Trump administration appeals court ruling on fiscal board dismissals

By THE STAR STAFF

The Trump administration has escalated its fight over control of the Financial Oversight and Management Board for Puerto Rico, filing an appeal with the First Circuit Court of Appeals in Boston. The appeal seeks to overturn a ruling by a federal judge in Puerto Rico that temporarily reinstated several former board members, finding that their removal violated due process under the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), the 2016 law that created the board.

The appeal targets a decision by U.S. District Judge María Antongiorgi Jordán, who concluded that the White House failed to demonstrate “just cause” for the dismissals carried out in August and did not give the affected members a chance to respond before being removed. Her ruling allowed the former members to return on an interim basis while the underlying lawsuit moves forward -- a situation the administration now hopes to reverse.

Among those ousted was former board chair Arthur J. González, along with others who claim they were abruptly dismissed without the documentation required by PROMESA. Their reinstatement has broadened the dispute beyond membership status to a larger question: how far does the federal executive branch’s authority extend over the board’s composition and its oversight role in Puerto Rico?

For the Trump administration, regaining control of the board would open the door to appointing new members aligned with its fiscal priorities. For Puerto Rico, the stakes are high. The oversight board wields sweeping power over government budgets, fiscal plans and debt restructuring -- including the contentious adjustment plan for the bankrupt Puerto Rico Electric Power Authority. Any shift in the board’s makeup could significantly reshape the island’s economic future.