Sponsors (2)
The bill shifts control over Puerto Rico’s fiscal and bankruptcy processes toward local authorities and preserves existing fiscal and procedural rules to maintain continuity, trading earlier self-determination for increased legal, market, and fiscal risks that could raise borrowing costs and complicate restructuring outcomes.
Puerto Rico residents and local governments would regain greater local control sooner if the Commonwealth enacts successor-entity legislation, allowing locally designed governance and reducing federal Oversight Board authority.
Puerto Rico residents and creditors would keep existing certified fiscal plans and budgets in force until formally changed, avoiding sudden invalidation and immediate disruptions to services or creditor expectations.
The Commonwealth government would gain control over who represents PREPA in PROMESA bankruptcy cases once it adopts the specified law, enabling local decision-making about legal representation.
Puerto Rico residents and taxpayers could face higher borrowing costs if markets view an earlier end to the Oversight Board and locally designed successor arrangements as weaker, jeopardizing access to capital.
Puerto Rico residents and service recipients could face greater fiscal instability and reduced public services if prematurely ending federal oversight removes a mechanism that enforced fiscal discipline.
Taxpayers and local governments could encounter legal uncertainty because striking certain statutory language without clear replacements may create ambiguity about the Oversight Board's duties and the statute's interpretation.
Based on analysis of 4 sections of legislative text.
Adds a Puerto Rico-controlled trigger to end the Oversight Board and lets Puerto Rico designate who represents PREPA in PROMESA bankruptcy cases.
Official title: To amend the Puerto Rico Oversight, Management, and Economic Stability Act to provide for the termination of the Oversight Board under certain circumstances, and for other purposes.
Introduced March 5, 2026 by S. Raja Krishnamoorthi · Last progress March 5, 2026
Amends PROMESA to create a new automatic termination trigger for the Financial Oversight and Management Board for Puerto Rico that ends the Board once the Commonwealth enacts legislation establishing a successor entity, and changes who may serve as the debtor’s representative in Puerto Rico Electric Power Authority (PREPA) restructuring cases by allowing the Commonwealth’s designated entity or PREPA’s governing body to replace the Board as representative. The bill preserves existing confirmation standards, protects prior certified fiscal plans and budgets until modified or confirmed, and preserves the District of Puerto Rico’s jurisdiction under PROMESA.