Puerto Rico’s government is running into resistance in Washington, D.C., on pending legislation affecting the island while its federal overseers try to tighten their grip over local policy decisions, WSJ Pro Bankruptcy reported. The Republican tax overhaul headed for a vote in Congress this week doesn’t grant any of Puerto Rico Gov. Ricardo Rosselló’s requests for more favorable tax treatment and weakens the rationale for U.S. companies to manufacture there, according to lobbyists and tax experts. House Republicans also unveiled a disaster relief package on Monday evening to help Puerto Rico rebuild from Hurricane Maria, with some strings attached. The legislative changes come as some lawmakers have voiced mistrust of the indebted island government after details emerged on a controversial $300 million no-bid construction contract awarded in the storm’s aftermath. Complicating matters, Gov. Rosselló is clashing with a federal oversight board that has tried to enlarge its sphere of influence at his administration’s expense.
