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NEW LAWSUIT CHALLENGES TRUMP ADMINISTRATION'S FIRINGS AT PUERTO RICO’S FEDERAL OVERSIGHT AND MANAGEMENT BOARD

Press Release | September 18, 2025

WASHINGTON, D.C. Three members of the oversight board responsible for guiding Puerto Rico toward fiscal stability have filed a lawsuit against President Trump and others challenging their unlawful termination. Arthur J. Gonzalez, Andrew G. Biggs and Betty A. Rosa, represented by Democracy Defenders Fund (DDF), the Washington Litigation Group, and Cooley LLP, argue that members of the Federal Oversight and Management Board (FOMB) cannot be removed without cause and that the President’s attempt to fire them violates the U.S. Constitution and other federal laws. The suit alleges that, if left unchecked, the President’s unlawful removal of these territorial officers threatens democratically-elected officials in other federal territories, including the District of Columbia.


In 2016, Congress created the FOMB to address Puerto Rico’s soaring debt, which had overtaken the island’s annual output. The FOMB is an independent agency within the territory's government, not part of the executive branch. The bipartisan Board has seven members, six of whom are nominated by Congressional leadership, who can be removed only for cause. Despite that clear restriction, in August the Deputy Director of the Presidential Personnel Office notified the plaintiffs—and three other Board members—they had been terminated by President Trump, without alleging any cause. Mr. Gonzalez, a retired federal judge, and Dr. Biggs, who served in the Social Security Administration under President George W. Bush, were each appointed to multiple terms by Presidents Obama, Trump, and Biden. Dr. Rosa, the Commissioner of Education and President of the University of the State of New York, was first appointed to the Board by President Trump and re-appointed by President Biden.


“This flagrant abuse of power breaks the law and disrespects Congress at the expense of the Puerto Rican people, our fellow Americans. The law says you can’t fire board members without cause. The president doesn’t get to hijack an independent board as a political stunt,” said Andrew Warren, Deputy Litigation Director for Democracy Defenders Fund. “The Constitution doesn’t allow that, and neither should the courts.”


“The President’s purported removal of these Board members is unlawful. We’re proud to represent the Board members in their fight to regain their positions,” said James I. Pearce, senior counsel at the Washington Litigation Group.


The lawsuit, filed in the U.S. District Court for the District of Puerto Rico, asks the court to return the members to their board positions and prevent the administration from attempting to remove them again—without cause.


The lawsuit can be found HERE


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Democracy Defenders Fund brings together a nonpartisan team to work with national, state, and local allies across the country to defend in real-time the foundations of our democracy.


The Washington Litigation Group represents individuals and institutions who have been unlawfully targeted for exercising their rights to curb governmental overreach.


Cooley LLP is an international law firm with nearly 1,400 lawyers and a total workforce of more than 3,000 people across 19 offices in the United States, Asia, and Europe.

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