Insular Areas Act

The Insular Areas Act, also known as the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), is U.S. legislation designed to provide financial oversight and stability to U.S. territories like Puerto Rico, Guam, and the U.S. Virgin Islands. It establishes a financial control board to oversee budgets and debt, aiming to promote economic recovery and responsible fiscal practices. The act recognizes the unique status of these territories, offering a framework to manage their economic challenges while respecting local governance. It balances federal oversight with local authority to help these areas achieve stability and growth.