Taxpayers would begin receiving tax relief before the end of this month, after Governor Jenniffer González Colón confirmed this Thursday that the Fiscal Oversight Board (JSF) approved the one-time payment, called the “Cheque para ti”.

According to the governor, the disbursements will be made every two weeks.

About $554 million from the General Fund would be used to pay this check to eligible taxpayers.

González Colón made the announcement accompanied by the heads of the Department of Treasury, the Office of Management and Budget (OGP), and the Fiscal Advisory and Financial Agency Authority (Aafaf).

“We have achieved the approval of the check from the JSF after months of work”, González Colón said. “This measure is 100% fiscally responsible”.

Shortly after the governor concluded the announcement, the Fiscal Board reacted by emphasizing, among other things, that over the past months it had been analyzing how to provide relief in a responsible way.

“The solution reached shows taxpayers, credit rating agencies, and capital markets that Puerto Rico has the fiscal discipline necessary to achieve both things: provide meaningful relief today and create reserves that protect Puerto Ricans in the future”, reads the JSF communication authorizing the disbursement.

The payment will be automatic; people who filed their tax returns will receive a deposit and no additional process is required, it was reported.

The governor explained that payments will be made via direct deposit using the banking information included in income tax returns. Those who do not have a bank account on file will receive a notification next Monday to provide banking details.

According to initial projections from the Department of Treasury, the tax relief could benefit between 600,000 and 700,000 taxpayers.

As part of the announcement, González detailed examples of taxpayers who could receive payments of hundreds or thousands of dollars, depending on their income and dependents. Among them, she mentioned the case of a single person with two dependent minors and a taxable net income of $60,000, who would receive approximately $2,450.

For his part, Treasury Secretary Ángel Pantoja said when asked by El Nuevo Día that those who filed their returns but have not received their tax refunds will receive two payments: one for the refund and another for the “Cheque para ti”.

“Most likely, if they have not received their tax return refund filed before April 15, it is because there is some correction or the processing of that return has not been completed. But it will be a separate payment”, Pantoja said.

Taxpayers with debts to the Treasury will receive a deduction corresponding to the “Cheque para ti.”

Since last February, the Legislature approved House Joint Resolution 278 and since mid-March, both Mujica and González Colón and the Treasury Secretary had said they were close to a decision, but it was not until now that it was approved.

Part of the delay in the JSF decision was due to the fact that the measure was not included in the fiscal year 2026 budget and there were a series of financial commitments that could not be compromised by the relief payment.

As with former governor Pedro Pierluisi, the one-time payment was the alternative negotiated by La Fortaleza given the impossibility of approving a change to individual income tax rates. The measure continues under legislative review after the JSF raised several concerns about the initiative for being inconsistent with the current fiscal plan.

In the case of “Cheque para ti,” the initiative effectively matched what would have been proposed changes to the Internal Revenue Code, which adjusted individual tax rates.

The tax cycle closed on April 15, and according to preliminary Treasury data, 1,244,715 returns were filed and $2,049,182,311 in refunds were disbursed, corresponding to 918,719 refunded returns.

In addition to the tax incentive, the governor announced the filing of two legislative bills to create a Budget Stabilization Fund and a Capital Fund for Permanent Works, aimed at strengthening government fiscal planning.

One of the measures is Administration Bill 115, which would create the Budget Stabilization Fund within the General Fund, under the custody of the Treasury Secretary.

The fund would have an initial capitalization of $729 million in fiscal year 2026, and starting the following fiscal year, it would receive 1.4% of the General Fund until reaching a balance of 13.5% of the government’s operating budget.

“It is not possible for the government of Puerto Rico to continue doing its budget analysis year by year; we need a five-year plan”, González Colón said, referring to one of the budgeting criteria established by the JSF under the federal PROMESA law.

Likewise, the first measure establishes a five-year financial plan that must include projections of revenues, expenses, and monthly cash flow.

The second bill is Administration Bill 116. It would create the Puerto Rico Public Capital Projects Fund, managed by the OGP, and would be used exclusively for capital improvements in agencies, instrumentalities, and municipalities funded by the General Fund, as well as entities responsible for road infrastructure or government buildings.

Meanwhile, the JSF supported the legislation presented by the governor to create a Budget Stabilization Fund, a Capital Fund, and a five-year financial plan, while also defending the $554 million tax relief approved for eligible taxpayers.

The federal entity indicated that the fiscal measures “are measures that the JSF has been promoting for some time and that the government and the JSF developed together over many months.” The fiscal board said it supports “this legislation and the cooperation that led to these important decisions”.

The JSF also emphasized that existing reserves are not being used to finance the tax relief and argued that the governor’s proposed legislation “achieves, for the first time, the creation of reserves”.

The issue of reserves was one of the determining factors in approving the “Cheque para ti.”

For his part, Aafaf executive director Francisco Domenech stated that the measures aim to prepare Puerto Rico for a potential return to capital markets.

“One of the principles of PROMESA is access to capital markets”, Domenech said. “Credit rating agencies look at how states set aside budget stabilization funds and capital improvement funds”.