A bill that would substantially boost federal Medicaid funding for Puerto Rico advanced out of a U.S. House subcommittee yesterday after lawmakers agreed to work on stricter safeguards in the wake of a government corruption scandal in the territory, Reuters reported. The Health Subcommittee sent the legislation, which would give the bankrupt U.S.
Puerto Rico in Distress
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The FBI yesterday arrested two former senior officials who served in the administration of Puerto Rico Gov. Ricardo Rosselló, leading the chair of the House committee that oversees Puerto Rico to call for the governor to step down, the Washington Post reported.
A group of creditors that hammered out an $8.3 billion restructuring proposal covering Puerto Rico’s bankrupt power authority are receiving $151 million in special payments for their trouble, pushing their recoveries higher than the baseline of 77.5 cents on the dollar, WSJ Pro Bankruptcy reported.
A lawsuit to invalidate $14 billion of Illinois bonds draws inspiration from Puerto Rico’s restructuring, according to a Bloomberg editorial. Indeed, munis are off to a blistering pace in 2019, with mutual and exchange-traded funds focused on the debt on track to pull in a record amount of cash this year.
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The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.