CFIF Leads Coalition Opposing “Super Chapter 9” Bailout for Puerto Rico
In a letter addressed to Senate Finance Committee Chairman Orrin Hatch and Senate Judiciary Committee Chairman Charles Grassley, the Center for Individual Freedom (“CFIF”) this week led a coalition of a half dozen prominent free-market organizations urging opposition to any legislation that grants Puerto Rico “Super Chapter 9” status.
“‘Super Chapter 9’ would give Governor Alejandro Garcia Padilla a free pass to violate Puerto Rico’s constitution, but would do nothing to bring about meaningful fiscal reform,” the letter reads.
“It is our hope that Congress will instead take the lead on this tough issue by urging the Garcia Padilla Administration to implement real fiscal reform and uphold the constitution before any consideration of restructuring the non-constitutional debt,” the letter continues. “If necessary, Congress has the legal authority to consider measures such as a federal control board to oversee financial reform. When, and only when, reform is enacted, Congress can then consider a process that encourages an orderly restructuring of Puerto Rico’s debts that respects the constitutionally-protected bonds and the rule of law.”
In addition to CFIF, the letter was signed by the leaders of Frontiers of Freedom, Hispanic Leadership Fund, Institute for Liberty, National Taxpayers Union and Taxpayers Protection Alliance.
Read the letter by clicking here (PDF).
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