House Committee on Transportation and
Infrastructure, Emergency Response and Recovery: Central Takeaways from the Unprecedented Hurricane Season,
hearing, 115th Cong., 1st sess., Nov. 2, 2017, H.Hrg. 115-29 (Washington, DC: GPO, 2017), p. 95.
75 Section 1102 of SRIA, P.L. 113-2, 127 Stat. 41, as codified at 42 U.S.C. §5189f(f), Section 428(d)(1) of the Stafford
Act.
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the required use of Alternative Procedures across an entire state, tribe, or territory is
unprecedented.76
In January 2020, in response to a request from COR3 to allow the use of standard PA procedures,
FEMA changed its policy to permit the use of standard procedures in certain cases.77 FEMA
permitted the use of standard procedures for large, permanent work projects that had not yet been
obligated and were not considered “critical services” (which include power, water, sewer,
wastewater treatment, communications, education, and medical care). FEMA estimated that
approximately 80% of the total estimated recovery costs for Hurricane María would continue to
use Alternative Procedures.78 Table 3 provides a comparison of the key features of the PA
standard procedures and the Alternative Procedures implemented in Puerto Rico.
Table 3. Public Assistance Alternative Procedures as Implemented in Puerto Rico
Key Variations from Public Assistance Standard Procedures
Topic
Standard Public Assistance
Procedures (“406 Procedures”)
Alternative Public Assistance
Procedures in Puerto Rico
(“428 Procedures”)
Award
Awards are based on costs of actual
work.
Awards are capped on the basis of
estimates of the cost of eligible work
agreed to by FEMA, Puerto Rico, and
the Applicant. Fixed-cost estimates may
not be amended after agreement is
reached, except if insurance proceeds
or failure to obtain and maintain
insurance alters the estimated cost of
the project. Certain cost estimates are
validated by a third-party expert panel.
Cost Overruns
Applicants may receive PA on a costshare basis for eligible costs that exceed
initial project estimates.
The Applicant is responsible for the
difference between the cost of
estimated and actual work.
Excess Funds
Applicants may not access funds
remaining if project estimates exceed
actual project costs.
Applicants may use award funds
remaining after the completion of actual
work on eligible work, including
mitigation and other PA projects.
Consolidated Projects
Standard procedures require Applicants
to use funds for the project
documented in the original scope of
work.
An Applicant using Alternative
Procedures may consolidate funds from
multiple fixed-cost PA awards across
multiple facilities or projects. For
example, an Applicant may use funds
from a project that runs under budget
to fund a project that runs over budget.
76 As of April 2018, FEMA had implemented 428 alternative procedures in 30 states on a case-by-case basis. GAO,
Puerto Rico Hurricanes 2019, p. 9.
77 Letter from Alex Amparo, FEMA Federal Disaster Recovery Coordinator, FEMA-4339-DR-PR, to Ottmar J. Chávez
Piñero, Governor’s Authorized Representative (GAR) for the Commonwealth of Puerto Rico, January 23, 2020.
Provided by FEMA Congressional and Legislative Affairs.
78 Letter from Alex Amparo, FEMA Federal Disaster Recovery Coordinator, FEMA-4339-DR-PR, to Ottmar J. Chávez
Piñero, Governor’s Authorized Representative (GAR) for the Commonwealth of Puerto Rico, January 23, 2020.
Provided by FEMA Congressional and Legislative Affairs.
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Topic
Alternate Projects
Standard Public Assistance
Procedures (“406 Procedures”)
Standard procedures reduced funding
for alternate projects by 10% at the
time of the Hurricane María Stafford
Act declarations, though the Disaster
Recovery Reform Act of 2018 (P.L. 115254) eliminated this reduction upon its
enactment in October 2018.
Alternative Public Assistance
Procedures in Puerto Rico
(“428 Procedures”)
Applicants using Alternative Procedures
may complete alternate projects using
funds from a fixed-cost estimate
without any reduction in funding.
Sources: Stafford Act Section 428; 42 U.S.C. §4189f; 44 C.F.R. §206.204(e). See also FEMA, “Public Assistance
Alternative Procedures (Section 428) Guide for Permanent Work FEMA 4339-DR-PR,” February 10, 2020, pp 616; Section §1207(a) of DRRA, P.L. 115-254, as it amends §406(c) of the Stafford Act, P.L. 93-288, 42 U.S.C.
§5172(c).
Public Assistance Obligation and Disbursement
PA funding procedures are complex and vary depending on a project’s size, purpose, and
approval under either alternative or standard procedures. In Puerto Rico, FEMA obligates funds
to COR3 after approving a PA project. COR3 then disburses funds to the Applicant.
Small projects are obligated according to special procedures established in federal regulations.79
According to these procedures, COR3 may disburse funds to Applicants as soon as FEMA
approves and obligates a small project (those up to $123,100).80 As a result, Applicants do not
need to locate nonfederal funds to cover initial funds needed to launch a project.81 FEMA
approved the obligation of small projects in Puerto Rico according to these procedures in
February 2019. Before that change, Applicants executing small projects were required to have
initial funds to launch and pay for completed work before requesting reimbursement through
PA.82 In December 2019, COR3 created the State Recovery Fund (SRF) in order to provide
working capital to Applicants launching small projects, so that work can be completed and paid
for prior to obligation.83 In February 2019, FEMA approved small project procedures, enabling
79 44 C.F.R. §206.205(a).
80 44 C.F.R. §206.205(a). FEMA defines project size based on an annually adjusted cost threshold. In FY2017 (the year
Hurricane Irma and María struck), a small project is a project above $3,300 and equal to or less than $123,100. FEMA,
“Per Capita Impact Indicator and Thresholds,” https://www.fema.gov/assistance/public/applicants/per-capita-impactindicator.
81 COR3, “Payment and Cash Management,” Chapter 7 in COR3 Disaster Recovery Federal Funds Management
Guide, p. 27, May 15, 2019, https://recovery.pr/documents/
CH7%20Payment%20and%20Cash%20Management%20FINAL%20V1.1.pdf (hereinafter COR3, “Payment and Cash
Management”).
82 FEMA Representative Alex Amparo, Hurricanes Irma, María, & Earthquake Progress and Innovation in Puerto
Rico, briefing slides, p. 2, August 11, 2020; Government of Puerto Rico, Fourth Congressional Status Report, p. 4.
83 Letter from Wanda Vázquez Garced, Governor of Puerto Rico, to Leader McConnell, Senator, Minority Leader
Schumer, Senator, Speaker Pelosi, Representative, and Minority Leader McCarthy, Representative, January 29, 2020,
p. 2, https://recovery.pr/documents/Puerto_Rico_Third_Report_to_Congress.pdf; COR 3, State Recovery Fund,
Presentation Slides, December 26, 2019, https://recovery.pr/documents/CP122619%20Presentaci%C3%B3n%20COR3.pdf; Government of Puerto Rico, 2020 Fiscal Plan for Puerto Rico, As Submitted
to the Financial Oversight and Management Board for Puerto Rico on May 3, 2020, p. 18, https://www.aafaf.pr.gov/
assets/2020-fiscal-plan-may-3-2020.pdf (hereinafter Government of Puerto Rico, 2020 Fiscal Plan).
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Applicants to access the full PA award upon the obligation of a small project, eliminating the need
to await reimbursement.84
For larger projects executed under either standard or Alternative Procedures, Applicants generally
receive reimbursement for costs paid for completed work, as noted earlier.85 As a result,
Applicants generally need nonfederal funds to pay upfront costs before they may request and
receive reimbursement.86 In certain circumstances, COR3 may approve requests for advances to
Applicants after FEMA has obligated funds for PA projects using either standard or Alternative
Procedures.87 COR3 explains that such exceptional advances are limited to the minimum amounts
needed, and are timed in accordance with actual, immediate cash requirements fully documented
in a procurement, contract, and cash needs timeline,88 as is the case under standard PA
procedures.89 The Government of Puerto Rico and U.S. congressional staff have found that
Applicants have sometimes lacked capital needed to begin or advance PA projects before
receiving reimbursement, resulting in substantial response and recovery delays.90
When completing projects under Alternative Procedures, Applicants may retain funds remaining
if actual costs fall short of project cost estimates. These excess funds may be put towards specific
uses, including additional eligible projects or mitigation measures (see Figure 2).91 Conversely,
Applicants are responsible for project costs that exceed the initial fixed-cost estimate, as noted
above.
At several points in the recovery process, FEMA instated “manual reimbursement” procedures for
hurricane recovery work to help ensure that federal funds were used properly.92 Under manual
reimbursement procedures, FEMA reviews PA Applicants’ documentation of payment for work
completed on PA projects (e.g., paid invoices, work orders) after COR3 submits a Request for
Reimbursement to the Agency (see Figure 3).93 FEMA may request additional documentation if
submissions are found insufficient. FEMA reviews documentation for completion, compliance,
and accuracy, after which COR3 may disburse obligated funds to PA Applicants.94 Under PA’s
standard “reimbursement procedures” for large projects, COR3, rather than FEMA, is responsible
for reviewing reimbursement requests and documentation for compliance and accuracy before
84 FEMA Representative Alex Amparo, Hurricanes Irma, María, & Earthquake Progress and Innovation in Puerto
Rico, briefing slides, p. 2, August 11, 2020; Government of Puerto Rico, Fourth Congressional Status Report, p. 4.
85 44 C.F.R. §206.205(a); and email from FEMA Congressional Affairs staff, August 24, 2020.
86 Governor of Puerto Rico, Third Congressional Status Report, pp. 3-4.
87 See 44 C.F.R. §206.205(a)-(b) and 2 C.F.R. §200.305; COR3, “Payment and Cash Management,” pp.13-14, 21-22,
74.
88 COR3, “Payment and Cash Management,” p. 74.
89 2 C.F.R. §200.305.
90 Government of Puerto Rico, 2020 Fiscal Plan, pp. 28-29.
91 Stafford Act Section 428(c)(4) authorizes the provision of “financial incentives and disincentives for a State, tribal,
or local government, or owner or operator of a private nonprofit facility for the timely and cost-effective completion of
projects with such assistance.” 42 U.S.C. §5189f(c)(4). See also “Use of Excess Funds” in FEMA, “Public Assistance
Alternative Procedures-4339,” 2020, pp. 16-18.
92 Manual reimbursement procedures were in place from November 2017, through April 1, 2019, and from July 2019,
to September 2019. See GAO, FEMA Actions, pp. 33-35; and FEMA, “FEMA to Reinstate Manual Drawdown Process
for the Commonwealth of Puerto Rico,” July 25, 2019, https://www.fema.gov/news-release/20200220/fema-reinstatemanual-drawdown-process-commonwealth-puerto-rico.
93 DHS Office of Inspector General (OIG), Capacity Audit of FEMA Grant Funds Awarded to the Puerto Rico
Department of Education, OIG-20-26, April 9, 2020, p. 8, https://www.oig.dhs.gov/sites/default/files/assets/2020-04/
OIG-20-26-Apr20.pdf (hereinafter DHS OIG, Capacity Audit).
94 DHS OIG, Capacity Audit.
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disbursing funds to Applicants.95 FEMA reviews this documentation at project closeout, and when
otherwise necessary.96 GAO observed that the instatement of manual reimbursement procedures
initially delayed PA project progress in Puerto Rico.97 The House Committee on Appropriations
also attributed delays in contractor payments for Puerto Rico recovery work to manual
reimbursement procedures.98 However, FEMA subsequently increased the number of personnel
processing reimbursement requests, after which delays decreased.99
Figure 2. Alternative and Standard Public Assistance Procedures
Funding Comparison for Eligible Costs of Large Projects*
Source: CRS analysis of Stafford Act Section 428(e)(1)(A) and (D).
Notes: * Large projects are those that exceed a certain project threshold ($123,100 for FY2017, the year of the
declarations for Hurricanes Irma and María in Puerto Rico). FEMA, “Per Capita Impact Indicator and Project
Thresholds,” https://www.fema.gov/public-assistance-indicator-and-project-thresholds.
95 44 C.F.R. §206.205(b)(1) and 44 C.F.R. §206.200. See also FEMA, “Public Assistance Program Management and
Grant Closeout Standard Operating Procedure,” SOP 9570.14, December 2013, pp. 9-10.
96 For example, FEMA may review project documentation due to scope of work changes under standard procedures or
to address non-compliance issues.
97 GAO, Puerto Rico Hurricanes 2019, p. 23; GAO, FEMA Actions, pp. 33-35.
98 U.S. Congress, House Committee on Appropriations, Department of Homeland Security Appropriations Bill, 2021,
report to accompany H.R. 7669, 116th Cong., 2nd sess., July 20, 2020, H.Rept. 116-458, p. 70.
99 GAO, Puerto Rico Hurricanes 2019, p. 23; GAO, FEMA Actions, pp. 33-35.
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Figure 3. Public Assistance Reimbursement Process
for Large Projects under Alternative Procedures in Puerto Rico*
Sources: CRS analysis of description of manual reimbursement process described in GAO, Puerto Rico
Hurricanes: Status of FEMA Funding, Oversight, and Recovery Challenges, GAO-19-256, March 2019, pp. 19-20; and
standard reimbursement described in 44 C.F.R. §206.205(b) and Governor of Puerto Rico to U.S. Congressional
Leaders, Third Congressional Status Report on the Economic and Disaster Recovery Plan, January 29, 2020, pp. 8-9.
Notes: * Large projects are those that exceed a certain project threshold ($123,100 for FY2017, the year of the
declarations for Hurricanes Irma and María in Puerto Rico). FEMA, “Per Capita Impact Indicator and Project
Thresholds,” https://www.fema.gov/public-assistance-indicator-and-project-thresholds.
Note that Applicants may complete eligible work at different phases in the funding process. FEMA guidance
explains “For eligible work that has already been completed, the fixed amount will be based on actual costs,
which are always subject to cost reasonableness. If eligible work has already started, but the restoration has not
been completed, the fixed cost may be based on actual and/or estimated costs as appropriate.” FEMA, “Public
Assistance Alternative Procedures (Section 428) Guide for Permanent Work FEMA-4339-DR-PR,” February 10,
2020.
Status of Public Assistance Projects for Hurricane Recovery
Federal officials, and officials of the Government of Puerto Rico and the municipios encountered
significant challenges implementing the Public Assistance program in Puerto Rico. In reporting
on the progress of recovery, this report cites the most comprehensive information on PA projects
available from FEMA and COR3—data on project obligations and disbursements. At the time of
publication, CRS can neither independently verify the data sets, nor reconcile any differences
between them due to several factors, including that PA project documentation is not readily
available and the granularity of each dataset differs. However, in 2020, both FEMA and COR3
reported a sizeable increase in the pace, number, and dollar amount of PA project obligations, as
detailed below.
While a substantial share of funds to support Puerto Rico’s hurricane recovery has yet to be
obligated, the pace of obligations has quickened substantially in 2020. According to FEMA and
COR3, FEMA obligated an average of 143 projects per month in the 35 months following the
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hurricanes; in 2020, the average was 333 projects per month (see Figure 4).100 In August 2020,
FEMA and COR3 reported that the agencies aimed to establish agreements for all cost estimates
on large reconstruction projects under Alternative Procedures by December 31, 2020.101 For
context, FEMA reported that the estimated value of projects still to be obligated under Alternative
Procedures in late August 2020 amounted to $19.1 billion.102 At that same time, FEMA reported
that only $741 million had been obligated under Alternative Procedures in the nearly three years
since the 2017 hurricanes made landfall.103
FEMA and COR3 have since reported significant progress in obligating PA funds. On September
18, 2020, the President announced that FEMA plans to award $11.6 billion in federal funds to
Puerto Rico: $9.6 billion in obligations to the Puerto Rico Power Authority (PREPA) for repair
and reconstruction of Puerto Rico’s electrical grid, and $2 billion for the Puerto Rico Department
of Education (PRDE) for the repair and reconstruction of educational facilities.104 These
obligations eclipsed all funds previously obligated for Puerto Rico’s hurricane response and
recovery since September 2017, which amounted to $7.4 billion.105 While these obligations are
historically large, they reflect smaller sums than the Government of Puerto Rico in November
2017 estimated for the costs of reconstructing a modernized power grid ($17.8 billion) and school
facility system ($8.4 billion).106
100 FEMA Representative Alex Amparo, Hurricanes Irma, María, & Earthquake Progress and Innovation in Puerto
Rico, briefing slides, p. 6, August 11, 2020.
101 Briefing presented by Alex Amparo, Federal Disaster Recovery Coordinator, FEMA-4339-DR-PR, and Ottmar J.
Chávez Piñero, GAR for the Commonwealth of Puerto Rico, August 11, 2020.
102 Estimated value of projects as of August 20, 2020. Email from FEMA Congressional Affairs staff, September 10,
2020.
103 Reported value of obligations as of August 20, 2020. Email from FEMA Congressional Affairs staff, September 10,
2020.
104 The White House, “President Donald J. Trump Is Supporting the People of Puerto Rico as They Continue to Rebuild
Following Natural Disasters,” September 18, 2020, https://www.whitehouse.gov/briefings-statements/president-donaldj-trump-supporting-people-puerto-rico-continue-rebuild-following-natural-disasters/#:~:text=
PROVIDING%20DISASTER%20RELIEF%3A%20President%20Trump,Rico's%20recovery%20from%20Hurricane%
20Maria.
105 CRS analysis of FEMA, OpenFEMA, “Public Assistance Funded Projects Details” for Emergency 3384 and
Disasters 4336 and 4339, as of September 19, 2020 (data indicates the most recent data updates as of September 19,
2020), https://www.fema.gov/openfema-data-page/public-assistance-funded-projects-details. See also FEMA,
“Hurricane Maria by the Numbers,” https://www.fema.gov/fact-sheet/hurricane-maria-numbers.
106 [Former] Governor of Puerto Rico Ricardo Rosselló Nevares, Build Back Better Puerto Rico, November 2017, pp.
20, 82, https://www.governor.ny.gov/sites/governor.ny.gov/files/atoms/files/Build_Back_Better_PR.pdf.
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Figure 4. Public Assistance Obligations Per Month/Year
According to FEMA and COR3
Source: FEMA Representative Alex Amparo, Hurricanes Irma, María, and Earthquake Progress and Innovation in
Puerto Rico, briefing slides, p. 8, August 11, 2020.
Notes: Data presented on August 11, 2020, and may reflect obligations only through that date. FEMA defines
“version obligations” as follows: “Public Assistance Version Obligations: There are various projects are divided
into several Versions [sic]. The Obligations are made mainly for one of the Version of the Project and not for
the Total of the Project [sic]” (email from FEMA Congressional Affairs staff, August 24, 2020).
Public Assistance Obligations to Date—Hurricane Recovery
According to the COR3, Economic and Disaster Recovery Plan for Puerto Rico, FEMA
estimated it would obligate $37.4 billion for hurricane reconstruction work through PA (the plan
did not include estimated obligations for emergency work).107 According to publicly available PA
data, FEMA had obligated $19.2 billion in PA for hurricane response and recovery efforts by
October 6, 2020.108
According to FEMA, $13.25 billion (approximately 70%) of obligated PA funds support
reconstruction and replacement of physical structures, or permanent work.109 Notably, almost all
of these funds were obligated during September 2020. By September 10, 2020, FEMA reported
only $1.5 billion in obligations for permanent work. The September 2020 obligations of $9.6
billion in obligations to the Puerto Rico Power Authority (PREPA) for repair and reconstruction
of Puerto Rico’s electrical grid, and $2 billion for the Puerto Rico Department of Education
(PRDE) for the repair and reconstruction of educational facilities primarily account for the spike
in obligated funds.110 Up until the approval of these obligations, the majority of obligated funds
supported PA emergency work.111 In many cases, funds for emergency protective measures
107 COR3, Economic and Disaster Recovery Plan for Puerto Rico, p. 163.
108 CRS analysis of FEMA, OpenFEMA, “Public Assistance Funded Projects Details” for Emergency 3384 and
Disasters 4336 and 4339, as of October 7, 2020 (data indicates the most recent data updates as of October 6, 2020),
https://www.fema.gov/openfema-data-page/public-assistance-funded-projects-details (hereinafter “FEMA, “Public
Assistance Funded Projects”).
109 CRS analysis of FEMA, “Public Assistance Funded Projects” for Emergency 3384 and Disasters 4336 and 4339, as
of October 7, 2020.
110 The White House, “President Donald J. Trump Is Supporting the People of Puerto Rico as They Continue to Rebuild
Following Natural Disasters,” September 18, 2020, https://www.whitehouse.gov/briefings-statements/president-donaldj-trump-supporting-people-puerto-rico-continue-rebuild-following-natural-disasters/#:~:text=PROVIDING%20
DISASTER%20relief%3A%20President%20Trump,Rico's%20recovery%20from%20Hurricane%20Maria.
111 CRS analysis of FEMA, “Public Assistance Funded Projects” for Emergency 3384 and Disasters 4336 and 4339, as
of October 7, 2020.
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financed the temporary relocation of essential facilities (e.g., hospitals, schools, temporary power
restoration) while permanent reconstruction is underway.112
The majority of obligated PA funds for permanent reconstruction work ($13.16 billion, or 99%)
reflect funding for large projects; the remainder are for small projects (defined as those up to
$123,100 in FY2017).113 While they are a small portion of the total amount of obligated funds,
these small projects represent approximately two-thirds of the number of projects obligated for
hurricane recovery. The recent increased pace of obligations may reflect, in part, FEMA and
COR3’s 2019 initiative to prioritize small projects in order to expedite recovery.114 According to
FEMA, only 47 small projects had been obligated prior to the launch of the small project
initiative. By August, 2020, 1,900 small projects had been obligated.115 These obligations may
expedite recovery, as COR3 may disburse obligated funds to Applicants as soon as a small project
is approved.116
Anticipated Public Assistance Obligations—Hurricane Recovery
In early 2020, FEMA and COR3 launched the FEMA Advanced Award Strategy Initiative
(FAAST), which is intended to expedite obligations and execution of several large-scale, critical
recovery projects. The FAAST program is working with the Puerto Rico Electric Power Authority
(PREPA), Puerto Rico Aqueducts and Sewers Authority (PRASA), and the Puerto Rico
Department of Education (PRDE) to obligate funds to each Applicant based on a “master
recovery budget.”117 This budget aggregates estimates for prototypical projects, rather than
individual facilities, to streamline the project approval and obligation process.118 According to
COR3, these Applicants’ projects represent 65% of PA permanent work funds.119 According to
FEMA, the FAAST PA awards will provide each Applicant funds for the reconstruction of all
hurricane-damaged facilities and infrastructure systems to industry standards, including
components that did not suffer damage in the hurricanes but are functionally critical to the
112 See, for example, discussion of FEMA assistance provided for temporary facilities to operate in Vieques, Puerto
Rico while the Vieques permanent reconstruction project formulation is underway. Jeff Stein and Dennis M. Rivera
Pichardo, “‘The colony within the colony’: Puerto Rico fumes as FEMA deliberates over remote hospital,” New York
Times, May 6, 2019, https://www.washingtonpost.com/nation/2019/05/06/colony-within-colony-puerto-rico-fumesfema-deliberates-over-remote-hospital/. Vieques is a smaller island to the east of the main island. An electrical power
cable between the main island and Vieques was severed during Hurricane María.
113 CRS analysis of FEMA, “Public Assistance Funded Projects” for Emergency 3384 and Disasters 4336 and 4339, as
of October 7, 2020.
114 Government of Puerto Rico, Fourth Congressional Status Report, p. 4; and FEMA, “FEMA Approves Funding for
1,624 Small Permanent Projects in Puerto Rico,” Aug. 6, 2020, https://www.fema.gov/news-release/20200806/femaapproves-funding-1624-small-permanent-projects-puerto-rico.
115 FEMA Representative Alex Amparo, Hurricanes Irma, María, & Earthquake Progress and Innovation in Puerto
Rico, briefing slides, p. 6, August 11, 2020.
116 44 C.F.R. §206.205(a). FEMA defines project size based on an annually adjusted cost threshold. In FY2017 (the
year Hurricane Irma and María struck), a small project was a project above $3,300 and equal to or less than $123,100.
FEMA, “Per Capita Impact Indicator and Thresholds,” https://www.fema.gov/assistance/public/applicants/per-capitaimpact-indicator. For more details on the management of small projects in Puerto Rico, see Governor of Puerto Rico,
Third Congressional Status Report, p. 9.
117 Government of Puerto Rico, Fourth Congressional Status Report, p. 5; and FEMA Representative Alex Amparo,
Hurricanes Irma, María, & Earthquake Progress and Innovation in Puerto Rico, briefing slides, slide 6, August 11,
2020.
118 Email from FEMA Congressional Affairs staff, August 24, 2020.
119 Government of Puerto Rico, Fourth Congressional Status Report, p. 5.
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whole.120 On August 11, 2020, FEMA reported that these master recovery budgets were 95%
complete for PREPA, 95% complete for PRDE, and 50% complete for PRASA.121
Public Assistance Issues and Challenges
Numerous challenges have impeded the delivery of PA for Puerto Rico’s hurricane recovery.
Federal, territorial, and local stakeholders and officials have identified countless challenges that
include, but are not limited to:
the scale of damaged sites and facilities and complexity of restoring territory-wide
infrastructure systems (e.g., Puerto Rico’s electrical grid);122
inaccessibility of certain worksites;123
a fiscal crisis that created liquidity constraints among Applicants and prompted FEMA to
establish fiscal controls;124
the mid-recovery adoption of FEMA’s new Public Assistance “national delivery model”
to guide project formulation;125 and
conflicting or delayed Public Assistance guidance.126
A complete discussion of all of these issues exceeds the scope of this report. Several additional
notable and persistent challenges are summarized below.
Implementation of Recent Legislation
In the largest supplemental appropriations act in the wake of the 2017 hurricanes—the Bipartisan
Budget Act of 2018 (BBA of 2018)127—Congress authorized FEMA to provide additional
assistance to PA Applicants in Puerto Rico (and the U.S. Virgin Islands) for restoration of “critical
120 FEMA Representative Alex Amparo, Hurricanes Irma, María, & Earthquake Progress and Innovation in Puerto
Rico, briefing slides, slide 6, August 11, 2020; and email from FEMA Congressional Affairs staff, August 24, 2020.
121 FEMA Representative Alex Amparo, Hurricanes Irma, María, & Earthquake Progress and Innovation in Puerto
Rico, briefing slides, slide 6, August 11, 2020.
122 U.S. Congress, House Appropriations Subcommittee on Homeland Security, Hearing on Disaster Recoveries for
2017 and 2018, hearings, 116th Cong., 1st sess., March 12, 2019 (hereinafter, House Homeland Security Subcommittee,
Disaster Recoveries), testimony of then-Deputy Administrator Peter Gaynor, pp. 9, 27; U.S. Congress, House
Committee on Energy and Commerce, Puerto Rico’s Electric Infrastructure, hearing, 115th Cong., 2nd sess., April 11,
2018 (hereinafter House Energy and Commerce, Puerto Rico’s Electric Infrastructure), especially testimony by FEMA
Associate Administrator Jeffrey Byard, pp. 15-16.
123 Opening Statement by Rep. Harper, House Energy and Commerce, Puerto Rico’s Electric Infrastructure, p. 2.
124 U.S. Congress, House Committee on Homeland Security, Subcommittee on Emergency Preparedness, Response,
and Recovery, Road to Recovery: Puerto Rico and the U.S. Virgin Islands After Hurricanes Irma And Maria, 116th
Cong., 1st sess., July 11, 2019, https://homeland.house.gov/activities/hearings/road-to-recovery-puerto-rico-and-the-usvirgin-islands-after-hurricanes-irma-and-maria (hereinafter House Homeland Security Committee, Road to Recovery).
Submitted Testimony, Omar Marrero, House Homeland Security Committee, Road to Recovery, p. 9.
125 See, for example, GAO Representative Chris Currie, House Homeland Security Committee, Road to Recovery, p.
30; and GAO, Emergency Management: FEMA’s Disaster Recovery Efforts in Puerto Rico and the U.S. Virgin Islands,
GAO 19-662T, July 11, 2019, pp. 19-20, https://www.gao.gov/assets/710/700215.pdf (hereinafter GAO, FEMA’s
Efforts).
126 See, for example, GAO Representative Chris Currie, House Homeland Security Committee, Road to Recovery, p.
29-30; GAO, FEMA’s Efforts, p. 20; GAO, FEMA Actions, especially pp. 20-22, 27-29.
127 BBA of 2018 (P.L. 115-123).
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services” damaged during the 2017 hurricanes.128 Section 20601 authorized the reconstruction of
critical disaster-damaged facilities to industry standards, regardless of pre-disaster condition,
using PA Alternative Procedures.129 PA was additionally authorized for components or facilities
unaffected by the hurricanes that required upgrade or repair so the broader facility or system
improvements could comply with industry standards.130 These provisions addressed
contemporaneous Stafford Act limitations on the use of PA to improve—not simply reconstruct—
eligible facilities. Subsequently, Congress passed the Disaster Recovery Reform Act of 2018
(DRRA; Division D of P.L. 115-254), which amended some of these limitations, in part by
authorizing PA for the costs of reconstructing or replacing eligible disaster-damaged facilities to
“the latest published editions of relevant consensus-based codes, specifications, and standards.”131
According to the GAO, both COR3 and FEMA officials reported challenges in implementing
Section 20601 of the BBA of 2018 through early 2019.132 Disagreements between COR3 and
FEMA on the application and scope of the provision has been a source of repeated congressional
concern.133 However, in multiple reports to Congress in 2020, the Governor of Puerto Rico
reported that the pace of project implementation was increased by FEMA guidance issued in
January 2020 on the application of this and other provisions from the BBA of 2018.134
Delayed Project Approval and Initiation
According to federal, territorial, and municipio officials, the initial requirement that Applicants
use Alternative Procedures delayed recovery efforts. Alternative Procedures were authorized in
part to expedite the delivery of PA.135 However, according to representatives of FEMA, the
Government of Puerto Rico, Applicants, and the GAO, the required use of Alternative Procedures
resulted in delayed PA obligations and overall recovery efforts. In the wake of the hurricanes, the
GAO stated that it was “unclear whether such flexibilities [of Alternative Procedures] will
eliminate other challenges associated with the PA program, such as reducing delays from
challenges to eligibility determinations and supporting a timely recovery.”136 The GAO further
128 Section 20601 of the BBA of 2018 (P.L. 115-123). “Critical services include power, water, sewer, wastewater
treatment, communications, education, emergency medical care, and emergency services.” “Industry standards” can
include either (1) voluntary standards which are generally established by consensus and are available for use by any
organization, private or government; or (2) proprietary standards which are developed by an organization and placed in
the public domain for widespread use. FEMA, Implementing Section 20601 of the 2018 Bipartisan Budget Act Through
the Public Assistance Program, FEMA Recovery Policy FP-104-009-5 Version 2, Sept. 11, 2019, pp. 2-4,
https://www.fema.gov/media-library-data/1569249349814-4e3a5164b53d77fc76f4320c10c2d52b/BBA_Policy_V2_911-2019_508.pdf (hereinafter FEMA, BBA).
129 FEMA, BBA, p. 1.
130 Section 20601(2) of the BBA of 2018.
131 Section 1235(b) of the Disaster Recovery Reform Act of 2018 (DRRA; Division D of P.L. 115-254), as it amends
Stafford Act Section 406(e)(1)(A) (42 U.S.C. §5172(e)(1)(A)).
132 GAO, Emergency Management: FEMA Has Made Progress, but Challenges and Future Risks Highlight Imperative
for Future Improvements, GAO-19-594T, June 12, 2019, p. 19; Omar J. Marrero, Governor of Puerto Rico’s
Authorized Representative, Letter to Gene I. Dodaro, Comptroller General of the United States, January 30, 2019, in
GAO, Puerto Rico Hurricanes 2019, p. 37. GAO, FEMA Actions, pp. 38-39; GAO, FEMA’s Efforts, pp. 21-22.
133 See, for example, testimony by Rep. Lucille Roybal-Allard, House Homeland Security Subcommittee, Disaster
Recoveries, pp. 27-28; GAO Representative Chris Currie, House Homeland Security Committee, Road to Recovery, pp.
30-31.
134 Governor of Puerto Rico, Third Congressional Status Report, p. 2; Government of Puerto Rico, Fourth
Congressional Status Report, p. 1.
135 Section 428(c)(3) of the Stafford Act, P.L. 93-288, as amended; 42 U.S.C. §4189f(c)(3).
136 GAO, 2017 Hurricanes and Wildfires Initial Observations on the Federal Response and Key Recovery Challenges,
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reported that FEMA officials had acknowledged that the use of Alternative Procedures in Puerto
Rico was unlikely to result in a faster recovery, and that capacity limitations among PA and local
officials had hampered early recovery efforts.137
One requirement of Alternative Procedures that delayed the delivery of PA was the need to
determine and establish consensus on estimated costs for PA projects. The GAO referred to the
process as a “massive challenge” facing Puerto Rico’s recovery,138 and the Office of the Governor
of Puerto Rico reported that the process to agree to an estimate is “onerous and time consuming,
which is causing the entire recovery process to be delayed.”139 FEMA and the GAO both
attributed delays to the process of determining, validating, and establishing consensus on fixedcost estimates.140 Disagreements on project costs, changes to FEMA’s cost-estimating formula,141
and, according to COR3, initial restrictions on the employment of locally licensed engineers to
validate cost estimates resulted in stalled projects.142 Additionally, according to FEMA, Puerto
Rico took nearly one year to appoint its representatives to the Center of Excellence, a body
created to ensure that cost estimation procedures were agreeable to both FEMA and Puerto
Rico.143 These and other factors resulted in substantial delays: Two years after the hurricanes
made landfall, FEMA reported that only 19 projects out of 9,344 identified damaged worksites on
the island (0.2% of the total) had finalized fixed cost estimates.144
More recently, Puerto Rico and FEMA have both publicly acknowledged progress on several of
the challenges posed by the use of Alternative Procedures. For example, FEMA has substantially
or fully met nine GAO-recommended improvements to cost-estimating procedures; three
remained partially or minimally met by February 2020.145 The progress made in the use of
Alternative Procedures may have contributed to the recent quickened pace of obligations.
Local and Federal Capacity to Implement Public Assistance
FEMA and the GAO have both attributed delays to the lack of federal, territorial, and municipio
staff with sufficient expertise to conduct damage estimates, manage projects, and process
reimbursement requests.146 For example, in 2018 congressional testimony, the Puerto Rico Power
GAO-18-472, September 2018, p. 56, https://www.gao.gov/assets/700/694231.pdf (hereinafter GAO, 2017 Hurricanes
and Wildfires); see also GAO Representative Chris Currie, House Homeland Security Committee, Road to Recovery,
p. 40.
137 GAO, 2017 Hurricanes and Wildfires, p. 111.
138 GAO Representative Chris P. Currie, oral testimony, U.S. Congress, House Homeland Security Subcommittee on
Emergency Preparedness, Response and Recovery, Hearing on Puerto Rico and Virgin Islands Hurricane Recovery,
116th Cong., 1st sess., July 11, 2019.
139 Omar J. Marrero, Governor of Puerto Rico’s Authorized Representative, Letter to Gene I. Dodaro, Comptroller
General of the United States, January 30, 2019, in GAO, Puerto Rico Hurricanes 2019, p. 37.
140
Omar J. Marrero, Governor of Puerto Rico’s Authorized Representative, Letter to Gene I. Dodaro, Comptroller
General of the United States, January 30, 2019, in GAO, Puerto Rico Hurricanes 2019, pp. 37-38.
141 GAO, FEMA Actions, pp. 21-36, 44-48; GAO Representative Chris Currie, House Homeland Security Committee,
Road to Recovery, pp. 31-32; GAO, FEMA’s Efforts, pp. 22-24.
142 Omar J. Marrero, Executive director of Central Office of Recovery, Reconstruction, and Resilience, or COR3, oral
testimony, House Homeland Security Committee, Road to Recovery; see also Omar J. Marrero, House Homeland
Security Committee, Road to Recovery, p. 36.
143 GAO, FEMA Actions, pp. 17-18.
144 GAO, FEMA Actions, p. 18.
145 See Government of Puerto Rico, Fourth Congressional Status Report, pp. 1-2; and GAO, FEMA Actions, p. 23.
146 See, for example, the discussions on PREPA and PRDE capacity constraints in GAO, Puerto Rico Electricity Grid
Recovery: Better Information and Enhanced Coordination is Needed to Address Challenges, GAO-20-141, October 8,
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Restoration Coordinator147 stated that PREPA required additional human resources to restore
Puerto Rico’s electrical grid.148 Additionally, the GAO concluded that turnover of on-site FEMA
personnel in Puerto Rico had resulted in the erosion of expertise and an overreliance on new
employees without adequate training in PA Alternative Procedures.149 Multiple congressional
reports similarly attributed certain funding delays for Puerto Rico’s recovery to turnover among
FEMA officials.150
Public Assistance Reimbursement Process
A lack of capital may have contributed to ongoing PA project delays in Puerto Rico, according to
federal and territorial stakeholders.151 Members of Congress and the Government of Puerto Rico
have both found that Applicants’ inability to cover costs while waiting for reimbursement have
stalled PA-eligible reconstruction projects.152 One representative of the National Guard Bureau
reported to Congress that “[t]he FEMA reimbursement process impacts our operational
effectiveness – significantly,” which made deployment of Puerto Rico’s National Guard
infeasible in the wake of the 2017 hurricanes.153 The lack of working capital may also have
contributed to contracting problems. In one case, an Applicant explained that contractor selection
had been determined by the lack of a deposit requirement.154 To address liquidity constraints for
Applicants completing large projects, the Government of Puerto Rico announced in 2020 the
establishment of a $1 billion Working Capital Fund (Puerto Rico had earlier established the State
Recovery Fund, which provided working capital to Applicants completing small projects).155
According to the Government of Puerto Rico, the fund will be set up in FY2021.156 The fund may
2019, pp. 41-43, https://www.gao.gov/reports/GAO-20-141/; and DHS OIG, Capacity Audit, pp. 4-7. On shortfalls in
expertise and staffing among FEMA officials, see GAO, Puerto Rico Hurricanes 2019, pp. 21-22; Government of
Puerto Rico, Fourth Congressional Status Report, p. 5; and GAO Representative Chris Currie, House Homeland
Security Committee, Road to Recovery, p. 37.
147 The Puerto Rico Power Restoration Coordinator helped manage a concerted effort between the PREPA, FEMA, the
U.S. Department of Energy, the U.S. Army Core of Engineers, contractors, and mutual assistance crews.
148 Testimony of Carols Torres, Puerto Rico Power Restoration Coordinator and consultant for Edison Electric Institute,
House Energy and Commerce, Puerto Rico’s Electric Infrastructure, p. 54.
149 GAO, Puerto Rico Hurricanes 2019, pp. 21-22; and GAO, 2017 Hurricanes and Wildfires, p. 112.
150 U.S. Congress, House Committee on Appropriations, Department of Homeland Security Appropriations Bill, 2021,
report to accompany H.R. 7669, 116th Cong., 2nd sess., July 20, 2020, H.Rept. 116-458, p. 70; and U.S. Congress,
House Committee on Oversight and Reform, Recurring Problems Hinder Federal Disaster Response and Recovery,
115th Cong., 2nd sess., October 2018, pp. 11-12 (hereinafter, House Oversight Committee, Recurring Problems).
151 Government of Puerto Rico, 2020 Fiscal Plan, pp. 28-29; FEMA Representative Alex Amparo, Hurricanes Irma,
María, & Earthquake Progress and Innovation in Puerto Rico, briefing slides, slide 6, August 11, 2020; and email
from FEMA Congressional Affairs staff, August 24, 2020. For an overview of Puerto Rico’s fiscal challenges, see CRS
Report R44532, The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA; H.R. 5278, S.
2328), coordinated by D. Andrew Austin; CRS Report R44095, Puerto Rico’s Current Fiscal Challenges, by D.
Andrew Austin.
152 Office of House Majority Leader Steny Hoyer, “Hoyer, Velázquez, Maloney, Ocasio-Cortez Conclude
Congressional Delegation Visit to Puerto Rico,” news release, February 19, 2020, https://www.majorityleader.gov/
content/hoyer-vel%C3%A1zquez-maloney-ocasio-cortez-conclude-congressional-delegation-visit-puerto-rico;
Government of Puerto Rico, 2020 Fiscal Plan, pp. 28-29; House Oversight Committee, Recurring Problems pp. 11-12.
153 House Oversight Committee, Recurring Problems, p. 12.
154 House Oversight Committee, Recurring Problems, p. 12.
155 Government of Puerto Rico, 2020 Fiscal Plan, pp. 28-29.
156 Government of Puerto Rico, 2020 Fiscal Plan p. 29.
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also address reimbursement delays that may impede recovery work or increase reconstruction
costs.157
Building Code Compliance for Recipients of Public Assistance
Changes introduced in the Disaster Recovery Reform Act of 2018 (DRRA)158 related to the use of
the most current building codes may require that PA projects in Puerto Rico for disasters after
November 2019 are required to rebuild in compliance with the building codes for earthquakes as
well as wind and flooding. FEMA published an Interim Policy: Consensus-Based Codes,
Specifications and Standards for Public Assistance on November 9, 2019.159 Applicants under
disasters declared on or after the initial publication date of the interim policy are required to apply
the relevant codes to the planning, design, and execution of all permanent work PA projects for
applicable facility types for which they are seeking funding. Therefore, all PA projects associated
with damaged from the 2019-2020 earthquakes will have to apply all current codes. For any
damage associated with the 2017 hurricanes in Puerto Rico, PA Applicants have the option of
submitting a written request to FEMA to opt in to apply the revised building code policy to one or
more of their projects. Applicants in any of the categories above were originally required to
decide whether to opt in by May 4, 2020, but FEMA extended the deadline to opt into this policy
until October 31, 2020. As of October 28, 2020, 191 Applicants in Puerto Rico have chosen to opt
in, including 22 municipios.160
Applicants who fall into any of the categories below are able to submit to FEMA a written request
to opt in to apply the policy to one or more of their projects:
(a) incidents declared between August 1, 2017, and the date of the initial publication of this
policy;
(b) projects associated with incidents declared before August 1, 2017, but have not been
obligated based on a finalized cost estimate as of the date of the initial publication of this
policy;
(c) projects that have an Applicant-accepted fixed cost estimate (Section 428) that have not
been obligated; or
(d) projects associated with a cost estimate on appeal as of the date of the initial publication
of this policy.
Applicants who opt in to the policy for a particular project must evaluate design criteria for other
hazards and, depending on that evaluation, may be required to integrate codes, standards, and
specifications for other hazards into the project design.161
157 Government of Puerto Rico, 2020 Fiscal Plan p. 29.
158 Section 1235(b) of DRRA (Division D, P.L. 115-254), as it amends Stafford Act Section 406(e)(1)(A) (42 U.S.C.
§5172(e)(1)(A)).
159 FEMA, Interim Policy: Consensus-Based Codes, Specifications and Standards for Public Assistance Version 2.1,
FP 104-009-11, Washington, DC, December 20, 2019, https://www.fema.gov/media-library-data/1579188158300159a38c75b6204517ad6c8641819c143/DRRA_1235(b)_V2.1_12-20-2019_508_FINAL.pdf. This interim policy was
updated in December 2019 and January 2020.
160 Email from FEMA Congressional Affairs staff, October 16, 2020.
161 FEMA, Consensus-Based Codes, Specifications and Standards for Public Assistance, Frequently Asked Questions,
Washington, DC, February 10, 2020, p. 3, https://www.fema.gov/media-library-data/15814470851544f8d1d175472a2fc54866b021ce208c6/DRRA_1235(b)_FAQ_2-7-2020_508.pdf.
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Insurance for FEMA Public Assistance Projects
When FEMA provides funding for permanent work to an Applicant for Public Assistance for
repair, restoration, reconstruction, or replacement of a facility, the Applicant must insure that
facility against future loss. Based on the ongoing earthquake swarm, insurance requirements
associated with Public Assistance projects in Puerto Rico have increased to require earthquake
insurance in addition to wind and flood insurance. PA Applicants are required to obtain and
maintain insurance on damaged insurable facilities (buildings, equipment, contents, and vehicles
exceeding $5,000) for the types of hazard that caused the damage in order to receive future PA
funding. When multiple hazards cause damage to a property, the Applicant must insure against
each hazard in an amount based on the damage caused by each hazard. FEMA requires insurance
against the hazard(s) that caused the damage, even if that means the Applicant must purchase
additional or broader coverage (for example, if the insurance for a particular peril is only
available as part of an all-risks policy). In the future, PA projects in Puerto Rico funded for
earthquake damage will need to obtain and maintain earthquake insurance, as well as flood
insurance and insurance against wind damage.
If an Applicant does not comply with the requirement to obtain and maintain insurance, FEMA
will deny or de-obligate assistance in the current disaster and deny future assistance for that
facility, regardless of the hazard(s) that caused the damage.162 Insurance coverage must be
subtracted from all applicable PA grants in order to avoid duplication of financial assistance. If an
Applicant has an insurance requirement from a previous event, FEMA is to reduce assistance by
the actual or anticipated insurance proceeds or the amount of insurance required in the previous
disaster, whichever is greater.
It is possible that insurance premiums in Puerto Rico will increase as a consequence of the 2017
hurricanes and 2019-2020 earthquakes. It may be financially difficult for municipios to meet PA
requirements for disaster insurance, particularly those which are required to purchase insurance
for multiple perils. However, an Applicant may request that FEMA modify the insurance
requirement if the Applicant attempts to comply with the requirement and believes that the
required insurance is not reasonably available.163 FEMA will not require greater types and
amounts of insurance than are certified as reasonably available, adequate, or necessary by the
appropriate State Insurance Commissioner. The State Insurance Commissioner cannot waive
federal insurance requirements, but may certify the types and extent of insurance reasonable to
protect against future loss to an insurable facility.164 FEMA will use the certification by the State
Insurance Commissioner to modify the Applicant’s insurance requirements.165
The Department of Homeland Security (DHS) Office of Inspector General (OIG) has reported on
concerns about compliance with these insurance requirements since January 2001.166 A series of
reports identified concerns with Applicant compliance with insurance requirements, insurance
162 42 U.S.C. §5172(e).
163 FEMA, Public Assistance Policy on Insurance, FP 206-086-1, June 29, 2015, pp. 5-6, https://www.fema.gov/media-
library-data/1558538632295-d4165531878c8c8795551d3a7665d03e/Public_Assistance_Insurance_Policy_FP_206086-1_6-29-2015.pdf.
164 42 U.S.C. §5154(a)(2); 44 C.F.R. §206.252(d); and 44 C.F.R. §206.253(c).
165 FEMA, Public Assistance Policy on Insurance, FP 206-086-1, June 29, 2015, pp. 6-7, https://www.fema.gov/medialibrary-data/1558538632295-d4165531878c8c8795551d3a7665d03e/Public_Assistance_Insurance_Policy_FP_206086-1_6-29-2015.pdf.
166 FEMA Office of Inspector General, Compliance with Public Assistance Program’s Insurance Purchase
Requirements, I-01-01, January 2001. Not available online.
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reviews, and FEMA and state monitoring of insurance requirements. The OIG carried out a
special review to notify FEMA of the challenges it may face managing insurance compliance
under the PA program during the recovery from Hurricanes Harvey, Irma, and María. They noted
that FEMA’s insurance specialists routinely waived the requirement to obtain and maintain
insurance for future disasters. The OIG concluded that the procedures used by FEMA to review
PA insurance compliance were inadequate. Because of this, FEMA could not ensure that approved
project costs included the required reductions for any insurance paid to the Applicant.167 The OIG
has not reported on the extent to which this has been identified as a problem in Puerto Rico
following Hurricanes Irma and María.
To date, FEMA has not reduced funding for any projects in Puerto Rico for lack of compliance
with prior obtain and maintain requirements. Congress may wish to monitor compliance with PA
insurance requirements in Puerto Rico for future disasters.
FEMA Mitigation and Rebuilding After Natural Disasters168
Mitigation Assistance Overview
The majority of funding for both pre- and post-disaster mitigation comes from FEMA, which
administers three programs, collectively referred to as Hazard Mitigation Assistance (HMA): (1)
the Hazard Mitigation Grant Program (HMGP); (2) the Flood Mitigation Assistance Grant
Program (FMA); and (3) the Pre-Disaster Mitigation Grant Program (PDM), which has been
reframed in 2020 as Building Resilient Infrastructure and Communities (BRIC).169 Funding for
FMA and PDM/BRIC are awarded competitively. Applicants for all three programs must have
hazard mitigation plans that meet the requirements of Stafford Act Section 322—Mitigation
Planning170 and 44 C.F.R. Part 201.
While Puerto Rico has received funding from the HMGP program, it has not applied for other
HMA funding (FMA or PDM) since Hurricanes Irma and María,171 and has not received an FMA
award since 2004, nor a PDM award since 2016.172 Both programs award grants annually; for
context, FMA has awarded 1,206 grants for a total of $928.6 million since 2004, and PDM has
awarded 657 grants for a total of $250 million since 2016.173
167 DHS OIG, Special Report: Lessons Learned from Previous Audit Reports on Insurance Under the Public Assistance
Program. OIG-18-12, November 7, 2017, pp. 6-7, https://www.oig.dhs.gov/sites/default/files/assets/2017-11/OIG-1812-Nov17.pdf.
168 For more information on FEMA’s Hazard Mitigation Assistance program and the National Flood Insurance
Program, contact Diane P. Horn, Analyst in Flood Insurance and Emergency Management.
169 FEMA, Building Resilient Infrastructure and Communities (BRIC), https://www.fema.gov/bric.
170 42 U.S.C. §5165.
171 Email from FEMA Congressional Affairs staff, August 27, 2020.
172 CRS analysis of Open FEMA hazard mitigation data at https://www.fema.gov/about/openfema/data-sets#hazard,
accessed August 25, 2020.
173 Calculated by CRS using Hazard Mitigation Assistance Projects V2 at https://www.fema.gov/about/openfema/datasets#hazard, downloaded September 22, 2020. Note that the PDM data do not include 2019 or 2020, and the FEMA
data do not include 2020.
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Hazard Mitigation Grant Program
The HMGP is authorized by Stafford Act Section 404—Hazard Mitigation174 and is funded
through the Disaster Relief Fund. The key purpose of the HMGP is to ensure that the opportunity
to take critical mitigation measures is not lost during the reconstruction process following a
disaster. HMGP funding is available to all areas of a state, territory, or tribal lands where it is
requested by a governor or tribal chief executive following a major disaster declaration or Fire
Management Assistance Grant (FMAG). Eligible applicants include state, territorial, and local
governments; federally-recognized tribes or tribal organizations; and certain nonprofit
organizations. A state with an Enhanced State Mitigation Plan approved by FEMA within five
years of the disaster declaration is eligible for HMGP funding not to exceed 20% of the total
amount of Stafford Act of assistance for that disaster.175 Puerto Rico does not have an approved
Enhanced State Mitigation Plan.
The level of HMGP176 funding available for a given disaster is based on a percentage of the
estimated total federal assistance under the Stafford Act for each presidential major disaster
declaration.177 The HMGP recipient must provide a 25% cost share, which can include a
combination of cash and in-kind sources. Funding from other federal sources cannot be used for
the 25% nonfederal share, with one exception: funding provided under the Community
Development Block Grant (CDBG) program. In order to provide 100% funding to HMGP subrecipients, the Government of Puerto Rico elected to implement a global match strategy in
coordination with the Puerto Rico Department of Housing, the recipient of HUD CDBG-DR and
CDBG-MIT funds.178 This global match strategy will use CDBG-DR funding for the non-federal
cost share, so no cost share will be required from HMGP subapplicants.179 The Government of
Puerto Rico will dedicate approximately $1 billion in CDBG-DR funding to provide the required
cost share. On October 22, 2018, FEMA approved the Governor’s request to use the global match
approach to meet the HMGP nonfederal cost share requirement. FEMA also acknowledged the
intent to use the value of projects funded with CDGB-DR funds to carry out the global match
program.180
Hazard Mitigation Grant Program Funding to Puerto Rico
FEMA establishes the maximum amount of HMGP for each disaster at 12 months after the
presidential major disaster declaration. This amount, also known as the “lock-in” value for
HMGP, is the maximum that FEMA can obligate for eligible HMGP activities. Puerto Rico was
174 42 U.S.C. §5170c.
175 44 C.F.R. §201.5.
176 For additional information on the Hazard Mitigation Grant Program (HMGP), see the section on “Hazard Mitigation
Grant Program Funding to Puerto Rico” in this report.
177 HMGP funding is based on the estimated aggregate grant amount made under 42 U.S.C. §§5170b, 5172, 5173,
5174, 5177, and 5173. See 44 C.F.R. §206.432(b) for the sliding scale to calculate HMGP assistance.
178 COR3, Hazard Mitigation Grant Program (HMGP) Administrative Plan, FEMA-4336-DR-PR (Hurricane Irma)
and FEMA-4339-DR-PR (Hurricane María), amended April 20, 2020, pp. 49-55, https://recovery.pr/documents/
COR3%20HMGP%20Administrative%20Plan%20-Approved-May_13_2020.pdf.
179 COR3, Amendment No. 1 – Hazard Mitigation Grant Program Notice of Funds Availability FEMA-4339-DR-PR
(Hurricane María), p. 3, https://recovery.pr/documents/ENG-HMGP-NoFA-Amendment-No.1-DR-4339.pdf.
180 COR3 Transparency Portal, Hazard Mitigation Assistance, https://recovery.pr/en/recovery-programs/hazardmitigation-assistance#hazard-mitigation-assistance, accessed August 31, 2020 (hereinafter COR3 Transparency Portal,
Hazard Mitigation Assistance).
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notified of the 12-month lock-in level on February 12, 2019.181 According to FEMA, the total
amount of HMGP funding available to Puerto Rico for Hurricane Irma was $4,647,032 with
$3,549,536,374 available for Hurricane María (significantly more funding was made available for
Hurricane María).182
The first HMGP funding obligated for Hurricane Irma in Puerto Rico was for state management
costs on April 11, 2018. No funding has yet been disbursed for HMGP for Hurricane Irma.183 The
first HMGP funding obligated for Hurricane María in Puerto Rico was for a code enforcement
project on January 25, 2018. A total of $248,525,973 has been approved for Hurricane María,
with $38,433,726 obligated and—possibly—$649,322 disbursed. However, FEMA believes that
the $649,322 showing as disbursed may be an accounting error and they do not believe that any
disbursements have yet been made. FEMA is working with COR3 to resolve this.184
By September 2020, $755,217 was obligated for Puerto Rico for Hurricane Irma 185 and
$38,433,726 for Hurricane María.186 FEMA had obligated approximately 16.25% of available
HMGP funding for Hurricane Irma, and had obligated 1.08% of the available funding for
Hurricane María.187 Overall, 1.1% of HMGP funds for Puerto Rico for Irma and María had been
obligated three years after the disasters.188 FEMA indicates that no funds have yet been disbursed
for either hurricane (see above).189
For comparison, FEMA obligated amounts of the available HMGP funding for other jurisdictions
affected by the 2017 hurricanes are as follows:
56.41% of the available HMGP funding to the U.S. Virgin Islands for Hurricane
Irma;
11.69% of the available HMGP funding to the U.S. Virgin Islands for Hurricane
María;
31.82% of the available HMGP funding to Texas for Hurricane Harvey; and
37.53% of the available HMGP funding to Florida for Hurricane Irma.
Mitigation Issues and Challenges
Obligation of HMGP Funding
The post-disaster period may be the best opportunity to incorporate hazard mitigation measures
and rebuild in a more resilient manner. Post-disaster reconstruction is possibly the single largest
opportunity to bring existing vulnerable structures up to current or new codes,190 when mitigation
181 COR3 Transparency Portal, Hazard Mitigation Assistance.
182 Email from FEMA Congressional Affairs staff, September 8, 2020.
183 Email from FEMA Congressional Affairs staff, September 8, 2020.
184 Email from FEMA Congressional Affairs staff, September 8, 2020.
185 FEMA, “Puerto Rico Hurricane Irma (DR-4336-PR),” accessed October 7, 2020, https://www.fema.gov/disaster/
4336.
186 FEMA, “Puerto Rico Hurricane Maria (DR-4339-PR),” accessed October 7, 2020, https://www.fema.gov/disaster/
4339.
187 Calculated by CRS using data provided by FEMA Congressional Affairs staff, September 14, 2020.
188 Calculated by CRS using data provided by FEMA Congressional Affairs staff, September 14, 2020.
189 Email from FEMA Congressional Affairs staff, September 8, 2020.
190 James C. Schwab et al., Planning for Post-Disaster Recovery: Next Generation, American Planning Association,
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can be incorporated into post-disaster modifications to building codes and land development
policies.
The lengthened time period over which HMGP funding is being made available to Puerto Rico
may make it more difficult to implement long-term recovery plans and to carry out oversight over
mitigation activities. This may also mean that communities continue to be subject to the same
level of risk from future disasters and may be less resilient to future disasters. Additionally,
individual households with financial resources may have been able to pay for their own recovery,
while those without resources must wait for federal funds to be available.
The data availability issues described in this report191 make it difficult to determine the rate of
obligation of HMGP funding, whether it has changed over time, and how it compares to the rate
of obligation for other disasters (see the “Availability of Information on Hazard Mitigation Grant
Program and Public Assistance Funding and Projects” section for more information). According
to FEMA, no dataset exists from which the rate of obligation can be calculated.192 However,
approximately three years after Hurricanes Irma and María, FEMA has only obligated $39.2
million to Puerto Rico for HMGP, none of which has been disbursed, out of the total $3.54 billion
awarded.
Given the disparity in obligated amounts, Congress may wish to determine what constraints have
been responsible for sluggish HMGP obligation in Puerto Rico, and how these constraints might
be addressed. Congress may also wish to require FEMA to publish data on obligation rates.
Mitigation Against Multiple Hazards
The 2019-2020 earthquakes in Puerto Rico highlighted the challenges of building properties that
can resist damage from wind, flood, and earthquakes. Communities that are exposed to multiple
hazards may use construction materials that perform well for the most frequent hazard, but that
may present an increased risk for less frequent hazards. For example, homes that are elevated on
stilts or pilings to reduce flood risk may be more vulnerable to ground shaking during
earthquakes if not adequately designed and constructed.193
Building to mitigate multiple risks can be done, but is likely to be significantly more expensive.194
For example, PRDOH stated that construction under CDBG-DR and CDBG-MIT will adhere to
the Puerto Rico building codes adopted in November 2018, and specifically noted that the code
includes requirements regarding earthquake loads, in addition to wind and flood.195 HUD’s
assessment of Puerto Rico’s unmet needs estimated that additional costs associated with
PAS Report 576, Chicago, IL, December 2014, p. 78, https://www.planning.org/publications/report/9026899/.
191 For more information on the availability of HMGP funding information, see the “Obligation of HMGP Funding”
section.
192 Email from FEMA Congressional Affairs staff, September 8, 2020.
193 Eduardo Miranda et al., Puerto Rico M6.4 Earthquake, 7 January 2020, Structural Extreme Events Reconnaissance,
Preliminary Virtual Reconnaissance Report PRJ-2670, January 10, 2020, pp. 6, 66-7, https://www.researchgate.net/
publication/338528208_StEER_-_7_JAN_2020_PUERTO_RICO_Mw_64_
EARTHQUAKE_PRELIMINARY_VIRTUAL_RECONNAISSANCE_REPORT_PVRR.
194 National Institute of Building Sciences, Whole Building Design Guide Secure/Safe Committee, Natural Hazards
Mitigation, September 14, 2017, https://www.wbdg.org/design-objectives/secure-safe/natural-hazards-mitigation.
195 Puerto Rico Disaster Recovery Action Plan for the Use of CDBG-DR Funds in Response to 2017 Hurricanes Irma
and María, Amendment Five, Draft for Public Comment, September 10, 2020, p. 18, https://www.cdbg-dr.pr.gov/en/
download/action-plan-amendment-5-substantial-amendment/?ind=1599767012369&filename=Action%20Plan%20
Amendment%205_Substantial_EN%20(DRAFT%20FOR%20PUBLIC%20COMMENT)_.pdf&wpdmdl=13941&refre
sh=5f7ca5b0328791602004400 (hereinafter PRDOH, Action Plan for the use of CDBG-DR Funds (Amendment 5)).
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necessary resilience measures, such as more stringent building codes and the cost of compliance
measures may add more than 30% to the cost of repairs and rebuilding.196 PRDOH estimated that
this could increase the total cost of repairs from $4.7 billion to $5.8 billion.197 This suggests that
the available funding may not support as many projects and may need to be supplemented.
Congress may wish to require FEMA to clarify whether comparable building code requirements
will apply to work funded by HMGP and Individual Assistance, or funded by a combination of
programs. Depending on decisions made in Puerto Rico about opting in to FEMA’s policy on
Consensus-Based Codes, Specifications and Standards for Public Assistance, FEMA may require
PA-funded structures that were damaged by Hurricanes Irma and María to be repaired or rebuilt
to current codes for earthquakes, as well as current codes for wind and flood.198
Assistance to Individuals and Households199
Many federal programs provide assistance to individuals and households, including in the form of
grants, direct federal assistance, and loans. These forms of assistance may also be combined to
help address the unmet needs of disaster survivors (subject to applicants being authorized to
receive such assistance); however, Stafford Act Section 312 prohibits disaster survivors from
receiving federal assistance for losses for which they have already been compensated (i.e., a
duplication of benefits).200 This report focuses on assistance provided to individuals and
households through FEMA, the SBA, and HUD, including:
emergency housing assistance provided directly to disaster survivors through the
FEMA Public Assistance (PA) program;
grants of assistance and direct federal assistance for housing needs, and grants of
assistance for other needs, as well as other forms of assistance provided directly
to disaster survivors to support their recovery efforts, provided through the
FEMA Individual Assistance (IA) program;
low-interest loans for real and personal property provided through the SBA
Disaster Loan program (see the “Small Business Administration Disaster Loan
Program” section for more information on the SBA Disaster Loan program); and
assistance provided to disaster survivors with ongoing unmet needs provided
through the HUD Community Development Block Grant-Disaster Recovery
(CDBG-DR) program (see the “Ongoing Housing Recovery Through HUD’s
CDBG-DR Program” section for more information on the programs provided to
support disaster survivors’ recovery efforts, and the “CDBG-DR and Variants”
section for more information on the CDBG-DR program).
This section provides an overview of the FEMA IA program, and then focuses specifically on the
forms of emergency and interim housing assistance provided to disaster survivors from Puerto
196 PRDOH, Action Plan for the use of CDBG-DR Funds (Amendment 5), p. 70.
197 PRDOH, Action Plan for the use of CDBG-DR Funds (Amendment 5), p. 95.
198 See the section on “Building Code Compliance for Recipients of Public Assistance” in this report.
199 For more information on FEMA’s Individual Assistance (IA) program, contact Elizabeth M. Webster, Analyst in
Emergency Management and Disaster Recovery.
200 42 U.S.C. §5155. If an individual receives assistance that constitutes a duplication of benefits, the individual must
repay the duplicated assistance. For more information on duplication of benefits issues, see “Section 1210: Duplication
of Benefits” of CRS Report R45819, The Disaster Recovery Reform Act of 2018 (DRRA): A Summary of Selected
Statutory Provisions, coordinated by Elizabeth M. Webster and Bruce R. Lindsay.
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The Status of Puerto Rico’s Recovery Following Hurricanes Irma and María
Rico through FEMA’s PA and IA programs, as well as other forms of assistance provided through
the IA program, and ongoing housing assistance being provided through HUD’s CDBG-DR
program.
FEMA Individual Assistance Overview
In Puerto Rico, IA was authorized following Hurricanes Irma and María. FEMA’s IA program
may provide aid to affected individuals and households when authorized following a presidential
declaration of emergency or major disaster.201 IA can take the form of assistance for housing and
for other needs (known as Other Needs Assistance or ONA) through the Individuals and
Households Program (IHP), which may be made available following either an emergency or
major disaster declaration.202 FEMA’s IA program may also provide assistance through the Crisis
Counseling Assistance and Training Program (CCP), Disaster Unemployment Assistance (DUA),
Disaster Legal Services (DLS), or Disaster Case Management (DCM); these forms of assistance
may only be made available following a major disaster declaration.203 Mass Care and Emergency
Assistance (e.g., emergency sheltering) may also be provided following an emergency or major
disaster declaration. Table 4 includes the statutory authorities and brief descriptions of each IA
program.
Table 4. Statutory Authorities for Individual Assistance
Stafford Act Section
Category of Assistance
What It Provides
Section 408
Individuals and Households Program
Housing Assistance and Other Needs
Assistance (ONA)
Section 426
Disaster Case Management
Case Management Services
Section 416
Crisis Counseling Assistance and Training
Program
Supportive Crisis Counseling, Psychoeducation, Development of Coping Skills,
and Linkage to Appropriate Resources
Section 415
Disaster Legal Services
Legal Aid to Low-income Disaster
Survivors (e.g., assistance with insurance
claims and replacing legal documents)
Section 410
Disaster Unemployment Assistance
Unemployment Benefits and
Re-employment Assistance Services
Source: FEMA, Individual Assistance Program and Policy Guide (IAPPG), FP 104-009-03, March 2019, pp. 6-9,
https://www.fema.gov/media-library-data/1551713430046-1abf12182d2d5e622d16accb37c4d163/IAPPG.pdf.
Different forms of IA include different eligibility requirements and application processes. For
example, in order to receive IHP assistance, an applicant must satisfy general conditions of
eligibility, as well as additional eligibility requirements related to the type of IHP assistance they
are requesting.204
201 For more information on FEMA’s Individual Assistance (IA) program, see CRS Report R46014, FEMA Individual
Assistance Programs: An Overview, by Elizabeth M. Webster.
202 FEMA, “How a Disaster Gets Declared,” last accessed August 21, 2020, https://www.fema.gov/disasters/howdeclared (hereinafter FEMA, “How a Disaster Gets Declared”).
203 FEMA, “How a Disaster Gets Declared.”
204 FEMA, Individual Assistance Program and Policy Guide (IAPPG), FP 104-009-03, March 2019, pp. 47-48,
https://www.fema.gov/media-library-data/1551713430046-1abf12182d2d5e622d16accb37c4d163/IAPPG.pdf
(hereinafter FEMA, IAPPG)). General conditions of eligibility include that (1) “[t]he applicant must be a U.S. citizen,
noncitizen national, or qualified alien” (or the parent or guardian of a minor child who is one); (2) “FEMA must be able
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The Status of Puerto Rico’s Recovery Following Hurricanes Irma and María
Additionally, different types of IA are subject to different cost share requirements. FEMA
provides 100% federal funding for costs associated with providing IHP housing assistance,205
CCP, DUA, DLS, and DCM.206 However, IHP ONA is subject to a 75% federal and 25%
nonfederal cost share.207
Emergency Sheltering and IHP Assistance Provided After the Hurricanes
The hurricanes significantly affected housing in Puerto Rico. According to Puerto Rico’s
recovery plan,
[a]pproximately 90 percent of the Island’s nearly 1.23 million households applied for
immediate relief and housing assistance from FEMA, with 78 percent of these indicating
damage to their structure or personal property. 208
The President’s Stafford Act declarations authorized FEMA to provide various types of short- and
interim-term housing assistance to meet the needs of disaster survivors.209 Emergency sheltering
was authorized under Stafford Act Section 403 following the major disaster declarations for the
hurricanes.210 This assistance is commonly referred to as Public Assistance (PA) Category B—
Emergency Protective Measures. The Individuals and Households Program (IHP) was used to
support interim housing needs, and was authorized under Stafford Act Section 408.211 IHP
assistance helped people transition out of emergency sheltering solutions and into longer-term
temporary or permanent housing solutions. (The program data for the hurricanes was combined
by FEMA in its publicly available program information, which is reflected hereinafter.212)
to verify the applicant’s identity”; (3) “[t]he applicant’s insurance, or other forms of disaster assistance received, cannot
meet their disaster-caused needs”; and (4) “[t]he applicant’s necessary expenses and serious needs are directly caused
by a declared disaster.” Additionally, the applicant may need to meet occupancy and ownership eligibility requirements
for some types of Housing Assistance and Other Needs Assistance. When Hurricanes Irma and María occurred, the
Individuals and Households Program Unified Guidance (IHPUG) was the relevant guidance. The program information
and general conditions of eligibility noted above are consistent with the IAPPG (see FEMA, IHPUG, FP 104-009-03,
September 2016, p. 11, https://www.fema.gov/media-library-data/14835670808281201b6eebf9fbbd7c8a070fddb308971/FEMAIHPUG_CoverEdit_December2016.pdf).
205 42 U.S.C. §5174(g)(1). Additionally, some forms of emergency housing assistance are authorized under FEMA’s
PA program (Category B—Emergency Protective Measures), and are subject to the PA cost share, the federal share of
which shall not be less than 75%. This applies to the Transitional Sheltering Assistance (TSA) program, authorized
under Stafford Act Section 403 or 502 (FEMA, IAPPG, p. 40; and 42 U.S.C. §5170b(b) and 42 U.S.C. §5193(a)).
206 FEMA, IAPPG, p. 4.
207 42 U.S.C. §5174(g)(2).
208 COR3, Economic and Disaster Recovery Plan for Puerto Rico, p. 113. Additional information on the damage to
housing in Puerto Rico following Hurricanes Irma and María can be found in the HUD, Housing Recovery Support
Function, Housing Damage Assessment and Recovery Strategies Report Puerto Rico, June 29, 2018, https://cdbgdr.pr.gov/en/download/revised-draft-submitted-to-hud-for-evaluation-and-final-approval/?ind=1594482621623&
filename=22-Q_HUD%20Housing%20Damage%20Assessment%20and%20Recovery%20Strategies%20Report.pdf&
wpdmdl=12323&refresh=5f4f91a9111711599050153.
209 A presidential declaration authorizing Individual Assistance also makes Small Business Administration (SBA)
Disaster Loans available (SBA, A Reference Guide to the SBA Disaster Loan Program, May 2015, p. 4,
https://www.sba.gov/sites/default/files/files/SBA_Disaster_Loan_Program_Reference_Guide.pdf). For more
information on SBA Disaster Loans, see CRS Report R41309, The SBA Disaster Loan Program: Overview and
Possible Issues for Congress.
210 42 U.S.C. §5170b.
211 42 U.S.C. §5174.
212 Email from FEMA Congressional Affairs staff, September 10, 2020.
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In Puerto Rico, FEMA provided short-term emergency accommodations through:
congregate shelters (e.g., facilities such as school gymnasiums that provide safe,
secure, and sanitary places for displaced disaster survivors to shelter);213
the Transitional Sheltering
Assistance (TSA) program, which
helped transition people out of
congregate shelters and into
hotel/motel accommodations.
Some disaster survivors sheltered
in hotels/motels for nearly a year,
in part due to disaster-caused
challenges that delayed or
prevented them from identifying
longer-term solutions (e.g.,
unavailable affordable
housing);214
Emergency Sheltering Assistance
Transitional Sheltering Assistance (TSA): “FEMA
funded about $101 million for the TSA program for
disaster survivors from Puerto Rico.” More than 7,000
families were housed in over 1,000 hotels in 41 states,
the District of Columbia, and Puerto Rico through the
TSA Program, which was authorized in late October
2017, and ended in September 2018.
Sheltering and Temporary Essential Power
(STEP): Under Tu Hogar Renace, repairs were
completed to 108,484 homes at an average cost of
approximately $10,409 per home.
Voluntary Agencies Leading and Organizing
Repair (VALOR): Through the VALOR program,
6,323 homes were repaired at an estimated cost of $25
million.
Sheltering and Temporary
Essential Power (STEP) Pilot
Program, known as Tu Hogar
Operation Blue Roof and Self-help Tarps: In
Renace (meaning “Your Home
Puerto Rico, 59,469 blue roofs were installed by the
Reborn” in Spanish), which
U.S. Army Corps of Engineers, and 125,981 FEMA selfhelp tarps were installed. Some disaster survivors
allowed disaster survivors to
continue to live under temporary roofs, including tarp
shelter at home while repairs
solutions.
215
were made;
Voluntary Agencies Leading and
Sources: FEMA, “Hurricane Maria by the Numbers,” last accessed
October 7, 2020, https://www.fema.gov/fact-sheet/hurricane-MariaOrganizing Repair (VALOR), a
numbers; and email from FEMA Congressional Affairs staff, March
pilot program in which voluntary
20, 2019.
agencies used FEMA-funded
materials to repair homes;216 and
Operation Blue Roof and self-help tarps, which were intended to temporarily
protect the contents of damaged homes and prevent further property damage until
permanent repairs could be made. Operation Blue Roof was a mission assigned
by FEMA and managed by the U.S. Army Corps of Engineers (USACE) to
provide temporary covering using fiber-reinforced blue plastic sheeting and strips
of wood secured to the roof with nails or screws.217
213 Emergency sheltering operations extending beyond 90 days (FEMA, 2017 Hurricane Season FEMA After-Action
Report (AAR), July 12, 2018, p. 39, https://www.fema.gov/media-library-data/15336432621956d1398339449ca85942538a1249d2ae9/2017FEMAHurricaneAARv20180730.pdf).
214 FEMA, “Transitional Shelter Assistance,” last accessed August 21, 2020, https://www.fema.gov/news-release/
20200220/transitional-shelter-assistance.
215 FEMA, “Recovery Program Guidance: Sheltering and Temporary Essential Power (STEP) Pilot Program for
FEMA-4336-DR-PR and FEMA-4339-DR-PR,” October 25, 2017.
216 Email from FEMA Congressional Affairs staff, March 20, 2019.
217 U.S. Army Corps of Engineers, “Temporary Roofing,” last accessed August 21, 2020, https://www.usace.army.mil/
Missions/Emergency-Operations/National-Response-Framework/Temporary-Roofing/.
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In addition to emergency sheltering solutions, FEMA’s IA program was used to provide
temporary housing assistance and ONA through the IHP. The types of housing assistance
provided included financial assistance for Rental Assistance, as well as Home Repair Assistance,
Home Replacement Assistance,218 and Direct Housing Assistance, including Direct Lease,
Multifamily Lease and Repair, and Permanent Housing Construction.219
FEMA extended the IHP program
Individuals and Households Program (IHP)
following Hurricanes Irma and
Assistance
María. The IHP period of assistance
does not typically exceed 18
Financial Housing Assistance:
months from the date of declaration
Rental Assistance: $143.3 million
unless extended by FEMA when it
Home Repairs: $566.4 million
is determined that “due to
Home Replacement: $90.7 million
extraordinary circumstances an
Direct Temporary Housing Assistance:
extension would be in the public
Permanent Housing Construction—Repair: $45.4 million
interest.”220 Thus, without the
in funding was provided to repair 51 properties.
extensions, the IHP would have
Direct Lease: $12.3 million
ended around March 2019 (18
Multi-Family Lease and Repair: $1.0 million in funding was
months from when the disasters
provided to assist 367 families.
occurred in September 2017).
Financial
Assistance for Other Needs:
Instead, assistance provided
Other Needs Assistance: $586.9 million
through the FEMA IHP concluded
for the disaster survivors of
Sources: FEMA, “Hurricane Maria by the Numbers,” last accessed October
Hurricane Irma on November 30,
7, 2020, https://www.fema.gov/fact-sheet/hurricane-Maria-numbers; and
2019, and for the disaster survivors
emails from FEMA Congressional Affairs staff dated September 21 and 24,
2020, and October 1, 2020. This information details assistance provided.
of Hurricane María on December 6,
2019 (and February 6, 2020, for
specific cases—i.e., owners/renters with inspections pending).221
Other Forms of Individual Assistance Provided
Other forms of IA were also provided, including Disaster Unemployment Assistance, which
provided temporary benefits to individuals whose employment or self-employment was “lost or
interrupted as a direct result of a major disaster and who are not eligible for regular
unemployment insurance (UI),”222 and Disaster Case Management, which partners disaster case
managers with disaster
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