WASHINGTON — Leading House Republicans are declaring their opposition to allowing debt-ridden Puerto Rico access to Chapter 9 bankruptcy protections.
A statement from House Judiciary Chairman Bob Goodlatte of Virginia says that such a solution would not solve Puerto Rico's financial difficulties because they are associated with structural economic problems.
The White House and leading Democrats including presidential candidate Hillary Rodham Clinton and Sen. Chuck Schumer of New York have raised bankruptcy as a way out of Puerto Rico's economic crisis.
As a U.S. territory, Puerto Rico is prohibited from allowing its municipalities to enter bankruptcy protection as a way to restructure their debts. Schumer is pursuing legislation to change that, but the reaction Tuesday from House Republicans suggest it would hit a dead end in the House.