Supreme Court rules FOMB has sovereign immunity 

In an 8-1 decision, the U.S. Supreme Court ruled last week that the Financial Oversight and Management Board (FOMB) for Puerto Rico has “sovereign immunity” and, as a result, does not have to provide certain documents requested by the Centro de Periodismo Investigativo (CPI). Justice Clarence Thomas was the lone dissenting vote. The decision overturns an appeals court ruling in favor of CPI, which has reported extensively on Puerto Rico’s debt since the passage of the 2016 PROMESA law. Documents requested by CPI included communications between the board members and U.S. and Puerto Rico government officials. The FOMB contended that it was part of the government of Puerto Rico and thus was protected by the same laws shielding them from federal lawsuits. Justice Elena Kagan, writing for the majority, wrote that nothing in the PROMESA law strips the FOMB of sovereign immunity or explicitly authorizes claims against the board. The case is now remanded back to the lower courts. Meanwhile, CPI is strategizing next steps to obtain the approximately 20,000 documents they requested.

Bipartisan group introduces bill for permanent rum tax reimbursement for Puerto Rico 

Senator Robert Menendez (D-NJ) and Puerto Rican Resident Commissioner Jenniffer Gonzalez, who is a member of the PNP but caucuses with Republicans, introduced legislation last week to make permanent the increase in federal excise reimbursement for rum produced in Puerto Rico. The U.S. government imposes a tax of $13.50 per gallon of rum produced in Puerto Rico and the U.S. Virgin Islands, and under the law since 2022 reimburses $10.50 per gallon. However, for two decades, the reimbursement was set at $13.25 a gallon. The island receives more than $330 million for the full reimbursement. Republican Senator Bill Cassidy (R-LA) and Democratic Delegate from the U.S. Virgin Islands Stacey Plaskett are also co-sponsoring the measure. Under this bill, the Conservation Trust would also receive at least one-sixth of the $2.75 increase, guaranteeing 45.8 cents for environmental preservation from every gallon imported from Puerto Rico to the mainland.

Department of Justice announces Environmental Crimes Task Force in Puerto Rico 

The U.S. Department of Justice (DOJ) announced last week that it is launching an Environmental Crimes Task Force in Puerto Rico and the U.S. Virgin Islands. The task force will investigate and prosecute violations of federal law harming the environment, public health and wildlife in the Caribbean territories, and associated incidents of fraud, waste, and abuse. The creation of the task force comes on the heels of the DOJ announcing its “Comprehensive Environmental Justice Enforcement Strategy” and the formation of the Office of Environment Justice (OEJ) in the Environment and Natural Resources Division (ENRD) of the DOJ. The task force will work with local counterparts, including the Puerto Rican Departments of Natural Resources and of Justice. It will also include law enforcement personnel from federal agencies such as the Army Corps of Engineers and the Environmental Protection Agency (EPA).