Fiscal Oversight Board plans next public board meeting amid fiscal safeguard discussions

The Financial Oversight and Management Board for Puerto Rico is planning its next public board meeting at the Puerto Rico Convention Center Dr. Pedro Rosselló on May 20, as the agency continues discussions surrounding Puerto Rico’s long-term fiscal framework, tax relief measures and energy policy.

The development comes as the Oversight Board voiced support for legislation introduced by Gov. Jenniffer González-Colón aimed at establishing permanent fiscal safeguards, while also defending the recently approved $554 million tax refund plan.

According to the Board, the proposed measures would create a Budget Stabilization Fund, a Capital Fund and a five-year financial plan designed to strengthen Puerto Rico’s long-term fiscal stability and better prepare the government for economic downturns, natural disasters and future revenue declines.

The Board said the legislation was developed jointly over several months between the government and the fiscal oversight entity as part of broader efforts to establish what it described as “permanent fiscal institutions” for Puerto Rico.

The Oversight Board also rejected concerns that the tax refund authorized under Joint Resolution 6-2026 would weaken the island’s financial reserves. It stated the relief package is being funded through identified nonrecurring sources, including excess revenues associated with Act 52-2022 and reductions in previously extended funds for planned expenses that will not be executed.

According to the Board, the refund will not impact Puerto Rico’s fiscal year 2026 budget and does not rely on existing reserve funds. Officials argued the legislation simultaneously provides taxpayer relief while creating new fiscal reserves for the first time.

Separately, the Board reiterated that any dispute between the Government of Puerto Rico and LUMA Energy should not affect electric service continuity, grid reconstruction efforts or the flow of federal funds tied to Puerto Rico’s energy system.

The Board also stressed that private operation of the Puerto Rico Electric Power Authority’s transmission and generation system remains a requirement under Puerto Rico’s Act 120-2018 and PREPA’s Fiscal Plan, adding that any future change in operators must follow a transparent and competitive process.

Robert F. Mujica Jr., executive director of the Financial Oversight and Management Board for Puerto Rico, said the fiscal measures backed by the Board are intended to provide taxpayer relief while strengthening Puerto Rico’s long-term financial stability and creating permanent fiscal safeguards.