Secretary Anthony R. Foxx

Remarks at Memorandum of Understanding Signing with Puerto Rico Governor García Padilla

San Juan, Puerto Rico • February 25, 2016

Remarks as prepared for delivery

Good Afternoon.

I’d like to start by thanking Governor Alejandro Javier García Padilla and Secretary of Transportation and Public Works Miguel Torres Díaz for joining us for today’s signing.

And I’d like to acknowledge both of them, as well as other officials from the Puerto Rico Highway and Transportation Authority for their steadfast commitment to operating and maintaining a safe and efficient road system throughout the Commonwealth.

I’d also like to thank all of the folks on my team at the Department of Transportation who made today possible, especially Federal Highway Administrator Greg Nadeau for his continued leadership in promoting safety, mobility, and innovation in our nation’s highways, bridges, and tunnels.

This afternoon, we gather to sign a Memorandum of Understanding that renews and further strengthens the federal government’s commitment to develop transportation infrastructure and promote economic recovery in Puerto Rico.

This agreement provides federal technical assistance to ensure that Puerto Rican transportation officials are able to expeditiously access about $400 million in previously obligated federal funds for infrastructure projects that will create jobs and spur economic development.

This arrangement represents an important step in Puerto Rico’s plan to improve its billing procedures by increasing capacity for developing and sustaining best practices, such as using electronic funds transfer and reducing the time it takes to pay contractors.

And the agreement permits FHWA to authorize the retroactive use of toll credits to be used for state matches, allowing PRHTA to maximize their access to federal funding. 

This MOU significantly strengthens Puerto Rico’s transportation system. But it also represents this Administration’s greater commitment to continue working with Puerto Rican officials to find solutions to the Commonwealth’s fiscal crisis by leveraging the full capabilities of the Executive Branch.

In 2014, for example, the Department of Commerce's SelectUSA, with engagement from Vice President Biden, was able to secure an investment from the German-based company, Lufthansa Technik, to open a new maintenance, repair and overhaul (MRO) facility this past November in Puerto Rico.

This facility is expected to create 400 permanent jobs and estimated to generate $2.2 billion in economic impact over the next three decades.

I’m pleased to say that Our Federal Highway Administration played a crucial role in this effort by working with the government of Puerto Rico to help identify road infrastructure improvements that support the newly opened facility.

And just this morning the White House announced that additional senior officials from across the Administration will be traveling to the Commonwealth in the coming months to continue promoting economic recovery.

Secretary of the Interior Sally Jewell will be here in April to discuss efforts to strengthen travel and tourism to Puerto Rico.

And Secretary of Agriculture Tom Vilsack will visit in May to highlight USDA's investments in supporting agriculture and rural development in Puerto Rico, and to address climate and drought-related challenges affecting the Commonwealth.

So, the Administration continues to help Puerto Rico attract job-creating investments, secure new funds to accelerate infrastructure projects, and lower energy costs on the island.

But the Administration cannot do this alone – only Congress has the authority to provide Puerto Rico with the robust resources required to lay the foundation for the Commonwealth’s full recovery.

Last October, the Administration released a proposal calling upon Congress to act by restructuring Puerto Rico’s debts, establishing appropriate fiscal oversight, reforming the Commonwealth’s Medicaid program, and granting the territory access to the Earned Income Tax Credit – a proven tool that supports economic growth.

So, I urge Congress to heed this legislative proposal and equip Puerto Rico with these additional tools.

By working together, the federal government can fully provide Puerto Rico with the resources it needs to stimulate further economic recovery and offer a brighter economic future for the 3.5 million American citizens who call this island home.

Thank you very much.

 ###