Governor proposes expanding the Revolving Fund to expedite reconstruction projects

By The Star Staff

Gov. Jenniffer González Colón sent an administration bill to the Legislative Assembly on Thursday with the goal of expanding the scope of the Revolving Fund and ensuring the continuity of reconstruction projects without having to wait for reimbursement of federal funds.

“With this measure, we are ensuring funding for the Revolving Fund so that money reaches our communities more quickly and we can continue rebuilding our island quickly and efficiently,” González Colón said in a written statement.

Bill A-062 seeks to allow critical infrastructure construction projects to begin with state funds, in addition to extending the Revolving Fund beyond June 30 of this year, to 2027.

The governor noted that the Revolving Fund was created by Joint Resolution 85 of 2020 to advance funds to agencies, municipalities, and public corporations awaiting reimbursement from the Federal Emergency Management Agency (FEMA). With the new legislation, she said, its scope would be expanded to allow it to be used directly for critical projects.

The program would be implemented by the island Treasury secretary and the executive director of the Fiscal Agency and Financial Advisory Authority (AAFAF), in coordination with the Central Office for Recovery, Reconstruction and Resiliency (COR3) and with the approval of the Financial Oversight and Management Board.

The Revolving Fund will be financed with $750 million and, starting June 30, 2029, will be reduced to an amount determined by the program guidelines, with unobligated government funds deposited in the Treasury Single Account.