Velázquez, Ocasio-Cortez, and Torres Support Legal Challenge to Safeguard PREPA’s Debt Restructuring
WASHINGTON– Today, Congresswoman Nydia M. Velázquez (D-NY), Congresswoman Alexandria Ocasio-Cortez (D-NY), and Congressman Ritchie Torres (D-NY) issued the following statement in support of the lawsuit filed by members of Puerto Rico’s Financial Oversight and Management Board challenging their unlawful removal by President Trump:
“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.
“This arbitrary action occurred in the midst of litigation to restructure the Puerto Rico Electric Power Authority’s (PREPA) debt obligations, which will affect the energy rates of the island’s 1.5 million customers. As a result, proceedings have been suspended, obstructing a viable debt restructuring. Meanwhile, bad actors have seized the opportunity to push for the unlawful dissolution of the Board. Rather than seeking justice, they aim to dismantle the only governmental entity preventing the use of the island’s critical cash reserves to satisfy the demands of bondholders.
“On Thursday, September 18th, three Fiscal Board members challenged Trump’s decision to terminate their work. In a lawsuit against President Trump and Sergio Gor, Director of the Presidential Personnel Office, former bankruptcy judge Arthur J. González, prominent educator Betty A. Rosa, and former commissioner of the Social Security Administration (SSA) Andrew Biggs asked the U.S. District Court for Puerto Rico to nullify this illegal determination and protect other jurisdictions, such as D.C., from the arbitrary removal of territorial officials.
“We are living in a moment of unchecked abuses by the Executive Branch, and with Trump’s decision on the Oversight Board, Puerto Ricans have become the latest victims of his campaign against independent institutions. We fully support the lawsuit filed by these members, because we believe in the work they have done to stop the vulture funds that threaten Puerto Rico’s energy future. We trust that justice will prevail and show that, like many of President Trump’s actions, this decision was senseless and illegal.
“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.”
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