The Virgin Islands Office of Disaster Recovery told lawmakers Friday that the territory is intensifying efforts to accelerate disaster recovery, with a renewed focus on contractor performance, transparency, and accountability.
Testifying before the Senate Disaster Recovery, Infrastructure, and Planning Committee, Adrienne L. Williams-Octalien, director of the Virgin Islands Office of Disaster Recovery, highlighted approximately $961 million in newly awarded projects and described how ODR is implementing major recovery programs.
She noted that in 2018, the territory’s recovery was expected to cost $8 billion, but total obligated funding has since increased to $23.9 billion as of January 2025, with $4.1 billion expended to date. The additional $16 billion is earmarked for rebuilding schools, hospitals, housing, roads, and other critical infrastructure.
Williams-Octalien emphasized that ODR’s current priority is accelerating the use of obligated funds through the Rebuild USVI initiative. This strategy consolidates major projects under a Super Project Management Office, designed to improve oversight, cost control, and risk mitigation. “The focus now is on accelerating the expenditure of funds,” Williams-Octalien said.
ODR reported that 1,114 projects are complete, with 50 shovel-ready and 83 under construction. Major contracts have been awarded for school and hospital reconstruction, with phased timelines through 2035.
The 2035 timeline reflects a federal requirement set by FEMA, which mandates that all fixed-cost disaster recovery projects must be completed by that year for the territory to maintain its favorable cost share.
Officials outlined progress on major projects, including new schools, hospitals, and housing repairs. Lawmakers questioned ODR about project timelines, funding deadlines, workforce shortages, and program management. The Envision Tomorrow program, which was a main focus during the hearing, has completed 72 homes, with 104 under construction and a cap of $400,000 per home.
Lawmakers questioned the program’s management, average cost per home, and challenges faced by applicants, including documentation requirements and relocation during repairs.
Sen. Angel L. Bolques Jr. asked about demand and participation. “What is the attrition rate for applicants in the Envision Tomorrow program?” he said. “How many begin the process but then drop out due to some documentation or eligibility issue? Because I’m trying to figure out, is the demand really there?”
Williams-Octalien said most applicants remain engaged despite delays. “When we send letters out, at least 85% are still interested,” she said. “Unfortunately, some have passed away. Some have already fixed their homes because they can’t wait for the program anymore. But the overwhelming majority of applicants are still waiting.”
The agency has awarded multiple large contracts for new educational facilities, medical centers, and infrastructure bundles across St. Thomas, St. Croix, and St. John. Officials said the territory is using a “super project management office” model to bundle and accelerate complex projects.
ODR expects $22 million in gross receipts tax for fiscal year 2025, with disaster recovery projects providing a vital source of revenue for the territory’s economy. The agency is also working with the Office of Management and Budget to expand revenue projections for the coming years.
On workforce shortages, Sen. Dwayne M DeGraff said: “Do we have an abundance of local subcontractors and crew to address, for the most part, many of the projects that you have?” Williams-Octalien responded: “Senator, no, we don’t have the support for all of the projects … we would need to bring in workers,” who emphasized that ODR is pushing to make sure local contractors are involved.
To address workforce and contractor shortages, ODR is pushing for H-1B visa waivers as well as organizing industry day events on Oct. 27 in St. Thomas and Oct. 29 in St. Croix. These events aim to connect local subcontractors and suppliers with major project opportunities and out-of-territory contractors. “We want the potential subs and anyone who provides supplies or resources to participate and be able to understand how they engage with these contractors,” Williams-Octalien said.
Lawmakers raised concerns about the risk of missing the 2035 deadline and the limited ability of the local community to match the required funds.
As Sen. Hubert L Frederick said, “We know … coming up with the additional funding, we don’t have it. So only us and God can get us through this,” emphasizing how important it was for these recovery processes to be done by 2035 to keep the current cost share.
As the Virgin Islands moves forward with its recovery agenda, officials and lawmakers alike emphasized the importance of continued collaboration, oversight, and community engagement to ensure that critical projects are completed on time and federal funding is fully utilized.
Sen. Marise C James said, “You started out, director, by saying this is a can’t fail program, and I totally agree. The people of the Virgin Islands are dependent on us, not just for buildings and infrastructure, but for a stronger, safer future. It is absolutely critical that the strategies chosen deliver what they promised — transparency, accountability and results. We want to make sure every dollar is justified, every risk is managed, and every opportunity is given to local contractors and workers.”
It has been eight years since Hurricane Irma made landfall in the U.S. Virgin Islands.
