The Trump administration has redirected nearly $1 billion in federal funds originally intended for rooftop solar and battery systems in Puerto Rico to the island's bankrupt electric utility. The shift prioritizes fossil fuel infrastructure, including a natural gas pipeline, over the Biden-era plan for resilient power for vulnerable residents.
Congress approved the $1 billion Energy Resilience Fund in 2022 to support solar and battery installations for about 40,000 low-income Puerto Ricans after multiple hurricanes exposed the grid's weaknesses. The Biden administration's Department of Energy had planned distribution to medically vulnerable households to reduce reliance on the unstable system.
After President Trump took office last year, the funds were redirected to the Puerto Rico Electric Power Authority, or PREPA. The Department of Energy approved a sole-source award with only a 1 percent cost share from the utility, down from the typical 50 percent requirement. It also allocated $50 million for a natural gas pipeline between San Juan and Palo Seco.
More than 40 congressional Democrats sent a letter to Energy Secretary Chris Wright last month questioning the move and seeking a briefing. They cited concerns over transparency, disregard for congressional intent, and potential increases in energy costs for residents.
PREPA has faced ongoing bankruptcy proceedings since 2017 and completed few projects from earlier federal allocations exceeding $17 billion. The average Puerto Rican experienced more than 70 hours of power outages in 2024.
