Puerto Rico debt reduction plan moves toward approval

Significance

The Board has now argued the case for federal endorsement of this latest version of the plan before the judge overseeing the process. The process has taken four years to reach this point, but a further delay is possible.

Impacts

• Puerto Ricans will continue to leave the island given the ongoing uncertainties related to education, employment and healthcare.
• Despite some interest earlier this year, Congress is expected to make little progress on the island’s constitutional status in 2022.
• With 5 million Puerto Ricans registered to vote on the mainland, island issues will feature in some 2022 midterm elections.