October 27, 2017

The Intercept: Bernie Sanders, Elizabeth Warren Working on a "Comprehensive Plan" for Puerto Rico

Vermont Sen. Bernie Sanders is working on a "comprehensive plan that includes debt forgiveness" for Puerto Rico, an effort that will be informed by his trip to the island on Friday, Sanders told The Intercept.

Sanders's plan is being developed in conjunction with other members of the progressive flank of the Senate Democratic caucus. The plan is still in its early stages, but Democratic aides said that Sen. Elizabeth Warren, D-Mass., is one of the lawmakers involved in the informal talks with Sanders, hoping to lay down a marker as to where the party should be on the issue of aid, debt relief, and governance on the island.

Sanders and Warren opposed the 2016 debt deal Congress reached on Puerto Rico, which installed on oversight board and stripped the island of power over its budget. But it also created a legal bankruptcy structure that has been far less favorable to hedge funds than investors had hoped, giving leaders on the island hope that a major debt write-down could be in the offing. The devastation from Hurricane Maria only strengthens the case for relief, giving Sanders a new opening to push the case.

Read more on The Intercept's website here.