Puerto Rico Debt-Crisis Plan Passes House in Bipartisan Vote
- Senate said to plan action before July 1 bond payment deadline
- Obama, Ryan, Treasury secretary made the case for passage
What Does Debt Plan Mean for Puerto Rico?
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The U.S. House passed a hard-fought, bipartisan compromise designed to stem Puerto Rico’s worsening debt crisis after months of wrangling and a significant default.
The legislation, passed 297-127 Thursday, would establish a seven-member financial oversight board to manage a restructuring of Puerto Rico’s $70 billion debt and oversee the island’s finances. The commonwealth racked up the debt after years of borrowing to cover operating costs. The plan envisions the largest federal intervention into the island’s fiscal affairs since it became a U.S. territory in 1898 after the Spanish-American War.