The U.S. House plans to vote next week on a proposal to address Puerto Rico’s debt crisis, but it’s not clear the measure has enough support to pass despite the backing of Speaker Paul Ryan and Minority Leader Nancy Pelosi, Bloomberg News reported today. “It still has some hurdles,” said Representative Raul Grijalva, the top Democrat on the Natural Resources Committee, who backs the bill even though he says it’s imperfect. “I think it can pass, but it’s going to be a difficult process.” If the bill can’t clear the House, it would leave Puerto Rico and its bondholders in limbo with no clear road ahead on how to keep the island’s government functioning ahead of a likely July 1 default on a $2 billion debt payment. House leaders still want to move ahead with a vote next week, according to a Republican aide, as they try to figure out how to cobble together votes to pass the legislation. One question for Republican leaders is whether to allow debate on any amendments, and, if so, which ones. The bill, approved last week by the Natural Resources Committee, has been attacked from two sides: by conservatives who oppose anything resembling a bailout of Puerto Rico, and by liberals, including Democratic presidential candidate Bernie Sanders, who reject restrictions on the island’s government. Read more.
For more news and analysis of Puerto Rico's debt crisis, be sure to visit ABI's "Puerto Rico in Distress" webpage.
