This report discusses multiple challenges the government of Puerto Rico faces in the fall of 2015. Concerns regarding the sustainability of Puerto Rico's public finances have intensified over the past year, despite several measures taken by the island's government to reduce spending, increase revenues, and restructure its obligations. The Puerto Rican government outlined a medium-term strategy to address those challenges in a fiscal plan put forth in mid-September 2015.
This report provides a foundation for understanding Puerto Rico’s status, why those on the island and in Washington continue to be interested in the issue, and how the 2012 plebiscite and its aftermath provides an opportunity to revisit status. This report is designed to emphasize brief, accessible answers to selected key questions and issues about Puerto Rico’s political status and the plebiscite. The discussion is organized around selected key policy questions, followed by brief answers and additional analysis.
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