The relationship between the Puerto Rico Legislature and the Fiscal Oversight Board (JSF) has been marked by tension, vetoes, and legal battles over the past decade. The JSF was established in 2016 to prevent Puerto Rico's financial collapse, and its intervention has raised questions about whether it has fulfilled its purpose.
Legislative leaders from different ideological backgrounds agree that resistance to the JSF has prevented the erosion of elected officials' authority, including blocking a 10% cut to pensioners' pensions and mass layoffs of public employees. Carlos 'Johnny' Méndez, President of the House of Representatives, has been a vocal critic of the JSF, calling it 'the boot of North American imperialism' and stating that he opposed its creation to prevent the Legislature from being stripped of its power.
In 2018, Méndez and Senate President Thomas Rivera Schatz sued the JSF for 'usurping the Legislature's powers' by implementing its budget, which included cuts to the Legislature. Although the lawsuit was dismissed, the dynamic has since shifted towards negotiation, with the JSF now allowing the government to present its own budget proposal while retaining the power to approve or reject it.