The Biden-Harris Administration adopted a comprehensive and collaborative approach to support Puerto Rico's economic recovery, emphasizing a whole-of-government strategy to address the island's unique challenges. This approach was informed by an acute awareness of Puerto Rico's pressing needs. The archipelago faces a severe fiscal crisis, having entered a $70 billion bankruptcy in 2016, which left its government unable at times to provide basic services or invest in critical infrastructure.  From 2010 to 2020, Puerto Rico experienced a population decline of over 10%, resulting in a shrinking workforce, all while having a poverty rate higher than the poorest states on the mainland.   The archipelago’s vulnerability to climate change and lack of voting rights for U.S. citizens living on the island, further compounded its challenges.

On President Biden’s first day in office, he signed the Executive Order on Advancing Racial Equity and Support for Underserved Communities, setting the stage for a federal commitment to addressing systemic inequities across the nation, including in Puerto Rico. The order, coordinated by the White House’s Domestic Council, mandated federal agencies to review operations, develop action plans, foster institutional accountability, and promote data-driven policies tailored to disadvantaged communities.

Organization and Alignment

The Biden-Harris Administration moved swiftly from policy formulation to organizing and implementation, in order to support the pressing needs of the residents of Puerto Rico.  

• July 20, 2021: The White House Working Group on Puerto Rico convened its first meeting, solidifying a coordinated federal response to the island's economic and social challenges. This meeting benefited, in part, from the Puerto Rico report created under the Obama-Biden Administration, which laid the groundwork for emphasizing key areas such as economic recovery, workforce development, energy efficiency strategy, equitable federal resource distribution, and disaster preparedness.
• April 2022: President Biden names Deputy Secretary of Commerce Don Graves, to serve as the Administration’s Puerto Rico Economic Growth Coordinator. Soon thereafter, Graves travel to the island to meet with the Governor, community and business leaders to gain a close understanding of PR’s needs and hopes. 
• August 2022: Deputy Secretary Graves announced the intent for the U.S. Government to partner with the Government of Puerto Rico to hold an economic dialogue in Washington D.C. anchored in a shared economic agenda and policy priorities, will help to ensure Puerto Rico has the resources and tools it needs to prosper.
• December 12, 2022:  After multiple listening sessions, Deputy Secretary Graves, articulated the Administration's vision at the Puerto Rico Economic Dialogue convening. This meeting, held at the White House, brought together a delegation from the Governor of Puerto Rico's team and senior members of the Administration, emphasizing collaboration and alignment on strategic priorities.

Implementation

The guiding principles agreed upon by Governor Pedro Pierluisi and Deputy Secretary Graves for the Economic Dialogue effort included:

• Whole-of-Government Approach: Coordination across 17 federal agencies working collaboratively with Puerto Rican leadership and the community.
• Place-Based Economic Development Framework: Prioritizing locally tailored initiatives that leverage Puerto Rico’s unique strengths.
• Alignment with Puerto Rican Government: Solidified through a plan of 57 measurable economic deliverables, each addressing one of four priorities: human capital and workforce development, infrastructure and resilience, building a more diversified economy, and governance and data.
• Community Engagement: Emphasis on integrating stakeholders and fostering grassroots-level participation, from NGOs, corporations, entrepreneurs and community leaders.

Understanding that the Administration’s policy framework mobilized resources in support of communities that have been left behind, a large part of the effort involved raising awareness in Puerto Rico about opportunities, programs, and services. Communication was enhanced through visits by senior government officials to San Juan, technical assistance sessions, and, in some cases, translations to Spanish. At the U.S. Department of Commerce (DOC), we maintained an open-door policy for any group, association, NGO, private company, or government official seeking to engage. Today, an understanding of Puerto Rico's unique circumstances is ubiquitous across the 17 federal departments involved. 

Milestones & Accomplishments of the Economic Dialogue

The impact of these investments will take years before it dramatically improves the quality of life for those that reside on Puerto Rico, however, with the completion of 52 of the commitments agreed during the Economic Dialogue, a solid set of milestones have been reached and signs of progress are noticeable. 

Investments to rebuild Infrastructure, protect against Climate Change and improve Resilience 

• Led by the U.S. Army Corps of Engineers, multibillion-dollar investments in the Caño Martín Peña Ecosystem restoration and flood control projects for Río Puerto Nuevo and Río de la Plata will reduce flooding risks, improve public health, and address environmental challenges in vulnerable communities.
• With close to $1 billion investment in broadband infrastructure, jointly funded by the Treasury Department’s ARP Capital Project Fund, Federal Communication Commission, and DOC's NTIA, the Biden Administration will expand high-speed internet access to all, fostering economic growth, accelerating possibilities in advanced manufacturing, the export of services, telemedicine, and access to remote educational opportunities to all.  
• With available FEMA funding to strengthen the electric grid and a newly established $1 billion Energy Resilience Fund through the Department of Energy (DOE), the Biden Administration is supporting the modernization of Puerto Rico’s energy system while providing vulnerable residents with solar and battery systems, ensuring reliable, sustainable energy and improved resilience to future disasters. 
• DOC’s NOAA, partnered with the PR NGO community and invested over $30 million in Climate-Ready Coasts projects and, through the Environmental Protection Agency (EPA), awarded $1.6 million for brownfield cleanup in four municipalities. These investments aim to strengthen Puerto Rico’s climate resilience, protect ecosystems, and prepare communities for redevelopment.

Investments in Human Capital and Workforce Development

• The Biden-Harris Administration, through a $30 million Economic Development Administration (EDA) grant, supported the Platform for Social Impact (PSI) to implement workforce development and social services in the Villa Prades community. The project was also funded by HUD’s CDBG-R, the Department of Education, Treasury’s New Market Tax Credit, and contributions from Puerto Rico’s government and philanthropic organizations.
• The U.S. Department of Education supported Puerto Rico’s initiative to decentralize the Department of Education, aiming to make the education system more responsive to community needs while strengthening partnerships with families and local organizations.
• Unidos and One Stop, through a $6 million grant from the EDA, will provide training programs in the construction and aerospace industries to help align Puerto Rico's workforce skills with the needs of growing sectors.
• After technical assistance provided by the U.S. Department of Labor, Puerto Rico’s Department of Economic Development increased WIOA fund utilization to $21 million in 2023, accelerating the approval of Registered Apprenticeship programs to build a skilled workforce across the island.
• The American Rescue Plan (ARP) made historic investments in Puerto Rico’s Earned Income Tax Credit (EITC), providing funding to quadruple its value and reduce disparities with the mainland. Together with the Child Tax Credit (CTC) expansions, these measures are projected to reduce child poverty in Puerto Rico by 11% in future years. 

Investments to Build a More Diversified Economy by Facilitating Innovation, Access to Capital, and Entrepreneurship 

• To ensure entrepreneurs in Puerto Rico have access to capital, the Department of Treasury granted up to $109 million to the PR Bank of Economic Development to be invested in small businesses in the form of equity or debt.  Additionally, the SBA and DOC’s MBDA expanded support on the island by launching two Women’s Business Centers and partnering with the University of Sagrado Corazón to provide technical assistance to entrepreneurs, respectively. EPA, under the $6 billion Clean Communities Investment Accelerator program, will make available capitalization funding and technical assistance to credit unions in Puerto Rico affiliated with Inclusiv to deploy financing to projects across the island. 
• LIFT, a Department of Defense (DOD) Manufacturing Innovation Institute, partnered with Puerto Rico’s DDEC to open a facility in Puerto Rico to enhance the island’s advanced manufacturing capabilities and drive the sector toward future-oriented industries.
• The Department of Defense continues to provide funding and operational capacity to transform the former Roosevelt Roads military base into a hub for industries such as space commerce and marine technology. The redevelopment of the base’s electric infrastructure is supported by $80 million in FEMA funding.
• The EDA designated the PR BioTech Hub, led by the PR Science, Technology, and Research Trust, as an inaugural Tech Hub to position Puerto Rico as a global leader in biotechnology and innovation with the availability of funding, access to partners and technical assistance. 
• Launched by the Biden Administration, USDA’s Rural Partner Network funded over 100 entrepreneurship and community development projects in Puerto Rico’s rural areas focused on sustainable energy, housing, entrepreneurship and healthcare, advancing economic development.

Investments to improve Governance and Data Infrastructure

To strengthen the ability of municipalities in the south to support their residents and collaborate in reconstruction projects, HUD extended technical assistance to the new ConSur municipal consortium and worked with the Puerto Rico Department of Housing to launch an action plan for the deployment of $200 million in HUD funds dedicated to housing, economic development, and infrastructure recovery projects. In parallel, EDA’s Designation of the first Southern PR Economic Development District brings an unprecedented level of autonomy to southern municipalities to collectively apply for federal funding and advance a bold vision for the region.

Recognizing the importance of empowering decision makers with timely and reliable data, Puerto Rico enjoys now the support of a dedicated Census team and a digital portal. Further, the Census inaugurated in 2024 the First Federal Statistical Research Data Center in Puerto Rico providing local researchers and academia secure access to federal data for advanced statistical research and analysis.  

What is next? 

The achievement of these milestones invites a moment of reflection on where we are and what lies ahead.  

First, with over $100 billion in federal obligations, the investments made by the Biden-Harris Administration represent a down payment toward Puerto Rico’s economic recovery, but there is still more work to be done. More planning, collaboration and execution remain ahead. The people of Puerto Rico must continue to lead, set priorities, and work toward the society they envision living in. 

Secondly, we have built bridges of communication among government officials, business leaders and community organizers in San Juan and D.C.—and across the U.S. that are vital for sustained progress.  The federal bureaucracy at all levels has engaged with Puerto Rico, beginning with senior Administration officials who visited the archipelago at unprecedented levels, followed by technical assistance sessions, working meetings and even translation of documents where appropriate.  The NGOs and municipalities who have received support from the Federal Government are empowering others to follow suit. These communication channels must be maintained and cultivated for PR’s recovery to continue.  

Finally, the narrative regarding Puerto Rico has shifted from stagnation and doubt to economic recovery and aspiration.  Four years ago, Puerto Rico could not describe with certainty the support it could expect from the Federal Government after decades of economic decline and the devastation from Hurricane Maria. That is no longer the case.  Puerto Rico is on a path to recovery, and early signs are promising.  As Vice President Harris highlighted during her visit in March of 2024, Puerto Rico has added more than 100,000 new jobs since this Administration took office and has experienced its first year of positive net migration since the onset of the COVID-19 pandemic.  This shift in narrative has brought confidence that a better future is achievable—and the world is watching.  Today, challenges remain — chief among them an electric system that isn’t functional—but for the young working families that have decided to stay or return to Puerto Rico, there is now a fighting chance.  Hope has been restored.