Policy Brief | Revitalizing Economic Development in U.S. Territories

This policy brief examines the long-term economic challenges facing the United States’ inhabited territories, including Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, and the Northern Mariana Islands. Using the U.S. Virgin Islands (USVI) as a case study, the brief explores how economic concentration, aging infrastructure, disaster vulnerability, and heightened federal risk perceptions have contributed to fiscal instability, population decline, and limited investment across territorial economies.

The brief provides a concise, evidence-based framework for federal policymakers and territorial leaders seeking to strengthen economic resilience and reduce long-term dependency on tourism-driven economies. It highlights how modernizing federal funding models, pairing oversight with hands-on technical assistance, and strengthening territorial project execution can unlock sustainable economic growth. Particular attention is given to practical diversification opportunities in sectors such as logistics, renewable energy, infrastructure development, and ocean-based industries, while emphasizing the importance of phased project delivery and credibility-building in territorial governance.