During Constitutional Law, I learned of an important concept concerning the judiciary and the practice of law: the limits of the law. In federal constitutional law, the judiciary is authorized to adjudicate disputes and issue decrees; however, it is usually another branch of government that must enforce that decree. PROMESA is a classic example of the limits of the law. On June 30, 2016, PROMESA was signed into law by President Obama. PROMESA has established an elaborate process for the restructuring of Puerto Rico's debt. The Federal Oversight Management Board (the FOMB), which is authorized to oversee the financial affairs of Puerto Rico and to oversee Puerto Rico's debt restructuring, has been in existence for over three years. The FOMB has proposed a debt restructuring plan for Puerto Rico. Nevertheless, absent the support of the executive and legislative branches of the federal government, the Puerto Rico debt readjustment plan will fail.

The executive and legislative branches of the federal government have failed to adequately address the crisis in Puerto Rico. In particular, the federal government has failed to address the economic conditions that precipitated Puerto Rico's debt crisis; the federal government has failed to repeal federal legislation that has impeded Puerto Rico's economy; and the federal government has failed to adequately address the devastation caused by Hurricane Maria and the recent earthquakes. The recent earthquakes have brought back to the forefront the urgent need to rebuild Puerto Rico because of the fragility of its infrastructure.

Puerto Rico's economy has been moribund for over 15 years. Puerto Rico has never recovered from the repeal of the 936 tax legislation and the 2008 recession. The lack of revenue compelled the Puerto Rican government to borrow incessantly. Historically, Puerto Rico has relied on federal tax incentives to attract industry. Puerto Rico is in dire need of federal legislation that will reignite its economy. Absent a robust economy it will be difficult, if not impossible, for Puerto Rico to service its debt under a debt repayment plan and maintain essential services. A strong economy will help to stem the migration from Puerto Rico, and thus preserve its tax base.

The Jones Act is a hinderance on the Puerto Rican economy. The Jones Act requires that all goods shipped to Puerto Rico be shipped on American flagged vessels. According to the Cato Institute, the Jones Act places an additional annual cost of $568.9 million dollars for the goods shipped to Puerto Rico. Colin Grabow, New Reports Detail the Jones Act's Cost to Puerto Rico, Feb. 25, 2019. The Jones Act has adverse consequences for Puerto Rico because it has a lower per capita GDP than any state and it has a high level of unemployment. Id. Consequently, the repeal of the Jones Act as it pertains to Puerto Rico is an important component of a long-term economic aid program for Puerto Rico.

Puerto Rico's Medicaid program has been historically underfunded by the federal government. Maria Levis, The Price of Inequality for Puerto Rico, Dec. 29, 2015. Puerto Rico's federal Medicaid reimbursement rate is capped at 55%; however, if Puerto Rico were a state, its federal Medicaid reimbursement rate would be capped at 83%. Robin Rudowitz, Cornelia Hall and Barbara Lyons, Medicaid Financing Cliff: Implications for the Health Care Systems in Puerto Rico and USVI, May 21, 2019. Historically, the federal government has only paid 19% of Puerto Rico's Medicaid costs through a block grant. Sarah Varney and Carmen Heredia Rodriguez, Puerto Rico's Wounded Medicaid Program Faces Even Deeper Cuts, Aug. 1, 2018. Puerto Rico has higher rates of infant mortality, hypertension, and diabetes than the national average. Mandated Report—Medicaid in Puerto Rico, p. 77. Medicaid is an important government program in Puerto Rico because 47% of its population are Medicaid participants. Id. With Hurricane Maria and the recent earthquakes, the Puerto Rico health system continues to be under enormous stress to provide health services to the residents of Puerto Rico. Nevertheless, as a part of a budget deal, President Trump has sought to reduce Medicaid funding for Puerto Rico. Rachana Pradhan, Trump slashed Puerto Rico's Medicaid money as part of budget deal, Dec. 17, 2019.

The lack of federal Medicaid creates a structural budget deficit, and hampers Puerto Rico's public health system. There must be parity in Medicaid funding for Puerto Rico.

Puerto Rico has been ravaged by Hurricane Maria and earthquakes. Hurricane Maria is estimated to have caused $100 billion in damage. Puerto Rico official sacked over Hurricane Maria aid warehouse, BBC.com, Jan. 19, 2020.

It is also estimated that the recent earthquakes in Puerto Rico have caused $110 million in damage. Brackton Booker, After Quakes, Puerto Rico's Electricity Is Back on for Most, But Uncertainty Remains, NPR, Jan. 13, 2020. More than two years after Hurricane Maria, the federal government has not disbursed the majority of funds that have been appropriated to remediate the damage caused by Hurricane Maria. Arelis R. Hernández and Jeff Stein, Dangling disaster relief funds, White House to require Puerto Rico to implement reforms, The Washington Post, Jan. 15, 2020.

The Trump Administration is proposing new requirements for the disbursement of federal aid including, that the FOMB be given authority concerning the disbursement of federal aid for certain projects. Id. The expansion of the FOMB's power of the government of Puerto Rico is a consequence of the recent corruption scandals that have plagued the government of Puerto Rico. Given the significant amount of money that is necessary to remediate the damage caused by Hurricane Maria and the earthquakes, it is essential that there be an independent monitor to ensure that federal funds are not misappropriated.

Puerto Rico's infrastructure is in dire need of repair and modernization. Patricia Mazzei, Ivan Penn and Frances Robles, With Earthquakes and Storms, Puerto Rico's Power Grid Can't Catch a Break, The New York Times, Jan. 11, 2020. It is difficult to conceive that Puerto Rico could have a robust economy sufficient to maintain its debt service and simultaneously provide essential services without a modern infra-structure. Therefore, it is essential that funds that have been appropriated to repair the damage caused by Hurricane Maria be immediately released so that the rebuilding process can commence in Puerto Rico.

The 3.2 million people of Puerto Rico, who are citizens of the United States, and their creditors have a symbiotic relationship because their fates are intertwined. The abandonment of the federal government of Puerto Rico has exacerbated the migration from Puerto Rico. Antonio Flores and Jens Manuel Krogstad, Puerto Rico's population declined sharply after hurricanes Maria and Irma, Pew Research Center, July 26, 2019. Puerto Rico's population is its smallest since 1979. Id. It is also disconcerting that Puerto Rico's average age has increased to 43, while the average median age of a Hispanic in the mainland of the United States is 30. Id. Equally important, the number of births in Puerto Rico has declined by 47%. If the demographic trends continue unabated, Puerto Rico will have an older and smaller population in the future, which will make it more difficult to fund a debt repayment plan.

If Puerto Rico's debt readjustment plan is going to be feasible, then federal intervention is indispensable. Only the federal government has the financial resources that are necessary to rebuild and resuscitate Puerto Rico. The federal government can impose restrictions on the government of Puerto Rico to combat corruption and reform the government practices in Puerto Rico. The federal government, the FOMB, and the government of Puerto Rico must work in a collaborative manner to implement a long-term economic development program to attract and retain industry. The absence of a viable long-term federal strategy to rebuild Puerto Rico will result in not only the further economic collapse of Puerto Rico, but also in the economic collapse of Puerto Rico's debt readjustment plan.

Carlos J. Cuevas is a solo practitioner in Yonkers, N.Y., and a research associate at the University of Houston School of Law.