PROMESA imposes unelected fiscal control board
Congress created a 7-member Financial Oversight and Management Board with authority over Puerto Rico's budget, superseding the elected government. Board members are appointed by the U.S. President and congressional leaders — none are elected by Puerto Ricans.
The Law
The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) was signed by President Obama on June 30, 2016. It created an unelected Financial Oversight and Management Board (FOMB) with sweeping powers over Puerto Rico's fiscal affairs.
Powers of the Board
- Approve or reject Puerto Rico's annual budget
- Override the elected governor and legislature on fiscal matters
- Restructure Puerto Rico's debt through a court-supervised process (Title III)
- Impose austerity measures including cuts to pensions, education, and healthcare
- Members cannot be removed by Puerto Rico's government
The Colonial Dimension
Puerto Ricans had no vote in the Congress that passed PROMESA. They have no vote for the President who signed it. They cannot vote for the congressional leaders who appoint the Board members.
The Board has been colloquially called "La Junta" — a term Puerto Ricans use deliberately, invoking the juntas of Latin American authoritarian regimes.
Austerity Measures
Under the Board's oversight:
- Public university budget cut by over $300 million
- Hundreds of public schools closed
- Pension benefits reduced
- Healthcare funding constrained
- Public sector workforce reduced
Sources
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Primary Source
Puerto Rico Oversight, Management, and Economic Stability Act. Public Law 114-187. June 30, 2016.
https://www.congress.gov/bill/114th-congress/senate-bill/2328