San Juan, Puerto Rico – August 21, 2025 – Governor Jenniffer González-Colón today announced the first results of the Initiative for Deregulation and Efficient Administration (IDEA). The Governor informed that 12 agencies have already begun repealing 251 regulations, eliminating more than 7,200 pages of obsolete rules that created bureaucratic hurdles, generated legal confusion, and imposed unnecessary requirements that delayed processes to the detriment of citizens. This achievement represents the most comprehensive governmental efficiency reform in decades, with measurable results from its very first stage.

“IDEA is a strategic priority of our administration to modernize government operations, and simplify processes, fostering efficiency, competitiveness, and transparency. The efforts we are leading are meant to transform the way government works —one where the citizen comes first, where agencies are unified, collaboration takes place, digital technology is fully leveraged, deregulation is smart, public service is strengthened, and regional competitiveness is promoted. With IDEA, the Government of Puerto Rico is eliminating burdensome regulations, cutting red tape, adopting responsible technologies, and setting a clear agenda for economic development,” said Governor González-Colón.

Efficiency Coordinator Veronica Ferraiuoli-Hornedo emphasized that IDEA seeks to transform government operations from the ground up.

“IDEA is not an isolated exercise; it is a structured process that is changing the way the Government of Puerto Rico regulates and operates. Each agency created its own committee composed of representatives from the agency’s legal, technology, and customer service areas, and more than 300 public servants were trained to participate in this effort. We have worked with discipline, data, and standardized processes to ensure that every decision is justified and directed toward improving public management.

“With the repeal of obsolete regulations, we are clearing away decades of accumulated bureaucracy, but we are not stopping there. The next step is to ensure that every new regulation carries a regulatory efficiency certificate, requiring justification for the new regulation, to consider other alternatives, and a cost-benefit analysis. This way Puerto Rico will have a modern regulatory framework that ensures clear rules, simpler processes, and a effective, streamlined government that responds with urgency to its citizens and to the Island’s economic development,” Ferraiuoli stated.

As part of this effort, the Government of Puerto Rico reviewed 4,160 regulations, finding that 90% had not been reviewed in more than five years. In some cases, regulations dated back more than six decades or came from agencies that no longer exist or repealed laws. 2,918 regulations have already been categorized: 807 for immediate repeal, 1,245 for review or consolidation, and 866 to remain in effect. The remaining 1,242 regulations are still under evaluation, including 92 “orphan regulations” from dissolved agencies that nonetheless still appeared as active in the official Department of State’s registry.

Rules and regulations are the framework that set forth how agencies operate and how services are delivered to the public. When left unreviewed for decades, accumulating amendments upon amendments, processes are slower, more confusing, and more costly. That is why IDEA began with a regulatory cleanup: eliminating outdated regulations that unnecessarily complicated procedures and replacing them with clear, simple, and modern standards. The effort is already yielding results.

●      In the housing sector, for example, the Housing Finance Authority (AFV, for its Spanish acronym) eliminated a 546-page regulation full of amendments that made it virtually incomprehensible for a family seeking financing or assistance. While the regulation had already been replaced with updated rules, it was still active —an example of the excessive and confusing burden faced by citizens and developers. The elimination of this regulation means less paperwork, fewer steps, and accessible processes.

●      Similarly, the Department of Health repealed archaic regulations related to leprosy and midwives, ensuring that services are governed by modern scientific standards and without unnecessary administrative steps.

Secretary of Health Dr. Víctor Ramos Otero emphasized:

“The Department of Health participated in a historic process of reviewing and eliminating obsolete regulations that, although once relevant, no longer serve any purpose in the current reality of administrative processes or service delivery. Among these were provisions related to conditions such as leprosy, for which treatment and control are now governed by scientific and clinical standards very different from those of decades ago. It is important to highlight that this regulatory cleanup did not in any way affect safety or public health. On the contrary, it ensured that current regulations respond to real needs, based on evidence and modern science, to serve our population quickly and effectively. This effort constituted a historic initiative that relentlessly attacked bureaucracy and reaffirmed our commitment to a health system that is more efficient, transparent, and focused on Puerto Rico’s true priorities.”

Other agencies are also showing concrete results:

●      The Department of Education has begun reviewing administrative and school regulations to modernize key regulations for the functioning of the educational system.

●      The Secretary of the Department of Economic Development and Commerce Sebastián Negrón-Reichard (DDEC, for its Spanish acronym) emphasized how this effort strengthens competitiveness and investment on the Island by simplifying processes and aligning rules with the needs of productive sectors.

“The repeal of 87 regulations—58 from DDEC and 29 from the Puerto Rico Industrial Development Company (PRIDCO)—represents a 67% reduction of all active regulations, marking a milestone in our commitment to make Puerto Rico a truly competitive jurisdiction for doing business. Global investors consistently identify excessive bureaucracy as one of the main barriers to investment. This initiative directly addresses that concern, streamlines processes and removes unnecessary obstacles. We are sending a clear message: Puerto Rico is transforming into the preferred destination for investment, where establishing and expanding operations is not only possible but efficient and attractive,” said Secretary Sebastián Negrón-Reichard.

Likewise, the Office of the Commissioner of Financial Institutions (OCIF, for its Spanish acronym) adopted a new regulation that consolidated eight previous rules in the financial system. The consolidation provides clearer rules for both banks and clients, reducing risks and expediting responses.

“At OCIF we consolidated six regulations and two circular letters that were obsolete. Thus, we developed a new banking regulation that represents a significant step forward in terms of clarity, coherence, and regulatory relevance. This updated regulation addresses important regulatory gaps and aligns its provisions with the operational reality of modern banking and with the requirements of federal regulators,” explained Commissioner Mónica Rodríguez-Valle.

In total, 12 agencies have formally begun the repeal process: the Fiscal Agency and Financial Advisory Authority, the Puerto Rico Convention District Authority, Housing Finance Authority, Puerto Rico Industrial Development Company, Department of Economic Development and Commerce, Department of Education, Department of Recreation and Sports, Department of Health, Office of the Commissioner of Financial Institutions, Office of the Commissioner of Insurance, Office of the Special Independent Prosecutor’s Panel, and the Office of Management and Budget. This first stage reduced the average age of regulations from 22 to 16 years and lowered from 90% to 54% those that had gone more than five years without review.

As part of its broader modernization agenda, the Government of Puerto Rico is also working on the Island’s first government-wide Artificial Intelligence (AI) Policy, which will establish uniform criteria for the ethical, safe, and transparent use of these technologies in public services. This policy will provide governance structures in each agency, data protection measures, transparency for citizens regarding the use of AI in service processes, and the obligation to maintain human oversight in critical decisions.

The Puerto Rico Innovation and Technology Service (PRITS) will be responsible for monitoring compliance and auditing the AI systems adopted by agencies.

“With the implementation of the Artificial Intelligence Policy in the Government of Puerto Rico, which reflects Governor Jenniffer González-Colón’s programmatic commitment, we are establishing a solid framework that promotes the responsible use of AI. Our goal is to ensure that innovation is aligned with principles of transparency, accountability, and ethics, while protecting the rights of our citizens. This policy, supported by standard operating procedures, not only facilitates the adoption of advanced technologies but also ensures that every AI system is properly evaluated and supervised, building public trust in the use of artificial intelligence in our agencies,” said PRITS Executive Director Martín Jiménez.

The Initiative for Deregulation and Efficient (IDEA) was established by Executive Orders OE-2025-009 and OE-2025-023, as part of Governor González-Colón’s vision to modernize government operations and break with a bureaucratic model that for years slowed down Puerto Rico’s economic development with burdensome regulations, duplicated processes, and slow, inefficient services.

IDEA’s implementation is supported by three administrative orders that:

●      Established the guiding principles of efficiency and smart deregulation.

●      Ordered a massive review of regulations across all agencies with specialized committees.

●      Promoted technological integration and platform interoperability.

IDEA is driven by six guiding principles: Citizen FIRST, ONE Government, eGOV Next, SmartRules, ServeWell, and RegionRise.

Each government agency has a committee composed of representatives from legal, technology, citizen service, and compliance areas. These committees are responsible for classifying regulations, recommending actions, and ensuring that each decision is aimed at simplifying citizens’ lives and improving public sector productivity.

For the first time, the Government of Puerto Rico has established a uniform regulatory review process with clear metrics and measurable results. This not only eliminates outdated rules but also creates a governance framework that prevents the system from once again accumulating obsolete regulations.

With this effort, the Government of Puerto Rico opens a new chapter in its management, leaving behind decades of bureaucracy and projecting a state apparatus that is agile, efficient, and aligned with the needs of its people.