Ending Puerto Rico’s Economic and Humanitarian Crisis

Puerto Rico is home to 3.5 million American citizens.

Right now, as a result of poor budgetary practices and the failure of Washington to act, our fellow Americans are suffering grave economic hardship. What used to be a fiscal crisis, is turning into a humanitarian crisis and we must act to address it.

We can not allow this to continue. Congress must act immediately to allow Puerto Rico to seek bankruptcy protection, so it can get on a path toward economic recovery and avoid full financial collapse.

DRASTIC MEASURES

As a result of bad fiscal policy and mismanagement over the course of decades, Puerto Rico has racked up $72 billion in debt to creditors, the payments for which are simply too high to repay.

To address this fiscal crisis, Puerto Rico has begun taking drastic measures, including:

• More than 150 public schools have closed.
• A hospital had its electricity temporarily shut off by the power company, because it couldn’t pay its bills.
• The island’s only children’s hospital lacks proper equipment and staff.
• First responders can’t afford the fuel they need for their emergency vehicles.
• Puerto Rico is increasing the retirement age, delaying tax refunds, and slashing spending.

The people of Puerto Rico did not cause this crisis, but they are bearing the brunt of it. If Congress does not act, Puerto Rico will continue to default on its debt, worsening the humanitarian and economic crisis and putting the safety and well-being of these American citizens at an even greater risk.

THE SOLUTION

Along with my colleagues Senator Warren and Senator Blumenthal, I’m introducing legislation to address the long-term debt problem and put Puerto Rico on the path to economic recovery by granting it the ability to seek bankruptcy protection.

This bill would allow Puerto Rico to restructure its debt in a transparent, orderly process just as a business or U.S. city is able to do.

This is not the whole solution, but it is a critical step in preventing Puerto Rico’s full economic collapse.

To be clear, bankruptcy protection is not a bailout, but it will PREVENT a U.S. taxpayer-funded bailout. The American people, whether in Puerto Rico or in our 50 states, did not cause this crisis, they should not be on the hook for ending it.