Governor denies interference allegations in hearing before US Senate

Gov. Jenniffer González Colón told U.S. Senate Committee on Energy and Natural Resources Chairman Mike Lee that allegations that she or her office interfered in contracting investigations at the island Department of Economic Development and Commerce were “completely false.”

By THE STAR STAFF

Appearing before the U.S. Senate Committee on Energy and Natural Resources on Wednesday. Gov. Jenniffer González Colón forcefully denied allegations that she or her office interfered in contracting investigations at the island Department of Economic Development and Commerce.

The accusations, made by former DDEC Secretary Sebastián Negrón Reichard, who resigned late last month, have triggered political scrutiny and raised questions.

González Colón told the committee chairman, Sen. Mike Lee (R-Utah) that the claims were “completely false,” emphasizing that neither she nor her chief of staff ever encouraged, directed or requested the reversal of disciplinary actions tied to contracting probes. She said the former secretary’s public statements misrepresented the facts and that the matter is already under review by the island Department of Justice.

“The allegation saying that my office, myself, or my chief of staff is involved is completely false,” the governor said. “There is no evidence of that.”

She added that the employee complaint at the center of the dispute had been formally referred for investigation and that the individual in question is contesting the allegation.

Lee pressed further, asking why a cabinet‑level official would make accusations he “would know could be figured out” if untrue. González Colón declined to speculate, saying only that she did not know what “political motivations” he may have had. She also clarified that the resignation of the disaster recovery director at the Central Office for Recovery, Reconstruction and Resiliency — cited as part of the alleged pattern — was unrelated and based on a family matter disclosed to her in April.

The governor also defended her administration’s stewardship of federal funds, responding to Lee’s question about how Congress can be assured that billions in federal aid are not being misused. González Colón said Puerto Rico has expanded coordination with federal inspectors general, the Federal Emergency Management Agency, the FBI, and other oversight entities, while imposing stricter local controls and reporting requirements.

“No federal funding at this time during the last year is being misused,” she said, adding that her administration has enacted additional laws to strengthen oversight and anti‑corruption safeguards.

From there, González Colón shifted to what she described as the island’s most urgent federal challenge: the looming Medicaid funding cliff next year. She warned that when Puerto Rico’s current agreement expires in 2027, the island will revert to a 55% federal match — a level she called “dramatic” and “unsustainable” for a program that serves 1.3 million residents. She highlighted Puerto Rico’s 2.51% error rate in the 2024 PERM cycle — well below the national average — as evidence of strong program integrity.

“We have done our part,” she said. “But the structure itself is the problem.”

The governor also urged Congress to address Medicare Advantage (MA) benchmarks, which remain roughly 41% below the national average because they are calculated using a shrinking pool of traditional Medicare beneficiaries. More than 670,000 Puerto Rico residents — over 96% of eligible seniors — rely on MA plans.

González Colón used the remainder of her testimony to outline progress in fiscal stability, reconstruction and energy reliability during her first 18 months in office. She highlighted Puerto Rico’s first certified balanced budgets since enactment of the Puerto Rico Oversight, Management and Economic Stability Act in 2016, the repeal of hundreds of outdated regulations, and the restoration of more than 1,300 megawatts of power generation since early 2025. She credited federal support, including two emergency orders issued by the U.S. Department of Energy under Section 202(c) of the Federal Power Act, for helping stabilize the grid and avoid widespread blackouts.

The governor closed by reiterating her support for statehood, noting that Puerto Rico residents have voted for it in four plebiscites since 2012.

“Puerto Rico is ready to take the next step,” she said, calling for equal rights and representation for the island’s 3.2 million U.S. citizens.