Skip to Content

Menu ×

Cotton Seeks Additional Answers from the Financial Oversight and Management Board for Puerto Rico

June 13, 2017

Contact: Caroline Rabbitt (202) 224-2353

Washington, D.C.-Senator Tom Cotton (R-Arkansas) today sent a second letter to the Financial Oversight and Management Board for Puerto Rico Chairman Jose B. Carrion III seeking specific answers about the board's approval of the Fiscal Plan for Puerto Rico. The letter comes after Chairman Carrion provided vague, inconclusive answers to an earlier inquiry expressing concern that the fiscal plan is not compliant with the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA).

"I thank you for your April 25 letter on the Fiscal Plan adopted by the Financial Oversight and Management Board of Puerto Rico. But I must be frank: I found your answers vague and unresponsive. I am compelled to write again to ensure that I-and the Arkansans I represent-receive specific answers. As taxpayers whose interests are directly impacted by the Oversight Board's actions, Arkansans deserve those answers," wrote Senator Cotton.

The letter requests Chairman Carrion answer two additional questions:

Did the Board anticipate that its interpretation would hurt the appeal of municipal and sovereign investment products and thus potentially raise the cost of public borrowing for all states and municipalities?
Is it the opinion of the Board that the servicing of Puerto Rico's lawful debt is a non-essential expense? Please explain.

Finally, Senator Cotton requests that Office of Management and Budget Director Mick Mulvaney provide a list of all federal transfer payments to Puerto Rico and analyses of the per capita cost as compared to other states and territories.

Click here to read the letter in full.

Background:

Senator Cotton and Senator Thom Tillis (R-North Carolina) first wrote Chairman Carrion about this issue on April 7, 2017. A copy of that letter can be found here. Chairman Carrion responded to the senators' inquiry on April 25, 2017. A copy of that letter can be found here.