Politics10/3/2025Bloomberg

Court Says Firing of Puerto Rico Oversight Members Was Unlawful

Court Says Firing of Puerto Rico Oversight Members Was Unlawful

The US District Court of Puerto Rico has ruled that the Trump administration's decision to fire members of Puerto Rico's financial oversight board was unlawful. The oversight board, known as PROMESA, was established in 2016 to manage the territory's debt crisis. The court found that the administration exceeded its authority by dismissing several board members without cause, as the board's members can only be removed for specific reasons outlined in the PROMESA law. The ruling is a significant blow to the administration's efforts to reshape the oversight board, which has faced criticism from Puerto Rican officials who view it as an undemocratic imposition. The court's decision preserves the board's independence and ensures that its members can continue their work in overseeing Puerto Rico's fiscal recovery efforts. The ruling is expected to have broader implications for the administration's ability to unilaterally dismiss officials from independent federal agencies.

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