[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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