Governor Albert Bryan Jr. of the U.S. Virgin Islands has expressed strong disapproval of the Department of Housing and Urban Development (HUD) after it halted procurements linked to the territory’s housing finance authority. This decision stems from worries about potential fraud and misuse of nearly $2 billion designated for disaster recovery efforts.
Bryan, affiliated with the Democratic Party, described HUD’s action as “shocking” and criticized their communication as “unprofessional.” He believes the narrative around disaster recovery challenges in the Virgin Islands has been “sensationalized” and feels HUD’s response is “going too far.”
He noted during a local media interview, “When I go to Washington, I don’t go to see you. [HUD or FEMA] We don’t have any problems, so we won’t do it again.” He was speaking about a public briefing in Charlotte Amalie.
Minnesota in the Caribbean?
At one point in his remarks, Bryan suggested that the timing of HUD’s announcement could be a “political stunt” coinciding with early voting in the territory’s contentious gubernatorial race. He also raised questions about the timing of the information being shared, particularly noting why it was coming to light now.
Regarding HUD’s decision, he stated, “We are going to appeal. [HUD’s suspension] and we’ll get to the bottom of what’s driving these harsh moves in the Virgin Islands.”
Trump Administration’s Broader Actions
Interestingly, the Trump administration has recently raised concerns over similar issues, suspending over $1 billion in Medicaid payments to various states, including California and Minnesota, due to fraud and compliance issues.
While responding to inquiries about HUD’s findings, Bryan indicated that the audit referenced in HUD’s cease-and-desist letter had been completed long ago. However, another HUD report dated March 2025 highlighted ongoing deficiencies in the Virgin Islands Housing Finance Authority’s risk management practices.
During a press exchange, a reporter suggested that the territorial government had been “blindsided” by HUD’s letter and the ensuing media coverage, a notion Bryan acknowledged.
He stated that the identified issues had been known for quite some time and asserted that significant steps had already been taken to address them. “According to the Virgin Islands Housing Finance Authority, significant remedial action has already been taken in the years since many of these findings were first identified,” Bryan added.
He also emphasized the crucial need for a measured approach, saying, “It’s important that we handle this process in a manner that protects the people of the Virgin Islands and does not unnecessarily disrupt critical housing and disaster recovery programs.” Bryan mentioned that he had acknowledged VIHFA’s “weaknesses” early in his administration.
“We’ve done a lot of work to confirm that the HFA has capacity. The first three years of my administration focused on capacity planning… which they feel significantly slowed down recovery,” he explained.
The suspension by HUD corresponds with a broader initiative by the Trump administration aimed at curtailing taxpayer fund abuse, with HUD Secretary Scott Turner taking an active role in these efforts. Bryan’s office has been reached for further comments on the matter.
