PROMESA Act (2016)

The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), signed into law on June 30, 2016, created a Financial Oversight and Management Board (FOMB) with broad powers over Puerto Rico's fiscal affairs. The board is commonly referred to in Puerto Rico as "la Junta" (the Board) or "la Junta de Control Fiscal" (the Fiscal Control Board).

Key provisions:
- Created a 7-member oversight board appointed by the President and Congress (no Puerto Rican input on selection)
- Gave the board authority to approve or reject Puerto Rico's budgets and fiscal plans
- Allowed for a restructuring process similar to municipal bankruptcy (Title III)
- Imposed a stay on litigation against Puerto Rico
- Authorized the board to override the elected Puerto Rican government on fiscal matters

The board's members are unelected and unaccountable to Puerto Rican voters. They have the power to:
- Reject budgets passed by the elected legislature
- Impose austerity measures including cuts to pensions, education, healthcare, and public services
- Override the governor's decisions on fiscal matters
- Restructure the island's $72 billion debt and $49 billion in pension obligations

Critics point out that PROMESA effectively stripped Puerto Rico's elected government of fiscal sovereignty — the most basic power of self-governance. The bill was passed by a Congress in which Puerto Rico has no voting representation, imposed on a people who had no say in its creation. The board's austerity measures have led to school closures, hospital reductions, pension cuts, and the privatization of public assets.