WORLD

US Virgin Islands’ housing authority accused of corruption as federal funding is suspended

Jul 20, 2026, 2:17 PM

FILE - A woman and her children walk past debris left by Hurricane Irma in Charlotte Amalie, St. Th...

FILE - A woman and her children walk past debris left by Hurricane Irma in Charlotte Amalie, St. Thomas, U.S. Virgin Islands, on Sept. 10, 2017. (AP Photo/Ricardo Arduengo, File)
Credit: AP Photo/Ricardo Arduengo

(AP Photo/Ricardo Arduengo, File)

SAN JUAN, Puerto Rico (AP) — The U.S. government announced Monday it suspended funding for the U.S. Virgin Islands’ housing authority after an investigation found widespread corruption, as residents still struggle to recover from two major hurricanes that hit nearly a decade ago.

U.S. Housing Secretary Scott Turner said that nine years after the U.S. territory received $1.9 billion in disaster recovery funding, it has spent only $570,000, less than a third of the funds.

He noted that a HUD investigation found “widespread financial mismanagement, inadequate fraud controls, false certifications and improper payments.” The investigation is ongoing.

“This failure has, to date, deprived Virgin Islanders of roughly $1.3 billion worth of assistance that Congress intended them to have,” stated a July 20 letter that HUD sent to the head of the U.S. Virgin Island’s Housing Finance Authority.

The director for the U.S. territory’s housing authority and its spokesperson did not immediately return messages seeking comment. The authority has the right to appeal the suspension by requesting a hearing.

In a post on X, Turner accused officials with the U.S. Virgin Islands’ Housing Finance Authority of prioritizing “kickbacks over helping families recover from disasters.”

The U.S. Virgin Islands was struck by Hurricane Irma, a Category 5 storm, in September 2017. Roughly two weeks later, Hurricane Maria, also a Category 5 storm, struck St. Croix. The U.S. territory is still struggling to recover from the storms.

In a July 20 letter to the head of the U.S. Virgin Islands’ housing authority, HUD said that its “record demonstrates that it is an abysmal steward of taxpayer funds.”

The investigation so far has found that the U.S. Virgin Islands’ housing authority has completed only two of 95 planned single-family rental rehabilitation projects and zero of 329 single and multifamily housing projects.

In addition, the authority had spent only 2% of its electrical grid recovery funding as of May, the investigation found.

Meanwhile, the Virgin Islands housing authority has spent more than half the grant funds slated for administrative costs, according to the letter.

The authority also is accused of seeking $6.2 million in disaster-related funds that the U.S. Federal Emergency Management Agency had already paid.

The U.S. government also noted that the authority’s former chief operating officer who oversaw disaster recovery programs is in federal prison after being convicted on charges including fraud and money laundering.

Turner wrote on X that the former chief operating officer inflated a lumber contract meant to rebuild hurricane-damaged homes from $3 million to $4.5 million and took a $107,000 kickback “and let the lumber rot in the sun, rendering it useless — a waste of taxpayer funds.”

In February, the executive director of the U.S. Virgin Islands’ housing authority resigned as local legislators questioned why some $4.2 million remained idle as a September deadline to use the funds looms.

At the time, Sen. Kurt Vialet accused the former director of “just sitting there with a smug look.”

“The Housing Finance Authority is not building. You can’t be upset at senators being frustrated,” Vialet was quoted as saying by the St. Thomas Source, a local news site.

World

This June 15, 2026, photo from Planet Labs PBC shows Iran's Natanz nuclear enrichment facility, upp...

Associated Press

What to know about Iran’s Pickaxe Mountain, home to an underground nuclear site threatened by Trump

DUBAI, United Arab Emirates (AP) — U.S. President Donald Trump has repeatedly issued threats to bomb an under-construction Iranian nuclear site buried deep under a mountain as the two nations exchange blows over the Strait of Hormuz. The site, known as Kuh-e Kolang Gaz La, or “Pickaxe Mountain,” lies on the south side of Iran’s […]

46 minutes ago

Traders work on the floor at the New York Stock Exchange in New York, Monday, July 6, 2026. (AP Pho...

Associated Press

Asian shares edge higher after Wall Street climb, even as Brent oil keeps rising

TOKYO (AP) — Asian shares were mostly higher Wednesday following a rally on Wall Street, despite concerns about higher oil prices and inflation. Japan’s benchmark Nikkei 225 rose 1.9% to 67,511.12, after the government reported that both imports and exports rose last month from a year earlier, as the weakening yen raised the value of […]

3 hours ago

Outgoing Ukraine's Defense Minister Mykhailo Fedorov speaks during a briefing to journalists in Kyi...

Associated Press

Two very different men are at the heart of Ukraine’s political crisis

KYIV, Ukraine (AP) — One is a tech-savvy drone innovator with no military experience who became Ukraine’s youngest defense minister six months ago and was credited with contributing to successes in defending against Russia’s 4-year-old invasion. The other is a seasoned, Soviet-trained general more at home with traditional top-down command culture who led Ukraine’s armed […]

16 hours ago

Associated Press

Jordan targeted by Iranian drones

DUBAI, United Arab Emirates (AP) — Jordan’s military said Tuesday it had intercepted five drones launched by Iran targeting the kingdom. The military made the announcement through the state-run Petra news agency. It said the interception did not cause casualties or any damage on the ground. Jordan hosts U.S. forces and aircraft in the country, […]

23 hours ago

Lebanese army soldiers stand at a checkpoint in Froun village, southern Lebanon, Thursday, July 16,...

Associated Press

Lebanon’s president will meet with Trump in Washington to push for Israeli troop withdrawal

BEIRUT (AP) — Lebanon’s president will meet with U.S. President Donald Trump on Tuesday to wrap up a four-day visit to Washington, in a bid to bring about long-term calm in the war-torn country after months of war between Israel and the Iran-backed Hezbollah militant group. Joseph Aoun’s landmark meeting with Trump comes as Lebanon […]

1 day ago

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), SK Hynix...

Associated Press

Asian shares mostly gain and South Korea and Japan recover some losses from AI stock sell-offs

HONG KONG (AP) — Asian shares mostly gained on Tuesday, with markets in South Korea and Japan trading higher after recent declines due to heavy selling of stocks linked to artificial intelligence. U.S. futures edged higher, while oil prices slipped. South Korea’s Kospi, which is heavily reliant on AI and chipmaking-related shares, jumped 4.7% to […]

1 day ago

US Virgin Islands’ housing authority accused of corruption as federal funding is suspended