House approves bill to rescue Puerto Rico from crushing debt

On Thursday, the House passed legislation, 297-127, that would allow the restructuring of some of Puerto Rico's $70 billion debt and create a financial control board to oversee negotiations with creditors and courts.

No taxpayer funds will be provided to reduce the debt, and the U.S. territory of 3.5 million people must make a fiscal plan that would provide "adequate" funds for public pensions, The Associated Press reports. Puerto Rico has missed several payments to creditors, and has a $2 billion payment due in three weeks. Gov. Alejandro Garcia Padilla said Thursday that while he wasn't happy with the plan, it "will protect us from the chaos that will result from an inevitable default that looms on July 1."

The measure, which is supported by President Obama, House Speaker Paul Ryan (R-Wis.), and Minority Leader Nancy Pelosi (D-Calif.), now heads to the Senate.

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