The Senate advanced a Puerto Rico rescue bill that places a federally-appointed control board in place to oversee Puerto Rico’s finances Wednesday, despite concerns from members in both parties.
In a 68 to 32 vote to invoke cloture – limiting debate to no more than 30 hours – the Puerto Rico Oversight, Management and Economic Stability Act is expected to be brought to the floor for a final vote and sent to President Barack Obama’s desk, before the debt-ridden island’s looming July 1 deadline on a $2 billion payment to creditors it says it can’t meet.
Puerto Rico currently faces a $72 billion debt burden, and defaulted on a major payment in early May.
Treasury Secretary Jack Lew has warned on numerous occasions that if Congress doesn’t act quickly, the territory could face a full-blown humanitarian crisis – potentially leading to additional school closures, ill-equipped and understaffed hospitals and the inability to fund other necessary services.
Senate Majority Leader Mitch McConnell referred to the bill as “imperfect,” but said it is the best course of action they have to address the problem.
Democrats expressed frustration over language allowing the Puerto Rico government to lower its minimum wage for younger workers, exempting the territory from the Obama administration’s new overtime rule and their inability to tack amendments onto the measure.
Despite their issues with the bill, Minority Leader Harry Reid and New York Sen. Chuck Schumer announced Tuesday they planned on voting for the measure and encouraged others to follow suit.
“I wish we had amendments – if I were writing this bill, if democrats were able to get more provisions in on labor protection and other things, I’d prefer that,” Sen. Bob Casey of Pennsylvania, who plans to vote yes, told The Daily Caller News Foundation. “I know our side worked hard to get the best agreement possible.”
New Jersey Democrat Sen. Bob Menendez aired his grievances for a total of four hours on the Senate floor Tuesday, arguing lawmakers should push past the deadline to make sure they get the legislation right since the bill would retroactively put a stay on any litigation.
“The fact of the matter is the suggestion that if we don’t have July 1 legislation in place it’s going to create an untenable situation for Puerto Rico is simply wrong,” he told reporters Wednesday.
But not all complaints came from the minority party. Seventeen of the 32 nay votes came from Republicans who said they felt the measure sets a bad precedent for territories in the future and doesn’t do enough to prevent a bailout in the future.
“The most important thing is they aren’t taking enough steps to make sure the fiscal house is put in order or looking at the collection of taxes,” Senate Judiciary Committee Chairman Chuck Grassley of Iowa told TheDCNF. “I think that you’ll have financial restructuring before you get the financial house in order and 17,000 Iowans have these bonds.”
While the bill is expected to pass the upper chamber, lawmakers have the opportunity to vote differently than they did in the procedural vote.
The bill made it through the House with overwhelming support earlier this month.
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