Press Releases

For Immediate Release                             Contact: Tionee Scotland
July 20, 2026                                                    202-808-6129

PRESS RELEASE

CONGRESSWOMAN PLASKETT'S STATEMENT ON VIRGIN ISLANDS HOUSING FINANCE AUTHORITY FUNDING SUSPENSION BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Washington, D.C. — Congressw

oman Stacey E. Plaskett (D-VI) released the following statement today regarding the U.S. Department of Housing and Urban Development's (HUD) decision to immediately suspend disaster recovery funding to the Virgin Islands Housing Finance Authority (VIHFA):

"I am in receipt of a copy of the notice to the Virgin Islands Housing Finance Authority (VIHFA) from the U.S. Department of Housing and Urban Development (HUD) regarding the suspension of future participation in procurement and non-procurement transactions pending an investigation.  This represents the freezing (not withdrawal) of federal funding.  This is a de facto “debarment” restriction of one agency’s, VIHFA, ability to use the funds. 

“Upon receipt of the notice, my office and I immediately contacted the leadership of the committee of jurisdiction – the House Committee on Financial Services, our White House Liaison, the HUD leadership team and others in Washington, D.C. We learned that HUD leadership repeatedly warned the local government about their management of HUD funding and the lack of controls, specifically a high percentage of funds used for administrative costs and insufficient spending on projects. 

“It would appear that this is not a new issue but one that the Bryan Roach Administration has not given sufficient effort to effectively resolve. The notice from HUD makes strong allegations that VIHFA not only violated its obligation to distribute and manage taxpayer funds but also, ‘made false statements regarding its financial management controls and safeguards against conflict of interest.’  The notice clearly states that the money is not being taken away but that VIHFA is being suspended from making use of the resources.  The money is not being spent.

“Community Development Block Grant (CDBG) HUD funding, both Disaster Relief (CDBG-DR) and Mitigation (CDBG-MIT) represents a complicated program under which the Government of the Virgin Islands has been unable to use the resources.  The position of HUD is that there have not been enough financial controls, procurement has not been done properly, and payments have not been made timely. The funding in this program affects not just housing but ultimately much of the local match needed for many rebuilding projects, including the Virgin Islands Water and Power Authority, schools, hospitals, etc. 

“The table below is not a full representation of the delay. For example, in the first table seen below, which discusses Program Areas and lists Public Facilities, 477 of 572 have been completed.  Those, however, represent small projects which only account for less than 20% of all funding amounts. We have not spent our funding quickly or efficiently and the local government is being called to task.

“This notice begins a 30-day appeal process which will require a hearing for the Government of the Virgin Islands to present a “dispute of material facts.”  In multiple discussions today with federal partners, agencies and Congressional staff, it is clear there must be a restructured turn around plan that meets the confidence of the federal government.  To date, there have been several companies that have been engaged and should have the expertise and experience to develop a plan which meets the satisfaction of the federal government. Jacobs, Ernst and Young, and Witt O’Brien’s should be asked to provide pro bono support to create a plan that responds to the real concerns of the federal government. Our major contractors who have been contracted to partner in the rebuild with the Virgin Islands should be brought along in this process. Many have independent relationships with the Trump Administration and have seen other similar issues. As a plan is developed which removes authority from VIHFA and puts the entire program in a body which has more controls and oversight, the Governor should engage with and receive support from the Legislature of the Virgin Islands by bringing them along with our major contractors into the discussion, many of whom have worked on this in other jurisdictions.

“My office will continue to be available to support and leverage our relationships in Washington, D.C. to ensure that we come to a resolution that advances the people of the Virgin Islands.”

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