Transforming Puerto Rico’s Financial Oversight

Recently, the Trump administration dismissed five members from Puerto Rico’s Financial Oversight and Management Board (FOMB). This board was established by Congress in 2016 to assist with restructuring the island’s significant debt and implement essential financial reforms.

Having previously served on the board during Trump’s first term, I believe this move is crucial, especially in light of the electric grid’s collapse. The actions taken aim to liberate Puerto Rico from a committee that has seemingly failed to fulfill its basic responsibilities to the residents.

When the board was created, it was supposed to focus on improving Puerto Rico’s energy infrastructure. Yet, the reality is quite different. The island has faced numerous blackouts over the last year. Instead of addressing this ongoing crisis, FOMB’s focus seemed misplaced, contributing to PREPA’s bankruptcy and complicating negotiations with creditors.

Moreover, the billions approved by Trump for rebuilding the electric grid post-Hurricane Maria seem to have ultimately been redirected by the Biden administration toward green energy initiatives. In nearly ten years, FOMB has reportedly spent $2 billion in taxpayer funds, allegedly benefiting legal and consulting firms that seem more invested in prolonging PREPA’s financial difficulties.

Keep in mind, sustaining PREPA during its bankruptcy poses a significant barrier to modernizing Puerto Rico’s energy system, which is critical for economic growth. Trump’s energy strategy embodies the clear link between energy and economic expansion, a connection the board seemed unable to grasp—so, I think it’s a relief they’re out.

Reflecting on Puerto Rico, I previously discussed Trump’s strong leadership. After Hurricane Maria devastated the region in 2017, the Trump administration reacted swiftly and decisively, contrasting sharply with the Biden administration’s four years of focus on promoting green energy initiatives. Trump took notable steps to rejuvenate Puerto Rico by dismissing the board. His energy plan for the U.S. is foundational to the island’s recovery. Here are five potential next steps:

• Ending PREPA’s bankruptcy swiftly through a fair agreement with creditors, possibly leveraging various funding sources.
• Privatizing and rebuilding Puerto Rico’s electric grids with top-tier operators, utilizing American natural gas and nuclear options rather than relying solely on green technologies.
• Reviving pharmaceutical manufacturing on the island, leveraging Trump’s efforts in securing global trade and reestablishing U.S. manufacturing to create a dependable energy base.
• Allowing offshore oil and natural gas exploration, enabling revenue sharing from future production between the federal government and Puerto Rico.
• Upon successful restructuring of PREPA, disbanding FOMB as Congress never intended it to be a permanent fixture, thus redirecting governance to elected leaders.

During my nearly three years with FOMB, I was honored to serve under President Trump. Throughout my time, I consistently heard local leaders, across party lines, applaud his decisive actions. One thing became abundantly clear: no president has contributed more to Puerto Rico than Donald Trump. Thanks to his leadership, I genuinely believe Puerto Rico will thrive again.

Justin Peterson was a member of Puerto Rico’s Financial Oversight Board from 2020 to 2023.