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Bernie Sanders on Monday rejected a bipartisan deal reached in the House of Representatives on legislation to address Puerto Rico's debt crisis, calling it a concession to Wall Street.
ANALYSIS:
Puerto Rico: How US Domination Lies Behind the Debt Crisis
Breaking with the Obama administration, Sanders called on his Senate colleagues to instead back an alternative he has proposed to allow the U.S. territory the same ability to restructure its debt in bankruptcy court that is afforded to states and municipalities.
Lawmakers in the U.S. House of Representatives last week unveiled a bill, hammered out in talks between lawmakers from both parties, that included a framework for restructuring Puerto Rico's US$70 billion in debt and putting the island's financial operations under the control of a federal oversight board.
A House vote is expected in the first week of June, ahead of a US$1.9 billion debt payment due on July 1, but any legislation would have to clear the Senate as well. The Obama administration has urged Congress to quickly pass it.
Sanders' rival for the Democratic nomination, Hillary Clinton, has also backed the legislation.
But Sanders, who has previously said that the United States treats the island like a colony, said Wall Street would benefit at the expense of Puerto Rico's workers.
"This legislation looks out for the needs of Wall Street vulture funds first and foremost. That is unacceptable," he wrote in a letter to Senate colleagues on Monday.
IN DEPTH:
Puerto Rico Debt Crisis
Sanders cited provisions exempting residents from new overtime protections and allowing minimum wage on the island to dip to US$4.25 for a period of up to five years, far lower than the U.S. minimum wage of US$7.25.
Instead, Sanders said the U.S. Federal Reserve and Treasury Department could find other solutions, such as providing loans to Puerto Rico's electric authority and water agency, and directly purchasing new bonds issued by the U.S. commonwealth.
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