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Trump Administration Dismisses Puerto Rico’s Fiscal Control Board
LNG talks on a $20B project are on hold. Residents sue LUMA over blackout damages. Water shortages prompt an emergency. Hurricane Erin brings heavy rain.

AI-generated illustration depicting the latest headlines: residents facing water shortages amid an emergency declaration, lawsuits against LUMA over blackout related damages, the halting of a $20B LNG deal, and Hurricane Erin bringing heavy rains as it passed the islands.
(Generated by Jillian Melero via Dall-E, August 18, 2025.)
Welcome to Connect Puerto Rico,
We’re a monthly newsletter tracking the people, policies, and projects shaping Puerto Rico’s renewable energy development.
We break down what’s happening, what’s not, and what you can do about it.
In this issue, we start with the effects of Hurricane Erin before turning to political shake-ups, big energy contracts, and lawsuits that reveal how deeply Puerto Rico’s infrastructure challenges are tied together.
In This Issue
Hurricane Erin brushes Puerto Rico bringing heavy rains and flooding
🗞️ What happened
Hurricane Erin passed north of Puerto Rico on Aug. 15, bringing heavy rains and winds from its outer bands. The storm knocked down power lines, left hundreds of thousands without electricity, and stirred dangerous rip currents along the island’s north coast. Erin briefly weakened to a Category 3 — meaning sustained winds of 111–129 mph, strong enough to uproot trees, tear off roofs, and cause widespread power and water outages — but is forecast to strengthen and expand as it moves further into the Atlantic. (The Associated Press)
💡 Why it matters
Even when storms don’t make landfall, Puerto Rico’s fragile grid and water systems remain vulnerable. Erin’s impacts compounded the blackouts that have already sparked public outcry and lawsuits against LUMA and PREPA.
🔎 What to watch
Forecasts call for Erin to grow in size and intensity as it tracks northwest.
Puerto Rico’s recovery from recent outages may be slowed by storm-related damage.
The storm underscores how even glancing blows put pressure on Puerto Rico’s infrastructure.
Trump ousts 6 of 7 Puerto Rico fiscal control board members
🗞️ What happened
The Trump administration fired six of the seven members of Puerto Rico’s federally appointed Fiscal Oversight and Management Board (FOMB) — two Republicans and four Democrats, including board chair Arthur J. González. (The Associated Press). Andrew Biggs was removed Aug. 13.
The White House accused the board of “inefficiency” and “overspending” on consultants and salaries. Critics, including Rep. Nydia Velázquez, called the move a political purge aimed at installing pro-bondholder appointees.
The FOMB was created in 2016 under The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) after Puerto Rico declared it could not pay its more than $70 billion public debt. (NBC News, 2016)
💡 Why it matters
The FOMB, dubbed 'La Junta' by Puerto Ricans, is routinely criticized for having 'almost complete control over Puerto Rico's finances without being elected.' Instead, members of the FOMB are appointed by the U.S. president — a role Puerto Ricans living on the islands have no vote in.
As economist José Caraballo Cueto noted, the arrangement reflects 'totalitarianism' that 'seems easier to explain when it comes to a colony.' The board has spent over $2 billion on consultants while its executive director earns $625,000 - about 24 times Puerto Rico's median household income. (The Latino Newsletter)
The Associated Press details how the shake-up comes as the board remains at an impasse over $8.5 billion owed by the Puerto Rico Electric Power Authority (PREPA).
Reporting from TLN adds that new board members could push for a repayment as high as $12 billion, which would likely mean higher electricity rates for residents and businesses.
Puerto Ricans already pay the highest electricity costs in the U.S. while earning less than half the income of the poorest state, according to U.S. Census data. Previous FOMB proposals for “legacy charges” tied to debt repayment were rejected over concerns they would devastate the economy. (TLN)
With PREPA’s restructuring still the final major unresolved debt, changes to the board’s makeup could determine whether ratepayer protections remain in place or are replaced with bondholder-friendly terms. (AP)
🔎 What to watch
Who fills the six vacant seats — and whether they side with bondholders or ratepayers.
Whether PREPA’s restructuring shifts toward creditor demands or maintains the current $2.6 billion repayment plan.
Potential legal challenges over whether the dismissals meet PROMESA’s “just cause” removal requirement.
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