Congress Should Reject Backdoor Bailout for Puerto Rico

Feb 12, 2016, 08:04 ET from Center for Individual Freedom

WASHINGTON, Feb. 12, 2016 /PRNewswire-USNewswire/ -- In a letter sent to Speaker of the House of Representatives Paul Ryan yesterday, the Center for Individual Freedom ("CFIF") warns against a backdoor bailout of Puerto Rico being considered by the House Natural Resources Committee. 

The committee is considering the implementation of an unprecedented and broad restructuring regime for the island, which goes far beyond what is available to states under Chapter 9 of the bankruptcy code and would likely result in taxpayers being forced to assume the obligation of compensating bondholders. 

"In granting the island this bailout, lawmakers would be sending a clear and decisive message to profligate states that refuse to balance their budgets: fiscal reform is unimportant, because when push comes to shove, Congress will rewrite the rules to give you a free pass," writes CFIF President Jeff Mazzella. "That course of action would be unwise and destructive, and not at all in accord with the conservative principles upon which this body was so resoundingly elected by the American people."

CFIF urges Speaker Ryan to put a stop to this outrageous legislation, and make good on his promise to deliver a conservative solution to the Commonwealth's crisis that can garner widespread support and will respect Puerto Rico's constitutional debt.

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SOURCE Center for Individual Freedom