Oversight Hearing | Subcommittee on Indian and Insular Affairs

The House Committee on Natural Resources GOP Subcommittee on Indian and Insular Affairs held an oversight hearing on July 17, 2025, focusing on Puerto Rico's fiscal recovery under the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The hearing extensively discussed the restructuring of Puerto Rico's public debt, particularly the unresolved $9 billion debt of the Puerto Rico Electric Power Authority (PREPA). Testimony highlighted the challenges posed by bondholders, especially the firm GoldenTree Asset Management, which demands full repayment of $12 billion, a figure far exceeding the Oversight Board's proposed $2.6 billion settlement. The Oversight Board emphasized the need for fiscal discipline, balanced budgets, and permanent reforms to ensure long-term financial stability. Concerns were raised about the impact of debt restructuring on electricity rates, which are already among the highest in the U.S., and the reliability of Puerto Rico's electric grid. The hearing also addressed issues related to contract reviews, including a controversial long-term liquefied natural gas contract with New Fortress Energy, and the importance of transparent, competitive procurement processes. Members discussed the progress made in budget certification and the conditions required for the Oversight Board's termination, underscoring the need for continued collaboration between Puerto Rico's government and the Board to achieve fiscal sustainability and economic growth.