42 Members of Congress Say Altering Oversight Law Would Create Confusion, Slow Hurricane Recovery

Congressional Documents & Publications

Washington, DC - With Congress expected to consider additional funding for Puerto Rico's disaster recovery in coming weeks, Members of Congress are signaling opposition to altering the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). In a letter sent today to Speaker Paul Ryan (R-WI) and the Chairs of the Natural Resources and Appropriations Committee, 42 Members of Congress argued that changing the authorities of the Island's Oversight Board could spur confusion and uncertainty, impeding hurricane recovery.

"PROMESA was the product of painstaking, bipartisan negotiations and reopening the Act now would not benefit the Island, but sow confusion and potentially harm Puerto Rico's physical and economic recoveries," said Rep. Nydia M. Velazquez (D-NY) who spearheaded the letter. "The Oversight Board was established for the very specific purpose of addressing Puerto Rico's debt and economic issues and changings its powers now would not benefit the Island's recovery from Maria. Instead, the federal government must work with Puerto Rico's elected officials to provide immediate hurricane relief and tools for longer term rebuilding."

The full text of the letter is below. For a PDF, go to: https://velazquez.house.gov/sites/velazquez.house.gov/files/12012017%20Letter%20on%20Board%20Powers.pdf.

December 1, 2017

The Honorable Paul Ryan

Speaker

H-232 The Capitol

Washington, DC 20515

The Honorable Rob Bishop

Chairman, Committee on Natural Resources

123 Cannon Building

Washington, DC 20515

The Honorable Rodney Frelinghuysen

Chairman, Committee on Appropriations

2306 Rayburn House Office Building

Washington, DC 20515

Speaker Ryan, Chairman Bishop and Chairman Frelinghuysen:

In the coming weeks, Congress will consider supplemental appropriations legislation for areas affected by recent hurricanes, including Puerto Rico. Nearly two months after Hurricane Maria made landfall, the Island is still struggling to regain any sense of normalcy. While some progress has been made, the lack of a stable energy grid and the destruction of housing and key infrastructure will require years to rebuild. As with Texas post-Harvey and Florida post-Irma, Puerto Rico will require substantial federal investment.

Unfortunately, recent congressional hearings concerning the Island have centered on the mistrust of Puerto Rico's government and the potential need to provide the Oversight Board established under Title I of PROMESA (48 U.S.C. [Sec.]2121) with additional authorities. We agree that taxpayers must have confidence in the rebuilding of Puerto Rico, which requires transparency and accountability; however, a move by Congress to reopen PROMESA and broadly expand the Board's powers would be a mistake. The Board's statutory mission is to oversee the Island's finances and provide a pathway for debt restructuring (which is well underway), not to operate a parallel government that could stymie and complicate recovery efforts.

Given that PROMESA has only been law for 17 months, we should instead be allowing the Board to use the tools it has been provided rather than tinker with its authorities. Reopening PROMESA and broadly expanding its powers will only further confusion as to the role of Puerto Rico's elected government vis-a-vis the Board. At a time when the Island needs all resources focused on recovery efforts, wholesale changes to PROMESA and the Board are the last things Puerto Rico needs to be dealing with right now.

For this reason, we urge you to not amend PROMESA. While this legislation was far from perfect when it was signed into law, it was the product of many tough months of bipartisan negotiations. As a result, we believe the Board already possesses the necessary tools to oversee the Island's finances and, when combined with the federal government's existing authorities regarding the use of disaster funds, should be sufficient to protect U.S. taxpayers' interests.

Sincerely,

Nydia M. Velazquez Raul Grijalva Luis V. Gutierrez