July 3, 2025 – Washington, D.C. – The Puerto Rico Federal Affairs Administration (PRFAA) announced today that the U.S. House of Representatives has approved the final version of the budget reconciliation bill, known as the One Big Beautiful Bill, completing the legislative process that began on April 10, 2025. The measure now heads to President Trump’s desk for his signature.
As previously announced on Tuesday following Senate approval, the bill does not include any cuts to Medicaid funding for Puerto Rico nor to the Nutrition Assistance Program.
The legislation also includes several key provisions aimed at supporting Puerto Rico’s economic development and social well-being. Among them is the permanent increase to the federal rum excise tax reimbursement (rum cover-over) for Puerto Rico, a policy long championed by Governor Jenniffer González Colón since her time as Resident Commissioner. On February 14, 2025, she secured the introduction of legislation by Representatives Ron Estes (R-Kansas) and Stacey Plaskett (D-U.S. Virgin Islands) to achieve this increase, followed by a companion bill in the Senate filed by Senator Bill Cassidy (R-Louisiana), who has led the effort in past Congresses.
“Governor Jenniffer González-Colón has been a tireless advocate for Puerto Rico throughout the budget reconciliation process. Thanks to her leadership, the Island will receive the rum tax revenues that are rightfully yours. She has fought relentlessly to ensure these funds return to Puerto Rico and has maintained constant communication with me throughout the entire process. There is no greater champion for the people of Puerto Rico than Jenniffer González-Colón,” stated Congresswoman Lisa McClain, Chair of the House Republican Conference.
The One Big Beautiful Bill includes tax relief for individuals and families, such as the permanent increase of the Child Tax Credit up to $2,200. It also expands tax incentives for investors and businesses through programs such as Opportunity Zones, the Low-Income Housing Tax Credit Program, and the New Markets Tax Credit Program.
The legislation also increases funding to strengthen national security, including resources for the U.S. Coast Guard and U.S. Customs and Border Protection (CBP), both of which play a critical role in safeguarding Puerto Rico’s maritime borders in the Caribbean.
PRFAA also clarified that the bill does not raise the maximum number of credits required to receive Pell Grants, nor does it reduce this benefit. In fact, it adds supplemental funding to prevent a fiscal cliff in the program. Additionally, it establishes for the first time the Workforce Pell Grant Program, which expands eligibility to students enrolled in short-term career programs, including technical and vocational training.
Puerto Rico also stands to benefit from increased funding in the bill for federal grant programs supporting state and local law enforcement agencies, including Operation Stonegarden, the Byrne Justice Assistance Grant (JAG) Program, and the COPS Program.
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