Virgin Islands Governor Responds to HUD Suspension
Governor Albert Bryan Jr. of the U.S. Virgin Islands has criticized the Department of Housing and Urban Development (HUD) following its suspension of procurements involving the territory’s housing finance authority. HUD raised concerns about fraud and abuse related to nearly $2 billion in disaster-recovery aid.
Governor Bryan expressed surprise at the decision, labeling HUD’s letter as “unprofessional.” He argued that issues related to disaster recovery in the U.S. Virgin Islands have been exaggerated and termed the suspension an “overreach.” Bryan stated, “When I go to Washington, I don’t visit [HUD or FEMA] anymore because we don’t have any problems,” during a public briefing in Charlotte Amalie.
Suspension Timing Questioned
Governor Bryan suggested that the timing of HUD’s decision might be politically motivated, coinciding with the start of early voting in the territory’s gubernatorial election. Bryan is serving the final term of his governorship.
“[W]hy does the press have it and why does Fox News in particular have it and why are we only hearing about this now?”
This remark came after Fox News Digital exclusively reported the suspension. Bryan mentioned plans to appeal the decision and investigate the motives behind HUD’s actions.
Concerns Over Audit Findings
During the press conference, Bryan responded to inquiries about an audit referred to in HUD’s suspension notice. A reporter highlighted a separate HUD report noting that the Virgin Islands Housing Finance Authority’s risk management practices were inadequate as recently as March 2025.
Bryan admitted the territorial government felt “blindsided” by HUD’s letter and subsequent press coverage. He noted that concerns addressing a $6.2 million cost were already resolved years prior.
Recovery Project Challenges
Governor Bryan reviewed a letter from Andrew Hughes, a deputy to HUD Secretary Scott Turner, and claimed significant progress in several recovery projects. He cited Magen’s Bay as an example, a popular beach on St. Thomas.
Bryan acknowledged challenges related to recovery project costs, stating that expenses for public housing units frequently exceed national standards. “We’ve had to send out bids multiple times because the costs are not aligning with what the national standards are,” he said.
Corrective Actions Taken
In a separate statement, Bryan affirmed that significant corrective actions were undertaken by the Virgin Islands Housing Finance Authority in the years following the initial findings.
“According to the Virgin Islands Housing Finance Authority, significant corrective actions have already been undertaken in the years since many of those findings were first identified.”
Bryan emphasized that the suspension process must safeguard the residents of the Virgin Islands and avoid unnecessary disruptions to essential housing and disaster recovery initiatives.
Governor Bryan also noted previous efforts to improve the capabilities of VIHFA, citing “capacity planning” during his administration’s early years. HUD’s suspension aligns with ongoing efforts by the Trump administration to eliminate fraud and abuse of taxpayer funds.