[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},"mediaId",6169556,"mediaKeyId","5403960-426556db60357df28dd48f790f745b45","parentId",5403960,"title","FOMB says PROMESA has improved Puerto Rico finances but urges reforms before board ends","audioSeconds",852,"startMs",703000,"endMs",1555000,"viewUrl","/Search/View?dp=1&key=5403960-426556db60357df28dd48f790f745b45&start=703&end=1555","thumbnailUrl","https://assets.pipeline.soar.com/5403960-426556db60357df28dd48f790f745b45/thumbnail_703000.jpg","articleUrl","/articles/6169556/FOMB-says-PROMESA-has-improved-Puerto-Rico-finances-but-urges-reforms-before-board-ends","mediaUrl","https://secure.pipeline.soar.com/6169556-68e773fbeb41e5711e2d6d2bc47c8679/orig.mp4?Expires=1770400459&Signature=haXYizN2Wq1o8em9oeETuNmO1It0yzTZ4ABshZRtlbeaIWonSXyHybmcuZKv7v5gWSum2PnXqWpH36ROhYxfyvdcyy7zcG~5KBrNzyYiJbO4MDL3YdFn6hSSymPQgYu2frudj9nu-~ymKLCP2vK1OrquOAdHrNROzsDTzqdbOdc07UcbIgDwZZ2cBDFYs1lSVgRp2uUFQpxs5NX-vOiIXF50v2McEav1o7RuaCxaQxmBKArqOM2yjw0NrHwG6oGOMDh7hJu69JMhz3pJJXJo-x6T~DO0peuZPCqglK7VKXLesZMfoYbpQT2o~HjKjPN2AyMRqSxEsrwImcO39qBBUA__&Key-Pair-Id=KUT5TJCACFTXG","author","U.S. House Committee on Natural Resources","date","2025-07-09T17:23:35Z","article","The House Subcommittee on Indian and Insular Affairs heard testimony that Puerto Rico’s finances have improved under the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), but witnesses and the Financial Oversight and Management Board (FOMB) urged Congress and local leaders to ensure permanent reforms before ending federal oversight.

Robert Mujica, executive director of the Financial Oversight and Management Board for Puerto Rico, told the subcommittee that PROMESA helped reduce Puerto Rico's debt and align spending with revenue but “we are not done,” stressing that termination requires four consecutive balanced budgets under modified accrual standards and restored market access. “Putting in permanent reforms that survive past the board is what would be successful,” Mujica said.

The advisory witness panel placed the progress in context. Michelle Sager, managing director of strategic issues at the U.S. Government Accountability Office, said audited statements show improvement and urged continued focus on financial management fundamentals, noting audited fiscal 2022 statements showed a $1.9 billion governmentwide net surplus and that audited 2023 and 2024 statements were not yet available as of June 30, 2025. Andrew Austin, an economic policy analyst at the Congressional Research Service, described PROMESA’s role in modernizing budgeting practices and noted that federal disaster and pandemic funds have altered fiscal dynamics.

The witnesses and members described several specific reforms and outstanding risks. Mujica and Sager cited steps such as adoption of a debt management policy, establishment of an emergency reserve, implementation (with delays) of an enterprise resource planning system intended to improve reporting, and creation of an Office of the Budget of the Legislative Assembly (OPAL) to inform the legislature on fiscal impacts. Mujica said the board estimates it has saved Puerto Rico tens of billions of dollars through restructurings and spending alignment but warned that the island must institutionalize budgeting, capital planning and financial reporting so the problems do not recur.

Members raised concerns about the board’s costs and longevity during the hearing. Resident Commissioner Hernandez said PROMESA and “la junta” have restricted Puerto Rico’s self‑government and criticized board spending; Mujica responded that, despite costs of the oversight process, the board’s actions have reduced the debt burden and advanced fiscal stability. Witnesses emphasized that statutory criteria in PROMESA — four consecutive balanced budgets under modified accrual standards and restoration of market access — are conditions for board termination, and that certified budgets should be maintained through the fiscal year and verified by audited financial statements.

The hearing also addressed how federal programs intersect with the territory’s fiscal outlook. Witnesses noted that some federal disaster recovery funds remain to be invested, that Medicaid funding and other federal program rules affect long‑term planning, and that population declines and climate risks complicate fiscal recovery.

Looking ahead, witnesses and members urged continued oversight of audit completion, full implementation of financial systems, expanded capital planning, and cooperation between the Puerto Rico government and the FOMB to meet PROMESA’s statutory conditions prior to termination. The subcommittee kept the record open for written questions and directed follow‑up responses by committee deadline.","mediaType","Video","parentTitle","Oversight Hearing | Subcommittee on Indian and Insular Affairs","oneSentenceSummary","The House Subcommittee on Indian and Insular Affairs heard testimony that Puerto Rico’s finances have improved under PROMESA, but the Financial Oversight and Management Board said termination should wait for permanent reforms and four consecutive balanced budgets.","taxTitle","Natural Resources: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal","taxId",1983,"location","","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6169546,"FOMB reviews long‑term New Fortress LNG deal amid concerns about exclusivity and noncompetitive terms",3145,3212000,6357000,"/Search/View?dp=1&key=5403960-426556db60357df28dd48f790f745b45&start=3212&end=6357","https://assets.pipeline.soar.com/5403960-426556db60357df28dd48f790f745b45/thumbnail_3212000.jpg","/articles/6169546/FOMB-reviews-longterm-New-Fortress-LNG-deal-amid-concerns-about-exclusivity-and-noncompetitive-terms","https://secure.pipeline.soar.com/6169546-b5971d64dd2e9b2cd76f1942ec4425db/orig.mp4?Expires=1770400459&Signature=VK0u9udUF8PMArmPr~niy2h1ft8MuvgEc8sYXSND8U7okRGWeZI~~1FoIIaKj6-v~QGnicKoXqRuajN-D2anNS34m3VdOxEdhxyhoHwgQbTNDaGbJFOZoZU7N5Uqy2K507zn4yh8JQajYvlsou8BvYBpHHVsMpAtBFIsEjVoqSK9aj~ugmMJ-bcWVznNRvCOQuneysymGVMIn-oYXI89ERswhyGSzTxSIAatYGpGUJOfhLiC3IJSfKcQiofgSD2NtBaVRT0lqud8K5Pm6O7gAjBFN6ZXMYQfdhanO3qdNQFC98kjYDPqyqvJxs1~hI9BG6M9lJNFvJi8bGM9sPL8Mw__&Key-Pair-Id=KUT5TJCACFTXG","Members of the House Subcommittee on Indian and Insular Affairs questioned the Financial Oversight and Management Board (FOMB) about a proposed multi‑year liquefied natural gas (LNG) supply contract with New Fortress Energy and a unit referred to in testimony as Genera, focusing on whether the agreement was negotiated competitively and whether it creates exclusivity that could raise costs for Puerto Rico.

Representative Suzanne Bonamici/Representative Deanne (?: transcript participant Miss Hoyle) raised a report that New Fortress refused to deliver an LNG shipment during contract negotiations and asked the board to explain. Robert Mujica, executive director of the FOMB, said the board is reviewing multiple contracts and that some provisions raise “market competition” concerns: the contract in question appeared to grant broader exclusivity for LNG supply than existing port arrangements, included take‑or‑pay volume commitments and contained volumes that may be tied to future generation assets not yet built.

Mujica said the board has sought more time to review contract terms and has interviewed negotiators; based on those interviews staff reported that negotiators faced pressure and limited flexibility in changing terms. “If the facts as reported to us are true, that would be a despicable act against the people of Puerto Rico to deny them the fuel they would need,” Mujica testified, describing reports that deliveries were conditioned during negotiations.

Members asked whether a competitively run procurement would likely yield better terms. Mujica said the board believes a fair, transparent process could produce more favorable terms and more market competition. He declined to say the board had voided the contract; later in the hearing he clarified that the board was still reviewing the agreement and had not issued a final determination.

The board said it will continue its review, consult with negotiators and calibrate oversight to ensure that contracts support affordable, reliable generation and do not create monopolistic supply arrangements that could lock in high take‑or‑pay obligations and crowd out other suppliers.","Members pressed the Financial Oversight and Management Board about a long‑term liquefied natural gas contract with New Fortress Energy, and the board said it is still reviewing the agreement and flagged possible exclusivity and take‑or‑pay provisions that could limit competition and raise costs.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6169551,"Lawmakers, FOMB clash with holdout creditors over PREPA deal; board proposes $2.6 billion settlement",3597,783000,4380000,"/Search/View?dp=1&key=5403960-426556db60357df28dd48f790f745b45&start=783&end=4380","https://assets.pipeline.soar.com/5403960-426556db60357df28dd48f790f745b45/thumbnail_783000.jpg","/articles/6169551/Lawmakers-FOMB-clash-with-holdout-creditors-over-PREPA-deal-board-proposes-26-billion-settlement","https://secure.pipeline.soar.com/6169551-50a613332d66a5fca994f78568754052/orig.mp4?Expires=1770400460&Signature=BYwc77cMV0-hapRYOicdpDTA8Z~T3hdqs6hldEz-M1ESmY5oipJMRMkPo-9VbWo6606VPFNvvhua94FKVbpATk6vkqSgkWX4MTw0GfrYD5NkuWbQvgCLOgEjg4~lPofPXzw-vWzHH95zV1bOScNTz7YwEKesqZdCqfEJ9U6i5ZTfpfuPgSpstL~h73TBE0Z~Y3-r62kSdVb3FVXXXfDVZhqTBx5e95dpSAer6MZSIVB~mhpydNgEWySmG6bQ5Fu~HYgs4KliJGlvbmUqwW3yGEfductTDuhJLAn3mTrPsegmbPf2Fxg323oDe9HB~yJuA1io7mm~b8MrIeMH-Vt24A__&Key-Pair-Id=KUT5TJCACFTXG","Lawmakers, the Financial Oversight and Management Board (FOMB), federal analysts and Puerto Rico officials debated how to resolve the Puerto Rico Electric Power Authority’s (PREPA) remaining debt and who should cover the cost of repairs and modernization to the island’s failing grid.

Robert Mujica, executive director of the FOMB, said the board has reached agreements with creditors representing 44% of PREPA’s debt but that a group of nonconsenting bondholders — led by GoldenTree Asset Management — is demanding full recovery claims totaling about $12 billion, including pre‑ and post‑petition interest. “We will identify $2,600,000,000 for the creditors. That’s how much we think is affordable,” Mujica said, adding that the board believes net revenues are insufficient to satisfy the higher demands without imposing untenable rate increases.

Members warned of consequences if holdouts succeed. Representative Alexandria Ocasio‑Cortez (appearing as a permitted participant in the hearing) and Representative Torres said a $12 billion recovery would force large rate increases and divert money from service repairs. “They would pay an additional 8¢ to fund the $12,000,000,000,” Mujica testified when describing rate estimates; Representative Torres added that an additional 2.5¢ would be needed to cover underfunded pensions, for a combined roughly 10.5¢ per kilowatt‑hour increase on top of current rates.

Witnesses and members cited operational and structural problems that make the PREPA restructuring unusually complex: generation assets more than 50 years old; island‑wide outages in the prior year unrelated to storms; deferred maintenance and limited capital investment; private operators LUMA (distribution/operations) and Genera (New Fortress Energy unit) in roles for generation and operations; and slow or partial investment of federal disaster recovery funds. Attorney and investor positions were discussed in testimony and questioning but not resolved at the hearing.

Members repeatedly criticized so‑called vulture funds that purchased distressed PREPA bonds after defaulting and now seek large recoveries. Representative Nydia Velázquez and others singled out GoldenTree, noting public filings and reported profits. Mujica said the board’s plan prioritizes preserving PREPA’s ability to attract contractors and finance improvements without placing unsustainable cost burdens on ratepayers.

The subcommittee heard that the First Circuit Court of Appeals has limited nonconsenting bondholders’ recourse to PREPA’s net revenues, and that FOMB and debtors are in court‑ordered mediation. No settlement was announced; the FOMB and several members urged further mediation and stressed that any deal must protect grid reliability and affordability for Puerto Rico’s residents.","The subcommittee heard that a group of nonconsenting PREPA bondholders led by GoldenTree is seeking recovery levels the Financial Oversight and Management Board says would be unaffordable for Puerto Rico ratepayers and threaten grid reliability.","actionData","errors"]

Article not found

FOMB says PROMESA has improved Puerto Rico finances but urges reforms before board ends

FOMB reviews long‑term New Fortress LNG deal amid concerns about exclusivity and noncompetitive terms

Lawmakers, FOMB clash with holdout creditors over PREPA deal; board proposes $2.6 billion settlement