Critical question as federal disaster-recovery funds decline.
As Puerto Rico tries to move from a recovery largely driven by federal funds to an economy powered by investment, the Financial Oversight and Management Board (FOMB) is increasingly looking to Title V of PROMESA as a potential catalyst to accelerate critical infrastructure projects.
But the program’s future — and its ability to attract private capital as federal funds decline — will depend on whether the U.S. territory can finally modernize all the laws that comprise its permitting system. That includes replacing Act 76‑2000, the outdated emergency‑permitting law that investors and former Board officials say has long slowed development.
In a statement, the FOMB agreed that sections of this law represent hurdles and delays in the process. “The administrative hurdles imposed by Act 76-2000 include the involvement of multiple local agencies with gatekeeping roles. The Oversight Board has supported efforts to streamline local permitting requirements,” said the FOMB.
The Oversight Board added that it “has supported efforts to streamline local permitting requirements, including reforms such as Act 118-2024, which streamlines reviews for high-priority projects, incorporates licensed professionals to assist in expediting local permitting processes and reduces bureaucratic duplication. Executive Orders EO-2025-002 and EO-2025-003, which further target persistent permitting bottlenecks, were developed in collaboration with the Oversight Board.”
A proposed new permitting law is expected to be evaluated during the legislative session that begins in August.
Title V was intended to fast-track infrastructure projects by designating them as “critical,” allowing them to bypass certain procedural hurdles. In theory, that designation should shorten timelines for energy, transportation, water and telecommunications projects considered essential to Puerto Rico’s modernization.
In practice, however, the program has struggled to overcome the obstacles it was designed to address. Economic analysts say the problem is structural. “Title V can only move as fast as the underlying permitting system,” said one infrastructure expert familiar with the program. “If the permitting agencies are slow, understaffed, or working with outdated systems, Title V can’t deliver the acceleration it promises.”
To have a project designated as “critical” under Title V of PROMESA, sponsors must submit an application to the Revitalization Coordinator. The application requires detailed documentation on project funding, economic and environmental impacts, and emergency relief. The Revitalization Coordinator then evaluates the proposal and issues a Critical Project Report to the FOMB for final approval.
José Pérez Riera, the current Revitalization Coordinator and the person in charge of advancing critical projects, did not respond to requests for comment from this media outlet.
According to the FOMB’s website, projects submitted for Title V review as critical include Viewpoint at Roosevelt, which sought to ease demand for public housing after Hurricane Maria hit the U.S. territory in 2017, and the Fajardo Municipal Landfill expansion. The latest critical project under FOMB evaluation was a 2023 proposal by Clean Flexible Energy for three solar and BESS projects.
In its statement, the Board said: “The Oversight Board received seven proposals since PROMESA was enacted and approved two critical projects, for public housing and a municipal landfill expansion, respectively. The remaining submissions were withdrawn by the applicants to pursue other avenues under Puerto Rico law. There are currently no Title V project proposals pending Oversight Board approval.”
A source familiar with Title V’s early implementation said the program was never given the institutional focus needed to succeed. Billions of dollars in proposed private-sector investment were evaluated, but no project was ever adjudicated, in part because Title V’s statutory authority was treated as leverage in broader political negotiations rather than as a dedicated economic development tool. The source described a permitting environment marked by inconsistent timelines, shifting interpretations, and political interference — including instances in which projects designated as “critical” were later denied permits for reasons described as purely political.
Skeel Responds
Former FOMB Chairman David Skeel, reflecting on his tenure, dismissed the idea that Title V was ever used as leverage in political negotiations. He said Title V’s trajectory changed dramatically after Hurricane Maria in 2017, when federal disaster funding “dominated everything else” and shifted attention away from local private-sector projects. Still, he acknowledged that Title V’s design contains inherent limitations. The program expedites permitting, he said, but does not bypass it, meaning projects must still navigate multiple agencies under Act 76‑2000.
“It would be very helpful if that were streamlined,” Skeel said. He emphasized that the Board cannot override Act 76‑2000 because the statute is explicitly referenced in PROMESA, meaning any reform must come from the Puerto Rico government.
The FOMB’s revised 2024 Fiscal Plan directly acknowledges Title V’s challenges. While the Board describes Title V as “an important mechanism to attract private investment,” it warns that the program cannot fulfill its economic potential without a permitting framework that is predictable, transparent and aligned with the island’s development goals. “After many years, the Board has finally gotten it,” a source familiar said.
At the same time, Puerto Rico is facing a major economic shift. Over the past eight years, the island was allocated roughly $120 billion in federal disaster and COVID stimulus funds, equivalent to about 145% of its 2023 GNP (gross national product). Many of those funds remain pending, with projects still in various stages of approval. But the flow is diminishing, and the Board argues that Puerto Rico must transition to a more productive, investment-driven economy.
Skeel believes the window for Title V may be opening as federal disaster-recovery funds decline. “The conditions that limited the use of Title V are rapidly disappearing,” he said. “It is quite plausible it will be used more, particularly if the local permitting rules are simplified.”
Still, expectations must be tempered. Title V’s role is narrow, and its effectiveness depends on reforms that have historically stalled. Without a permitting system that is transparent, depoliticized and consistently enforced, Title V cannot deliver the acceleration it promises — and Puerto Rico risks missing a critical opportunity to attract private capital at a moment when federal support is no longer guaranteed.
