La Fortaleza, Puerto Rico – March 8, 2026 – Governor Jenniffer González-Colón announced today that the federal government has recognized the significant progress made by the Puerto Rico Department of Education and has established an official pathway for the phased removal of the Third-Party Fiduciary Agent (TPFA), commonly referred to as the federal fiduciary, currently overseeing the management of federal funds within the agency.

The determination follows extensive work undertaken since the beginning of the current administration to strengthen administrative controls, financial processes, and the management of federal grants across Puerto Rico’s public education system.

According to official communication from the U.S. Department of Education (USDE), the Puerto Rico Department of Education has demonstrated substantial progress in implementing its Comprehensive Corrective Action Plan (CCAP), addressing key areas such as internal payroll controls, human resources management, procurement, contracting, and federal grant administration.

As a result of these advances, the federal government indicated that a transition process will begin to gradually eliminate the role of the fiduciary agent while the Department of Education assumes full responsibility for its administrative and financial functions.

Governor González-Colón emphasized that this milestone reflects sustained efforts both in Puerto Rico and in Washington, and highlighted the positive impact it will have on school communities across the Island.

“This step represents a historic achievement for Puerto Rico. We have worked with determination to demonstrate that the Department of Education has the administrative and fiscal capacity to responsibly manage the federal funds intended for our students. Thanks to the efforts carried out both in Puerto Rico and in Washington, where earlier this week I met with U.S. Secretary of Education Linda McMahon to discuss our progress in compliance, we have now set Puerto Rico on a path toward the removal of the federal fiduciary. This also represents annual savings of approximately $32 million, a cost that has already exceeded $150 million for the people of Puerto Rico. These resources can now be redirected to expand direct services for our school communities, strengthening programs, supports, and opportunities for our students and their families,” the Governor stated.

Puerto Rico Secretary of Education Eliezer Ramos Parés noted that the determination acknowledges the institutional progress achieved in recent years and recognized the work of the Department’s teams.

“The decision by the U.S. Department of Education validates the serious and consistent work we have carried out to strengthen our administrative systems, fiscal controls, and internal processes. I am deeply grateful to the teams at the Department of Education who have met these requirements in record time, demonstrating efficiency, commitment, and transparency at every stage of this process. Our priority has been to build a strong institutional structure that guarantees the responsible use of federal funds and ensures the continuity of educational services for our students,” Ramos Parés said.

“The U.S. Department of Education appreciates the dedication of Governor Jenniffer González-Colón and her administration, as well as the Puerto Rico Department of Education’s efforts to strengthen key operations in the management of its schools. PRDE’s commitment to reducing bureaucracy aligns with the Department’s goal of returning education authority to states and territories, saving taxpayers millions of dollars, and ultimately expanding educational opportunities for families across Puerto Rico.” said Murray Bessette, Principal Deputy Assistant Secretary at the U.S. Department of Education.

The Puerto Rico Department of Education has completed 99 percent of the Comprehensive Corrective Action Plan (CCAP), the primary framework used to evaluate the removal of the TPFA. The remaining component involves the hiring of a small number of positions as part of the Department’s administrative realignment, which is expected to be completed next month. This includes the appointment of a Chief Financial Officer (CFO), fulfilling one of Governor González-Colón’s campaign commitments to ensure the effective management of both federal and state funds.

As part of the process, the federal government has requested that the Department of Education submit a transition plan by March 30, 2026, detailing how the functions currently performed by the fiduciary agent will be gradually transferred to the Department’s administrative structure.

During this period, and at a significantly reduced cost, the fiduciary agent will continue providing oversight and technical assistance while the transition is completed, with the goal of Puerto Rico fully assuming these responsibilities once compliance with federal standards is confirmed.

Officials indicated that this step represents a significant milestone in strengthening the institutional capacity of Puerto Rico’s public education system, as well as the government’s ability to efficiently manage federal resources dedicated to the education of thousands of students across the Island.

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