Trump Just Fired All the Democrats From Puerto Rico’s Financial Board — and People Wanna Know Why
President Donald Trump removed five out of seven members of Puerto Rico’s Financial Oversight Management Board. The board is responsible for overseeing the island’s budget plan as Puerto Rico works toward financial solvency. The dismissals are raising eyebrows since the five members of the board dismissed are all Democrats. Here’s what the Financial Oversight Management Board has been doing and why President Trump dismissed some members.
President Donald Trump dismissed a majority of Puerto Rico’s Financial Oversight Management Board
Bloomberg reports that an official dismissed the board members via email before notifying the Financial Oversight Management Board. The email removed Board Chairman Arthur Gonzalez, a former bankruptcy judge. The president also removed Cameron McKenzie, Betty Rosa, Juan Sabater, and Luis Ubiñas. Democratic presidents nominated four of the members. President Trump initially nominated Betty Rosa, and President Joe Biden later renominated her.
Congress established the board in President Barack Obama’s last year in office. That is when Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act, known as PROMESA. The board’s responsibility is to help Puerto Rico address its fiscal issues while expediting crucial infrastructure building.
Financial Post reports that the decision comes after Laura Loomer spoke out against the board, calling it a “colossal failure.” She posted an update on X (formerly Twitter), celebrating the dismissals. This is the same social media troll who suggested feeding detained people to alligators as part of “Alligator Alcatraz.”
People have expressed mixed feelings about the financial board over the years
For about a decade, the board has faced criticism for how they have handled its work. That criticism came from both sides of the aisle. However, many are skeptical about President Trump’s motives. Many people believe the move aims to benefit creditors and other wealthy individuals and corporations. It is a common theme of President Trump and his government.
The White House claims that previous leaders ran the board inefficiently and ineffectively. The White House claims decision will bring more common sense to its operations. People are not really buying this framing.
“But this sudden purge by Donald Trump is not about justice or reform. It doesn’t dismantle the Board or change PROMESA. It simply creates an opening to stack the Board with even more extreme, pro-bondholder appointees who will continue to put the needs of hedge funds over the Puerto Rican people,” Rep. Nydia Veláquez (D-NY-07) said in a statement. “If Trump appoints creditor lobbyists to the Board, as he did in his first term, Puerto Ricans will end up paying higher energy bills for decades and facing deeper service cuts, all to boost profits on Wall Street.”
The board’s work and controversy center on the debt held by the Puerto Rico Electric Power Authority (PREPA). PREPA owes billions to bondholders, including Green Tree Asset Management. Green Tree Asset Management is the most vocal opponent of plans to lower the amount Puerto Rico must repay to bondholders.
Currently, PREPA owes bondholders $8.5 billion. The board has been working to lower that amount to $2.6 billion, according to CBS News. Financial Post reports that, along with working to lower the debt, the board has kept Puerto Rico’s spending in line with its revenue collection.
