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prima:Fiscal Board finds Puerto Rico three times more dependent on federal funds than the states

Report prepared by agency warns of near-term risk of reduction in emergency allocations

June 2, 2025 - 4:30 PM

Throughout the budget preparation process for the 2025-2026 fiscal year, the director of the Board, Robert F. Mujica, has stressed the need to identify mechanisms to mitigate potential losses of federal funds. (Xavier Araújo)

An analysis by the Fiscal Oversight Board (FOMB) in the context of potential federal funding cuts quantified Puerto Rico’s degree of dependence on funds from the U.S. government, which in fiscal year 2024 represented 13.8% of gross domestic product (GDP), triple the average of the 50 states.

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