AGP Executive Report

Cruise Growth Milestone: Puerto Rico’s cruise sector hit a new high, welcoming 1,827,010 cruise passengers through San Juan and Ponce by end of May 2026—topping the prior record of 1,814,157 (2019). Water Crisis: Thousands of residents are facing severe water shortages across parts of the island, including San Juan, with the governor activating the National Guard and emergency responders handling daily calls; officials cite long-standing infrastructure issues. Infrastructure & Engineering: AECOM won a nationwide U.S. DHS infrastructure modernization contract covering architecture and engineering services across all states and U.S. territories, including Puerto Rico. Tourism Push: Puerto Rico Tourism Company reported a new record in cruise passenger arrivals, reinforcing the island’s push to grow hospitality and related jobs. Local Business & Hiring: San Juan is set to allocate $5 million to encourage business growth, as Puerto Rico continues efforts to stimulate investment. Education Link-Up: University of Puerto Rico and University of Louisiana Monroe signed an MOU to expand academic cooperation, research, and exchanges. Cybersecurity Watch: PRITS urged monitoring of accounts after Evertec’s cybersecurity incident.

Energy Policy: The Trump administration announced $850M for coal plant modernization and new coal capacity, using Defense Production Act authorities to boost grid reliability—an approach critics call an unnecessary subsidy. Tourism & Ports: Puerto Rico set a new cruise passenger record, reaching 1,827,010 visitors through May 2026, topping the 2019 high and signaling continued momentum for the hospitality economy. Water Infrastructure Crisis: Severe water shortages are hitting parts of San Juan and other major cities, with the governor activating the National Guard and residents buying potable water as outages worsen. Construction/Engineering Contracts: AECOM won a nationwide DHS infrastructure modernization contract covering Puerto Rico and other territories, with work spanning secure, aviation, waterfront, and residential facilities. Higher Education & Research: The University of Louisiana Monroe and the University of Puerto Rico signed an MoU to expand academic cooperation, research, and student/faculty exchange. Cybersecurity: A Ukrainian man extradited to the U.S. pleaded guilty for his role in Conti ransomware attacks that prosecutors say targeted victims including Puerto Rico. AI Governance: Broadcasters, including Puerto Rico’s, backed the NO FAKES Act to protect voice and likeness from unauthorized AI deepfakes.

Water Crisis in Puerto Rico: Thousands of residents are facing severe water shortages, including in San Juan, with the governor activating the National Guard as people buy potable water, rely on laundromats, and wait for water trucks; officials cite long underinvestment and maintenance gaps, and the mayor has sued PRASA over the ongoing service breakdown. Infrastructure & Engineering Contract: AECOM won a nationwide U.S. Department of Homeland Security infrastructure modernization contract covering all 50 states plus Puerto Rico, with work spanning facility design, environmental services, planning studies, and design-build documentation for secure and critical sites. University Collaboration: The University of Puerto Rico and the University of Louisiana Monroe signed an MoU in San Juan to expand academic cooperation, research, and student/faculty exchange. AI Protection Push: Broadcasters associations, including Puerto Rico’s, backed the NO FAKES Act to curb unauthorized AI voice and image deepfakes while preserving First Amendment protections. Trade Enforcement: U.S. CBP seized a counterfeit shipment headed to Puerto Rico—111 pieces of fake luxury watches, sunglasses, and accessories valued at over $19M in suggested retail price. Public Service Recognition: Puerto Rico-linked readers may note the broader U.S. spotlight on “unsung heroes,” with awards honoring municipal and school staff for community impact.

Water Crisis in Puerto Rico: Thousands of residents are facing severe water shortages across San Juan and other major cities, with the governor activating the National Guard and officials fielding daily emergency calls; residents are buying potable water and relying on laundromats and water trucks as infrastructure gaps blamed on decades of underinvestment worsen. University Collaboration: The University of Louisiana Monroe and the University of Puerto Rico signed an MoU in San Juan to expand academic cooperation, research, and student/faculty exchanges. AI Deepfake Protections: State broadcasters associations, including Puerto Rico, backed the NO FAKES Act, urging Congress to create federal guardrails against unauthorized AI-generated voice and image replicas. Energy Policy Watch: The Trump administration announced $850 million for coal plant modernization and two new plants, a move critics call an unnecessary subsidy while supporters cite grid reliability. Trade Enforcement: U.S. Customs at Cincinnati seized a shipment of counterfeit luxury watches and designer accessories worth over $19M, destined for Puerto Rico. Industry & Infrastructure: A judge in Minnesota halted a major data center project, while Meta announced $115M for skilled trades—signals of continued pressure on construction labor and build timelines.

Energy & Power Policy: The Trump administration announced $850M for coal plant modernization and two new coal plants, using Defense Production Act authority to bolster grid reliability—while critics call it an unnecessary subsidy. Local Utilities Crisis: Puerto Rico’s water shortages have escalated to the point that the governor activated the National Guard, with residents in the San Juan metro area buying potable water and facing service interruptions. Water Governance: Gov. Jenniffer González Colón is reportedly evaluating administrative changes at PRASA as scrutiny grows over the water crisis and response failures. Telecom Performance: Claro Puerto Rico won top Opensignal awards for best coverage experience and #1 5G video experience in the first quarter of 2026. Business Growth: San Juan will allocate $5M to help create new businesses and expand existing ones in priority sectors, routing support through its Business Concierge and planning to modernize its incentives code. Trade & Security: U.S. Customs at Cincinnati seized $19M in counterfeit luxury watches and accessories shipped to Puerto Rico, underscoring ongoing IP enforcement tied to consumer and supply-chain risk. Cybersecurity: PRITS urged Puerto Rico residents to monitor accounts after Evertec reported a cybersecurity incident involving potential exposure of payment card and personal data. Construction/Infrastructure: Ferrovial secured a $1.08B contract for Puerto Rico flood-control expansion, pointing to continued investment in resilience projects.

Energy & Power: The Trump administration announced $850M in federal support to modernize coal plants, build two new units, and expand coal-export infrastructure, using Defense Production Act authorities—an effort framed as grid reliability, but criticized as a subsidy for an uncompetitive fuel. Water & Infrastructure: After severe water shortages hit parts of San Juan and other populated areas, the governor activated the National Guard and officials are still not pinpointing the cause; the mayor has sued PRASA over the crisis. Business Growth: San Juan will allocate $5M to help SMEs create new jobs and expand in priority sectors, using a Business Concierge permit-and-incentives hub and plans to modernize an incentives code last updated in over 25 years. Trade & Exports: DDEC and the Puerto Rico Chamber of Commerce launched a new Puerto Rico Export Manual to reduce barriers for local firms selling abroad, with free distribution planned for late June. Connectivity: Opensignal recognized Claro Puerto Rico for best mobile coverage experience and top 5G video performance in its latest Puerto Rico network report. Tourism & Ports: Puerto Rico set a new cruise passenger record for May, driven by more ship deployments, itineraries, and Port of San Juan investments. Public Health: Dengue risk is rising in Florida as CDC data show a 359% national surge, with Miami-Dade under mosquito alert.

Energy & Sanctions: The U.S. announced sanctions on Cuba’s state oil and gas firm Cupet, escalating fuel-and-blackout tensions between Washington and Havana. Trade & Logistics: CBP officers in Cincinnati seized a shipment bound for Puerto Rico with $19.26M MSRP in counterfeit luxury watches, sunglasses, and accessories. Power Sector: LUMA asked Puerto Rico’s energy regulator to pause key rate-order rulings, warning enforcement could disrupt legal and operational work tied to PREPA’s bankruptcy. Water Governance: San Juan Mayor Miguel Romero pushed back on PRASA’s executive after PRASA raised concerns about a municipal engineer during the water-crisis response. Food Retail & Consumer Pressure: MIDA reported Puerto Rico consumers cut monthly food spending 5% in 2026, even as food prices keep rising. Sports Betting Expansion: Distrito T-Mobile is partnering with BetMGM, adding kiosks to bring betting into the venue’s entertainment mix. Business & Capital Markets: Shoe Carnival approved changing its name to Shoe Station Group and its Nasdaq ticker to “SHOE.” Public Safety & Travel: A Frontier flight from Puerto Rico to Chicago was disrupted after a passenger tried to open an exit door and later attempted to breach the cockpit. Industry & Infrastructure: Ferrovial won a $1.08B contract to expand Puerto Rico flood-control channels.

Energy & Regulation: LUMA Energy asked the Puerto Rico Energy Bureau to pause two parts of its Final Rate Order, including a $750-per-hour cap on external legal counsel and a blanket denial of FY2026 Title III cost recovery, warning enforcement could disrupt work tied to PREPA’s bankruptcy. Water Infrastructure: San Juan Mayor Miguel Romero Lugo pushed back after PRASA’s executive questioned an engineer’s role in the water crisis response, saying a technical committee agreement already included the engineer and that PRASA didn’t raise the concerns during negotiations. Food & Retail Demand: MIDA reported consumers are spending less amid economic uncertainty—average monthly food spend fell 5% to $363 in 2026, while household product spending dropped 14% to $109. Sports Betting Expansion: T-Mobile District is partnering with BetMGM, adding BetMGM kiosks around the venue to boost betting access alongside events and nightlife. Public Health & Safety: FDA urged Puerto Rico shoppers to check pantries after a Pearl Milling pancake/waffle mix recall due to undeclared milk/soy allergens from a labeling error. Industry & Jobs: Fluor named Hannah Carmical general manager of its Greenville office and said Félix Alvarado will move to lead Fluor’s San Juan office. Maritime Enforcement: Coast Guard repatriated 32 people to the Dominican Republic after intercepting an overloaded vessel near Desecheo, Puerto Rico, as part of anti-smuggling efforts. Puerto Rico Recovery Taxes: Oversight scrutiny is growing over Puerto Rico’s Act 215, with critics saying it could raise costs for federally funded disaster recovery construction and slow the power grid rebuild. Clinical Research Milestone: PRCCI marked its 10th anniversary, saying it has helped bring 300+ clinical trial opportunities to Puerto Rico and expanded a network of 25 research sites across 20+ therapeutic areas.

Energy Policy: The Trump administration announced $850M for coal plant modernization, including Defense Production Act-backed upgrades and two new coal plants, arguing it will cut energy costs and boost grid reliability while critics call it an unnecessary subsidy. Puerto Rico Tax Oversight: Puerto Rico’s recovery taxes are under scrutiny as the oversight board warns against implementing Act 215, saying it could raise construction excise taxes and slow FEMA-funded permanent recovery work. Local Real Estate & Hospitality: ORO Hotel & Residences in Hato Rey unveiled its first “Barrilito Bar” with Ron del Barrilito, blending luxury hospitality with a signature Puerto Rican rum experience. Business & Jobs: Fluor named Hannah Carmical general manager of its Greenville office and will shift Félix Alvarado to lead Fluor’s San Juan office. STEM & Training: The Mission Command Center of Excellence deployed training in Puerto Nuevo to help the 166th RSG transition to the AI-enabled Maven Smart System ahead of upcoming operations. Food Industry Snapshot: MIDA reported consumers in Puerto Rico cut spending, with food spending down 5% and a third considering leaving the island, alongside rising use of weight-loss medications. Sports & Community: Puerto Rico beat The Bahamas 10-0 to win the PONY 14U Caribbean and Latin American title, earning a spot in the World Series.

Puerto Rico Economy & Consumer Demand: A new MIDA “Consumer Snapshot” says Puerto Ricans are cutting monthly spending, with food down 5% (about $19) and household products down 14% (about $18), while 31% say they’re worse off and a third are considering leaving the island in the next 1–3 years. Local Governance & Real Estate Incentives: The Puerto Rico Senate is demanding details from DDEC on tax decrees, communications, and actions tied to the Opus Miramar luxury project in San Juan’s Convention Center District, including whether Law 60-2019 incentives were granted. Federal Oversight & Food Assistance: A report highlights SNAP benefits going to deceased recipients across 29 states, raising questions about how hard it is to stop improper payments. Infrastructure & Jobs: Ferrovial won a $1.08 billion U.S. Army Corps of Engineers contract to expand and upgrade the Río Piedras channel in San Juan, aiming to cut flood risk and support more than 10,000 jobs over about six years. Energy Policy Context: Separate coverage of U.S. coal subsidies underscores the broader debate over whether new funding will help a sector losing ground to gas and renewables. Industry & Logistics (Defense): A U.S. military logistics exercise at the Port of Ponce highlighted cargo movement and port-opening training tied to the Caribbean theater.

Flood Control & Construction: Ferrovial won a $1.08 billion U.S. Army Corps of Engineers contract to expand and upgrade San Juan’s Río Piedras channel under the Puerto Nuevo flood-control program, widening it to cut flood risk and adding deep concrete pile reinforcement, sediment control, and landslide-resilience work expected to support 10,000+ jobs over about six years. Logistics & Defense: The 597th Transportation Brigade supported a major port-opening exercise as the MV Roy P. Benavidez operated at the Port of Ponce, moving cargo through Gulfport and onward to Virginia’s Newport News terminal—highlighting Puerto Rico’s role in U.S. transportation readiness. Tourism & Finance: A new analysis argues Puerto Rico’s tourism boom is increasingly tied to tax incentives and credits that function like financial assets, reshaping development in coastal towns while raising concerns about displacement and unequal tax burdens. Local Sports: Puerto Rico fell to Mexico in a five-set gold medal match at the NORCECA Women’s Final Four in Ponce, with Sofía Maldonado Díaz’s late surge flipping the deciding set. Creative Industry: Publicis Groupe Puerto Rico named José Ángel “Nánel” Rodríguez as Chief Creative Officer at Badillo Saatchi & Saatchi, tapping a veteran creative with major international awards.

Tourism & Hospitality Legacy: The Caribe Hilton in San Juan, opened in 1949, helped define Puerto Rico’s modern luxury tourism and is tied to the piña colada origin story. Public Health & Research: A phase 3 trial published in The Lancet Oncology reports aglatimagene besadenovec plus valacyclovir added to radiotherapy extends disease-free survival for localized prostate cancer patients, including study sites in Puerto Rico. Workforce & Youth Employment: Puerto Rico’s labor data show a 33% jump in summer work-permit applications for minors from July 2025 to May 2026, with the biggest demand in service, commerce, and manufacturing. Business & Logistics: Southwest expands in Puerto Rico with new routes from Indiana and Ohio, signaling continued airline investment in regional connectivity. Energy & Environment Education: A Connecticut student contest entry uses Puerto Rican heritage to promote energy-efficient, environmentally friendly solutions—highlighting how island-focused sustainability messaging is spreading beyond PR.

Earthquake Watch: A magnitude 6.1 quake near Cuba sent tremors across Florida, sparking “Did you feel it?” posts; Florida rarely sees damaging quakes, but the risk is still low-to-moderate over the next century. Aviation Safety: A US-registered Gulfstream G200 crash at La Romana, Dominican Republic, killed both pilots after an emergency return attempt; reports say the jet was headed to Austin, with no passengers onboard. Public Health & Biotech: Institut Pasteur launched ACT-CHIK, a €15.3M EU-funded project to advance a chikungunya vaccine through a large Phase Ib/III trial in four African countries and prepare local manufacturing. Tobacco/Nicotine Policy: Hawaii AG Anne Lopez is co-leading a multistate push urging Formula 1 to end tobacco and nicotine sponsorships, including nicotine pouches, and terminate existing deals. Local Business/Industry: Puerto Rico’s Day at the Ballpark returns for 2026 at MLB stadiums, starting June 9 at Citi Field, spotlighting the island’s baseball heritage with music and community activations. Healthcare Research: Lancet Oncology published Phase 3 results showing aglatimagene besadenovec plus valacyclovir extends disease-free survival in localized prostate cancer without added clinically significant toxicity.

Aviation & Safety: A US-registered Gulfstream G200 crash in the Dominican Republic killed two pilots; the FAA lists the owner as Aibonito Aviation LLC of San Juan, Puerto Rico. Healthcare & Biotech: Amgen unveiled new real-world Phase 3 VESALIUS-CV subgroup results at the American Diabetes Association meeting, reporting Repatha reduced first major cardiovascular events by 29% in high-risk diabetes patients. Energy Policy: UtilityDive reports the Trump administration approved dozens of coal-related permits and plans Defense Production Act funding for coal-plant projects, drawing sharp criticism from affordability and clean-energy advocates. Tourism & Air Connectivity: Southwest expands in Puerto Rico with new routes from Indiana and Ohio, boosting passenger arrivals and economic impact; separately, Norwegian Cruise Line cancels Viva sailings from San Juan for a redeployment to PortMiami. Local Business & Jobs: Sobao opened its fifth Puerto Rico restaurant in Guaynabo, investing $300,000+ and creating 25 jobs. Agriculture & Rural Funding: The House approved FY2027 appropriations covering PAN nutrition assistance and community/agriculture projects, including landfill remediation funding in Hormigueros. Manufacturing/Industry Branding: Made in Puerto Rico names a new president and CEO, aiming to grow membership, training, collaboration, and export-focused initiatives.

Puerto Rico Air Connectivity: Southwest Airlines is adding new Puerto Rico routes, launching service from Indianapolis and starting tickets for Columbus, Ohio, with an estimated $2.3M economic impact and about 3,130 extra passengers at SJU. Tourism & Hospitality Investment: La Concha Resort broke ground on LUXE AZUL, a $6.5M beach club in Condado expected to create 20+ direct and 100+ indirect jobs, positioning the resort for expanded dining and entertainment. Local Business Expansion: Sobao opened its fifth Puerto Rico restaurant in Guaynabo, investing over $300,000 and creating 25 jobs as the brand grows in one of the island’s busiest commercial corridors. Workforce & Economy: Puerto Rico’s job market shows record-low unemployment at 5.6%, while officials push more people back into the labor force amid new challenges tied to AI. Industry Branding: Made in Puerto Rico named Pedro Rosaly as its new president/CEO, aiming to turn the “Made in Puerto Rico” label into a broader business movement and expand services, training, and international reach. Energy Policy Watch: Federal funding news includes support for coal plant upgrades, including mention of a Puerto Rico coal-fired plant modernization effort in Guayama.

Aviation & Tourism: Norwegian Cruise Line will redeploy the Norwegian Viva to PortMiami for the 2027-28 winter season, canceling its planned Southern Caribbean cruises from San Juan and offering refunds plus cruise credits. Air Connectivity: Southwest expands in Puerto Rico with new routes from Indianapolis and Columbus, adding an estimated $2.3M in economic impact and about 3,130 passengers. Local Business Growth: Sobao opens its fifth restaurant, launching in Guaynabo with a $300,000+ investment and 25 jobs. Hospitality & Construction: La Concha Resort breaks ground on LUXE AZUL Beach Club in Condado, a $6.5M project expected to create 20 direct and 100+ indirect jobs. Industry Organization: Made in Puerto Rico names Pedro Rosaly as new president/CEO, aiming to grow membership, training, collaboration, and international market reach. Food Safety: Urgent Salmonella-related food recalls and logistics oversight concerns are prompting consumers to check products closely. Consumer Protection: DACO says recent supermarket expiration-date complaints haven’t turned up irregularities in inspections, while continuing surveillance. Labor & Economy: Puerto Rico’s unemployment rate is reported at a record low 5.6%, alongside efforts to pull more people back into the workforce.