USVI on the Brink of a Recovery Breakthrough with Unprecedented Federal Support

The Virgin Islands stands at a pivotal moment as President Joe Biden’s approval of an additional $1.1 billion in disaster assistance funding heralds a new era of opportunity for the territory’s recovery efforts. Adrienne Williams-Octalien, the Office of Disaster Recovery’s director, and Governor Albert Bryan celebrated this development during a press conference, marking it as a turning point for the islands.

Governor Bryan, buoyed by the announcement from FEMA Administrator Deanne Criswell, sees this as a “tremendous opportunity” to overcome the significant financial hurdle of matching federal disaster recovery funds. Traditionally, the territory faced the daunting task of funding a 10% match of federal dollars, which would have required the local government to find approximately $1.5 billion to access the full scope of available disaster recovery grant funding.

After persistent lobbying efforts, which initially seemed to bear no fruit, the tide turned with FEMA’s recent declaration. This breakthrough comes from discussions held in September, as recounted by Governor Bryan, leading to a more favorable cost-sharing arrangement. The Virgin Islands now need to provide only 2% in matching funds for 428 fixed cap projects and 5% for other disaster recovery projects, a significant reduction from the previous 10%.

However, this financial windfall comes with its conditions. To benefit from the adjusted cost share, the territory must obligate all projects by September 2024 and complete them within an 11-year deadline, including critical infrastructure such as schools and hospitals. Failure to meet these timelines would see the matching funds requirement revert to the original 10%.

Governor Bryan remains optimistic about meeting these conditions, emphasizing the importance of collaboration and unity in achieving the collective goal of rebuilding the USVI. The strategy involves bundling recovery projects into billion-dollar packages to ensure timely completion and to attract large contracting firms with the necessary resources.

The reduction in required matching funds—from needing $800 million for an $8 billion project scope to now only needing $160 million—represents a significant easing of the financial strain on the territory. This has been made possible by the approval to use Community Development Block Grant (CDBG) funds for federal match requirements, although these funds also have their designated disaster recovery purposes.

Addressing the critical need for skilled labor to support the ambitious rebuilding plans, Governor Bryan highlighted efforts to attract international contractors and pursue “visa waivers” and other initiatives to bolster the local workforce. Despite challenges, including political hurdles in implementing a visa waiver program, the governor’s administration remains focused on innovative solutions to meet labor demands.

With the financial and logistical framework in place for a revitalized recovery process, the Virgin Islands now looks forward to redirecting resources to meet a wide array of unmet needs within the community. Both Williams-Octalien and Governor Bryan are confident in the territory’s path forward, seeing this as an unparalleled chance to rebuild stronger and more resiliently in the wake of hurricanes Irma and Maria, alongside other ongoing construction projects that promise to transform the islands’ infrastructure for the better.