Audit Confirms $1 Million in Federal Relief for Puerto Rican Fishers Was Never Distributed

WASHINGTON– A new federal audit, launched at the request of Congresswoman Nydia M. Velázquez (D-NY), confirms that $1 million in disaster relief intended to assist Puerto Rican fishers after the COVID-19 pandemic was never delivered. Each eligible fisher could have received between $2,419 and $15,000 for their losses.
 
“It is incredibly frustrating to see how these funds—which could have made a huge difference—were wasted,” said Congresswoman Velázquez. “Puerto Rican fishers have spent years waiting for help, only to see those resources mismanaged. This confirms what they’ve been saying from the beginning and shows how opaque, unilateral administrative decisions in managing recovery funds directly harm the communities most in need.”
 
The audit, released by the Office of the Inspector General at the U.S. Department of Commerce, came in response to a 2022 request from Velázquez. It shows that the Puerto Rico Department of Agriculture failed to distribute a large portion of a $3.9 million federal aid package. The funds were granted through two cooperative agreements with NOAA, funded by the CARES Act and the Consolidated Appropriations Act of 2021.
 
The report found that the Department failed to distribute $2.9 million in direct payments under the second round of funding, even after NOAA granted multiple deadline extensions. Officials cited low participation due to mistrust of the process and concerns about submitting tax documents. However, the official application notice stated that tax returns were not required, raising questions about the Department’s justification.
 
The Department also attempted to use $1.5 million of the unused funds to purchase equipment, a request NOAA denied because it did not meet the purpose of the program. Later, the Department claimed nearly $400,000 in administrative expenses, which averages $682 per each of the 586 checks that were successfully delivered. The remaining $1 million will be returned to the U.S. Treasury.
 
Velázquez called for continued oversight of federal recovery funds in Puerto Rico. “We cannot let this become the norm,” she emphasized. “With only 27 percent of the $41 billion allocated for Puerto Rico’s recovery spent so far, every dollar must be monitored, and every agency must be held accountable.”
 
“The audit reflects the lack of urgency and commitment shown by the Department of Agriculture in managing funds from the Consolidated Appropriations Act—something the fishers have consistently denounced and one of the reasons they are calling on the Department to appoint a new director for the Fisheries Program. This is why they are demanding the immediate resignation of the current director, who is responsible for the loss of over $1 million and unjustifiable administrative costs in managing these funds,” said Juan Capella Noya, Community Consultant for Firmes, Unidos y Resilientes con la Abogacía (FURIA Inc.). He added, “Throughout this process, people both in the United States and Puerto Rico have echoed the fishers’ demands and taken action. Among them, Congresswoman Nydia Velázquez’s irreplaceable oversight work stands out—something we know the fishers are deeply grateful for.”
 
For a full copy of the audit, click here.
 

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