---
kind: "section"
citation: "48 U.S.C. § 2141"
title: "48"
title_heading: "Territories and Insular Possessions"
number: "2141"
heading: "Approval of Fiscal Plans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/48/2141"
units:
  - "Chapter 20 — Puerto Rico Oversight, Management, and Economic Stability"
  - "Subchapter II — Responsibilities of Oversight Board"
---

# §2141. Approval of Fiscal Plans

- (a) **In general—** As soon as practicable after all of the members and the Chair have been appointed to the [Oversight Board](/usc/48/2104.md?p=17) in accordance with [section 2121(e) of this title](/usc/48/2121.md?p=e) in the fiscal year in which the [Oversight Board](/usc/48/2104.md?p=17) is established, and in each fiscal year thereafter during which the [Oversight Board](/usc/48/2104.md?p=17) is in operation, the [Oversight Board](/usc/48/2104.md?p=17) shall deliver a notice to the [Governor](/usc/48/2104.md?p=12) providing a schedule for the process of development, submission, approval, and certification of [Fiscal Plans](/usc/48/2104.md?p=10). The notice may also set forth a schedule for revisions to any [Fiscal Plan](/usc/48/2104.md?p=10) that has already been certified, which revisions must be subject to subsequent approval and certification by the [Oversight Board](/usc/48/2104.md?p=17). The [Oversight Board](/usc/48/2104.md?p=17) shall consult with the [Governor](/usc/48/2104.md?p=12) in establishing a schedule, but the [Oversight Board](/usc/48/2104.md?p=17) shall retain sole discretion to set or, by delivery of a subsequent notice to the [Governor](/usc/48/2104.md?p=12), change the dates of such schedule as it deems appropriate and reasonably feasible.
- (b) **Requirements—**
  - (1) **In general—** A [Fiscal Plan](/usc/48/2104.md?p=10) developed under this section shall, with respect to the [territorial government](/usc/48/2104.md?p=18) or [covered territorial instrumentality](/usc/48/2104.md?p=7), provide a method to achieve fiscal responsibility and access to the capital markets, and—
    - (A) provide for estimates of revenues and expenditures in conformance with [agreed accounting standards](/usc/48/2104.md?p=1) and be based on—
      - (i) applicable laws; or
      - (ii) specific bills that require enactment in order to reasonably achieve the projections of the [Fiscal Plan](/usc/48/2104.md?p=10);
    - (B) ensure the funding of essential public services;
    - (C) provide adequate funding for public pension systems;
    - (D) provide for the elimination of structural deficits;
    - (E) for fiscal years covered by a [Fiscal Plan](/usc/48/2104.md?p=10) in which a stay under subchapters III or IV is not effective, provide for a debt burden that is sustainable;
    - (F) improve fiscal governance, accountability, and internal controls;
    - (G) enable the achievement of fiscal targets;
    - (H) create independent forecasts of revenue for the period covered by the [Fiscal Plan](/usc/48/2104.md?p=10);
    - (I) include a debt sustainability analysis;
    - (J) provide for capital expenditures and investments necessary to promote economic growth;
    - (K) adopt appropriate recommendations submitted by the [Oversight Board](/usc/48/2104.md?p=17) under [section 2145(a) of this title](/usc/48/2145.md?p=a);
    - (L) include such additional information as the [Oversight Board](/usc/48/2104.md?p=17) deems necessary;
    - (M) ensure that assets, funds, or resources of a [territorial instrumentality](/usc/48/2104.md?p=19-A) are not loaned to, transferred to, or otherwise used for the benefit of a [covered territory](/usc/48/2104.md?p=8) or another [covered territorial instrumentality](/usc/48/2104.md?p=7) of a [covered territory](/usc/48/2104.md?p=8), unless permitted by the constitution of the [territory](/usc/48/2104.md?p=20), an approved plan of adjustment under subchapter III, or a Qualifying Modification approved under subchater VI; and
    - (N) respect the relative lawful priorities or lawful liens, as may be applicable, in the constitution, other laws, or agreements of a [covered territory](/usc/48/2104.md?p=8) or [covered territorial instrumentality](/usc/48/2104.md?p=7) in effect prior to June 30, 2016.
  - (2) **Term—** A [Fiscal Plan](/usc/48/2104.md?p=10) developed under this section shall cover a period of fiscal years as determined by the [Oversight Board](/usc/48/2104.md?p=17) in its sole discretion but in any case a period of not less than 5 fiscal years from the fiscal year in which it is certified by the [Oversight Board](/usc/48/2104.md?p=17).
- (c) **Development, review, approval, and certification of Fiscal Plans—**
  - (1) **Timing requirement—** The [Governor](/usc/48/2104.md?p=12) may not submit to the [Legislature](/usc/48/2104.md?p=15) a [Territory Budget](/usc/48/2104.md?p=21) under [section 2142 of this title](/usc/48/2142.md) for a fiscal year unless the [Oversight Board](/usc/48/2104.md?p=17) has certified the [Territory Fiscal Plan](/usc/48/2104.md?p=22) for that fiscal year in accordance with this subsection, unless the [Oversight Board](/usc/48/2104.md?p=17) in its sole discretion waives this requirement.
  - (2) **Fiscal Plan developed by Governor—** The [Governor](/usc/48/2104.md?p=12) shall submit to the [Oversight Board](/usc/48/2104.md?p=17) any proposed [Fiscal Plan](/usc/48/2104.md?p=10) required by the [Oversight Board](/usc/48/2104.md?p=17) by the time specified in the notice delivered under [subsection (a)](#a).
  - (3) **Review by the Oversight Board—** The [Oversight Board](/usc/48/2104.md?p=17) shall review any proposed [Fiscal Plan](/usc/48/2104.md?p=10) to determine whether it satisfies the requirements set forth in [subsection (b)](#b) and, if the [Oversight Board](/usc/48/2104.md?p=17) determines in its sole discretion that the proposed [Fiscal Plan](/usc/48/2104.md?p=10)—
    - (A) satisfies such requirements, the [Oversight Board](/usc/48/2104.md?p=17) shall approve the proposed [Fiscal Plan](/usc/48/2104.md?p=10); or
    - (B) does not satisfy such requirements, the [Oversight Board](/usc/48/2104.md?p=17) shall provide to the [Governor](/usc/48/2104.md?p=12)—
      - (i) a notice of violation that includes recommendations for revisions to the applicable [Fiscal Plan](/usc/48/2104.md?p=10); and
      - (ii) an opportunity to correct the violation in accordance with [subsection (d)(1)](#d-1).
- (d) **Revised Fiscal Plan—**
  - (1) **In general—** If the [Governor](/usc/48/2104.md?p=12) receives a notice of violation under [subsection (c)(3)](#c-3), the [Governor](/usc/48/2104.md?p=12) shall submit to the [Oversight Board](/usc/48/2104.md?p=17) a revised proposed [Fiscal Plan](/usc/48/2104.md?p=10) in accordance with [subsection (b)](#b) by the time specified in the notice delivered under [subsection (a)](#a). The [Governor](/usc/48/2104.md?p=12) may submit as many revised [Fiscal Plans](/usc/48/2104.md?p=10) to the [Oversight Board](/usc/48/2104.md?p=17) as the schedule established in the notice delivered under [subsection (a)](#a) permits.
  - (2) **Development by Oversight Board—** If the [Governor](/usc/48/2104.md?p=12) fails to submit to the [Oversight Board](/usc/48/2104.md?p=17) a [Fiscal Plan](/usc/48/2104.md?p=10) that the [Oversight Board](/usc/48/2104.md?p=17) determines in its sole discretion satisfies the requirements set forth in [subsection (b)](#b) by the time specified in the notice delivered under [subsection (a)](#a), the [Oversight Board](/usc/48/2104.md?p=17) shall develop and submit to the [Governor](/usc/48/2104.md?p=12) and the [Legislature](/usc/48/2104.md?p=15) a [Fiscal Plan](/usc/48/2104.md?p=10) that satisfies the requirements set forth in [subsection (b)](#b).
- (e) **Approval and certification—**
  - (1) **Approval of Fiscal Plan developed by Governor—** If the [Oversight Board](/usc/48/2104.md?p=17) approves a [Fiscal Plan](/usc/48/2104.md?p=10) under [subsection (c)(3)](#c-3), it shall deliver a compliance certification for such [Fiscal Plan](/usc/48/2104.md?p=10) to the [Governor](/usc/48/2104.md?p=12) and the [Legislature](/usc/48/2104.md?p=15).
  - (2) **Deemed approval of Fiscal Plan developed by Oversight Board—** If the [Oversight Board](/usc/48/2104.md?p=17) develops a [Fiscal Plan](/usc/48/2104.md?p=10) under [subsection (d)(2)](#d-2), such [Fiscal Plan](/usc/48/2104.md?p=10) shall be deemed approved by the [Governor](/usc/48/2104.md?p=12), and the [Oversight Board](/usc/48/2104.md?p=17) shall issue a compliance certification for such [Fiscal Plan](/usc/48/2104.md?p=10) to the [Governor](/usc/48/2104.md?p=12) and the [Legislature](/usc/48/2104.md?p=15).
- (f) **Joint development of Fiscal Plan—** Notwithstanding any other provision of this section, if the [Governor](/usc/48/2104.md?p=12) and the [Oversight Board](/usc/48/2104.md?p=17) jointly develop a [Fiscal Plan](/usc/48/2104.md?p=10) for the fiscal year that meets the requirements under this section, and that the [Governor](/usc/48/2104.md?p=12) and the [Oversight Board](/usc/48/2104.md?p=17) certify that the [fiscal plan](/usc/48/2104.md?p=10)[^1] reflects a consensus between the [Governor](/usc/48/2104.md?p=12) and the [Oversight Board](/usc/48/2104.md?p=17), then such [Fiscal Plan](/usc/48/2104.md?p=10) shall serve as the [Fiscal Plan](/usc/48/2104.md?p=10) for the [territory](/usc/48/2104.md?p=20) or [territorial instrumentality](/usc/48/2104.md?p=19-A) for that fiscal year.

## Footnotes

[^1]: So in original. Probably should be “Fiscal Plan”.

## Source credit

(Pub. L. 114–187, title II, § 201, June 30, 2016, 130 Stat. 563.)

## Notes

### Editorial Notes

### References in Text

Subchapter IV, referred to in subsec. (b)(1)(E), was in the original a reference to title IV, meaning title IV of Pub. L. 114–187, June 30, 2016, 130 Stat. 585, which is classified principally to subchapter IV of this chapter. For complete classification of title IV to the Code, see Tables.