Virgin Islands Governor Criticizes HUD for Suspension of Disaster-Recovery Aid

Governor Albert Bryan Jr. of the Virgin Islands criticized the Department of Housing and Urban Development (HUD) after they suspended procurements involving the territory’s housing finance authority. This suspension followed concerns about fraud and misuse of nearly $2 billion in disaster-recovery funds.

Bryan, a Democrat, expressed surprise at HUD’s decision, labeling their communication as “unprofessional.” He argued that the issues in the U.S. Virgin Islands’ disaster recovery efforts have been exaggerated and described HUD’s action as an overreach.

When I go to Washington, I don’t go and visit [HUD or FEMA] anymore because we don’t have any problems.”

In a public briefing in Charlotte Amalie, Bryan suggested the timing of HUD’s actions might be politically motivated, coinciding with the start of early voting in the territory’s gubernatorial election. He questioned why the suspension was initially reported by Fox News.

Bryan announced plans to appeal the suspension in order to investigate the motives behind HUD’s decision. He noted a past audit was mentioned in HUD’s notice, though a reporter referenced a separate HUD report from March 2025, which found the Virgin Islands Housing Finance Authority’s (VIHFA) risk management lacking.

In response, Bryan claimed the territory had already addressed prior concerns, including a $6.2 million cost issue. He reviewed the letter from Andrew Hughes, a deputy to HUD Secretary Scott Turner, and argued that progress has been made on several recovery projects.

He highlighted high costs as a challenge in recovery projects, citing the excessive expense of public housing units. Many project bids were reissued because costs surpassed national standards.

In a separate statement, Bryan acknowledged historical issues outlined in HUD’s letter, asserting that significant corrective measures have been implemented. He emphasized the importance of managing the process to protect the Virgin Islands’ residents and avoid unnecessary disruption of vital housing and disaster-recovery programs.

Earlier in his administration, Bryan addressed “weaknesses” at VIHFA, focusing on capacity planning, which he admitted slowed recovery efforts. HUD’s suspension is part of a broader effort by the White House Task Force to Eliminate Fraud, aimed at curbing misuse of taxpayer funds.