Puerto Rico Morning Brief Friday, November 6, 2026

The U.S. Internal Revenue Service is reportedly seeking new penalties against pharmaceutical company Amgen in a dispute over how it treated its profits in Puerto Rico, according to Bloomberg Tax. Amgen had already acknowledged a $10.7 billion liability in taxes, interest and penalties with the IRS. The new demand would add the extra taxes the agency seeks for 2016-2018. The dispute is a transfer pricing disagreement over how Amgen allocated profits between its U.S. operations and its manufacturing subsidiary in Juncos.

Governor Jenniffer González wants Democrats to push in 2027 to make Puerto Rico the 51st state. She did not promote federal legislation on the matter during the congressional session that just ended. On Thursday, November 5, she said her Washington agenda will stay focused on advancing statehood, securing fair Medicaid funding and moving the island to the Supplemental Nutrition Assistance Program. It will also focus on strengthening the economy and expanding development opportunities. Puerto Rico Governor Jenniffer González has backed President Donald Trump’s efforts.

Representative Víctor Parés Otero announced the filing of a House report on the failed $5.9 billion contract awarded to a consortium led by Power Expectations for 400 megawatts of temporary generation. The report is to be referred to investigators. Parés Otero asked who knew about the firm and whether Power Expectations actually complied with the law. He also asked who recommended a contract of nearly $6 billion with incorrect signatures. Puerto Rico continues to burn diesel to generate electricity at an estimated cost of $700,000 a day. A federal court is weighing an agreement that would let another supplier use New Fortress Energy’s terminal in San Juan Bay.

Puerto Rico’s economy is likely to remain stagnant because tourism, pharmaceutical manufacturing and reconstruction spending are not offsetting high energy costs, inflation and population decline. That was the view of economists at the Financial Oversight and Management Board’s annual Economic Forecasting symposium. Presenters from the New York Federal Reserve, Moody’s Analytics, V2A Consulting and Estudios Técnicos generally agreed the island faces another year of slow growth. Moody’s projected real GDP growth of 0.3% in 2027 after 0.8% this year. Estudios Técnicos forecast a 1.4% contraction in real GNP for fiscal year 2027.

Rains over recent days allowed the areas of Puerto Rico that had been under extreme drought (D3) to exit that category, according to the U.S. Drought Monitor’s update on Thursday, November 5. The agency said severe drought (D2) remained across 15.16% of the territory. Another 41.67% was in moderate drought (D1), and 51.63% showed abnormally dry conditions (D0). The update also includes a November outlook that contemplates possible improvement or removal of drought in various areas. It identifies sectors where drought could persist.

Jean Peña Payano, La Fortaleza’s secretary of Public Affairs, could not say on Thursday, November 5, when the debt for the so-called Carrera Magisterial will be fully paid. She also could not say whether Governor Jenniffer González will sign a House resolution ordering cancellation of the Genera PR contract, or when problems with the government’s ERP system will be fixed. In recent days, the Teachers Association demanded that González honor her June 22 promise to pay $90.4 million owed retroactively under the Carrera Magisterial. Four months after that promise, 5,850 teachers were still waiting for the money. Fortaleza says $100 million was paid in the summer to the bulk of teachers owed.