Hispanic Lawmakers say Puerto Rico needs Bankruptcy Options
Sharon Edmondson, Washington Legislative Team Member | September 28, 2015
Today the Senate Finance Committee held a hearing on Puerto Rico’s fiscal crisis showing partisan divisions over how to address the island territory’s potential default.
Republicans sought to cast the island’s problems as a parable of the ills of runaway government spending and Democrats advocated for extending Chapter 9 bankruptcy protections to the territory.
Finance Committee Chairman Hatch (R-UT) noted that increased federal spending since the recession has not helped to slow Puerto Rico’s slide into deeper debt. Senator Schumer (D-NY) believes S. 1774, the bill to amend title 11 to treat Puerto Rico as a state for purposes of chapter 9, would help the territory get back on the road to recovery.