WASHINGTON—As Puerto Rico faces a major debt payment, President Barack Obama is vowing to move quickly to sign a last-minute rescue package for the financially-strapped U.S. territory and its 3.5 million Americans.
In a rare election-year feat, the White House-backed legislation passed with strong bipartisan support in Congress. The Senate voted 68-30 for the legislation on Wednesday, three weeks after the House approved the measure.
“This bill is not perfect, but it is a critical first step toward economic recovery and restored hope for millions of Americans who call Puerto Rico home,” Obama said in a statement.
Puerto Rico is in a decade-long recession and has $70 billion in debt, and leaders of both parties warned that failure to pass the bill could send the island into financial chaos.
Signs are already pointing to a humanitarian crisis as thousands have fled the island and businesses there have closed, schools have struggled with limited electricity and hospitals have asked for cash payment in advance for some medication. A $2 billion debt payment to creditors is due Friday, and the territory’s governor has said that there isn’t money to pay it.
The legislation would create a control board to oversee the U.S. territory’s finances and supervise some debt restructuring. It would not provide any direct financial aid to the territory, but leaders warned that a bailout could eventually become necessary if Congress doesn’t take this step.
