A federally funded mitigation program designed to strengthen the Virgin Islands’ economy and infrastructure is beginning to take shape, with nearly $25 million now tied to projects aimed at helping businesses withstand future disasters.
Funded through Community Development Block Grant – Mitigation dollars allocated by Congress following the 2017 hurricanes, the initiative focuses on reducing risk before the next crisis hits — while keeping businesses operational and communities supported in the meantime.
“This is about prevention,” said Donnie E. Dorsett, who oversees the economic resilience and revitalization component of the program. “How do we keep businesses open, people employed, and services running — even when we’re hit again?”
So far, 26 projects have been selected, representing approximately $24.9 million in funding across a cross-section of the territory’s economy — from small businesses and nonprofits to hotels, farms, and critical infrastructure.
The largest allocations include $6 million for the VI Economic Development Authority and $3.5 million for Our Town Frederiksted, $2.2 million for Royale Systems, LLC to reinforce their telecommunications facility, along with other major investments in hospitality and tourism, such as Concordia Resort Hotel ($1.7 million), King Christian Hotel ($1.6 million), and Hotel 1829 ($1.1 million).
Other awards reflect a broad effort to reach smaller operators and essential services: funding for farms, laundromats, medical providers, restaurants, marinas, auto services, and rescue organizations — each tied to the same core goal of resilience.
Under the program’s two main components — Commercial Hardening and Financing and Small Business Mitigation — projects range from installing storm-rated windows and doors to upgrading communications systems and adding emergency power through generators or solar-plus-battery systems.
Dorsett said those investments are designed to limit disruptions that ripple across the economy during storms or outages.
“If you have power, you’re not just surviving — you’re serving more people,” he said. “You’re keeping staff employed, and you’re supporting the community when it needs it most.”
That approach extends beyond individual businesses. Telecommunications upgrades aim to keep emergency systems online, while maritime improvements — such as reinforcing docks and expanding berths — could help ensure goods and supplies continue moving even if primary ports are impacted.
“We have to expect the unexpected,” Dorsett said. “If larger ports are compromised, smaller private facilities could become critical lifelines.”
The program also ties funding to broader economic impact. A small hotel expansion supported through mitigation dollars, for example, is expected to create new jobs, while improvements to marine infrastructure could increase capacity for charter vessels – bringing additional spending into the territory.
On the small business side, funding is also addressing long-standing operational challenges, from improving security for farmers to enabling mobile payment systems for vendors.
In some cases, applicants have committed to serving the public during emergencies – offering their facilities as distribution sites or temporary shelters.
“We’re looking at the bigger picture,” Dorsett said. “What does this project give back to the community?”
The process to reach this point has taken time. Applications opened in early 2024 and drew roughly 78 submissions, each requiring review, clarification, and technical assistance. Projects are now moving forward in phases, with three already underway and more expected as they complete environmental review.
Dorsett acknowledged that timeline — stretching from application to implementation — has drawn scrutiny, but said the scale of the program and federal requirements demand a deliberate approach.
“Everyone wants to see progress — and rightly so,” he said. “But we also have to ensure every project meets federal requirements and is evaluated fairly.”
In total, the territory has access to roughly $40 million in mitigation funding for this program over a 12-year period, with current efforts focused on getting the initial slate of projects up and running.
If approvals continue on pace, additional projects could begin construction by mid-to-late 2026.
For Dorsett, the goal is not just recovery — but readiness.
“When the next event comes — and it will — we want to be ready,” he said.
