Spending plan prioritizes education, healthcare and public safety as lawmakers seek to maintain fiscal discipline.
The Puerto Rico Senate approved a $13.18 billion General Fund budget for fiscal year 2027 on Wednesday, advancing a spending plan covering executive agencies, the Judicial Branch and the Legislative Branch through June 30, 2027.
The budget, approved through House Joint Resolution 356, now moves forward in the legislative process ahead of the June 30 constitutional deadline for enacting a new fiscal year budget.
Presenting the measure on the Senate floor, Sen. Migdalia Padilla Alvelo, chair of the Senate Finance, Budget and PROMESA Committee, described the proposal as a balance between fiscal discipline and the continuity of essential public services.
“The fiscal year 2026-2027 budget is the result of a rigorous process of analysis, evaluation and responsible oversight,” Padilla Alvelo said. “It strengthens priority areas such as public safety, healthcare, education and rehabilitation while protecting essential services for Puerto Rican families and promoting the government’s fiscal stability.”
Padilla Alvelo also emphasized that the spending plan remains subject to future revisions and reiterated lawmakers’ goal of achieving four consecutive balanced budgets, a milestone that could eventually lead to the end of oversight by the Financial Oversight and Management Board.
“This is not written in stone,” she said. “We want to achieve four balanced budgets once and for all so that the Oversight Board can leave Puerto Rico.”
The largest allocation in the budget is $2.98 billion for the Department of Education, covering payroll, school transportation, special education services, technology assistance, student scholarships and other operational expenses.
The healthcare sector would receive $1.82 billion, including $1.03 billion for Puerto Rico’s Health Insurance Administration (ASES), $514.3 million for the Department of Health, $102.7 million for the Puerto Rico Medical Services Administration and $150 million for the Mental Health and Anti-Addiction Services Administration (ASSMCA).
The spending plan also dedicates $1.23 billion to public safety, including $1.07 billion for the Puerto Rico Police Bureau. That allocation covers payroll, overtime, cadet recruitment, equipment, operating expenses and $20 million for police reform and reengineering initiatives.
Meanwhile, the Department of Transportation and Public Works would receive $55.4 million, representing a $12.1 million reduction from the prior fiscal year.
Higher education funding includes $560.9 million for the University of Puerto Rico and $12.3 million for other public institutions, including the Puerto Rico School of Plastic Arts and the Puerto Rico Conservatory of Music.
