AGP Executive Report

Economic Development Leadership: Puerto Rico’s Senate confirmed Carlos Ríos Pierluisi as Secretary of the DDEC, with lawmakers emphasizing support for small and medium businesses and investors. Budget & Fiscal Oversight: The House approved a $13.18B General Fund budget for FY 2027 and advanced a fiscal responsibility package aimed at building a “post-fiscal board” framework, including a Budget Stabilization Reserve Fund. Labor Policy Shift: The House approved legislation to dismantle the Minimum Wage Evaluation Commission, keeping the $10.50 hourly minimum wage for now but moving future increases to quadrennial legislative reviews. Consumer & Market Regulation: A House panel will investigate whether certain entities involved in car shows and resale of motor vehicles are meeting dealership licensing and consumer protection rules. Water Resilience Ideas: A measure filed in the Judiciary Committee would study residential rainwater collection and storage to reduce pressure on aqueduct systems during drought risk. Food Safety Recall: MorningStar Farms recalled specific frozen items—Buffalo Chik’n Nuggets and Hot & Spicy Sausage Patties—sold in the U.S., Puerto Rico, and Costa Rica due to possible plastic contamination. Competitiveness Watch: Puerto Rico fell in the IMD World Competitiveness ranking, dropping to 52nd overall in 2026 from 45th in 2025, with notable declines in business efficiency and infrastructure.

Co-op Growth in Puerto Rico: Puerto Rico’s cooperative sector added momentum in FY 2025-2026, reaching 499 active cooperatives and over $7.8B in assets, with new housing cooperatives marking the first additions in decades. Electricity Rates Watch: The Puerto Rico Energy Bureau ordered LUMA and Genera PR to explain updated fuel and purchased power projections after a sharp oil-price drop, with potential changes to the July–September 2026 rate factors. Fiscal Oversight: The Financial Oversight and Management Board certified a revised 2024 fiscal plan, warning that stability still hinges on stronger structural reforms and tighter adherence to spending and revenue assumptions. Banking & Payments Innovation: FV Bank announced an expanded regulated fintech platform that unifies stablecoin settlement, custody, programmable payments, and cross-border rails into one programmable layer. Local Business Performance: Marco’s Pizza Puerto Rico reported 3% sales growth early in 2026 and plans to open a new location in Mayagüez. Food Safety Recall: MorningStar Farms recalled select frozen plant-based nuggets and sausage patties sold in Puerto Rico due to possible plastic contamination.

Energy & Rates: Puerto Rico’s Energy Bureau ordered LUMA Energy and Genera PR to explain fuel and purchased-power projections after a sharp drop in global oil prices, with an amended filing due by June 24 for July–September 2026 rate factors. Fiscal Oversight: The Financial Oversight and Management Board certified a revised 2024 fiscal plan, warning that stability still hinges on stronger structural reforms and tighter execution. Democracy & Transparency: Amnesty International Puerto Rico warned of “democratic deterioration,” citing Law 156‑2025’s added hurdles for public records and concerns about press access and civil liberties. Retail Expansion: Marco’s Pizza Puerto Rico reported 2026 sales growth of 3% early in the year and plans to open a new Mayagüez location, keeping 60 restaurants on the island. Food Safety: MorningStar Farms recalled specific frozen products sold in Puerto Rico due to possible plastic pieces. Cybersecurity: A major Fortinet hack campaign targeting firewall and VPN devices reportedly compromised organizations across multiple countries, raising new risks for businesses and public agencies.

Puerto Rico’s Business Spotlight: 787 Coffee says its farm-to-cup brand is ranked No. 32 among more than 4,600 shops in The World’s 100 Best Coffee Shops, spotlighting Puerto Rican agriculture and entrepreneurship through its Hacienda Iluminada operation in Maricao. Energy & Utilities: Fiscal board approval of a 5th revised PREPA budget signals continued pressure on Puerto Rico’s power finances as the island navigates reliability concerns. Water & Infrastructure: Reports of PRASA facing Senate scrutiny over water service failures add to the week’s focus on basic service delivery. Local Economy & Industry: Industrialists are calling for an end to disputes that threaten investment in Puerto Rico, underscoring how legal and operational friction can slow new capital. Sports & Media Economy: Bad Bunny crossed $1B in lifetime concert grosses, reinforcing the global pull of Puerto Rican talent and the touring economy behind it. Consumer & Public Support: AARP and United Way expanded the 211 Caregiver Support Program to 32 states plus Puerto Rico, aiming to reach millions of family caregivers with free help.

Puerto Rico Governance Watch: Puerto Rico’s political crisis deepened as Gov. Jenniffer González’s administration saw two senior officials trade corruption and undue-influence allegations tied to a federally funded procurement probe, with the dispute now reaching Washington. Energy & Water Reliability: Business leaders are warning that water and electrical failures are eroding investor confidence and forcing restaurants, retailers, and hotels to scramble for backup supplies. Local Business & Retail: Harveys Supermarket’s final transition to Winn-Dixie in Florida and southern Georgia wrapped up with a Brentwood ribbon-cutting, including expanded Hispanic offerings and a new community room. Sports Business: MLB owners proposed major changes to the amateur-entry system that would cut the domestic draft to 12 rounds, add an international draft for prospects outside the U.S., Canada, and Puerto Rico, and bar high school players from the domestic draft—moves that could reshape Puerto Rico’s baseball pipeline. Global Spotlight on Puerto Rico: 787 Coffee says its farm-to-cup brand from Maricao earned a top-100 ranking, positioning Puerto Rican agriculture and entrepreneurship on an international stage. Consumer Safety: MorningStar Farms recalled two frozen plant-based products sold in the U.S. and Puerto Rico over possible plastic pieces.

Puerto Rico Governance & Business Risk: A widening political crisis in Puerto Rico’s economic development apparatus is escalating after allegations of corruption and undue influence between top officials tied to federally funded procurement and bid-rigging claims, raising fresh concerns for investors and local entrepreneurs. Water & Energy Reliability: Business groups are warning that recurring water and energy failures are driving up costs and losses for island operators, adding pressure on confidence and day-to-day operations. Caregiving Support Expansion: AARP and United Way Worldwide expanded the 211 Caregiver Support Program to 10 more states plus regional support in California and Colorado, with Puerto Rico already included—aimed at helping millions of family caregivers access services. Food Safety: MorningStar Farms recalled two frozen plant-based products sold in the U.S. and Puerto Rico due to possible plastic pieces, urging consumers to discard and seek refunds. Retail & Consumer Markets: Sam’s Club continues its expansion footprint, with a reported $15M land purchase in Florida—another signal of ongoing warehouse-club growth that can affect regional competition and pricing. Sports & Culture (PR spotlight): Puerto Rican star Bad Bunny crossed $1B in lifetime touring grosses, underscoring the global pull of Puerto Rico’s entertainment economy.

Puerto Rico Political Turmoil: Puerto Rico Gov. Jenniffer González’s administration is roiled by a widening corruption-and-interference dispute between senior officials tied to a federally funded procurement probe, with sworn statements exchanged and questions raised in Washington. Business Confidence & Incentives: The Association of Industrialists of Puerto Rico is urging officials to keep economic development and tax-incentive processes insulated from public fights, warning that controversy can scare off local and foreign capital. Water & Energy Reliability Hits Retail: The United Center of Retailers (CUD) says water and power failures are damaging Puerto Rico’s reputation with investors and forcing businesses to spend more just to keep operating. Farm-to-Cup Export Win: 787 Coffee says it earned a top-100 North America/Caribbean ranking, spotlighting Puerto Rican agriculture through its farm-to-cup model. Global Finance/Payments: Visa names Jorge Salum to lead expanded Greater Caribbean operations, reshaping the region’s digital-payments leadership with Puerto Rico excluded from the new unit. Sports Business: MLB owners propose major CBA changes that would reshape amateur entry, including cutting the domestic draft and adding an international draft—an issue that directly affects Puerto Rico’s player pipeline. Entertainment Economics: Bad Bunny crossed $1B in lifetime touring grosses, underscoring the scale of Puerto Rican talent’s global earning power.

Water & Power Reliability: Puerto Rico’s business community is pushing back hard after water and energy failures hit day-to-day operations, with retailers and restaurants warning the disruptions are eroding investor confidence and forcing extra costs to keep businesses running. Economic Development Governance: The Association of Industrialists of Puerto Rico is urging officials to keep economic development insulated from political disputes, arguing that controversies around tax incentives and decrees are scaring off capital. PREPA Budget Update: The Financial Oversight and Management Board certified PREPA’s 5th revised FY2026 budget, aligning spending with new electricity rate determinations and setting a systemwide revenue requirement of $1.78B. Incentives Oversight: A GAO review highlights persistent oversight gaps in Puerto Rico’s investor incentive programs, including issues with residency reporting to the IRS. Legal/Prosecutorial Moves: OPFEI appointed independent prosecutors to investigate former OGPe officials tied to alleged improper intervention in agency operations. Regional Business: Visa named Jorge Salum to lead expanded Greater Caribbean operations, reshaping leadership across 22 markets (excluding Puerto Rico and the Dominican Republic). Sports Business: MLB owners floated a major amateur-entry overhaul that would ban high school signings in the domestic draft and expand an international draft—an industry shift with big implications for talent pipelines.

Water Crisis & Infrastructure: Puerto Rico’s water emergency worsened as the National Guard was activated to help distribute supplies after repairs to the Superaqueduct line in Bayamón began restoring service only gradually; officials say 120,000+ customers still face low pressure and uncertainty, with drought and heat adding strain. Cybersecurity: A wide-scale cyber attack campaign targeting Fortinet devices reportedly compromised login credentials and affected nearly 75,000 firewall/VPN devices across 15+ countries, raising risks for major institutions. Local Governance & Politics: Puerto Rico’s administration is in a new political crisis tied to allegations of public corruption and interference, with resignations at the economic development agency and fresh sworn statements filed. Finance & Banking: FV Bank updated its digital banking services in San Juan, aiming to blend regulated traditional banking with more modern, on-the-go tools for customers. Energy & Consumer Response: Puerto Rico’s Department of Consumer Affairs coordinated with agencies and the National Guard on hurricane-season fuel logistics, including plans to freeze prices on essential goods like gasoline during emergencies. Sports Business (MLB): MLB owners proposed major amateur draft changes—cutting rounds, banning high school signings, and creating an international draft—moves that could reshape signing-bonus spending and talent pipelines affecting Puerto Rico’s baseball ecosystem.

MLB CBA Talks: Major League Baseball is proposing major changes to its amateur-entry system, including banning high school players from signing domestically, cutting the U.S./Canada/Puerto Rico draft from 20 to 12 rounds, and launching a separate international draft for prospects outside the U.S., Canada and Puerto Rico—also 12 rounds with a $200M bonus pool. Hurricane Risk Planning: Puerto Rico’s consumer agency DACO met with other groups and the National Guard to coordinate fuel-supply continuity during the 2026 hurricane season, including debris-clearing priorities and price freezes on essential goods like gasoline during emergencies. Cybersecurity Shock: Researchers say a large hacking campaign targeting Fortinet firewalls and VPNs led to password theft and potential compromises across more than 15 countries, with Fortinet acknowledging credential-stealing activity. Local Economy Watch: Puerto Rico’s cement market contracted 3.2% in May 2026, while production rose 2.7%, signaling demand softness even as output improves. Healthcare & Trials: PhaseWell Research will expand clinical trial access in Puerto Rico through a partnership with Latin Clinical Trial Center in San Juan. Housing Investment: Elevance Health announced $640M in affordable housing investment over five years, including support for projects in Puerto Rico.

Puerto Rico Water Crisis Hits Hotels: Puerto Rico’s water shortage is now costing the hospitality sector millions, with PRHTA saying some hotels spent about $800,000 in a week just to secure water and several small hotels unable to operate after failing to get deliveries from San Juan or PRASA. Ponce Tourism Boost: Ponce will inaugurate “La Bóveda” on June 19 as a new sensory tasting and tourism experience tied to the La Ciudad project, funded through recovery resources via the Serrallés Castle Foundation. Local Business Expansion: Bonchon says it’s nearing 500 locations globally and plans its first Puerto Rico opening by early 2027, as it continues international growth. Power & Logistics Tech: Advance Auto Parts is expanding its AI-powered fulfillment partnership with OneRail, citing store-based fulfillment and same-day delivery orchestration across thousands of locations, including Puerto Rico. Regional Finance Leadership: Visa appointed Jorge Salum to lead expanded Greater Caribbean operations across 22 markets (excluding Puerto Rico and the Dominican Republic), aiming to deepen digital payments adoption and cross-border connectivity. Healthcare Housing Investment: Elevance Health announced $640M in affordable housing investment over five years, including Puerto Rico, as part of its social drivers of health strategy.

Water & Tourism Shock: Puerto Rico’s water access problems are now hitting the bottom line for hotels and restaurants, with PRHTA saying some properties have racked up about $800,000 in emergency water costs in a week and several small hotels have had to suspend operations. Airport Demand Mix: San Juan’s Luis Muñoz Marín International Airport handled 1,109,228 passengers in May, down 3.7% year over year, but international traffic rose 2% while domestic fell 4.4%, signaling a shifting travel mix. Energy Reliability Deal: Integrated Power Services (IPS) is buying Puerto Rico-based Star Electrical Services, expanding local high-voltage testing and acceptance capabilities tied to grid uptime and code compliance. Local Business Growth: Ponce is inaugurating La Bóveda, a new sensory tasting experience aimed at boosting downtown tourism and hospitality activity using recovery funds. Healthcare & Housing Investment: Elevance Health says it invested $640M in affordable housing over five years, including Puerto Rico, as part of broader social-driver-of-health spending. Caregiver Support Access: AARP and United Way expand the 211 caregiver support program, with Puerto Rico already included.

Energy & Utilities: A new report says the Biden-era $1B Puerto Rico Energy Resilience Fund for rooftop solar and batteries was redirected under the Trump administration toward PREPA, including $50M for a natural gas pipeline—raising questions about whether the shift matches Congress’ intent. Water Crisis: San Juan says it handled 3,074 water-emergency cases from June 1–13, with 2,152 still pending, while local leaders argue the island’s failures aren’t just drought but also administrative shortcomings. Local Development: Guánica broke ground on the $3.975M reconstruction of the Manuel Jiménez Mesa Public Square, including new lighting, sidewalks, landscaping, and a splash pad, as part of downtown revitalization. Business & Finance: Hedge fund billionaire John Paulson won an arbitration ruling ordering former business partner Fahad Ghaffar to repay about $48M tied to Paulson’s Puerto Rico operations, citing misconduct and fraud. Travel & Consumer: A Dollar Flight Club analysis flags San Juan as one of the cheapest summer beach routes, with round-trip fares starting around $196. Culture & Community: The 69th Puerto Rican Day Parade drew large crowds in New York, spotlighting Puerto Rican heritage and local business participation.

Energy & Infrastructure: Clean Energy Fuels won contracts to design and install LNG fueling systems for gas-to-power projects in Puerto Rico, including equipment for a local pharmaceutical manufacturer and an LNG supply station tied to a 6-megawatt CHP plant with P.R. Energy Partners. Local Governance & Economy: Governor Jenniffer González named Carlos Ríos Pierluisi as DDEC secretary to restore trust and push economic development after leadership turmoil, with the appointment framed around execution of federal funds and private-sector negotiations. Public Works & Community Revitalization: Guánica broke ground on the $3.975M reconstruction of the Manuel Jiménez Mesa Public Square, adding lighting, sidewalks, landscaping, and a splash pad while rebuilding commercial spaces to boost town-center activity. Finance & Legal Risk: A First Circuit ruling says Puerto Rico’s bankruptcy restructuring doesn’t shield officials from personal-capacity civil rights lawsuits, keeping accountability on the table even during financial reorganization. Business & Banking: Banesco USA reported Q1 growth—assets up to $5.8B and net income up 38%—as it continues technology investments and market expansion. Energy Security Watch: PRASA is facing calls for a full evaluation of the Superaqueduct, underscoring ongoing pressure on water and infrastructure reliability.

Puerto Rico Courts & Governance: The U.S. First Circuit ruled that Puerto Rico’s bankruptcy restructuring doesn’t shield officials from personal-capacity civil rights lawsuits, a major check on how PROMESA-era protections can be used. Energy & Industry: Tesla says it has applied in Taiwan to bring Full Self-Driving (Supervised) to the road, noting the system still requires driver attention; the company also lists Puerto Rico among regions where FSD is available. Retail Restructuring: West Marine filed for Chapter 11 and plans to close 59 stores nationwide, citing supply chain disruptions, extreme weather and shifting consumer behavior; the company says it has 200 locations across 34 states and Puerto Rico. Local Business & Growth: San Juan will allocate $5 million to encourage business growth, while PRASA is reportedly facing possible managerial changes amid ongoing scrutiny. Public Safety: Police are investigating multiple stabbings tied to the Knickerbocker Avenue Puerto Rican Day Parade in Bushwick, with victims expected to survive. Tourism: Puerto Rico Tourism Company reports a new record for cruise passenger arrivals in May, signaling continued momentum for the sector.

Puerto Rico Economy & Jobs: More young Puerto Ricans are accelerating their path to work, with Education and Labor data showing a rise in High School Equivalency exams and thousands of work permits for minors amid high living costs and inflation. Energy & Infrastructure: The González Colón administration briefed a U.S. House Homeland Security delegation on reconstruction, emergency preparedness, and energy modernization, highlighting strategic generation projects across the island aimed at a more reliable power system. Local Business Growth: Dunda, a fine pastry shop, moved from San Juan to Bayamón with a $100,000 investment, adding direct jobs and planning a grand opening June 20. Maritime Trade: Water Spirit resumed freight operations at Pier 14 in San Juan, restoring cargo links to the U.S. Virgin Islands and Tortola with updated sailing schedules. Legal/Finance: A First Circuit ruling says PROMESA restructuring doesn’t erase civil rights lawsuits seeking monetary damages against officials personally, setting limits on how Title III can shield individuals.