Gov’t estimates $2 billion economic lift in fiscal year from expanded military activity

Puerto Rico Planning Board President Héctor Morales Martínez

By THE STAR STAFF

The Puerto Rico government expects the U.S. military’s operations and planned construction projects on the island to generate more than $2 billion in economic activity in fiscal year 2026, according to a new analysis released Tuesday by officials from La Fortaleza and the Puerto Rico Planning Board.

On the program En Récord, Public Affairs Secretary Jean Peña Payano and Planning Board President Héctor Morales Martínez outlined the findings of the report, titled “Impacto Económico por Presencia Militar en Puerto Rico para el Año Fiscal 2026.” The study estimates that $832.5 million in operational spending and military‑related construction will translate into an economic impact of $2.04 billion, supporting 12,346 jobs and producing $254.6 million in wages across the island.

Morales said the study demonstrates how defense‑related activity stimulates local supply chains, employment and consumer spending.

“This information is essential for the business ecosystem and municipal governments to anticipate opportunities, prepare and maximize regional economic development,” he said.

Alejandro Díaz Marrero, director of the planning board’s Economic and Social Planning Program, said the analysis incorporates both the military’s ongoing operational spending and the slate of projects funded under the National Defense Authorization Act (NDAA). He noted that 2026 represents a phase of strategic reinvestment, with infrastructure and construction projects expected to deliver the strongest employment gains, particularly in the construction and services sectors.

Fort Buchanan in Guaynabo -- the island’s principal U.S. Army installation -- remains the largest economic driver. With an operating budget exceeding $500 million and a community of roughly 15,000 people, the base is projected to generate up to $1.22 billion in local production and 7,415 jobs. NDAA-funded projects at Buchanan, including an estimated $170 million investment in construction and a new electrical microgrid, are expected to contribute an additional $415.8 million in economic output and 2,521 jobs.

Other military sites are also poised for substantial activity. Planned projects at Ramey Base in Aguadilla and Camp Santiago in Salinas represent about $81 million in investment. At Ramey alone, construction‑phase activity is projected to produce $162.7 million in local output and 986 jobs. Meanwhile, Roosevelt Roads in Ceiba is set to receive some $79 million to modernize electrical systems and complete water infrastructure upgrades. That work is expected to generate $193.2 million in local production and 1,171 jobs, with further economic activity anticipated once major upgrades conclude by mid‑2026.

According to the Planning Board, the military’s presence acts as a direct economic injection, with ripple effects spanning employment, consumption and stability in communities adjacent to the bases. Díaz Marrero said the studies help quantify how investment translates into jobs and wages and help identify sectors capable of strengthening supply chains and expanding local procurement.

Morales added that the analysis supports the economic development agenda of Gov. Jenniffer González Colón by providing data that can guide investment attraction and align private‑sector opportunities with strategic projects on the island.

The Planning Board oversees Puerto Rico’s socioeconomic and territorial planning and produces data‑driven analyses to support public and private decision‑making.