[Congressional Record Volume 162, Number 105 (Wednesday, June 29, 2016)]
[Senate]
[Page S4685]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PUERTO RICO
Mr. REID. Mr. President, today we are going to finally consider
legislation addressing Puerto Rico's economic crisis.
For the past year and even longer, Democrats in both Houses of
Congress have proposed legislation that would empower Puerto Rico to
adjust a significant portion of its debt. Every time we have tried, it
has been blocked by the Republicans.
As the weeks and months passed without a solution, the situation in
Puerto Rico has worsened, and that is an understatement.
In the New York Times this morning, the editorial board stressed the
importance of congressional action, and I quote what they said:
The fiscal crisis in Puerto Rico is also a humanitarian
crisis. The Senate now has an opportunity--and the
obligation--to address both. It is scheduled to vote on
Wednesday on a bill already approved by the House that would
restructure the island's debt and could create the conditions
for recovery.
If the bill loses, Puerto Rico will default on Friday on a
$2 billion debt payment, creditors will keep suing for full
repayment and essential services on the island, including
health, sanitation, education, electricity, public
transportation and public safety, will continue to decline.
The economic crisis is a humanitarian disaster. Medical services have
diminished. Hospitals are unable to pay their bills. Puerto Rico's
largest hospital has closed two of its wings and reduced the number of
beds by 25 percent and cut pay for all employees. Electricity at one
hospital, the Santa Rosa Hospital, was suspended for lack of payment.
Can you imagine one of our hospitals having to close because the
electricity bill can't be paid? Puerto Rico's only air ambulance
company had to suspend operations. At the pediatric center in Puerto
Rico's primary medical center, pharmaceutical providers are only going
to supply chemotherapy drugs COD, cash on delivery. How troubling is
that? Children are being deprived of cancer treatment medication.
The effects of Puerto Rico's debt crisis reach beyond health care.
Already, the Puerto Rican government has been forced to close 150
schools. Leaders anticipate closing a total of 500 schools in the next
few years. That would be half of all public schools in Puerto Rico.
Businesses have shuttered. Labor force participation is substantially
below the U.S. average. Puerto Ricans on the island are fleeing to the
mainland at an alarming rate.
Even as Puerto Rico was drowning in more than $70 billion of debt and
forced to take unprecedented austerity measures, Republicans in
Congress dithered. They continued to waffle. Finally, this spring
congressional Republican leaders agreed to negotiate and address this
economic and fiscal emergency.
The legislation before us is far from perfect. Oh, is it far from
perfect. What they have done to labor, minimum wage, the oversight
board, environmental--it is bad stuff. It is far from perfect. I share
my colleagues' very deep concerns about this compromise legislation.
If Republicans were serious about pro-growth measures, they should
have addressed some of the disparities Puerto Rico faces under Federal
programs. They should have worked with us to fix Puerto Rico's unequal
treatment under Medicaid and Medicare or extend key refundable tax
credits to the island's government. Republicans should have extended
overtime rules and the minimum wage.
I take issue with the oversight board and their excessive powers and
appointment structure.
For all the Republican leader's promises about an open amendment
process, Democrats have not been allowed to offer amendments to improve
the bill. The tree is filled. How many times did we hear the Republican
leader come to the floor and say: Oh, it is terrible; Reid has filled
the tree. Well, I should have waited and taken some lessons from him.
We will just add that broken promise to the Republican leader's growing
list of not keeping his word, such as the budget, a full workweek, and
tax credits that are so vital to renewable energy projects.
If Democrats had written this bill, it would be very different from
what we are voting on today. But I am going to vote for passage of this
bill because we must help Puerto Rico before July 1. Otherwise, we turn
that island nation--country, I should say--all American citizens--turn
them over to the hedge funds, and they will sue them to death, and that
is too bad. We must do something now.
As the Democrats stated in a letter that every Member of our caucus
sent to Senator McConnell earlier this year, Puerto Rico needs a
workable debt-restructuring process.
While there are many things we may not like about this legislation,
at the end of the day this legislation provides tools that allow Puerto
Rico to survive, to hopefully restructure a meaningful portion of its
debt. I wish we had something better.
Secretary Lew sent a letter to Senator McConnell and to me a few days
ago.
[Puerto Rico's] only hope for recovery and growth is
legislation that authorizes the tools necessary for better
fiscal management and a sustainable level of debt.
While much work still needs to be done, this legislation meets the
Treasury's criteria, and it is a step in the right direction.
Not acting today to provide Puerto Rico with debt relief and
protection from creditors' lawsuits will have dire consequences and
worsen the crisis.
Puerto Rico's only elected representative in Congress, Resident
Commissioner Pedro Pierluisi, said it best in a letter he sent to me:
PROMESA--
Which is a word meaning ``promise'' in Spanish, and that is the name
of this bill--
is an imperfect but indispensable bill that constitutes the
only realistic means to prevent the collapse of Puerto Rico's
government; to protect regular citizens, pension plan
participants and bondholders; to stem the tide of Puerto Rico
families moving to the states; to enable the Puerto Rico
government to regain access to the credit markets; and to lay
the groundwork for Puerto Rico's economy to grow.
The Resident Commissioner is correct. Mr. President, 3.5 million
American citizens who call Puerto Rico home need this relief, and they
need it now. We should pass this legislation today and give Puerto Rico
the relief it so desperately needs.
Mr. President, would the Chair announce the business of the day.
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