Following a report on policy proposals to grow Puerto Rico’s economy, U.S. Rep. Sean Duffy (R-WI) said Congress should consider giving Puerto Rico equal treatment under federal laws to put the territory on a long-term path to financial stability.
The bipartisan Congressional Task Force on Economic Growth in Puerto Rico, which Duffy is a member of, released the final report to fulfill a requirement of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA).
Puerto Rico continues to struggle under the weight of more than $118 billion of debt in the form of bonds and unfunded pension liabilities. Because of its fiscal crisis, the American territory has cut public utilities, closed schools and hospitals, and skipped large payments on its debt. Almost half of the island’s population lives in poverty, and the unemployment rate is more than 12 percent, double the average of the 50 states.
“As the author of PROMESA, I care deeply about Puerto Rico’s success and the bipartisan structure that the law created to address the island’s debt crisis,” Duffy said. “However, I am also acutely aware that while PROMESA takes important steps to help improve the short-term financial stability of the territory, more needs to be done to spur economic growth, job creation and investment in Puerto Rico.”
For that reason, PROMESA established the Congressional Task Force on Economic Growth in Puerto Rico.
“I am proud that the task force has worked on a strong bipartisan basis, and I believe our report is a down payment on future actions that Congress and the Trump administration should take to improve federal programs on the island and treat Puerto Ricans more equitably under the law,” Duffy said.
Going forward, Congress should give serious consideration to providing Puerto Rico with equal treatment under all federal laws and programs, Duffy said.
Prior to the 1980s, Puerto Rico was treated like a state for the purposes of allowing its municipalities the ability to file for bankruptcy. After a rewrite of the bankruptcy code, Puerto Rico lost access to chapter 9 bankruptcy filings. Duffy has called for restoring Puerto Rico’s access to an orderly debt restructuring process.
“In order for Puerto Rico to re-emerge from its current situation, its leaders must make the hard choices that they have been unwilling to make and work cooperatively with the Oversight Board to balance budgets and grow its economy, starting with a five-year fiscal plan.”
As 2016 draws to an end, Duffy said he’s optimistic that the next year will be better for Puerto Rico.
“I look forward to working with the island’s newly elected leaders to assist in any way I can to make 2017 the year when Puerto Rican families and businesses turn a corner and emerge stronger than before,” Duffy concluded.