AGP Executive Report

Housing Finance: Puerto Rico homebuyers are increasingly using FHA 203(k) loans to buy properties that need repairs, as used-home prices rise and more than 60% of transactions require improvements. Labor & Tech: The Puerto Rico Department of Labor and Human Resources will roll out “Desempleo Digital” plus an Employer Portal in August, moving unemployment claims and payments to online tools and direct deposit. Water & Courts: San Juan is asking a judge to impose a special commissioner over PRASA, warning the utility could face fines—and potentially jail—for breaching a potable water service pact. Public Finance: The Financial Oversight and Management Board certified a revised FY2026 budget, but says it can’t yet be counted toward PROMESA’s balanced-budget termination requirements. Disaster Aid & Business: A coalition led by Puerto Rico airport operator Aerostar and local partners sent the first flight of nearly 7,000 pounds of earthquake relief to Venezuela, including medicine, food, generators, and infant supplies. Education Contract Scrutiny: PDP senators seek an investigation into a $38M TANF-funded contract tied to NOLA Education LLC and the “Star Academy” rollout in 25 schools. Food Safety: Morningstar Farms recalled products in Puerto Rico due to possible plastic pieces.

Tourism & Cruise Growth: Disney Cruise Line’s Disney Destiny made its inaugural call to the Port of San Juan, with Puerto Rico Tourism Company projecting over $1.6M in economic activity for local businesses and jobs. Tourism Economy: Discover Puerto Rico data shows hotel and short-term rental revenue topping $1B for Jan–May 2026 ($1.065B, +9% YoY) and cruise arrivals up 45% to 300,000+ passengers. Local Business & Policy: A Puerto Rico private-sector coalition wrapped a weeklong Washington mission to push a unified federal agenda on tax reform, healthcare, economic development, manufacturing, and infrastructure, seeking technical guidance for upcoming local tax changes. Finance & Payments: Arival Bank (Puerto Rico-licensed) launched stablecoin-based payments via its regulated banking network, positioning the move for cross-border commerce and FX volatility management. Utilities Oversight: A federal control board is pitching a $3B settlement to restructure Puerto Rico power company debt, as budgets and oversight continue to shape the island’s financial outlook. Community & Connectivity: Liberty extended free international calls from Puerto Rico to Venezuela through July 5 for mobile customers, aiming to keep families connected during the emergency.

Tourism & Cruise Growth: Puerto Rico welcomed Disney Cruise Line’s new ship Disney Destiny on its inaugural call to San Juan, with the Puerto Rico Tourism Company projecting more than $1.6M in economic activity from the visit and future scheduled stops. Tourism Revenue: Discover Puerto Rico data shows hotel and short-term rental revenue topped $1.065B for January–May, up 9% year over year, alongside a 45% jump in cruise arrivals to more than 300,000 passengers. Public Finance (PROMESA): The Financial Oversight and Management Board imposed FY2027 budgets on the University of Puerto Rico and COSSEC after rejecting noncompliant plans, and separately pitched a $3B settlement offer to PREPA bondholders to help close the power authority’s bankruptcy. Energy Debt Restructure: The board’s proposed PREPA deal targets about a 35% recovery on $8.5B in claims, though it hasn’t identified the funding source yet. Courts & Governance: The Puerto Rico Supreme Court upheld the mandatory judicial retirement age of 70, rejecting a constitutional challenge. Local Legal Fight: Camuy sued DNER and the government over a stop-work order halting improvements at Peñón Brusi, arguing the project is permitted and funded through ARPA. Workplace AI Readiness: A national survey found 41% of workers say their employer provided no tools or training to use AI at work, while only 19% report comprehensive training.

Puerto Rico Power Debt Restructuring: The Puerto Rico Oversight Board says it has offered a $3B settlement to power bondholders as it pushes to restructure more than $10B in Electric Power Authority debt, topping a prior offer by $1.4B. San Juan Financing: San Juan plans to borrow $356M via $232.7M refinancing notes and $123.5M general obligation bonds for 14 public improvement projects, with Banco Popular as underwriter. Hospital El Maestro Update: The hospital’s May operating report shows a cash drop to $150,720 and a $150,143 net loss, with liabilities reported at $45.4M while a sale is still pending. Tourism & Travel Boost: Disney Cruise Line’s newest ship, Disney Destiny, made its first San Juan call, with expected spending of $1.6M+ through next year; separately, Avelo expands Caribbean-to-Texas flying and starts new routes from Florida to North Dallas McKinney in November. Cannes-Winning Local Branding: Hyundai Puerto Rico’s “Coquí Alarmed” campaign won a Cannes Lions Grand Prix, spotlighting the coquí frog sound as an ecological and cultural symbol. US Watch: DOJ opened an investigation into Sen. Ruben Gallego’s campaign finance use, including trips billed to Puerto Rico. Business Markets: AP reports U.S. stocks rose in June’s choppy stretch, with the S&P 500 up 0.8% and the Nasdaq up 1.5%. Crypto & Politics: A federal filing says Trump took in about $1.2B from his crypto businesses last year, including World Liberty Financial and CIC Digital.

Hospital Restructuring: El Maestro Hospital’s May 2026 operating report shows a cash drop to $150,720 and a $150,143 net loss, with revenues largely coming from office rentals while liabilities climbed to $45.4M amid a growing debt load. Food Retail: Econo Supermarkets strengthened its lead with 56% of consumers naming it their preferred chain for main purchases in MIDA’s Consumer Radiography 2026, and its Econo to-Go platform led local online buying. Legal/Privacy: A 1st Circuit ruling tossed a Puerto Rico data-breach class action, saying the plaintiff failed to show standing because she couldn’t plausibly link a fraudulent cellphone account to the 2019 ransomware attack. Supreme Court & Puerto Rico Pop Culture: Supreme Court Justice Sonia Sotomayor disclosed receiving $4,333 concert tickets from Bad Bunny’s label Rimas Entertainment during a private Puerto Rico trip in August 2025. PROMESA Ten-Year Check: A look back at Puerto Rico’s PROMESA era notes debt fell 58% over a decade, but highlights the ongoing controversy over federal oversight and budget approvals. Venezuela Relief Spillover: World Central Kitchen teams in Venezuela keep searching as the death toll tops 1,700, while humanitarian needs grow for displaced families.

Puerto Rico Rum Industry: Puerto Rico’s Rum of Puerto Rico program secured new commercial partnerships with the New York Yankees, New York Mets, Tampa Bay Rays and Miami Marlins, aiming to boost year-round visibility for local rum brands in major U.S. markets through events and fan experiences. Banking & Markets: Puerto Rico’s Birling Capital indexes showed resilience amid Wall Street volatility, with the PRSI up 4.88% for the week and Popular, First BanCorp and OFG among the strongest performers. Supreme Court & Elections: The U.S. Supreme Court upheld states’ ability to count mail-in ballots received after Election Day as long as they were postmarked by then, a ruling that explicitly includes Puerto Rico among jurisdictions with grace periods. Legal/Compliance: A new federal air-travel disability training rule takes effect, pushing airlines to improve hands-on staff training for wheelchair and mobility-device assistance. Sports Betting Probe: Former NBA guard Malik Beasley and Ed Davis were indicted in a game-fixing and prop-betting scheme tied to alleged bribery and wire fraud. Retail & Real Estate: Houzeo launched a $399 flat-fee MLS plan with $0 at closing for sellers, while Sephora rolled out “Quiet Hours” to reduce in-store distractions.

San Juan Finance Clash: The PDP’s San Juan delegation denounced a $323.7M bond issue approved by the Financial Oversight and Management Board, arguing $209M mainly refinances old debt and postpones payments—pushing a “balloon” cost to future residents. Youth Homelessness Watch: A new ASSMCA count found 204 youths ages 18–24 homeless or in unstable housing, nearly four times the prior general count, with most not in shelters—raising pressure on housing and support services. Grid & Energy Innovation: Puerto Rico is seeing momentum behind Virtual Power Plants, where home batteries and smart thermostats can be coordinated to cut peak demand during heatwaves and data-center surges. Air Connectivity: Contour Airlines says it’s evaluating new Caribbean routes using Puerto Rico as a hub, citing strong passenger movement since launching service last year. Tourism Lodging: Hilton will open a Hampton by Hilton San Juan City Center this September, adding another mid-market option in the capital as the brand expands across the American Caribbean. Local Business & Culture: The Toñita Festival returned in Williamsburg, spotlighting Puerto Rican community roots and neighborhood resilience.

Hospitality & Tourism Expansion: Hilton will open a new Hampton by Hilton San Juan City Center this September, adding another mid-market option in Puerto Rico’s tourism engine. Air Connectivity: Contour Airlines is evaluating new Caribbean routes with Puerto Rico positioned as a hub, aiming to connect islands that lack direct U.S. access. Regional Travel Growth: Avelo is expanding nonstop service from Tweed-New Haven to Aguadilla (starting Nov. 19) alongside its existing San Juan route, boosting options for Puerto Rican travelers in Connecticut. Local Business Milestones: Realty of America launches in Puerto Rico, marking another step in the company’s growth. Finance & Risk: A.M. Best upgraded Cooperativa de Seguros Múltiples’ financial strength rating to A, a signal for insurer stability. Public Policy & Oversight: Puerto Rico’s fiscal board flagged flaws in a Housing Department contract tied to solar and water systems, keeping pressure on project execution. Sports & Culture: Puerto Rico’s Xander Zayas, a native of the island, fought for unified titles in Brooklyn, underscoring the island’s ongoing presence in major business-facing sports markets.

Air Connectivity: Avelo is adding nonstop service from Tweed-New Haven (HVN) to Houston’s Bush Intercontinental starting Sept. 21 and to Aguadilla, Puerto Rico, starting Nov. 19, expanding HVN’s Puerto Rico network and easing family travel. Business Expansion: Trópiko, the Hato Rey–born Creole fast-food brand, is pushing beyond Puerto Rico with a new Dorado location and an international opening in Medellín, Colombia, aiming to tap tourism and a Puerto Rican diaspora. Finance & Insurance: A.M. Best upgraded Cooperativa de Seguros Múltiples’ financial strength rating to A, a signal for stability in Puerto Rico’s insurance market. Consumer & Brand Marketing: Coca-Cola is rolling out a yearlong America250 celebration with limited-edition packaging that includes Puerto Rico designs, plus community initiatives and interactive rewards. Public Policy & Economy: Puerto Rico’s unemployment rate remains stable at 5.6%, offering a snapshot of labor conditions heading into the summer. Sports Business: Puerto Rico’s Xander Zayas and Jaron “Boots” Ennis headline a major unified-title boxing event in Brooklyn, with purse estimates pointing to multi-million-dollar paydays for both fighters.

Venezuela Disaster Response: As Venezuela enters the third day after back-to-back quakes, rescuers say the “crucial” window is narrowing while families in La Guaira report few state teams and growing frustration; authorities have blocked access to the hardest-hit zone and require permits, as international aid and local searches continue. Puerto Rico in the Aid Mix: Venezuelan National Assembly President Jorge Rodríguez said Puerto Rico is contributing rescue staff and canines, alongside teams from Curaçao, Argentina and Qatar, with thousands of rescuers and tons of equipment mobilized. Insurance Strength Check: Cooperativa de Seguros Múltiples de Puerto Rico (CSM) won an A.M. Best upgrade to an “A” Financial Strength Rating with a stable outlook, citing capitalization and risk management. Auto Sector & Regulation: Pep Boys named Alan M. Cruz Nieves to Puerto Rico’s Board of Examiners and Automotive Mechanics, reinforcing oversight of technician and mechanic practice. Local Business Expansion: Trópiko, a Puerto Rican fast-food concept, is pushing beyond the island with new locations planned in Dorado and Medellín, aiming to scale internationally. Sports Business Spotlight: Puerto Rico’s Xander Zayas defends titles Saturday against Jaron “Boots” Ennis in Brooklyn, a high-profile bout with major attention for the island’s boxing brand.

Disaster Response: Venezuela’s rescue window is shrinking as back-to-back quakes push the death toll to at least 920 and leave more than 51,000 missing, with authorities tightening access to La Guaira while families report few state teams on the ground. Insurance & Finance: Cooperativa de Seguros Múltiples (CSM) won an A.M. Best upgrade to an A rating with a stable outlook, citing strong capitalization and risk management. Regulation & Jobs: Pep Boys’ Alan M. Cruz Nieves was appointed to Puerto Rico’s Board of Examiners and Automotive Mechanics, reinforcing oversight of technician licensing and training. Real Estate: Realty of America announced its Puerto Rico expansion with a grand opening in San Juan, naming Aixa Malavé to lead the local push. Banking Litigation: A lawsuit alleges FirstBank Puerto Rico helped enable Jeffrey Epstein’s crimes, claiming the bank maintained accounts for Epstein entities and delayed required reporting. Local Business: A new Puerto Rican food spot, Casita De La Picadera, is set to open in Willimantic in early July.

Real Estate Expansion: Realty of America announced its official Puerto Rico entry with a grand opening at the Caribe Hilton in San Juan, appointing veteran broker Aixa Malavé to lead operations as the firm grows across the U.S. and Caribbean. Banking & Legal Risk: A Jane Doe lawsuit alleges FirstBank Puerto Rico and First BanCorp helped enable Jeffrey Epstein’s sex-trafficking operation, claiming the bank maintained many Epstein-linked accounts and delayed suspicious-activity filings. Ports & Logistics: Puerto Rico’s Ports Authority says S2 Services is still scanning containers at the San Juan dock but has not been paid, with the agency withholding funds since last June amid a contract cancellation that remains tied up in federal court. Public Policy: Senate action approved a $13.18 billion operational budget for FY 2026–2027, while another item keeps local cannabis rules unchanged. Local Business: Casita De La Picadera is set to open in early July in Willimantic, Puerto Rican cuisine-focused, taking over the former A Mano Taco space. Community & Service: Fort Buchanan held a retirement ceremony honoring Sgt. 1st Class Jorge Luis Feliciano Echevarria after 20 years of active-duty service.

LUMA vs. Puerto Rico Government: LUMA Energy says Secretary of the Governorship Francisco Domenech pressured officials to speed up the cancellation of its transmission-and-distribution contract and push for a replacement operator, setting up a tougher legal fight as discovery expands. Public Finance: The Senate approved a $13.18 billion operational budget for FY 2026–2027, with amendments and priority funding for public safety, health, education, and rehabilitation, while lawmakers reiterated hopes for balanced budgets that could help end PROMESA oversight. Food Safety: MorningStar Farms recalled two frozen items—Buffalo Chik’n Nuggets and Hot & Spicy Sausage Patties—over possible plastic contamination, with sales reported in the U.S. and Puerto Rico. Local Business & Community: T-Mobile’s Hometown Grants wrapped up with $22.8M total funding for 500 projects across 49 states and Puerto Rico, including support for community hubs and small-business growth. Energy & Oversight: A separate thread of scrutiny continues around housing and utility-related contracts, as regulators flag issues tied to solar and water systems. Sports Tourism Angle: Puerto Rico’s sports-tourism push remains in focus as regional events and qualifiers keep attention on the island’s market potential.

Puerto Rico Business: Yum! Brands’ $2.7B Pizza Hut sale will not change operations on the Island, with the deal framed as a ownership/management shift rather than a closure. Energy & Grid: Sunrun, Tesla and Renew Home unveiled a framework to deliver up to 16.8 GW of distributed capacity to utilities and hyperscalers via virtual power plants, including devices across Puerto Rico. Local Economy & Tourism: Golden Corral says it has six new units in development, including a Puerto Rico location, as it leans on conversions and smaller prototypes to keep growth moving. Public Finance Oversight: Puerto Rico’s fiscal board approved a 5th revised PREPA budget, while other oversight actions continue to scrutinize government contracts. Food & Consumer: MorningStar Farms issued recalls tied to possible plastic contamination, adding pressure on retailers and supply chains. Community & Workforce: T-Mobile’s Hometown Grants program continues to fund community hubs and small-business support, with Puerto Rico included among funded regions. Regional Context: A major earthquake series in Venezuela is driving urgent humanitarian needs that could affect regional logistics and costs.

Earthquake Aftermath: Back-to-back powerful quakes (7.2 and 7.5) struck Venezuela’s northern coast near Morón, collapsing buildings in Caracas and prompting a state of emergency; acting President Delcy Rodríguez said at least 32 died and 700 were injured, with toll expected to rise, while the USGS warned of high casualties and widespread damage and tsunami alerts for parts of the Caribbean (including Puerto Rico) were briefly issued then lifted. Puerto Rico Business & Tourism: The Florida-Caribbean Cruise Association opened registration for its FCCA Cruise Conference and Trade Show in San Juan (Oct. 12-16), positioning the event as a direct line to cruise executives for destination and itinerary deals. Local Economy & Venues: A feature spotlights “El Choli” (José Miguel Agrelot Coliseum) as a key live-entertainment engine for Puerto Rico’s international market, highlighting its flexible layouts and event track record. Community & Quality of Life: AARP announced 2026 Community Challenge grants totaling $193,000 across Wisconsin cities, underscoring how local projects can improve mobility, connectivity and livability for older residents.

Sports Tourism Push: Puerto Rico is leaning harder on sports tourism, citing 300+ tourism and entertainment events in 2025 and up to $393M in estimated impact, with the 2026 World Baseball Classic in San Juan drawing 143,000+ spectators and about $46.8M in activity. Food Safety Recall: MorningStar Farms recalled Buffalo Chik’n Nuggets (10.5 oz) and Hot & Spicy Sausage Patties (8 oz) sold in Puerto Rico due to possible plastic pieces; consumers are told to discard and request refunds. Water Crisis Outreach: Connecticut-Puerto Rico trade commission members urged Gov. Ned Lamont to meet over Puerto Rico’s escalating water crisis, highlighting families near San Juan paying for water and hauling it for basic needs. Local Jobs Snapshot: Puerto Rico’s unemployment rate held steady at 5.6% in May, with about 69,000 unemployed and 959,500 seasonally adjusted jobs reported. Energy & Grid Context: A new “capacity-as-a-solution” deal aims to add 16.8 GW of distributed power via home solar, batteries, and smart thermostats—relevant as Puerto Rico and the region grapple with reliability and costs. Insider Trading Case: A Puerto Rico resident, Kirstyn Pearl, was sentenced in a $3.2B pharma-merger insider trading scheme tied to illicit profits above $600,000.