Title 48, Territories and Insular PossessionsRelease 119-110

§2127 Budget and Funding for Operation of Oversight Board

Title 48 › CHAPTER 20 — PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY › SUBCHAPTER I — ESTABLISHMENT AND ORGANIZATION OF OVERSIGHT BOARD › § 2127

Last updated Sep 22, 2026|Official source

Summary

The Oversight Board must send a budget each fiscal year while it is operating to the President, the House Committee on Natural Resources, the Senate Committee on Energy and Natural Resources, the Governor, and the Legislature. The Board must make sure there is enough money to pay all of its expenses. Within 30 days after June 30, 2016, the territorial government must name a dedicated funding source, not subject to later legislative approval, to cover the Board’s annual costs as the Board alone sets them. When the Board is established under section 2121(b) and on the 5th of each month after, the Governor must transfer to a new account either $2,000,000 or the larger amount the Board’s budget requires. Monthly transfers stop once the permanent funding is designated. If the Board decides transfers exceed its needs, it must return the extra money to the territorial government.

Full Legal Text

Title 48, §2127

Territories and Insular Possessions, Source: USLM XML via OLRC

(a)Submission of budget
The Oversight Board shall submit a budget for each fiscal year during which the Oversight Board is in operation, to the President, the House of Representatives Committee on Natural Resources and the Senate Committee on Energy and Natural Resources, the Governor, and the Legislature.
(b)Funding
The Oversight Board shall use its powers with respect to the Territory Budget of the covered territory to ensure that sufficient funds are available to cover all expenses of the Oversight Board.
(1)Permanent funding
Within 30 days after June 30, 2016, the territorial government shall designate a dedicated funding source, not subject to subsequent legislative appropriations, sufficient to support the annual expenses of the Oversight Board as determined in the Oversight Board’s sole and exclusive discretion.
(2)(A)Initial funding
On the date of establishment of an Oversight Board in accordance with section 2121(b) of this title and on the 5th day of each month thereafter, the Governor of the covered territory shall transfer or cause to be transferred the greater of $2,000,000 or such amount as shall be determined by the Oversight Board pursuant to subsection (a) to a new account established by the territorial government, which shall be available to and subject to the exclusive control of the Oversight Board, without any legislative appropriations of the territorial government.
(B)Termination
The initial funding requirements under subparagraph (A) shall terminate upon the territorial government designating a dedicated funding source not subject to subsequent legislative appropriations under paragraph (1).
(3)Remission of excess funds
If the Oversight Board determines in its sole discretion that any funds transferred under this subsection exceed the amounts required for the Oversight Board’s operations as established pursuant to subsection (a), any such excess funds shall be periodically remitted to the territorial government.

Reference

Citations & Metadata

Citation

48 U.S.C. § 2127

Title 48, Territories and Insular Possessions

Last Updated

Sep 22, 2026

Release point: 119-110