U.S. Representatives Raja Krishnamoorthi (D-IL) and Darren Soto (D-FL) have introduced the Puerto Rican People’s Power Restoration Act of 2026. This bill seeks to disband the Fiscal Management and Oversight Board established under the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) passed in 2016.
What is the oversight board?
The Fiscal Management and Oversight Board (FOMB) was given the job of restructuring Puerto Rico’s debts and assisting the territory government in improving fiscal responsibility and regaining access to credit. The Board, working with the territorial government, has been able to resolve nearly all the debt.
The remaining debt is owed by PREPA to creditors, some of whom have been called “vulture capitalists” for their choice to buy up bonds at pennies on the dollar and then hold out for repayment with interest. The Board is unwilling to meet the demands of the bondholders. A recent congressional hearing explored this issue in depth.
In addition to the standstill on PREPA’s debt, the Board, which requires seven members, now has only four: Arthur J. Gonzalez, Andrew G. Biggs, John E. Nixon, Betty A. Rosa. All of these current members except Nixon were summarily fired by the White House last year, but were reinstated by court order. The remaining positions have not yet been filled, so the board is not functioning as intended.
Why end the Board?
The FOMB is unable to fulfill its duties until additional members are appointed to bring the Board back to its required strength. Since Puerto Rico Governor Jenniffer Gonzalez-Colon produced an approved balanced budget last year, the PREPA stalemate mat be the only remaining item on their docket.
“After nearly a decade under an unelected fiscal control board, it is time to give the people of Puerto Rico the chance to write their own financial future,” Congressman Krishnamoorthi said.
“The people of Puerto Rico deserve a clear path toward full economic self-governance and long-term fiscal stability. This legislation builds on the progress made under PROMESA while establishing responsible conditions for ending the Financial Oversight and Management Board once its mission is complete,” Congressman Darren Soto said. “This way, we can ensure accountability, restore local control, and support sustainable economic growth for the island and its residents.”
