Virgin Islands Governor Criticizes HUD Suspension over Disaster-Recovery Aid Concerns

Virgin Islands Governor Albert Bryan Jr. expressed strong disapproval of the U.S. Department of Housing and Urban Development (HUD) after it suspended procurements involving the territory’s Housing Finance Authority. The suspension arose due to concerns of fraud and abuse related to nearly $2 billion in disaster-recovery funds.

Bryan, a Democrat, labeled HUD’s actions as surprising and described the agency’s communication as “unprofessional.” He argued that the concerns over disaster-recovery issues have been exaggerated and termed the suspension as an “overreach.”

During a public briefing in Charlotte Amalie, Bryan stated, “When I go to Washington, I don’t visit [HUD or FEMA] anymore because we don’t have any problems.” His remarks were prompted by questions from local media about the impact of HUD’s suspension.

“Why does the press have it and why does Fox News in particular have it and why are we only hearing about this now?”

Bryan suggested the timing of the announcement might be a “political stunt” linked to early voting in the territory’s gubernatorial election. He indicated plans to appeal the suspension to uncover the motives behind HUD’s actions.

HUD’s suspension relates to an audit that was cited in their notice. A reporter pointed out that a separate HUD report noted deficiencies in the Virgin Islands Housing Finance Authority’s risk management practices as recently as March 2025. Bryan agreed that the territorial government was “blindsided” by HUD’s notification and subsequent media coverage.

Bryan defended the territory by stating some issues related to recovery projects are tied to costs, noting that public housing units can cost up to $1 million. He explained that bids have been repeatedly sent out as costs were not aligning with national standards.

In an official statement, Bryan highlighted that many issues outlined in HUD’s letter were known and had been addressed over the years. According to Bryan, the Virgin Islands Housing Finance Authority has already implemented significant corrective actions since the findings.

He emphasized the necessity for handling the situation in a way that safeguards the citizens of the Virgin Islands without unnecessarily disrupting important housing and disaster-recovery programs.

Bryan acknowledged progress in recovery projects, claiming significant improvements have been made in various areas, including Magen’s Bay, a renowned calm-water beach on St. Thomas.

HUD’s suspension coincides with Scott Turner’s leadership role in the White House Task Force to Eliminate Fraud. This forms part of the Trump administration’s broader efforts to minimize misuse of taxpayer funds.