Puerto Rican People’s Power Restoration Act of 2026

Bill Number

H.R. 7833

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Energy

Status

Introduced

Latest Action

2026-03-05: Referred to the Committee on Natural Resources, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-04-02T17:10:58Z

AI-Generated Summary

Purpose of the Legislation

The "Puerto Rican People's Power Restoration Act of 2026" (H.R. 7833) aims to amend the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA, a 2016 federal law) to allow Puerto Rico's local government to replace the federally appointed Oversight Board with a successor entity of its own choosing. This would restore greater local control over the island's fiscal oversight and debt restructuring processes, while maintaining key federal safeguards.

Key Provisions

• Termination of the Oversight Board: The Board (a federal entity created under PROMESA to supervise Puerto Rico's finances) would end one day after Puerto Rico enacts its own legislation establishing or designating a successor entity to take over its roles.
• Substitution of Debtor Representative: For debt adjustment cases (similar to bankruptcy proceedings) involving the Puerto Rico Electric Power Authority (PREPA, the island's main electric utility), the successor entity would replace the Oversight Board as the representative of the debtor. All professionals, advisors, and lawyers previously hired by the Board would continue working for the successor unless Puerto Rico's law states otherwise.
• Rules of Construction: The changes do not:
• Affect the requirements for confirming debt adjustment plans under PROMESA.
• Invalidate any fiscal plans or budgets approved before the Act's enactment (these remain in effect until updated by the successor or through a confirmed debt plan).
• Change the authority of the U.S. District Court for the District of Puerto Rico, which handles PROMESA-related cases.

Significant Changes to Existing Law

• Addition of Termination Clause: PROMESA previously had no automatic end date for the Oversight Board; this Act introduces a mechanism for termination tied to Puerto Rico creating a local successor, effective immediately upon the island's legislation.
• Shift in Representation for PREPA: Under current law, the Oversight Board exclusively represents debtors like PREPA in restructuring cases; the Act allows substitution with a local entity for new cases started after the change.
• These amendments build on PROMESA without repealing its core framework, ensuring continuity in fiscal certification and court oversight.

Potential Impacts

• On Government Agencies: The federal Oversight Board could be dissolved, reducing U.S. Congress and executive branch involvement in Puerto Rico's daily fiscal decisions. Puerto Rico's local agencies, like PREPA's governing board, would gain direct authority over debt and budgeting.
• On Citizens: Puerto Ricans may experience more locally tailored economic policies, potentially speeding up recovery from debt crises and natural disasters (e.g., hurricanes), but outcomes depend on the effectiveness of the successor entity.
• On International Relations: Minimal direct impact, though it could influence perceptions of U.S. territorial governance and Puerto Rico's creditworthiness with global investors and creditors.
• Overall, the Act promotes fiscal autonomy while preserving federal guardrails to prevent default on debts.

Main Stakeholders Affected

• Puerto Rican Government and Residents: Gain tools to reclaim control over fiscal planning and utilities like PREPA, affecting public services, energy costs, and economic policy.
• Oversight Board and Federal Government: The Board loses its role, shifting responsibility to local entities; U.S. agencies (e.g., Congress, courts) retain oversight through PROMESA's unchanged elements.
• Creditors and Investors: Bondholders and financial institutions involved in Puerto Rico's $70+ billion debt may face negotiations with new local representatives, but existing plans remain protected.
• PREPA and Utility Stakeholders: Employees, customers, and regulators transition to local leadership, with continuity in legal and advisory support.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces PROMESA's structure by allowing evolution without undermining debt confirmation processes or court jurisdiction, potentially reducing future litigation over federal overreach. The "rules of construction" clause ensures no retroactive disruptions.
• Constitutional: Aligns with U.S. territorial powers under the Territory Clause (Article IV, Section 3), balancing federal authority with local self-governance; it does not address Puerto Rico's broader status debates (e.g., statehood or independence).
• Political: Signals a bipartisan push (introduced by Reps. Krishnamoorthi and Soto) toward devolving power to Puerto Rico, amid ongoing debates on colonial dynamics and post-Hurricane Maria recovery. It could set precedents for other U.S. territories but risks criticism if local successors fail to stabilize finances.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Krishnamoorthi, Raja [D-IL-8]

Cosponsors (1)

Rep. Soto, Darren [D-FL-9]

Recent Actions

• 2026-03-05: Referred to the Committee on Natural Resources, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-05: Referred to the Committee on Natural Resources, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-05: Introduced in House
• 2026-03-05: Introduced in House

Bill Versions

• Puerto Rican People’s Power Restoration Act of 2026 — issued 2026-03-05 — PDF (4 pages)