This week, the U.S. House passed the “Puerto Rico Oversight, Management, and Economic Stability Act” (PROMESA) with the Florida delegation splitting on odd lines. The bill from U.S. Rep. Sean Duffy, R-Wisc., would let Puerto Rico restructure its $72 billion debt in return for more federal oversight of local affairs.
If Duffy’s proposal, which has the support of President Barack Obama, doesn’t pass, Puerto Rico will default on $2 billion in loans in July. The House passed the measure on a 297-127 vote on Thursday but it hasn’t cleared the Senate.
Majorities of both parties were behind Duffy’s legislation with 139 Republicans and 158 Democrats backing it. Standing against it were 103 Republicans and 24 Democrats.
In the Florida delegation, Republicans Vern Buchanan, Ander Crenshaw, Carlos Curbelo, Mario Diaz-Balart, David Jolly, Rich Nugent, Bill Posey, Ileana Ros-Lehtinen, Dennis Ross and Dan Webster and Democrats Corrine Brown, Kathy Castor, Ted Deutch, Lois Frankel, Gwen Graham, Alan Grayson, Patrick Murphy and Frederica Wilson voted for PROMESA. Standing against it in the Florida delegation were Republicans Gus Bilirakis, Curt Clawson, Ron DeSantis, Jeff Miller, Tom Rooney and Ted Yoho and Democrats Alcee Hastings and Debbie Wasserman Schultz
“Our friends in Puerto Rico, our fellow American citizens, deserve a better future that gives them the chance to achieve prosperity on the island," Curbelo said after the vote on Thursday. “Hundreds of thousands of citizens have left to find better opportunities as a result of the deteriorating economic conditions.
“I was proud to offer an amendment with Rep. David Jolly which passed the House by a voice vote,” Curbelo added. “Our amendment would help to reduce child poverty in Puerto Rico and would require the Congressional Task Force on Economic Growth in Puerto Rico to recommend changes in federal law that would reduce child poverty in the territory.
“I want to thank Chairman Bishop and Representative Duffy, who have shown steadfast leadership in finding practical solutions to address the fiscal crisis in Puerto Rico,” Curbelo concluded. “PROMESA is an important step forward in helping the island mitigate the existing humanitarian and economic emergency in a responsible way.”
Yoho stated his reasons for opposing the measure on Thursday.
“Today, I could not vote for setting up an oversight board to deal with the debt crisis facing Puerto Rico,” Yoho said. “Why would we set up a governing board to restructure debt when the Puerto Rican government was already in the beginning stages of doing this on their own? While the islands finances need to be addressed, this can and should be done between the Puerto Rican government and their creditors. Congress does not need to step in on this issue. Congress instead should focus on our own financial mismanagement so that we are not the mirror image of Puerto Rico in five years.
“The individuals running this U.S. territory were asleep at the wheel for decades and ran their finances into the ground,” Yoho insisted. “A classic example of a governing body working for themselves and not the people they represent. The island is a welfare state that is over-regulated, has unsustainable spending, and welfare programs that pay better than private sector jobs. The island has a population of 3.5 million; 40 percent are on food stamps and roughly 40 percent are not even in the workforce. Setting up an oversight board will not fix the underlying problems that led to this crisis.”
Despite being the chairwoman of the Democratic National Committee (DNC), Wasserman Schultz broke with Obama and most of her caucus on the vote.
“While I applaud the efforts of those who tirelessly worked to create a path for Puerto Rico out of its dire humanitarian and financial crisis, I could not support the bill as written,” Wasserman Schultz said on Friday. “It is extraordinarily disappointing that Speaker Ryan allowed Puerto Rico to wither for months before finally following through on his promise to deliver a bill.
“We have for too long treated Puerto Rico and her residents as second class citizens with laws and policies that disadvantage Puerto Ricans,” she added. “While this bill takes some meaningful steps, ultimately I found certain parts of the bill weighed it down with provisions that were harmful to working people.
“Puerto Ricans have suffered under austerity measures that have included mass layoffs, service cuts, and higher taxes,” Wasserman Schultz continued. “Portions of this legislation could jeopardize important protections for workers’ overtime hours and minimum wage, further hampering their ability to earn a living wage to support their families. By watering down these protections, I fear that this bill would ultimately take more money out of the hands of the hardworking women and men of Puerto Rico and the local economy.
“This bill does not make significant enough changes to ensure that Puerto Ricans are afforded equal access to Federal programs like the Earned Income Tax Credit and Medicare. This equal access would ultimately offer support to individual Puerto Ricans and their families, who are suffering the most under this crisis,” she added.
“While this bill does guarantee some protections for workers and retirees’ accrued pensions, it does not go far enough to protect the hard-earned retirement benefits that so many Puerto Ricans have worked for their entire lives,” Wasserman Schultz concluded. “Puerto Ricans, like all Americans, rely on their pensions for their economic security, and must be afforded the same unalienable rights as every other American citizen.”
