Puerto Rican People’s Power Restoration Act of 2026

Summary

Makes the federal PROMESA Oversight Board end automatically once Puerto Rico passes a law creating a successor entity, and lets Puerto Rico-designated entities (including PREPA or its successor) replace the Board as the debtor representative in PROMESA restructuring cases. The measure preserves existing certified fiscal plans and budgets until modified or replaced, keeps federal court jurisdiction intact, and generally maintains PROMESA’s plan confirmation rules.

• Creates an automatic termination trigger for the PROMESA Oversight Board tied to Puerto Rico passing a law that establishes a successor entity.
• Requires the Oversight Board to terminate the day after the Commonwealth enacts a qualifying successor-creating law.
• Allows a Commonwealth-designated entity (or PREPA/its successor) to serve as the debtor representative in PROMESA cases for PREPA filed after that Commonwealth law takes effect.
• Preserves retention of professionals, advisors, and counsel previously engaged by the Oversight Board unless the Commonwealth law directs otherwise.
• Affirms that PROMESA plan confirmation requirements remain unchanged.
• Keeps existing certified fiscal plans and budgets valid until they are modified by a substituted representative or confirmed as a plan of adjustment.
• Maintains the U.S. District Court for the District of Puerto Rico as the federal court of competent jurisdiction under PROMESA.
• Does not appropriate funds, change tax policy, or directly impose federal spending mandates.
• Shifts governance and negotiation authority in debt restructurings from a federal-created board to entities designated by Puerto Rico.
• Applies only to Commonwealth laws enacted on or after the effective date of this federal amendment.