Politicshouse republicans working on plan to help puerto ricohouse republicans puerto ricoPuerto Rico

House Republicans Are Working On A Plan To Help Puerto Rico

And Democrats say GOP leaders are negotiating in good faith.
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By 

Senior Politics Reporter, HuffPost

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House Speaker Paul Ryan (R-Wis.) has been supervising an effort by House Republicans to help Puerto Rico emerge from its debt crisis.
Bloomberg/Getty Images

Politicians in Washington are coalescing around a financial plan to rescue Puerto Rico, just weeks before an expected major default on bond payments that would spread more turmoil through the island’s shaky economy.

The plan, being drafted as legislation by House Republicans, would not grant Puerto Rico’s most fervent request: permission to restructure its entire $72 billion debt in bankruptcy. It would, however, give the island certain crucial tools that bankruptcy proceedings can offer — but only if it first comes under close federal oversight and meets other conditions.

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Before You Go

Puerto Rico's Debt Crisis
Puerto Ricans Are Americans(01 of09)
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Despite the media constantly labeling Puerto Ricans living in the states as "immigrants," everyone born on the island holds a U.S. passport and is an American citizen. Yet the 3.7 million citizens that currently remain on the island are not eligible to vote for president. (credit:SAUL LOEB/Getty Images)
Mainland Americans Hold Puerto Rico's Debt(02 of09)
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(credit:Mat McClain/The Washington Post via Getty Images)
Puerto Rico Will Matter in 2016(03 of09)
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Despite their ineligibility to vote for president on the island, how presidential candidates approach Puerto Rico's economic crisis could influence the 2016 election. The island participates in both the Democratic and Republican primaries and awards delegates that go towards each party's eventual nominee. During a visit to the island in April, former Republican presidential hopeful Jeb Bush pushed for Puerto Rican statehood. "Puerto Rican citizens, U.S. citizens, ought to have the right to determine whether they want to be a state. I think statehood is the best path, personally," Bush told the crowd at Universidad Metropolitana de Cupey in San Juan. (credit:Alvin Baez / Reuters)
Mainland America Is Facing Similar Problems(04 of09)
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Though Puerto Rico faces more serious economic issues than the rest of 50 U.S. states, some trends found in Puerto Rico can be easily be seen in the states, including contraction of the manufacturing industry, weaker job security, difficulty reversing unemployment, fewer public services and the decline of the middle class. (credit:Alvin Baez / Reuters)
Puerto Rico Cannot Declare Bankruptcy(05 of09)
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Regardless of party, Puerto Rico's political leaders largely agree that the island should enjoy the same protections extended to the rest of U.S. under Chapter 9 of the bankruptcy code. Puerto Rico's inability to seek economic relief under Chapter 9 makes renegotiating its debt much harder.

(credit:Bloomberg via Getty Images)
Hillary Clinton Supports Bankruptcy Rights For Puerto Rico(06 of09)
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"Congress should provide Puerto Rico the same authority that states already have to enable severely distressed government entities, including municipalities and public corporations, to restructure their debts," Democratic presidential candidate Hillary Clinton wrote in a statement on her campaign's website.

"We're not talking about a bailout, we're talking about a fair shot at success," Clinton added.

(credit:Justin Sullivan/Getty Images)
Puerto Rico Cannot Devalue Its Currency(07 of09)
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As a last resort, independent countries will sometimes turn to devaluing their currency in order to kickstart economic growth. Due to its status as a U.S. territory and its use of the dollar, Puerto Rico is unable to make this choice. (credit:Bloomberg via Getty Images)
Washington Will Not Bail Out Puerto Rico(08 of09)
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The Obama administration will not be saving Puerto Rico anytime soon. The White House publicly ruled out aid packages that would keep the island from defaulting. U.S. Treasury officials have offered advice to Puerto Rico on on how to help manage its debt crisis, but have not offered concrete solutions. Currently, the administration has lobbied Congress to pass existing legislation designed to extend bankruptcy protections to the island. (credit:David F. Gasser/CON via Getty Images)
Puerto Ricans Can't Vote In Congress(09 of09)
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Puerto Rico doesn't have a vote in Congress. Resident Commissioner Pedro Pierluisi, Puerto Rico's lone representative, can submit legislation to the rest of the body but cannot vote on it. (credit:Bill Clark/Getty Images)
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