Statement from Resident Commissioner Pablo José Hernández on Senate Approval of the Permanent Inclusion of the Rum Cover-Over for Puerto Rico

WASHINGTON, D.C. – Resident Commissioner of Puerto Rico, Pablo José Hernández, issued the following statement after the United States Senate passed and amended H.R. 1, also known as the “One Big Beautiful Bill Act,” which permanently restores the increased rum cover-over rate for Puerto Rico. The legislation now returns to the U.S. House of Representatives for consideration.

“I have serious concerns about various aspects of H.R. 1; nonetheless, I appreciate that the Senate took up the request we made—together with Congresswoman Plaskett—to include the provision that permanently restores the enhanced rum cover-over rate for Puerto Rico and the U.S. Virgin Islands,” said the Resident Commissioner. “From the beginning of my term, I have prioritized this issue because of its direct economic impact on the island, and I will continue working with colleagues from both parties to advance initiatives that benefit the people of Puerto Rico. I urge my colleagues in the House to keep this language in the bill as amended by the Senate.”

Earlier this month, the Resident Commissioner and Congresswoman Stacey Plaskett (D-V.I.) urged Senate leadership to include a provision in H.R. 1 to restore the enhanced rum cover-over rate for Puerto Rico and the U.S. Virgin Islands.

The Senate’s provision for the permanent restoration of the enhanced rum cover-over rate is expected to provide an increase of over $110 million above the current $400 million received annually to the Puerto Rico Government. These funds support critical priorities on the island, including economic development, disaster recovery, and other essential public services.

Additionally, the provision helps ensure that covered employers, particularly rum manufacturers, can continue operating in Puerto Rico. By including these provisions in the Senate bill, this legislation supports the retention of local manufacturing jobs and ensures that operations remain in Puerto Rico.

On May 22, 2025, the House of Representatives approved H.R. 1 and since then the Senate has worked on various versions of the reconciliation package. With Senate approval, the House of Representatives will now vote on the legislation. If approved by the House, H.R. 1 will be sent to the President’s desk for signature.

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