WASHINGTON--(BUSINESS WIRE)--The Council for Citizens Against Government Waste (CCAGW) applauded the Senate for passing H.R. 5278, the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) by a bipartisan vote of 68-30.
The legislation creates essential mechanisms that thwart a taxpayer bailout of Puerto Rico’s fiscal failures and provides reforms that will allow the territory to fulfill its debt obligations responsibly and efficiently. PROMESA also strengthens the financial oversight board’s ability to audit Puerto Rico’s government and assist the island with the management of public finances. The structure of the seven-member oversight board is based on the precedent established in 1996, when Congress set up a financial control board to oversee the fiscal affairs of the government of the District of Columbia, as well as the control board set up for New York City in 1975.
PROMESA is not a bailout. Indeed, without PROMESA, taxpayers will inevitably be forced to bailout Puerto Rico in the near future.
CCAGW President Tom Schatz said, “CCAGW congratulates the Senate for passing this important legislation. PROMESA ensures that taxpayers will not be liable for any defaults on Puerto Rico’s debt obligations while also steering the territory toward a more secure and prosperous economic future. CCAGW looks forward to President Obama signing PROMESA into law.”
The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.