Puerto Rico loves to party – and they like to do it off the back of the American taxpayer.
Today, Frontiers of Freedom is releasing a new letter sent to the Inspectors General of DHS, HUD and DOE. In it, we use detailed public budget data showing that mayors across the Commonwealth are illegally taxing federal projects intended to rebuild Puerto Rico – and moving these monies into municipal general funds to finance fiestas.
And the timing could not be better.
During the Financial Oversight and Management Board’s (FOMB) public meeting, yesterday, Executive Director Robert Mujica confirmed what Frontiers of Freedom has been saying for months the Commonwealth, “diverts money that is appropriated for infrastructure into taxes instead of the much-needed reconstruction projects.”
Mujica also confirmed that inquiries into this late-night cash grab are coming “from both sides of the aisle in Congress.”
FEMA Investigating
In the meeting, Mujica confirmed that the FOMB has sought “clarification and guidance” on this matter from FEMA.
FEMA, led by patriot and former Navy SEAL Team Eight veteran, Cameron Hamilton, should quickly recognize this as blatant taxpayer waste, fraud and abuse.
Frontiers of Freedom is looking forward to engaging in a thoughtful conversation with FEMA leadership to ensure this eleventh-hour cash grab ends.
Silencio from Jenniffer González-Colón
Shockingly, Republican Governor, Jenniffer González-Colón has remained completely silent.
Frontier of Freedom Key Findings
- Since Hurricane Maria, municipal festival spending has totaled at least $300 million. And in FY 2025–2026 alone, 77 of Puerto Rico’s 78 municipalities budgeted $35 million for parties.
- Municipalities across the Commonwealth are disproportionately assessing construction taxes on federal disaster recovery projects – oftentimes retroactively, targeting work completed years ago.
- One municipality, Humacao, signed four contracts totaling $427,835 for entertainment and production services for public festivals and community celebrations. Another, Gurabo, budgeted $430,000.
- The same municipalities that claim poverty and dependence on construction-tax revenue are among the biggest spenders on parties.
Frontiers of Freedom calls on federal watchdogs to investigate whether these taxes are allowable federal costs, assess their retroactive application to previously exempt recovery work and quantify how much federal money has been redirected into municipal treasuries.
Frontiers of Freedom’s supplemental letter to Inspectors General
Frontiers of Freedom filed a supplemental letter with the Inspectors General of DHS, HUD, and DOE regarding Puerto Rico municipalities’ taxation of federally funded recovery projects.
The letter presents new evidence showing that municipalities are diverting recovery dollars through construction excise taxes while spending millions on festivals, concerts, and other discretionary expenses.
We are asking federal watchdogs to follow the money and determine whether taxpayer funds are being improperly diverted from Puerto Rico’s recovery.
Read the full letter below.
