Defense bill includes amendments to help Puerto Rico 

The National Defense Authorization Act (NDAA) passed by the House last week includes numerous provisions impacting Puerto Rico, starting with $144 million for military construction: $61 million for a new school at Old Remy Base, $56 million for Fort Buchanan, and $37 million for Fort Allen. An amendment by Rep. Alexandria Ocasio-Cortez (D-NY) and Nydia Velazquez (D-NY), seeking a report on the state of the decontamination and cleanup process of former military land, was approved. On top of this, several members brought amendments before the House Rules Committee for floor consideration, all of which were denied. Resident Commissioner Jenniffer Gonzalez-Colon (R-PR) proposed compensating Vieques residents for military maneuvers conducted years ago. Rep. Ritchie Torres (D-NY) offered language aimed at the rebuilding of the electric grid, while Rep. Velazquez sought a study on ways to strengthen the federal grants Puerto Rico receives.

IRS seeks tax cheats in Puerto Rico 

The Internal Revenue Service (IRS) and the Department of Justice have begun working together to prepare criminal and civil cases against U.S. citizens who may be illegally exploiting Puerto Rico’s tax advantages. The investigations are focused on hedge fund managers and cryptocurrency traders who allegedly lied about how much time they have spent on the Island. At least 5,000 individuals have taken advantage of Puerto Rican incentives, but the law requires people filing for these incentives to spend at least 183 days on the Island and establish it as their “tax home” and primary residence. Since 2021, IRS officials have been investigating forms filed by Puerto Rico taxpayers to establish residence in the territory and have sought additional information, such as vehicle location, voter registration, and income sources.

Puerto Rico legislature passes increased budget

The Puerto Rican legislature recently passed the 2023 fiscal year budget, with a 12% increase relative to last year. The budget includes a $100 million increase in funding for the University of Puerto Rico and more than $90 million for direct funding to municipalities. There is significant funding intended to address the power grid and reduce outages, plus $650 million to the Island’s emergency funds and additional Medicaid dollars. Proponents argued that the budget sets the Island on the course of long-term fiscal and financial security. The budget passed the House by a vote of 44-3 and 19-7 in the Senate.

Major upgrades coming to Puerto Rico’s sanitation system 

Following a settlement modification with the EPA and the Department of Justice, Puerto Rico’s Aqueduct and Sewer Authority (PRASA) will make improvements and upgrades to the Island’s sanitary collection system and wastewater treatment plants. These upgrades will fund 17 new wastewater projects estimated at $534 million, and meet new schedules for wastewater infrastructure projects. There will also be increased transparency regarding the occurrence of Combined Sewer Overflows (CSOs). Overall, the total cost is $1.2 billion.