The U.S. Senate passed the bill known by its acronym PROMESA, which translates to promise, on a bipartisan 68-30 vote, three weeks after the House overwhelmingly backed the measure. The vote came two days before Puerto Rico is due to make a $2 billion payment to creditors.
The legislation establishes a seven-member control board to oversee negotiations with creditors and the courts over reducing some debt. It does not provide any federal taxpayer funds to reduce that debt.
The PROMESA bill would also require the territory to create a fiscal plan to bring the island back from its current financial situation. Among other requirements, the plan would have to provide “adequate” funds for public pensions, which the government has underfunded by more than $40 billion.