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PRFAA

PUERTO RICO FEDERAL
AFFAIRS ADMINISTRATION

PRFAA

GOVERNMENT OF PUERTO RICO

Governor and Secretary of Education Announce U.S. Department of Education Approval of Transition Plan to End Third Party Fiduciary Agent Oversight

March 26, 2026

La Fortaleza, Puerto Rico – March 26, 2026 Puerto Rico Governor Jenniffer González-Colón and Puerto Rico Secretary of Education Eliezer Ramos-Parés announced that the U.S. Department of Education (USDE) has approved the transition plan submitted by the Puerto Rico Department of Education to remove the Third Party Fiduciary Agent (TPFA), which is scheduled for November 20, 2026.

This approval provides a roadmap for an orderly, phased exit of the TPFA, allowing processes to continue while preserving the progress achieved.

“We are making history. This achievement marks a significant milestone for the Puerto Rico Department of Education and recognizes the integrity of our work and our genuine commitment to our system and our students. I am deeply proud of the approval of this plan, which will be carried out to the letter, so that by 2027,we can say that the agency operates without a TPFA. Federal funds are being used in an agile, safe, and effective manner so that the services our students deserve and need can be delivered,” stated Governor González-Colón.

“This approval recognizes our agency’s sustained commitment to the full implementation of the Comprehensive Corrective Action Plan (CCAP), as well as our ability to design and carry out a responsible, structured, and evidence-based transition. The transition plan establishes a phased approach that allows us to assume critical fiscal functions incrementally while ensuring compliance with federal requirements and the system's operational continuity. This was a commitment made by Governor Jenniffer González-Colón’s administration, and it is now becoming a reality, restoring confidence in the work we carry out every day,” saidSecretary Ramos-Parés.

One of the central factors leading to this approval was the creation of a new Compliance Office. This office assumes multiple functions previously delegated to the TPFA, strengthening internal controls, fiscal oversight, and accountability. It also becomes the entity responsible for addressing and channeling all requests and requirements from oversight bodies, including the Office of Inspector General (OIG), the Comptroller, the Single Audit, and other relevant agencies.

USDE’s approval validates the progress achieved by the Puerto Rico Department of Education and its ability to sustain strong administrative and fiscal practices, laying the foundation for greater operational autonomy and more efficient management of public resources for the benefit of Puerto Rico’s students and school communities.

“The exit of the TPFA also represents annual savings of approximately $32 million, which has already cost Puerto Rico taxpayers more than $150 million. These resources can now be redirected to expand direct services to our school communities, strengthening programs, support, and opportunities for our students and their families,” the Governor added.

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