Puerto Rico Morning Brief Saturday, October 24, 2026

Puerto Rico’s Oversight Board said it will evaluate Governor Jenniffer González Colón’s proposal to temporarily eliminate the sales and use tax (IVU) on prepared foods in restaurants and food establishments during November and December. The proposal depends on the board authorizing it and is one of several initiatives meant to ease the impact of rising electricity costs. Robert Mujica, the board’s executive director, said in written statements that high electricity costs, caused by circumstances that could have been avoided plus other factors affecting fuel prices, directly affect the island’s families and businesses. He said the board received the proposed measures after the governor’s announcement and will evaluate them. All measures, he added, must be fiscally responsible to keep Puerto Rico on the path to fiscal stability.

Between 10,000 and 12,000 small and medium-sized businesses in Puerto Rico could close within three to six months if energy costs stay at current levels, putting more than 70,000 jobs at risk. Alan Taveras, president of the Centro Unido de Detallistas (CUD), gave the estimate on Metro al Mediodía. He said it comes from surveys by the CUD and other groups, such as the Restaurant Association (ASORE), done with an economist. Between 20% and 25% of these businesses said they are considering closing if power stays above 30 cents per kilowatt-hour.

The Oversight Board ordered the Puerto Rico Education Department to revise and resubmit its multiyear financial plan. The board concluded that the document delivered after its August 31, 2026 request does not let it determine how much money the agency will need to sustain operations. The plan also does not show how the department will fund recurring programs that have relied on temporary federal funds. The letter, signed by Robert Mujica, sets a December 31, sets a December 31, 2026 deadline for a new plan covering fiscal years 2027 to 2032. The department is to prepare it with the Office of Management and Budget.

Consumer confidence in Puerto Rico fell to its lowest level in September, forcing companies to rethink marketing strategies to reach increasingly cautious shoppers. Chantal Benet, senior economist at Economic Intelligence, said the firm’s consumer confidence index for the island dropped to 22%. Electricity and water topped the list of concerns at 65%, followed by cost of living at 50% and cost of food at 44%. Income security drew 43%, health costs 42% and employment security 38%.

Puerto Rico Governor Jenniffer González described LUMA Energy’s performance as a failure, particularly its use of federal funds meant to transform the island’s electrical system. She insisted that blaming the age of the infrastructure is not enough. With her team present, including Family Department Secretary Suzanne Roig and Energy czar Josué Colón, the governor instructed them to urgently evaluate legal and financial alternatives to ease the cost of electricity for families.

No tracked measure in the Legislature became law or passed a chamber this week. Of the 30 tracked measures, 18 remain in committee, while 12 have passed a chamber.

The Education Department’s new financial plan is due December 31, 2026.