Ranking Member Grijalva's Opening Statement on the PROMESA Act to Help Puerto Rico
Washington, D.C. – Ranking Member Raúl M. Grijalva (D-Ariz.) delivered the following opening statement this evening at the House Natural Resources Committee markup of the bipartisan bill that addresses the debt crisis in Puerto Rico, the PROMESA Act (H.R. 5278):
“The flag of the United States has flown over Puerto Rico for more than a century.
“Those born on the island are American citizens, and more than 200,000 have served in the United Sates military and their nation, including roughly 10,000 serving today.
“Millions more Americans live on the U.S. mainland, but consider Puerto Rico their home.
“These Americans need our help, and it is our Constitutional responsibility to respond.
“A devastating combination of mismanagement, unfair federal policies, opportunistic and predatory hedge funds, and desperate budget cuts has destroyed the economy on the island.
“The monstrous cost of 70 billion dollars of debt is swallowing the funds needed to provide healthcare, education, transportation, and public safety for the Commonwealth’s families.
“It is estimated that roughly 100,000 people left the island last year to look for better economic opportunities.
“There is no question Congress must act.
“H.R. 5278 is not the bill I would have drafted.
- “The Oversight Board is too powerful; the Board is yet another encroachment on the sovereignty of the people of Puerto Rico and they are right to find it offensive.
- “The provisions undermining minimum wage and overtime rules don’t belong in the bill; what’s worse, they threaten the effectiveness of this legislation.
- “Provisions that should be included, like pension protections, an Earned Income Tax Credit, and funding for Medicaid and a Zika response, are missing.
“Having visited Puerto Rico and having talked to residents on the island, I came away with a sense of urgency – this is a humanitarian crisis and we must respond. These shortcomings are disappointing.
“However, H.R. 5278 includes the tools necessary to get the economy of Puerto Rico on more stable footing.
- “The bill would allow restructuring of all outstanding debt, without placing a finger on the scales to benefit specific creditors.
- “The legislation will require transparent audits, combined with annual fiscal plans and budgets, designed to restore the Commonwealth’s access to credit markets.
- “The bill will temporarily pause the ongoing flurry of litigation to allow the Oversight Board to begin its work and create a space for voluntary negotiations regarding Puerto Rico’s debt.
“The Treasury Department tells us that this combination of provisions can redirect billions of dollars away from debt service and toward improving the quality of life for families on the island.
“Treasury also tells us this legislation can restore the Commonwealth’s ability to borrow more of the funding it needs.
“So here is the bottom line: Puerto Rico is drowning in debt and H.R. 5278 is a lifeline.
“This is the only bill that will attract enough support from our colleagues on the Republican side to pass in a Congress they control.
“Many of the provisions I oppose are the very provisions will probably attract Republican support.
“We have worked for months, across the aisle, and with the Administration, and this is the compromise with the best chance to pass.
“To those on the other side of the aisle who oppose the bill, debt restructuring is a commonly accepted practice, used routinely in the private sector.
“The same kind of relief used to get American Airlines and General Motors on a path to prosperity should be available to the families of Puerto Rico.
“The same kind of debt restructuring used four times by the presumptive Republican nominee for President, should be available to the families of Puerto Rico.
“H.R. 5278 is not a bailout. Take it from me, I wish there was a relief and stimulus package attached to this.
“I wish this bill included a significant federal investment to stimulate the Commonwealth’s dying economy, but it does not.
“Calling this bill a bailout is a lie.
“When measured against a perfect bill, this legislation is inadequate.
“When measured against the worsening crisis in Puerto Rico, this legislation is necessary.
“I plan to support this bill as is tomorrow and urge my colleagues to do the same.”
The Committee will reconvene tomorrow, Wednesday, May 25, from 10:00 a.m. to 12:30 p.m. in 1324 Longworth House Office Building to consider amendments to the bill.
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