[Congressional Record (Bound Edition), Volume 161 (2015), Part 14]
[Senate]
[Pages 19740-19742]
[From the U.S. 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.

[[Page 19741]]


  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 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

[[Page 19742]]

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.
  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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