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Puerto Rico: CRS Experts and Products

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Puerto Rico: CRS Experts

December 15, 2015May 9, 2016 (R44336)

Puerto Rico Seeks Federal Assistance

Puerto Rico currently faces a serious fiscal crisis resulting from persistently slow economic growth and rising public sector debt, which the Governor of Puerto Rico has called "not payable." The Governorhas left its government finances severely constrained. The Puerto Rican government's fiscal situation, according to emergency legislation (Act 21 of 2016) enacted on April 6, 2016, "is more dire than at any other point in its history" and "depleted resources and strained liquidity threaten to bind the Commonwealth to a choice between honoring its commitments to bondholders or continuing to provide the residents of Puerto Rico with essential services."1 The Governor of Puerto Rico, Alejandro García Padilla, while signing the emergency act, was quoted as stating that "Puerto Rico is insolvent."2 The Governor, Treasury Secretary Jacob Lew, and others have called on the federal government for various forms of assistance or changes in federal laws to address its challenges.3 Several measures have been introduced in the 114th Congress to aid Puerto Rico, although no measure has been reported by a congressional committee.

The House Natural Resources Committee held a hearing on the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA; H.R. 4900) on April 13, 2016. Opening statements for a markup of H.R. 4900 began on the same day, but a continuation of the markup on the following day was postponed. PROMESA would create a structure for exercising federal oversight over the fiscal affairs of territories.

The political status of Puerto Rico may complicate proposed federal initiatives. For some purposes, the federal government treats Puerto Rico as if it were a state government, while in other cases, Puerto Rico is treated differently. In other cases, such as for water transportation and trade, Puerto Rico may be particularly affected by federal laws that apply more generally.

Puerto Rico Issues of Interest to Congress

Issues of congressional interest regarding Puerto Rico span a broad range of subject areas. This report lists CRS experts by topic in Table 1. Topics include the following:

  • political status and federal relations with Puerto Rico
  • economic conditions, fiscal situation, and taxation
  • debt restructuring and bankruptcy law
  • federal oversight of subnational governments
  • federal programs and social policy in Puerto Rico
  • demographics and migration
  • transportation and energy sector

, energy, and environmental policy For requests for information on topics not listed above, please contact the coordinator of this report or the CRS Inquiry ([phone number scrubbed]) to identify an appropriate subject matter expert.

Table 1. Issues Related to Puerto Rico: CRS Experts

[email address scrubbed]

 

[email address scrubbed]

 

Legislative Issues

Name/Title

Title

Phone

Email

Political status and federal relations with Puerto Rico

 

 

 

 

Legal issues and federal relations

[author name scrubbed]

Legislative Attorney

[phone number scrubbed]

[email address scrubbed]

 

Political status

[author name scrubbed]

Specialist in American National Government

[phone number scrubbed]

[email address scrubbed]

 

Federal Reserve and Puerto Rico

[author name scrubbed]

Legislative Attorney

[phone number scrubbed]

[email address scrubbed]

 

 

 

 

 

 

Economic conditions, fiscal situation, and taxation

 

 

 

 

Economic and fiscal situation

[author name scrubbed]

Analyst in Economic Policy

[phone number scrubbed]

[email address scrubbed]

 

Excise taxes

[author name scrubbed]

Analyst in Public Finance

[phone number scrubbed]

[email address scrubbed]

 

Rum cover-over and municipal bonds

[author name scrubbed]

Section Research Manager

[phone number scrubbed]

[email address scrubbed]

 

 

 

 

 

 

Debt restructuring and bankruptcy law

 

 

 

 

 

Federal bankruptcy law

[author name scrubbed]

Legislative Attorney

[phone number scrubbed]

[email address scrubbed]

 

Securities law

[author name scrubbed]

Legislative Attorney

[phone number scrubbed]

[email address scrubbed]

 

 

 

 

 

 

Collective action clauses

[author name scrubbed]

Specialist in International Trade and Finance

[phone number scrubbed]

Federal health programs and Puerto Rico

 

 

 

 

Medicare Financing

Patricia Davis

Specialist in Health Care Financing

[phone number scrubbed]

[email address scrubbed]

 

Medicare Physician Payments

[author name scrubbed]

Specialist in Health Care Financing

[phone number scrubbed]

[email address scrubbed]

 

Medicare Part A

Scott Talaga

Analyst in Health Care Financing

[phone number scrubbed]

[email address scrubbed]

 

Medicare Advantage (Part C)

Paulette Morgan

Specialist in Health Care Financing

[phone number scrubbed]

[email address scrubbed]

 

Medicare Part D

Sue Kirchhoff

Analyst in Health Care Financing

[phone number scrubbed]

[email address scrubbed]

 

Medicaid/CHIP/Mi Salud

[author name scrubbed]

Analyst in Health Care Financing

[phone number scrubbed]

[email address scrubbed]

 

Prevention and Public Health Fund

;

Zika virus and communicable diseases

Sarah Lister

Specialist in Public Health and Epidemiology

[phone number scrubbed]

[email address scrubbed]

 

Private Health Insurance

Annie Mach

Analyst in Health Care Financing

[phone number scrubbed]

[email address scrubbed]

Federal oversight of subnational governments

 

 

[author name scrubbed]

Analyst in Federalism & Economic Development Policy

[phone number scrubbed]

[email address scrubbed]

Demographics and migration

 

 

 

 

 

 

Sarah Donovan

Analyst in Labor Policy

[phone number scrubbed]

[email address scrubbed]

 

 

[author name scrubbed]

Analyst in Economic Policy

[phone number scrubbed]

[email address scrubbed]

Transportation and energy sector

, energy, and environment
 

 

 

 

 

Water transportation and Jones Act

[author name scrubbed]

Specialist in Transportation Policy

[phone number scrubbed]

[email address scrubbed]

 

Electric power generation and transmission

[author name scrubbed]

Specialist in Energy Policy

[phone number scrubbed]

[email address scrubbed]

 

Natural gas and oil supply

[author name scrubbed]

Specialist in Energy Policy

[phone number scrubbed]

[email address scrubbed]

 

 

 

 

 

 

Vieques Island: federal jurisdiction and property ownership

[author name scrubbed]

Specialist in Environmental Policy

[phone number scrubbed]

[email address scrubbed]

Environmental law

[author name scrubbed]

Legislative Attorney

[phone number scrubbed]

Other

 

 

 

 

 

 

Reapportionment and Puerto Rico statehood

[author name scrubbed]

Specialist in American National Government

[phone number scrubbed]

[email address scrubbed]

 

Parliamentary role of Resident Commissioner

[author name scrubbed]

Analyst on Congress and the Legislative Process

[phone number scrubbed]

[email address scrubbed]

Note: For requests in other topic areas, please contact CRS Inquiry ([phone number scrubbed]).

Key CRS Reports

Selected CRS reports that discuss issues related to Puerto Rico are categorized below. In addition, other archived CRS reports are available upon request.

Political status and federal relations with Puerto Rico

For a brief overview of the political status of Puerto Rico, see CRS In Focus IF10241, Puerto Rico: Political Status and Background, by [author name scrubbed]. For a more detailed examination of those issues, see CRS Report R42765, Puerto Rico's Political Status and the 2012 Plebiscite: Background and Key Questions, by [author name scrubbed].

Economic conditions, fiscal situation, and taxation

For a discussion of Puerto Rico's economic and fiscal situation, see CRS Report R44095, Puerto Rico's Current Fiscal Challenges, by [author name scrubbed].

Federal excise taxes on rum produced by Puerto Rico and the Virgin Islands are transferred back or "covered over" from the federal Treasury. For details, see CRS Report R41028, The Rum Excise Tax Cover-Over: Legislative History and Current Issues, by [author name scrubbed].

Federal oversight of subnational governments

Archived CRS report 95-328, Financial Control Boards for Cities in Distress, by [author name scrubbed] and Lillian Rymarowicz is available upon request. Also, archived CRS Report 97-766, District of Columbia Revitalization: Legislation Enacted by the 105th Congress, coordinated by Eugene P. Boyd, is also available upon request.

Debt restructuring and bankruptcy law

Puerto Rico enacted a local restructuring law in July 2013 aimed at addressing its public sector debts. For a description of that law, which was struck down by a Federal District Court in February 2015, see CRS Legal Sidebar WSLG1289, Fiscal Distress in Puerto Rico: Two Legislative Approaches, by [author name scrubbed]. That decision was upheld in July 2015 by the Court of Appeals for the 1st Circuit, which is discussed in CRS Legal Sidebar WSLG1370, First Circuit: Preemption Precludes Puerto Rico's Recovery Act, by [author name scrubbed]. In December 2015, the Supreme Court agreed (writ of certiorari No. 15-233) to hear arguments regarding that and related cases.

A congressional distribution memorandum on the structure of Puerto Rico's public debts is available upon request.

Federal programs and social policy in Puerto Rico

For information on federal health programs in Puerto Rico see CRS Report R44275, Puerto Rico and Health Care Finance: Frequently Asked Questions, coordinated by [author name scrubbed].

For an overview of health concerns raised by the spread of the Zika virus, see CRS Insight IN10433, Zika Virus: Global Health Considerations, by [author name scrubbed].

A congressional distribution memorandum on federal funds received by Puerto Rico is available upon request.

Transportation and Energy Sector

energy sectors

For an introduction to Jones Act restrictions on water transportation between U.S. ports, see CRS Report RS21566, The Jones Act: An Overview, by [author name scrubbed]. For issues related to shipping oil, see CRS Report R43653, Shipping U.S. Crude Oil by Water: Vessel Flag Requirements and Safety Issues, by [author name scrubbed].

Miscellaneous Issues

issues

For an analysis how admission of Puerto Rico as a state would affect the distribution of seats in the House, see CRS Report R41113, Puerto Rican Statehood: Effects on House Apportionment, by [author name scrubbed].

For information on the legislative role of Puerto's Rico's Resident Commissioner, see CRS Report R40170, Parliamentary Rights of the Delegates and Resident Commissioner from Puerto Rico, by [author name scrubbed].

Author Contact Information

[author name scrubbed], Coordinator, Analyst in Economic Policy ([email address scrubbed], [phone number scrubbed])

Footnotes

1.

Act 21 of 2016, p. 49, http://www.oslpr.org/2013-2016/leyes/doc/ley-21-06-Abr-2016.doc.

2.

"Puerto Rico está insolvente y la situación requiere un esfuerzo serio para encontrar una solución" (Puerto Rico is insolvent and the situation requires serious efforts/sacrifices to reach a solution). Nydia Bauzá, "García Padilla proclama que el gobierno está insolvente," El Nuevo Dia, April 6, 2016, http://www.elnuevodia.com/noticias/locales/nota/garciapadillaproclamaqueelgobiernoestainsolvente-2183623/. Translations in parentheses by the author.

3.

Dan Watson, "Secretary Lew Sends Letter to Congress on Puerto Rico," May 3, 2016; https://www.treasury.gov/connect/blog/Pages/Lew-Sends-Letter-to-Congress-on-Puerto-Rico.aspx.