On Friday, October 3rd, a federal judge issued an order temporarily blocking President Trump from firing members of the Puerto Rico fiscal oversight board established in 2016 to monitor and control Puerto Rico’s finances.
Judge María Antongiorgi-Jordán, of the Federal District Court in San Juan, found that the President violated the due process rights of three members of the board when he dismissed them without cause.
Emphasizing that the court “has tremendous respect for the Office of the President” and that the U.S. law that created the board “vests the President with significant authority,” including the power to remove a board member, the order nonetheless states that the law also limits the president’s discretion, and “removals that are not for cause are not lawful.”
In granting their claim, the judge effectively returned the three to their posts, finding that she did not have to formally order their reinstatement because they had not been properly removed.
History of the Financial Oversight and Management Board (FOMB)
In 2016, Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The bill established a Financial Oversight and Management Board (FOMB) to help Puerto Rico reorganize its debt, which then-Governor Alejandro García Padilla had described as “unpayable.” The board was given the power to overrule elected officials and reduced the degree of local control in the hands of the territorial government. In August, 2025, President Trump fired all but one member of the board, ensuring that the board could not form a quorum and therefore could not continue to fulfill its duties. Three of the dismissed members — Arthur Gonzalez, Andrew Biggs and Betty Rosa — filed a lawsuit on September 18, 2025, alleging their firings were illegal and seeking reinstatement.
The lawsuit
Donald Trump, Sergio Gor, director of the White House personnel office, remaining board member John E. Nixon, and FOMB executive director Robert F. Mujica were all mentioned in the suit. “This is a case about power over the board and over Puerto Rico,” said the plaintiffs’ attorney. “The president is attempting to exert a lot of power here that he does not have.”
The crux of the lawsuit is that the president doesn’t have the authority to fire board members at will. The president is allowed to fire board members for cause, but the plaintiffs say that they were fired by means of a two-sentence email which mentioned no cause. The lawsuit quotes the text of the emails: “On behalf of President Donald J. Trump, I am writing to inform you that your position as a Member of the Financial Oversight Board for Puerto Rico is terminated effective immediately. Thank you for your service.” Trent M. Morse, Deputy Director of the White House Office of Presidential Personnel, sent the emails.
“In short,” the lawsuit sums up, ” in violation of the statutory text, Judge Gonzalez, Dr. Biggs, and Dr. Rosa were purportedly terminated without cause, as the emails provided no basis, justification, or authority for the terminations.” The three were also not given notice or a hearing, both of which would have been required as part of a for-cause dismissal.
“The stakes of this case could not be higher,” the lawsuit claimed. “If the President can violate the laws that Congress passed establishing local governments in the territories, he could remove any territorial officer tomorrow.”
Congressional response
Reps Nydia M. Velazquez (D-NY), Alexandria Ocasio-Cortez (D-NY), and Ritchie Torres (D-NY) issued a statement supporting the plaintiffs in the lawsuit.
“Last month, the Trump administration fired six of the seven members of the Financial Oversight and Management Board for Puerto Rico (FOMB), marking an unprecedented move in the Board’s 10-year history. Overnight, these members, who receive zero compensation for their service, were removed without cause, despite the fact that the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) only allows board members to be removed for cause,” the statement began. “While there are legitimate concerns regarding the Board, this was never the way to address them. These members must be reinstated without delay so that PREPA can finally move forward with its restructuring and obtain a viable plan that secures affordable energy in the long term for every Puerto Rican home and business.”
A Congressional Research Service document shares media reports of the firings which suggested that the motivation might have been political well as others quoting White House officials who said the board was receiving “exorbitant salaries” and paying too much for consultants. The board members actually receive no salaries. The CRS document also describes the issues on which board action is currently required and explains that the board cannot take the needed actions with only one member.
The White House has not responded.
