President Donald Trump just swung the axe, firing five members of Puerto Rico’s Financial Oversight Management Board. The bold move, confirmed by CBS News, targets a board long criticized for dragging its feet on the island’s fiscal mess. It’s a shake-up that has everyone talking, from San Juan to D.C.
Trump dismissed Arthur J. Gonzalez, Cameron McKenzie, Betty A. Rosa, Juan A. Sabater, and Luis A. Ubiñas, leaving just three members standing. The board, created in 2016 under the PROMESA Act, was meant to steer Puerto Rico out of its financial quagmire. Instead, it’s been a lightning rod for complaints about inefficiency and overreach.
The firings signal a push to break the board’s sluggish status quo. A White House official didn’t mince words: “The board has been run inefficiently and ineffectively.” That’s a polite way of saying it’s time to drain the swamp in San Juan.
Of the eight original members, only three remain: two appointed by the president and one non-voting member picked by Puerto Rico’s governor. Four of the ousted members were Democrat appointees, while Rosa was a Trump pick later renominated by Biden. The political mix hints at a broader agenda to realign the board’s direction.
Puerto Rico’s fiscal crisis, worsened by unresolved debts like those of the Electric Power Authority, has kept the island in limbo. The board was supposed to expedite solutions, including infrastructure projects. Yet, critics argue it’s done more to stall progress than spark it.
In July, a congressional hearing spotlighted the board’s struggles, particularly a contentious plan to slash PREPA’s bond payments from $8.5 billion to $2.6 billion. Bondholders, like Golden Tree Asset Management, cried foul, demanding their billions. It’s a classic case of Wall Street versus Main Street, Puerto Rican style.
Puerto Rico’s Republican governor, Jenniffer González-Colón, has long called for the board’s exit, saying it should leave “immediately.” Her stance aligns with Trump’s purge, and she’s ready to work with a new board once appointments are made. That’s a jab at the old guard’s failure to deliver.
The board itself responded with a tepid statement, claiming it would “continue to work” for Puerto Rico’s people. Nice sentiment, but after years of gridlock, it sounds like a bureaucrat’s last gasp. The PROMESA Act allows removals only for cause, so Trump’s team must have a solid case—or a big fight ahead.
Right-wing activist Laura Loomer took to X, slamming the board’s “failure” to resolve Puerto Rico’s bankruptcy. She’s not wrong -- years of legal wrangling have left the island without power or progress. Her post, echoing the July hearing’s fallout, shows the issue’s traction among conservatives.
The PREPA debt saga remains a sticking point, with bondholders battling for their share. Democrat Rep. Nydia Velazquez called out firms like Golden Tree, accusing them of exploiting Puerto Rico’s distress for profit. Her “Golden Tree versus the people” line is dramatic but misses the board’s role in enabling the mess.
Jared Huffman, ranking member of the House Natural Resources Committee, cautioned against scrapping the board entirely. He called such moves “premature,” defending the board’s spending on consultants. That’s a tough sell when Puerto Ricans are still grappling with blackouts and bankruptcy.
The board’s structure, with seven presidential appointees and one governor-selected member, was meant to balance oversight with local input. But with five seats now vacant, the White House has a chance to reshape it. No replacements have been named, leaving the board’s future in flux.
Breitbart broke the story, with CBS News confirming the firings via a White House source. The swift action suggests Trump’s team is serious about cutting through red tape. But without new appointees, the board’s ability to function is anyone’s guess.
González-Colón’s eagerness to collaborate with a new board signals hope for a fresh start. Yet, the unresolved PREPA debt and bondholder disputes loom large. Trump’s firings may be a bold first step, but they’re no silver bullet.
The shake-up is a wake-up call for a board that’s been asleep at the wheel. Puerto Rico deserves better than a bloated oversight body that can’t deliver. Trump’s move, while divisive, might just jolt the island’s fiscal recovery into high gear.
