House leader Nancy Pelosi said in a statement that a Republican proposal to create a board that serves as an oversight for Puerto Rico would exert undemocratic and undue control over the US territory. The Democratic House leader echoes the complaints from the island's officials as they struggle with $70 billion in debt.
According to ABC News, House Republicans are preparing a legislation to establish a new oversight board that would help Puerto Rico control its finances. The legislation is in response to the promise which House Speaker Paul Ryan made at the end of 2015 that the House would work with Puerto Rico to come up with a responsible solution for the island's massive debt problems.
The House Resources Committee released a draft of the legislation on Tuesday, which would create a five-person board to audit Puerto Rico's government and create new budget measures and fiscal plans. The Republicans claimed that the procedures are necessary for Puerto Rico to get its economy back on track. The Washington Post reported that the board would have the authority to enact the plan in case the territory's governor and the legislature fail to do so.
Nancy Pelosi argued that the board would be too powerful and far from what Democrats can support. Democratic representatives like Jose Serrano, Nydia Velazquez, and Steny Hoyer also believe that the control board would undermine the laws in Puerto Rico.
House Speaker Pau Ryan was adamant, calling the proposal a thoughtful and comprehensive legislation that gives the US territory the tools it needs to deal with its budget problems and systemic fiscal without a taxpayer bailout.
Senate Democrats also filed a legislation of their own earlier this month, reports The Washington Times. The Democratic bill would set up a nine-member reform board and grant territory-wide powers to restructure all of its debt.
For nearly a decade, Puerto Rico has been mired in economic stagnation. The island's financial problems grew worse as a result of setbacks in the wider US economy and government spending in Puerto Rico continued unrestrained as borrowing covered increasing deficits.
