[Congressional Record Volume 161, Number 178 (Wednesday, December 9, 2015)]
[Senate]
[Pages S8514-S8516]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNANIMOUS CONSENT REQUEST--S. 1774
Mr. SCHUMER. Mr. President, I am going to ask for a unanimous consent
request but speak for a couple of minutes, engaging in some discussion
with my dear friend, the senior Senator from the State of Utah.
First, I thank him for coming to the floor today on this issue. I am
heartened that he has expressed interest in working with us to get
something done to help our fellow citizens in Puerto Rico. I also thank
my friends, the Senators from Connecticut, New Jersey, Oregon,
Washington, Illinois, and my colleague from New York who is here for
their steadfast support for helping Puerto Rico in this time of crisis.
I rise deeply troubled by the dire economic, financial, and health
care situation in Puerto Rico. The island is facing a financial crisis,
a health care system on life support, and the situation grows more dire
each month.
Puerto Rico is $73 billion in debt already and large bond payments
will continue to become due next month and in the months to come.
Sadly, as Puerto Rico's economy and health care system has floundered,
residents have started to flee their homeland. As the economic
situation worsens, the population shift from the island to the mainland
will continue until the only ones left are those who don't have the
resources to move. At that point we are going to have a humanitarian
crisis on our hands, if there isn't one already.
There are 3.5 million people, Puerto Ricans, living on the island
today and another 5.2 million living in the United States, including
over 1 million in my State of New York. We have a basic American
responsibility to aid all American citizens in times of crisis, no
matter where they live. Beyond that basic imperative, if we fail to
offer Puerto Rico assistance now, the problem will not be contained to
the island.
We need to be concerned with these issues, not only because Puerto
Ricans are part of the American family and deserve the quality of life
we all expect but also because our failure to act now could result in a
Puerto Rican financial crisis that becomes a drag on our entire
economy. I want to underscore this point. Congress must intervene
before the crisis deepens and widens. We have the tools to fix this
problem. They are sitting in the toolbox. The problem is Puerto Rico
isn't allowed to use them.
Similar to chapter 9 protections offered under the Bankruptcy Code,
every State in the United States can access chapter 9 protections for
municipal and public corporate debt, but Puerto Rico, because it is a
territory, cannot. Providing Puerto Rico the ability to restructure its
debt is absolutely necessary if Puerto Rico is going to get out from
this financial crisis.
Senator Blumenthal and I have introduced legislation along with many
of my other colleagues who will join us today that will put Puerto Rico
on an equal footing when it comes to chapter 9. At the very least we
should pass it right away. There are other proposals as well. We could
widen bankruptcy protections. There are health and economic issues as
well and we have to look at those.
I stress to my colleagues on the other side of the aisle that giving
Puerto Rico the restructuring authority in our bill isn't a bailout and
will not require any additional spending. It will not cost the
taxpayers one plug nickel, but it will do a whole lot of good to our
friends in Puerto Rico.
On the health care front, I have introduced a bill with many of my
same colleagues to address several aspects of the health care crisis,
issues such as Medicaid funding and fairness, appropriate reimbursement
rates, and equitable physician payments. Disparities in how the
Medicare and Medicaid Programs treat Puerto Rico and our other
territories are significant and need to be addressed.
In conclusion, I am going to be the first to admit that neither of
these bills is a silver bullet to solve all of Puerto Rico's problems,
nor are they the only potential solutions. We are more than willing to
work with the chairman of the Finance Committee, a good friend who I
know cares about the Puerto Rican issue, to find other solutions and
craft bipartisan legislation so long as it provides help to Puerto
Rico, but the clock is ticking. We are running out of time. Congress
must act now to address these issues that are stifling Puerto Rico's
economy and way of life. We must give them the tools they need to solve
these problems.
Mr. President, I ask unanimous consent that the Judiciary Committee
be discharged from further consideration of S. 1774 and the Senate
proceed to its immediate consideration, the bill be read a third time
and passed, and the motion to reconsider be considered made and laid
upon the table with no intervening action or debate.
The PRESIDING OFFICER. Is there objection?
The Senator from Utah.
Mr. HATCH. Mr. President, reserving the right to object, I want to
say first that I appreciate what my colleague is trying to do with
regard to Puerto Rico. I think it is fair to say that we all share his
concerns, and I don't know of anyone in this Chamber who is indifferent
to the issues facing our fellow American citizens in Puerto Rico. I
agree with the senior Senator from New York that Congress should act to
address these problems and we need to act very quickly. However, a
number of Senators, myself included, have some concerns about the
specific policy in the bill he has brought up today on the floor.
Setting aside those concerns, there are a number of questions about
whether this approach would effectively address Puerto Rico's problems.
I want to work with my colleagues and especially my colleague from
New York to find a path forward on this issue. Once again, there is
bipartisan agreement that something needs to be done. I have been
working closely with the ranking member of the Senate Finance Committee
on this issue. He has been a great help. I have also been in some
pretty involved discussions with the chairs of the Judiciary and Energy
and Natural Resources Committees, which also have jurisdiction in this
matter, as we have been working to draft a legislative proposal to
address a number of these concerns. In fact, we are planning to
introduce our bill later today.
I am sure I will have more to say on that piece of particular
legislation in the coming days. For now I will say I would be happy to
engage the senior Senator from New York on this matter as well and
would hope that he would be willing to do the same with me. Going
forward, I hope we can work together to make sure we have all the
information we need about the situation in Puerto Rico in order to
craft informed policies and effective solutions and do so in short
order, in the interest of helping the people of Puerto Rico.
As of right now, I think we need additional deliberation on this
matter rather than simply deeming any piece of legislation to be the
correct approach. For these reasons I must object to the good Senator's
request at this time, but once again I will commit to working with him
and others to address these important issues.
I do object.
The PRESIDING OFFICER. Objection is heard.
The Senator from New York.
Mr. SCHUMER. Mr. President, just briefly. I thank my colleague from
Utah for his remarks. I want to work with him, as I know Senator Wyden,
Senator Gillibrand, Senator Menendez, and so many others on the floor
want to get this done. We have to work together quickly and I
appreciate him acknowledging that.
I yield the floor.
The PRESIDING OFFICER. The Senator from New York.
Mrs. GILLIBRAND. Mr. President, I want to express my strong
disappointment that we are unable to do this legislation now. There is
a grave sense of urgency for the people living in Puerto Rico, so I
share the goals of my colleagues to get this done sooner than later.
This has to be moved forward. No American parent or child should have
to face economic stress simply because of where they live. Congress has
the responsibility to actually help these families. The economic
situation in Puerto
[[Page S8515]]
Rico is a serious problem that we can only begin to solve with
meaningful legislation.
This bill is the fiscally responsible way to help the people of
Puerto Rico. It is the fiscally responsible way to alleviate the dire
economic situation in Puerto Rico. Let's be very clear. This is not a
bailout. It is a means for our fellow Americans in Puerto Rico to get
themselves out of serious economic distress. Congress must come
together to pass this bill. The situation in Puerto Rico is desperate
and these families need our help. There is no other way to see it. We
have to help them.
I urge my colleagues to reconsider this objection. Congress must help
the people of Puerto Rico.
I yield the floor.
The PRESIDING OFFICER. The Senator from Oregon.
Mr. WYDEN. Mr. President, I will be very brief.
I ask unanimous consent that Senator Menendez speak after me.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. WYDEN. Mr. President, I very much appreciate Chairman Hatch's
willingness to work with all of us--Senator Schumer, Senator
Gillibrand, Senator Menendez, and myself--the many Senators who care
deeply about this issue.
My view is that the situation in Puerto Rico will get far, far worse,
particularly with inaction. That is why it is so important for this
body to come together, Democrats and Republicans, and move quickly.
As Chairman Hatch has noted, we have been working on this in the
Finance Committee. We are appreciative of Chairman Hatch's willingness
to listen to colleagues on both sides of the aisle, and I think it is
fair to say we have made some tangible progress.
Recently, the talks have bogged down, in particular because of
efforts to change national programs that have nothing to do with Puerto
Rico. I wish to emphasize what has been the challenge in recent days.
We are trying to deal with the very real and significant questions
facing Puerto Rico. Some have said in order to do that, you would have
to make substantial changes in national programs.
One of the reasons I wanted to speak briefly on the floor this
morning is I believe that any legislation to assist Puerto Rico needs
to be focused on the territory and not get into unrelated provisions.
In addition, any legislation to assist Puerto Rico ought to include
some type of debt restructuring authority. Unfortunately, I think
things have moved past the point where any sort of austerity in Puerto
Rico can allow them to climb out of debt without causing a humanitarian
crisis. That is why some type of debt restructuring is so important.
Wrapping up, I also wish to point out that debt restructuring and
debt restructuring authority does not add a penny to the Federal
deficit. In my discussions with Chairman Hatch--and we are very
appreciative of our relationship and discussions we have had--that has
been very important to him. So I do want to point out that debt
restructuring authority does not add one penny to the Federal deficit.
This issue is too important to get lost in yet another partisan
fight. I am going to work closely with our many colleagues, the two
Senators from New York, Senator Menendez, who knows an enormous amount
about this issue, and the chairman because, as I touched on in my
statement, things will get much, much worse and sooner than people
think, in my view, if Congress fails to act.
With that, I yield the floor.
The PRESIDING OFFICER. The Senator from New Jersey.
Mr. MENENDEZ. Mr. President, I have a lot of respect for Chairman
Hatch. I am privileged to sit with him and the ranking member on the
Senate Finance Committee. He does try to work in ways that are
bipartisan, so I appreciate his willingness to acknowledge that this is
a problem. But I am disappointed that this rather modest measure to
help Puerto Rico address its challenges in an orderly and legal way
seems to be in a vortex in which we can't get it out.
There are four things I think we need to be clear about. Every single
municipality in the United States already has access to chapter 9.
Puerto Rico had access to it until 1984, when a provision was stuck
into a larger bill with no explanation or debate. Restoring chapter 9
to the island doesn't cost the U.S. Treasury a single penny, nor will
it raise the deficit. Perhaps most importantly, all other measures both
the mainland and the island can take are virtually meaningless without
this restructuring authority.
I appreciate the chairman's remarks about being open to negotiate,
but we have been negotiating this issue for several months now. We have
heard from stakeholders representing every interest on the island. We
have had three congressional hearings. And while there may be some
differences on the exact prescription, virtually everyone agrees that
some restructuring authority must be part of the cure.
Again, this is something we can do right now. This is something that
doesn't cost anything or need an offset, and it is something tangible
that will give--and I want to focus on this--the 3.5 million American
citizens who live in Puerto Rico a fighting chance.
This is not about some foreign country. The citizens of Puerto Rico
are citizens of the United States. If all 3.5 million came to the
mainland, they would have the rights and privileges as any other U.S.
citizen. They would be fully eligible for any benefit that any citizen
of the United States has.
Sometimes we look at the people of Puerto Rico--and I have had
Members in the past when I served in the House of Representatives who
have asked me: Do I need a passport to go to Puerto Rico? Pretty
amazing. This is not some foreign country, this is the United States of
America. They are U.S. citizens. They deserve to be treated as U.S.
citizens.
The people of Puerto Rico have fought in virtually every war the
United States has ultimately had. If you go to the Vietnam Veterans
Memorial with me, you will see a disproportionate number of names from
the island of Puerto Rico who served in that war or the 65th Infantry
Regiment Division in the Korean War, which was an all-Puerto Rican
division and the most highly decorated in the history of U.S. military
actions, and on and on. It is shameful that we treat 3.5 million U.S.
citizens this way.
This crisis didn't develop overnight, nor will it be fixed in a day,
but the present Governor, Governor Padilla, and the Government of
Puerto Rico have done everything they can to right the ship of
insolvency. Governor Alejandro Padilla didn't create this crisis, which
has gone on through various administrations in Puerto Rico, but he has
made the tough choices. He has closed schools and hospitals. He has
laid off police and firefighters. He has raised taxes on businesses and
individuals. They have gone beyond what a sovereign nation such as
Greece, for example, would ever have imagined doing, but they have run
out of options. All the cuts and tax hikes will not make a dent in this
crisis without the breathing room that restructuring authority
provides.
This problem isn't going to go away, but I do say that as Congress
fiddles, Puerto Rico burns. It would be outrageous if the Congress goes
home for a holiday and leaves a brewing catastrophe for the 3.5 million
citizens of Puerto Rico who have fought for and died for this country.
So I hope these negotiations, which, as the distinguished ranking
member has said, should be focused on the issue of Puerto Rico and the
3.5 million U.S. citizens who live there, who wear the uniform of the
United States, who have fought for it proudly and who have died for it,
ultimately are not linked to something that has nothing to do with
those 3.5 million U.S. citizens.
Puerto Rico isn't asking us to pull them out of this hole; they are
just asking us to give them the tools with which they can help
themselves. For over a century, we have had an inextricable bond with
the island of Puerto Rico and its people, and we should not turn our
backs on their great commitment to our country.
I am going to come to the floor again and again, and I am going to
remind my fellow Americans of Puerto Rican descent in Pennsylvania, in
Ohio, in Florida, in New York, in New Jersey, and elsewhere around this
country about their need to raise their voices on behalf of their
fellow citizens. This is pretty outrageous to me.
With that, I yield the floor.
[[Page S8516]]
The PRESIDING OFFICER. The Senator from Connecticut.
Mr. BLUMENTHAL. Mr. President, I am proud to follow my colleague from
New Jersey, my other esteemed colleagues, and the ranking member on the
Finance Committee--Senator Wyden--and Senator Schumer simply to make a
few very starkly apparent points about the situation in Puerto Rico. It
affects not only the 3.5 million citizens in Puerto Rico--and they are
American citizens of the United States--but also the financial markets,
the bondholders, and citizens who depend on the viability of our
financial system across the country and potentially around the globe.
There is a reason for bankruptcy laws. They try to make the best of a
bad situation. Bankruptcy is never pleasant or welcome. The reason for
the bankruptcy laws is to create an orderly, structured process for
avoiding the chaotic and costly race to the courtroom and then endless
litigation. It simply consumes scarce resources. That is what will
happen if bankruptcy protection is not provided in some way to the
municipal entities, governmental function, and others in Puerto Rico.
By a quirk of history, Puerto Rico is not covered by chapter 9. That
quirk of history could be extraordinarily costly, not only in dollars
and cents but in the humanitarian catastrophe that threatens the people
of Puerto Rico in depriving them of essential services, energy, medical
care, and all kinds of very necessary governmental functions that may
be impossible if there is no orderly resolution to its financial
situation.
We can debate how Puerto Rico arrived at this place. We should learn
from history so we don't repeat it, but right now this crisis demands
action, and that action has to come now.
Many of us remember when New York City faced similar financial
straits and the headlines in some of the tabloids. One said ``Ford to
City: Drop Dead.'' It was a reference to President Ford and his lack of
action when New York City was in dire fiscal trouble.
The Nation would not let New York City drop dead. It should not let
Puerto Rico drop dead financially. It should not send a message to
Puerto Rico: Drop dead.
For this Chamber to say ``drop dead'' to Puerto Rico is absolutely
intolerable and unacceptable, just as it would be if we were to say
``drop dead'' to the people of Alaska, represented so ably by the
Presiding Officer, in a similar situation or to the people of Oregon,
Connecticut, or any of our States or municipal entities. We know we
came to the aid of Detroit, Stockton, and other municipalities when
they needed it. That message, ``Drop dead, Puerto Rico,'' is
antithetical to the democracy we represent here.
Puerto Rico can and must reform itself, but no amount of long-term
reform will address the short-term reality that Puerto Rico cannot pay
its current debts when due. That is the definition of ``insolvency''--
the inability to pay debts as they come due. The denial of chapter 9
will not create more money that makes Puerto Rico solvent and enables
it to pay those debts. The only question is whether this reality
results in a chaotic and costly default, with nobody winning except the
legions of creditors' attorneys who will spend years and countless
billable hours fighting each other litigating through the State or
Commonwealth courts, through Federal courts, through courts of appeals,
and maybe to the U.S. Supreme Court, over years, maybe over
decades. The alternative is an orderly restructure, which serves the
public interests as well as the interests of our fellow Americans in
Puerto Rico. It is an orderly, deliberate, rational process that only
Congress can provide.
The actions in the long term that are necessary in the interest of
economic justice, as well as fairness and the welfare of our fellow
citizens in Puerto Rico, include addressing issues relating to
Medicare, the earned-income tax credit, and other obligations that we
have recognized for the citizens of the country who live in the 50
States. The financial gymnastics have enabled Puerto Rico so far to
avoid the chaos, and enabled Puerto Rico to avoid going over a cliff
that, in effect, is irremediable. But we need to be very blunt and
real. Those financial gymnastics cannot be sustained or continued
indefinitely. The financial somersaults and headstands must end. The
prospect of a humanitarian catastrophe within a U.S. territory is very
real and immediate. Congress can act to prevent it. It can choose not
to do so. But the responsibility is ours if there is no action.
I urge the Members of this body, our colleagues, to give Puerto
Rico--our citizens and fellow Americans there--the respect they deserve
and approve the bill that we have offered.
Mr. President, I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. BLUNT. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Sasse). Without objection, it is so
ordered.
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