ROSSELLÓ’S ADMINISTRATION IN CHAOS

Yesterday’s dismissal of Raúl Maldonado from the three positions he held with the Ricardo Rosselló Administration—Treasury secretary, director of the Office of Management and Budget (OGP, in Spanish) and chief financial officer (CFO) for the government—shook the foundations of the government structure, and provoked a series of attacks and claims regarding alleged acts of government corruption. Maldonado dismissal occurred after the then-Treasury secretary spoke to a radio station about a supposed “institutional mafia” within the department he led, a claim made, according to Rosselló, without the governor’s knowledge or authorization.

Maldonado’s claims of corruption within the Treasury Department included a statement about an internal investigation currently taking place there, which is looking into supposed illegal activity by high-ranking employees suspected of influence peddling, issuing counterfeit licenses, destroying documents, and providing access to private taxpayer data. Hours after Maldonado’s firing, his son, Raúl Maldonado, announced that he would be presenting evidence supposedly incriminating the governor in acts of corruption.

As of this morning, sources indicate that recent federal investigations into irregularities and the possibility that crimes were committed during the contracting process may result in the demise of two additional cabinet members– the Secretary of Health, Rafael Rodríguez, and the Administrator of the Puerto Rico Health Insurance Administration (PRHIA), Angela Avila.

According to EL VOCERO, Maldonado is cooperating with an ongoing FBI investigation into the contracting process for the government’s healthcare plan, Vital, and has already implicated Elías Sánchez, the former representative of the Governor before the Financial Oversight and Management Board (FOMB). The investigation started after contractors informed Congress and the FBI that Sánchez was involved in curious activities with the contracting process.

HOUSE WAYS AND MEANS COMMITTEE TO ADVANCE PROPOSALS TO EXTEND FEDERAL CREDITS TO PUERTO RICO

The Ways and Means Committee took an important step toward extending the Earned Income Tax Credit (EITC) to Puerto Rico by marking up the “Economic Mobility Act of 2019” (HR3300), a bill aimed at providing tax relief for working and middle- class families. The bill, sponsored by Congressman Richard Neal (D-MA), would contribute $800 million per year to Puerto Rico’s economy by expanding the Island’s access to EITC and extending the benefits of the federal child tax credit (CTC). In total, the federal government would provide $600 million to Puerto Rico’s EITC, which would be added to the already-assigned $204 million. Meanwhile, the changes to the CTC would correct an eligibility disparity: currently, only families with three children or more can apply for the CTC. If passed by the House, the bill faces extremely challenging odds in the Republican-controlled Senate.

SOLUTIONS IN SIGHT TO AVOID HEALTHCARE SYSTEM COLLAPSE

Congresswoman Nydia Velázquez (D-NY) plans to introduce legislation to provide $15.1 billion in Medicaid funds for Puerto Rico over the next five years. The bill would create a ten-year transition process to incrementally increase the permanent Medicaid contribution from Congress from the current 55% to 83%. The bill, however, would impose some requirements on Puerto Rico, such as an increase in hospital payments to healthcare professionals. The bipartisan bill enjoys the support of Resident Commissioner Jenniffer González, who is a co-sponsor of the legislation. The House Energy and Commerce Committee is analyzing Puerto Rico’s healthcare crisis and its Chair, Congressman Frank Pallone, has stated that he intends to offer a solution before September.