Federal agencies recorded approximately $1.54 billion in financial obligations associated with the U.S. Virgin Islands during fiscal year 2026, with disaster assistance, Social Security benefits, healthcare funding and other federal programs accounting for much of the money, according to newly reviewed federal spending records.
Data published by the U.S. Department of the Treasury through USAspending.gov identify 1,593 prime awards associated with the territory during the fiscal year that began October 1, 2025, and ended September 30, 2026.
The obligations include approximately $926 million in federal grants, $560.7 million in direct payments, $50.2 million in contracts, $1.4 million in the recorded cost of federal loans and $882,276 in other financial assistance.
Grants represented approximately 60 percent of the total, while direct payments accounted for another 36 percent.
The figures provide a broad picture of federal financial activity associated with the territory, but they do not mean that $1.54 billion was deposited into the Government of the Virgin Islands' accounts. The total includes commitments to government entities, benefits associated with individual recipients, and payments for goods and services.
Under the Treasury's accounting definitions, an obligation represents a federal commitment to spend money, while an outlay occurs when funds are actually paid.
Homeland Security and Social Security Lead Federal Obligations
The U.S. Department of Homeland Security accounted for the largest share of federal obligations associated with the territory, recording approximately $509.1 million, or 33.08 percent of the total.
The Social Security Administration followed with $442.49 million, representing 28.75 percent.
The Department of Health and Human Services recorded $220.98 million, followed by the Department of Agriculture at $88.89 million and the Department of Housing and Urban Development at $71.76 million.
Together, those five agencies accounted for approximately $1.33 billion in federal obligations, or nearly 87 percent of the territory's reported total.
The federal data also identify the programs responsible for substantial portions of those commitments.
Disaster Grants–Public Assistance, a Federal Emergency Management Agency program supporting eligible recovery work following presidentially declared disasters, accounted for approximately $475.04 million.
Social Security retirement insurance represented another $387.55 million, while Medicaid grants accounted for approximately $163.83 million.
Federal nutrition assistance listed under the Supplemental Nutrition Assistance Program accounted for $60.81 million. An Environmental Protection Agency program supporting insular-area environmental activities accounted for $44.12 million.
Those categories illustrate the range of federal financial activity in the territory, from infrastructure reconstruction and healthcare services to retirement income and household food assistance.
VI Government Among Largest Recipients
The federal database identifies the Government of the Virgin Islands as the largest individually named recipient, with approximately $494.93 million in obligations.
The V.I. Department of Health was separately listed with $198.14 million, followed by the Department of Human Services at $85.70 million and the Executive Office of the Government of the Virgin Islands at $54.74 million.
Another $451.42 million appears under a federal reporting category labeled "Multiple Recipients," reflecting awards that are not attributed to one individually named recipient in the summary.
Federal database identifies award recipients and program obligations, not necessarily the amount of money that has entered the territorial government's operating accounts.
Grants can also be administered by one government entity before funding is distributed to contractors, service providers or other beneficiaries.
Fiscal 2026 Commitments Far Below 2025
The approximately $1.54 billion recorded for fiscal 2026 is substantially below the roughly $10.7 billion in federal obligations associated with the Virgin Islands during fiscal 2025.
That difference, however, should not be interpreted as evidence that the federal government withdrew more than $9 billion in previously committed funding.
The earlier fiscal year included unusually large disaster-recovery obligations. Federal spending records attribute approximately $9.7 billion in FY2025 commitments to disaster public assistance, largely through FEMA.
Such obligations can be recorded when federal agencies approve funding for projects that will take several years to design, procure and complete.
Consequently, major reconstruction projects approved in one fiscal year may continue receiving payments and undergoing construction in subsequent years without an equivalent amount of new funding being obligated annually.
The territory's Office of Disaster Recovery separately reported approximately $24.55 billion in cumulative disaster-recovery obligations as of August 31, 2026, while expenditures stood at approximately $4.89 billion.
Those figures cover the broader disaster-recovery portfolio over multiple years and should not be added to the FY2026 USAspending total. They illustrate the considerable difference between federal funding commitments and the money expended as recovery projects advance.
The Government of the Virgin Islands has also been working with federal officials to accelerate reconstruction. In September, territorial officials reported discussions with the White House Office of Management and Budget and FEMA concerning recovery projects and the pace of construction.
How Federal Obligations Are Distributed Across the Islands
The Treasury's geographic records assign approximately $855.9 million in reported obligations to St. Thomas, $281.69 million to St. Croix and $23.58 million to St. John.
Those figures do not establish that residents or projects on one island ultimately received those precise amounts.
Federal reporting uses the primary place of performance associated with an award. In some cases, funds administered from a central government office may support projects or services elsewhere in the territory.
The three island-specific totals also do not account for the entire $1.54 billion, underscoring the limitations of using the geographic summaries as a complete measure of funding distribution.
Obligations and Actual Payments Are Different
In addition to the reported commitments, USAspending.gov displays approximately $2.3 billion in outlays associated with its FY2026 territorial reporting view.
The larger outlay figure does not mean that $2.3 billion in new awards was issued during the fiscal year.
Federal payments can follow commitments made in previous years, particularly for large infrastructure and disaster-recovery projects. The two figures therefore measure different aspects of federal spending and should not be treated as interchangeable.
The database also identifies 53 loan awards with a combined face value of approximately $56.2 million, even though their recorded federal subsidy cost is about $1.4 million. The subsidy-cost figure reflects the estimated cost to the federal government rather than the total principal value of the loans.
The numbers remain subject to revisions as federal agencies update their reporting. The Congressional Research Service has also cautioned that federal award databases can contain reporting delays, incomplete information and inconsistencies.
For the Virgin Islands, the records nevertheless establish the substantial role federal programs continue to play in disaster recovery, healthcare, retirement benefits, nutrition assistance and public services.
They also point to a separate measure of federal financial performance: how quickly money already committed to the territory is converted into completed projects, delivered services and actual expenditures.
