ALERT- Federal Court Halts Removal of PROMESA Board Members

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Written by: Mariola Abreu Acevedo, Esq.

The U.S. District Court for the District of Puerto Rico has issued a preliminary injunction preventing the White House and its personnel from removing or replacing three members of the Financial Oversight and Management Board for Puerto Rico (“FOMB”).

Background

Former Board Chair Arthur J. González and members Andrew G. Biggs and Betty A. Rosa challenged the Administration’s August 2025 notifications stating that their appointments had been “terminated effective immediately.” The plaintiffs argued that the PROMESA statute allows removal only “for cause” and requires prior notice and an opportunity to respond.

The Court’s Determination

In its Opinion and Order of October 3, 2025, Judge María Antongiorgi-Jordán:

  • Granted the plaintiffs’ motion for a preliminary injunction in González et al. v. Gor et al.
  • Enjoined defendants — including White House personnel officer Sergio Gor, Board member John E. Nixon, and Executive Director Robert F. Mujica Jr. — from treating the plaintiffs as removed or from seating replacements while the case proceeds.
  • Declined to enjoin the President directly, citing Franklin v. Massachusetts and Mississippi v. Johnson, but held that injunctive relief against subordinate officials is proper.

Court’s Reasoning

  • Likelihood of success on the merits: PROMESA’s “for cause” clause (48 U.S.C. § 2121(e)(5)(B)) creates substantive limits on removal. Because the August 2025 letters identified no cause and afforded no hearing, the court found a strong probability that the removals were unlawful.
  • Due process: Members possess a protected interest in continuing to serve until validly removed for cause. Lack of notice and opportunity to be heard violates the Fifth Amendment.
  • Irreparable harm & public interest: The inability to carry out statutory duties cannot be remedied by damages; maintaining Board stability and adherence to statutory procedure serves the public interest.

Immediate Effect

The injunction preserves the status quo: González, Biggs, and Rosa remain members of the FOMB, and the federal defendants may not act on any purported removals or appointments until further order of the court.

What Happens Next

  • The court ordered that the case proceed to full merits briefing and discovery on the legality of the removals.
  • The Administration may appeal to the U.S. Court of Appeals for the First Circuit or seek a stay pending appeal.
  • Unless a higher court intervenes, the injunction remains in force, keeping current Board membership unchanged during litigation.

Reference: González et al. v. Gor et al., Civ. No. 25-1508 (MAJ) (D.P.R. Oct. 3, 2025) — Opinion and Order granting preliminary injunction

Photo by Chad Greiter on Unsplash.