AGP Executive Report

Puerto Rico Tax Pressure: Restaurants are asking the government to eliminate the IVU on prepared food for more than a short break, arguing inflation and higher operating costs are squeezing diners and businesses; the IVU on prepared food brought in about $250.3M in FY2025. Aviation Shift: JetBlue is cutting 11 routes this summer and leaning harder into Fort Lauderdale, a move that follows Spirit’s collapse and reshuffles options for travelers to places like San Juan. Cuba-U.S. Tensions: A U.S. grand jury indicted Raúl Castro over the 1996 shoot-down of Brothers to the Rescue planes, raising the question of whether he’ll be prosecuted in Miami. Local Governance & Housing: Philadelphia’s Housing Authority is opening its first Kensington building—61 senior apartments—as redevelopment fears grow. Agriculture & Risk Prep: Puerto Rico’s agriculture agencies say they’ve received 4,137 hurricane-season insurance applications so far, urging farmers to apply by May 31.

Puerto Rico Governance: Gov. Jenniffer González Colón signed 5 bills and vetoed 6, citing fiscal-plan conflicts and missing funding sources as the key reason for the vetoes. Agriculture & Resilience: The Department of Agriculture and CSA say hurricane-season insurance demand is rising—4,137 applications for the 2026-27 policy year as of May 15, up 7%—and urge farmers to apply before May 31, with premium subsidies still available. Consumer Affairs: DACO launched a partnership with AUTOMECA Technical College to speed up vehicle-related complaint processing, aiming to cut the backlog that has built up over 11,000 motor-vehicle complaints filed from 2023 to 2026. Shipping & Safety: Crowley was recognized for maritime safety, including 48 vessels earning Jones F. Devlin awards for 427 combined years without lost-time injuries, and crews honored for lifesaving actions tied to incidents near Puerto Rico. Tourism Signals: STR reports Caribbean hotel occupancy climbed to 79.6% in March and 73.9% in April, with room rates and RevPAR continuing to rise—good news for regional travel demand.

Hurricane Readiness for Farmers: Puerto Rico’s Department of Agriculture and the Agricultural Serviced Corporation are pushing growers to lock in hurricane-season insurance now, reporting 4,137 applications for the 2026-2027 policy year as of May 15—up 7% from last year—while highlighting premium subsidies (including a 35% May reduction) and coverage for crops like coffee, plantains, bananas, citrus, and mango. Tourism Momentum: New STR data shows Caribbean hotels kept climbing in 2026, hitting 79.6% occupancy in March (+6.3% YoY) and 73.9% in April (+5.8% YoY), with RevPAR and average daily rates also rising. Maritime Safety Spotlight: Crowley crews and vessels were honored for safety performance and lifesaving actions, including recognition tied to a Puerto Rico–mainland ship rescue effort. Puerto Rico in the News Cycle: Wyndham says its Puerto Rico footprint will grow from 5 to 9 hotels under its brand, with openings and transfers across Aguadilla, San Juan, and Dorado. Policy/Payments: SNAP June payment timing varies by territory and state, with Puerto Rico-specific details not included in the latest roundup.

Puerto Rico Politics in the Spotlight: Brooklyn Borough President Antonio Reynoso is making Puerto Rico policy the centerpiece of his bid to succeed retiring Rep. Nydia Velázquez in NY-7, unveiling a detailed federal agenda that calls for reintroducing the Puerto Rico Self-Determination Act, pushing to end La Junta, permanently exempting Puerto Rico from the Jones Act, and tightening scrutiny of LUMA’s grid management. Energy & Permitting Watch: Puerto Rico lawmakers are weighing competing permitting reform bills in Senate hearings, with debate focused on how to streamline approvals without weakening environmental and public-safety safeguards. Business & Tourism: Wyndham says it’s expanding on the island, moving from 5 to 9 hotels under its brand, with additional properties in Aguadilla, San Juan, and Dorado. Trade Disruption Risk: Delegate Stacey Plaskett says her office is coordinating with the Coast Guard and Puerto Rico Ports Authority over docking restrictions affecting Water Spirit Freight, raising concerns for goods flow between Puerto Rico and the USVI. Legal/Tech: Watch Skins confirmed it’s preparing an expanded amended complaint in its federal fight involving TAG Heuer and LVMH-linked entities, after a temporary court stay to find substitute counsel.

Puerto Rico–USVI Cargo Pressure: Delegate Stacey E. Plaskett says her office is in active contact with the U.S. Coast Guard and the Puerto Rico Ports Authority over docking restrictions affecting Water Spirit Freight Services, warning the disruption could hit the flow of goods between San Juan, St Croix, St Thomas and Tortola. Energy & Grid Tech: Enphase is rolling out PowerMatch software for IQ Battery systems, including in Puerto Rico, aiming to cut inverter losses by matching battery output to real-time home demand. Tax Relief for Storm Season: Puerto Rico’s Treasury announced an IVU exemption window for hurricane-prep items from May 22–25. Corporate Registry Access: Sembrando Sentido is pushing back on new Registry of Corporations access requirements that force users to create accounts and complete authentication even for public searches. Culture & Entertainment: Telemundo confirmed El Señor de los Cielos Season 10 will be its last, premiering in July 2026.

Puerto Rico–USVI Logistics: Rep. Stacey E. Plaskett says she’s pushing federal and Puerto Rico officials after Water Spirit Freight Services’ San Juan docking restrictions threaten island-to-island cargo flows for the US Virgin Islands, Tortola, and Puerto Rico. FDA Oversight: A new FDA tally shows 30 companies tied to El Paso County, Texas received 30 inspections in 2025, with most in food/cosmetics and the majority needing no management changes. Sports & Animal Welfare Pressure: Animal Wellness Action is urging MLB to investigate Dodgers pitcher Edwin Díaz over alleged illegal cockfighting ties in Puerto Rico. Energy Software Update: Enphase is rolling out PowerMatch battery software in Puerto Rico and the US to cut inverter losses by matching battery output to real-time home demand. Retail Buzz: Bad Bunny x Zara “Benito Antonio” is set to drop May 21, with the collection already appearing in San Juan at Plaza Las Américas. Local Business & Policy: Puerto Rico’s Registry of Corporations access rules are drawing criticism for adding account and authentication steps even for public searches. Tax Relief: Hurricane season prep items get an IVU exemption May 22–25. Innovation in Education: Sagrado Corazón University earns a 2026 Top Colleges for Innovation award from Insight Into Academia.

Insurance & Business Events: Puerto Rico’s Certified Public Accountants Association (CCPA) is set to host its XXVII Annual Insurance Industry Forum this Thursday at the Caribe Hilton, bringing together insurers, regulators, and industry leaders to map short- and medium-term outlooks across health, life, property, and casualty. Tax Relief for Storm Prep: Treasury Secretary Ángel Pantoja Rodríguez announced an IVU exemption for hurricane-season preparation items from May 22–25, with specific rules for layaway, storm shutters, rain checks, and deliveries. Registry Access Under Fire: Sembrando Sentido is warning that new Puerto Rico Department of State requirements for the Corporations Registry—personal accounts and authentication even for public searches—could slow access and discourage people with limited digital access. Aviation After Spirit: Spirit’s shutdown hit Puerto Rico’s Fort Lauderdale routes hardest, but JetBlue is expanding service, including a new daily nonstop to Ponce starting July 9. Ports Court Fight: S2 Services Puerto Rico asked a federal judge to disregard documents attached to MIDA’s amicus brief in the Ports Authority lawsuit over dock access and cargo scanning.

Air Travel Shock: Spirit’s collapse is still reshaping Puerto Rico’s mainland links, with JetBlue moving fast—adding more Fort Lauderdale capacity and relaunching a daily nonstop to Ponce starting July 9, while San Juan and Aguadilla routes are still operating via JetBlue and Frontier. Ports & Compliance: In federal court, S2 Services Puerto Rico is pushing to block documents attached to an amicus brief in the Ports Authority dispute over San Juan dock access and cargo-truck scanning—arguing the added material brings in new theories that weren’t part of the original case. Regulatory Watch: The FCC is setting up Auction 114 for new FM construction (132 channels, filing freeze on certain changes), a reminder that broadcast operators should track timelines and comment deadlines. Local Economy Signal: New car sales in Puerto Rico are down sharply in early 2026, with analysts pointing to high interest rates, tighter credit, and higher costs weighing on households. Logistics & Security: A U.S. Coast Guard order has restricted two vessels tied to Water Spirit Freight Services from re-entering San Juan Harbour until they meet safe mooring standards, raising cargo disruption concerns for the broader region.

Puerto Rico Ports Court Fight: S2 Services Puerto Rico asked a federal judge to disregard documents attached to MIDA’s amicus brief in the Ports Authority case over San Juan dock access and cargo scanning—arguing the filing adds new facts and legal theories that weren’t part of the original dispute. Labor & Logistics Pressure: Across the U.S., Teamsters expanded in hospitality with 130 Mandalay Bay front-desk workers voting to unionize, while a major Long Island Rail Road strike loomed after 3,500 workers launched a walkout—both signals that cost and service disruptions are still a live wire for regional economies. Local Business Watch: PIRTEK USA said it surpassed 200 U.S. locations and now operates in 35 states plus Puerto Rico, continuing its push into industrial service markets. Health Tech Spotlight: At Retina World Congress 2026, UPR ophthalmology director Victor M. Villegas discussed using supraorbital vibration to reduce pain during intravitreal injections. Consumer Strain: A report flagged a sharp drop in Puerto Rico new car sales tied to high interest rates and tighter auto credit.

Ports Authority court fight: S2 Services Puerto Rico asked a federal judge to disregard documents attached to MIDA’s amicus brief in the Ports Authority case over San Juan dock access and cargo-truck scanning, arguing the filing adds new facts and legal theories that weren’t part of the original dispute. Maritime disruption watch: The U.S. Coast Guard restricted two Togo-flagged vessels after they obstructed San Juan’s San Antonio Channel, raising concerns for cargo service relied on by the U.S. Virgin Islands. Energy & food security: Fort Buchanan’s Logistics Readiness Center is keeping operational meals prepositioned for U.S. missions across Puerto Rico and the Caribbean. Local business expansion: PIRTEK USA topped 200 U.S. locations and now operates in 35 states plus Puerto Rico, signaling continued industrial-services demand. Policy pressure: A Center for Food Safety FOIA lawsuit targets EPA records on neonicotinoid-coated seed disposal, part of a push to close a long-running regulatory loophole.

Auto Demand Watch: New car sales in Puerto Rico are down 22% in the first four months, with economists pointing to high interest rates, tighter auto credit, household strain, and tariff-driven cost pressure. Port & Logistics: A San Juan docking restriction tied to Water Spirit Freight Services is raising cargo disruption concerns for the U.S. Virgin Islands, with the VI Port Authority saying the decision sits outside its jurisdiction. Energy & Recovery: FEMA approved nearly $40M for Puerto Rico recovery, including COVID-19 reimbursements and disaster-related work. Industrial Expansion: PIRTEK USA says it has surpassed 200 U.S. locations and now operates in 35 states plus Puerto Rico. Policy Noise: A new push for “Farm Bill 2.0” is gaining support from hundreds of ag groups, including Puerto Rico representation, as farmers remain in limbo without a full five-year bill. Culture & Business: Shakira’s World Cup anthem “Dai Dai” launches with a school-focused education message, while local entertainment continues to draw attention from major markets.

FEMA Funding Boost: FEMA approved nearly $40M for Puerto Rico recovery, including $23.8M tied to COVID-19 costs and $15.9M for disaster recovery, with reviews aimed at preventing duplication of benefits. Energy Court Fight: A federal judge temporarily halted the remand of lawsuits against LUMA Energy to Puerto Rico courts while appeals play out, keeping the contract dispute in legal limbo. Flood Defense Contract: The U.S. Army Corps of Engineers awarded a record $1.078B to Ferrovial for major Río Piedras flood protection upgrades—dredging, floodwalls, and utility relocations—targeting big reductions in annual flood damage. Local Development: Cataño is moving ahead with a $5.67M Las Nereidas Avenue redevelopment tied to safety, reforestation, and a push to draw more visitors and spending. Culture & Community: Tú Cuentas Cine Youth Fest won multiple Communicator Awards, highlighting Latino youth storytelling momentum.

Fine Dining Under Pressure: Puerto Rico’s fine-dining operators say inflation is squeezing margins, but many are holding prices to protect loyal customers—tourism is helping, with more higher-spend visitors returning. Construction & Jobs: Ferrovial won a $1.078bn U.S. Army Corps contract to widen and deepen San Juan’s Río Piedras channel, aiming to cut flood damages and create thousands of jobs. Energy & Power: The U.S. DOL rescinded the Biden-era overtime rule, resetting the overtime threshold back toward 2019 levels—an immediate cost-and-payroll ripple for employers. Tech & IP Fight: Watch Skins says it’s preparing a bigger amended complaint in its TAG Heuer/LVMH patent and marketing dispute, after a 30-day court pause for new counsel. Retail Signals: Foot Locker’s Puerto Rico presence is getting a boost from a more “cohesive” footwear presentation, with clearance racks still visible. Aviation After Spirit: With Spirit Airlines gone, budget travelers are scrambling for new loyalty programs and perks. Biotech Update: LIXTE filed its Q1 10-Q, citing progress in its ovarian cancer trial and expanded platform work.

Flood Defense Deal: Spain’s Ferrovial just won a $1.078bn U.S. Army Corps contract to widen and deepen San Juan’s Río Piedras channel, adding drilled-shaft floodwalls, dredging, and utility relocations—aimed at cutting an estimated $126m a year in flood damages and creating thousands of jobs. Biopharma Investment: Amgen announced an extra $300m expansion of its Puerto Rico biologics manufacturing in Juncos, boosting capacity and next-gen tech while supporting workforce development and hundreds of construction jobs. Energy & Cost Pressure: New reporting ties Puerto Rico’s gasoline jump to the Iran conflict’s ripple effects, with local prices rising faster than the mainland—another reminder that island fuel dependence keeps turning geopolitics into household bills. Tourism & Culture: Hotels are leaning into music-driven loyalty, while Residente’s Hollywood debut “Porto Rico” (with Bad Bunny and major stars) spotlights Puerto Rican storytelling on the big screen. Local Governance: Rep. José Aponte Hernández is pushing to keep Navy Frontier Pier operational to ease San Juan Bay vessel congestion.

Auto Market: Puerto Rico’s new-car sales fell hard in April, dropping 27.8% to 7,652 units year over year, with mini-compact and premium mini-compact sedans down 83% and compact sedans down 55%, as buyers feel inflation and weaker activity. Banking Courts: A Puerto Rico bank lost in the Second Circuit over whether it can demand “master accounts” access, tightening the rules on who can get certain Fed services. Energy & Shipping Policy: The Jones Act waiver debate keeps heating up as new voyage-level data shows foreign tankers filling gaps after the March suspension—fuel trade patterns are shifting fast. Environment & Compliance: An environmental group sued the EPA for records tied to pesticide-coated seed disposal at ethanol plants, pushing to close a long-running regulatory loophole. Local Business Finance: Ponce Bank CEO Carlos Naudon joined Prosprous.ai as a senior advisor, signaling more focus on AI-driven financial guidance for underserved communities. Culture & Community: La CASA’s grand opening spotlights Latino arts and Puerto Rican history in Boston’s South End, with programming starting this weekend.

Puerto Rico Manufacturing: Humacao just welcomed Onovexa with a $36.2M investment and 203 direct jobs, turning a former multinational site into locally made disposable towels, wet wipes, and absorbent products. Energy & Grid Oversight: The Financial Oversight and Management Board approved a BESS Standard Offer for Polaris Puerto Rico, while Puerto Rico’s energy resilience continues to draw scrutiny as regulators and courts weigh PREPA-related moves. Environmental Pressure: A ProPublica report says Trump-era regulatory relief has granted two-year reprieves to more than 180 facilities in 38 states and Puerto Rico from newer Clean Air Act rules tied to toxic gases like ethylene oxide—raising fresh alarms about public health risk. Fraud & Scams: Rep. José Aponte Hernández says FBI data shows deepfake fraud is surging, with Puerto Rico among those hit by AI-driven scams. Culture & Community: La CASA, a $33M Latino arts hub in Boston’s Villa Victoria complex, opens this weekend with Puerto Rican artist Antonio Martorell’s inaugural exhibit.