Opening Statement for Hearing on The Status of the PREPA Restructuring Support Agreement 

As Puerto Rico's sole representative in Congress, I want to thank you, Chairmen Bishop and LaMalfa, Ranking Member Torres, and fellow Members of the Subcommittee for holding this hearing.

Let me begin by noting that this hearing illustrates one of the key differences between a territory and a state: In a state, the federal government will never interject itself into local issues, whereas in a territory, Congress has the plenary and undisputed authority under the Territorial Clause of the Constitution to make decisions on local matters.

This was most clearly demonstrated last year with the enactment by Congress of the Puerto Rico Oversight, Management, and Economic Stability Act, PROMESA, which established a Fiscal Oversight Board to supervise the stabilization of the Island's unprecedented fiscal and economic crisis as a way to steer Puerto Rico back on a path of fiscal responsibility and economic growth.

For the past year and a half, Congress, led for the most part by this Committee, Chairman Bishop and Speaker Ryan, has worked to confront this crisis, which is the result of the territorial system that is based on the economic and political inequality of its citizens. A model that denies millions of American citizens the most basic right in a democracy, the right to vote and to equal representation, and treats hundreds of thousands of Puerto Rican veterans as equals in war but not in peace.

To that effect, PROMESA not only established the Fiscal Oversight Board, but also created a bicameral and bipartisan Task Force of Members of Congress to make recommendations "on the impediments… to economic growth in Puerto Rico including equitable access to Federal healthcare programs." In its final report in December, the Task Force identified numerous federal programs where Puerto Rico's lack of equal treatment constraints the Island's economic growth potential and provided specific recommendations for this Congress to consider. These recommendations included providing Puerto Rico with "equitable and sustainable funding" under the Medicaid program, as well as addressing the Island's impending Obamacare-imposed Medicaid cliff "early in calendar year 2017."

Mr. Chairman, I have already introduced legislation that would implement many of these recommendations and urge that the Task Force Report serve as a roadmap for this Subcommittee moving forward. This would provide the Island with much needed tools to complement PROMESA and restore economic growth for our people. Furthermore, the ongoing discussions regarding the replacement of Obamacare, tax reform, and increased funding for infrastructure projects, among others, present Congress and the Trump Administration with a golden opportunity to address decades of unequal treatment for Puerto Rico and the territories. More specifically, I request that this Subcommittee support the ongoing efforts to ensure that Puerto Rico and the other U.S. territories are treated equally in the American Health Care Act or any upcoming Obamacare replacement legislation to be considered. I would also like for the Governor and the Chairman of the Financial Oversight Board to comment on this during their respective turns.

Just last week, the Fiscal Oversight Board created under PROMESA approved Governor Ricardo Rosselló's Fiscal Plan, a plan that his Administration was able to develop in just 58 days. I consider this to be a giant step in the right direction. Now, we are compelled to quickly shift our focus and engage in good faith negotiations that address debt service, provide sufficient capital for PREPA's infrastructure investment, and sets power rates that will not overburden Puerto Rican families and businesses.

What should be clear by now is that PROMESA's objectives for Puerto Rico will not be achieved unless economic growth is restored to the Island, and that securing an efficient and affordable production of electricity is critical to the Island's vitally needed economic recovery. That's the reason why we are here today. I am optimistic that an agreement can be reached in the best interest of the people of Puerto Rico and our economy. Such an agreement could set a precedent for other negotiations to follow.

The Government of Puerto Rico is taking steps to repair Puerto Rico's credibility, trigger economic growth, and seek an end to the territorial status that is the root problem for Puerto Rico's economic crisis, through the admissions process of Puerto Rico becoming the 51st state of the Union. Make no mistake about it, Puerto Rico's territorial status is the problem, and the problem will not go away by ignoring it. Failure to address it would be like treating the symptoms of a very sick patient instead of the underlying disease.

I look forward to the testimony of our witnesses and to hearing all sides on this very important discussion for the future of our beloved Island