Bryan, Plaskett: Work to Resolve HUD Suspension

M.A. Dworkin

USVI - During a press conference called specifically to address the matter, Governor Albert Bryan Jr. announced Friday, July 24, 2026, that the Virgin Islands’ recovery programs remain operational as his Administration is working with federal officials to clarify and resolve the U.S. Department of Housing and Urban Development’s (HUD) recent administrative action involving the Virgin Islands Housing Finance Authority (VIHFA).  

In the same vein, Congresswoman Stacey L. Plaskett is to meet with Governor Bryan and members of the Virgin Islands Legislature on the same day regarding the HUD notice that called on a suspension of federal funding to the VIHFA. The Congresswoman sent letters this week to HUD and the Governor’s office in regards to the matter. 

During the Governor’s press conference, he said approximately $1.9 billion in Community Block Grant Disaster Recovery and Community Development Block Grant Mitigation funding already obligated to the USVI has not, at this time, been suspended or terminated. 

“The recovery is continuing. The programs supporting homeowners, renters, small businesses and communities remain operational,” the Governor stated. “Awards, agreements, contracts, and construction activities that were already committed remain in place.”

The Governor said his Administration has spent the past week meeting with federal officials and other partners in Washington to gain a clearer understanding of the scope and potential implications of HUD’s action. He said White House officials are working to coordinate a meeting among HUD, the Administration and VIHFA, who have requested an appeal of HUD’s decision. 

“We are working together to obtain the facts, protect the interests of the people of the Virgin Islands, and bring this matter to a fair resolution,” Governor Bryan said. 

Based on the information currently available to the Administration, HUD’s action is an entry-level administrative matter that is separate from the CDBG-DR and CDBG-MIT grant agreements governing funds already obligated to the Territory.

The Governor said that homeowners, contractors, subrecipients and community partners should continue working with their existing VIHFA program representatives. Reimbursements, draws, and program payments under existing agreements are continuing through the normal federal review, documentation and compliance process. Governor Bryan said any change affecting a specific program, project or participant would be communicated directly and promptly. 

Although obligated recovery funding remains active, the Governor emphasized that HUD’s action could have serious consequences for VIHFA and the Territory’s future housing and community development needs. 

HUD’s action could affect VIHFA’s ability to receive or administer future federal funding and participate fully in federal housing programs. That includes future annual Community Development Block Grant funding and the VIHFA’s ability to support affordable housing developments that depend on programs such as the Low-Income Housing Tax Credit. 

The VIHFA is working with specialized counsel and will pursue all available remedies under applicable law and federal procedures. 

The Administration has also scheduled a briefing with members of the 36th Legislature and Stacey Plaskett, the V.I. Delegate to Congress, to share the information received to date and answer questions.

“This morning I will be meeting with Governor Bryan and members of the Virgin Islands Legislature regarding the notice from HUD on the freeze of funding,” said Congresswoman Plaskett. “I’ve shared with the Governor conversations I have had with Republican leadership in Congress regarding this issue that stand ready to support our efforts to create a plan acceptable to HUD.”

Governor Bryan urged elected officials and members of the community to avoid speculation and irresponsible rhetoric while VIHFA’s appeal and the federal administrative process remain pending. 

“This issue is too important to be politicized,” Governor Bryan said. “Every elected official and leader in the Virgin Islands has a voice that carries far beyond the shores of our Territory. We all have a responsibility to speak carefully and act responsibly.”