Overnight Finance: House struggles to solve Puerto Rico debt crisis

SENATORS STRUGGLE TO BRIDGE DIVIDE ON INVESTOR VISAS: Senators squabbled in a hearing today over the future of a controversial investor visa program and called on top immigration and securities departments to crack down on rampant abuse. The biggest battle was with each other over whether the program should survive and how to direct the investment money.

{mosads}Sens. Jeff Flake (R-Ariz.), Chuck Schumer (D-N.Y.) and John Cornyn (R-Texas) blocked a reform effort from Sens. Chuck Grassley (R-Iowa) and Patrick Leahy (D-Vt.) in December and offered their own bill. Grassley put a hold on that bill last week, creating a stalemate over how to move ahead.

Here’s where the battle over fraud, national security and home state interests stands as of today: http://bit.ly/1Qatz90.

HOUSE LOOKS FOR PUERTO RICO FIX: House lawmakers gathered Tuesday to find a way to fix Puerto Rico’s economic and debt woes with time running out. The issue has risen to the top of Washington’s “to do” list since Speaker Paul Ryan (R-Wis.) vowed to produce a relief bill by the end of March.

Democrats are demanding bankruptcy protection for Puerto Rico while Republicans insist on heavy financial oversight to avoid what could be perceived as a taxpayer-funded bailout. The Hill’s Peter Schroeder tell us about the sprint to the finish: http://bit.ly/1QFxOfu.

Rep. Rob Bishop (R-Utah): “Debt restructuring alone is not going to help the territory. We’ve got to be able to find an affordable way for them to actually be able to compete and manufacture on the island.”

VS.

Sen. Chuck Schumer (D-N.Y.): “The bottom line is if you look at the bill we introduced it did bankruptcy but it also had oversight and we’re for both. What we don’t want to happen is oversight alone without any bankruptcy because you won’t get anything done.”

HAPPY TUESDAY and welcome to Overnight Finance, where we’re saluting our friends and colleagues who just finished covering the Iowa Caucuses. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

Tonight’s highlights include (unrelated) crackdowns on food stamps for terrorists and improper tax credit payments, more support for the Trans-Pacific Partnership and an aversion to divisive votes from Mitch McConnell.

See something I missed? Let me know at slane@digital-stage.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://www.digital-stage.thehill.com/signup/48.

MCCONNELL POURS COLD WATER ON BIG VOTES: Senate Majority Leader Mitch McConnell (R-Ky.) is under pressure from colleagues to move major pieces of legislation, but is wary of setting up votes that could harm his vulnerable Republican colleagues up for reelection. The Hill’s Alexander Bolton lays out the disincentives for McConnell to schedule votes on criminal justice reform, the Trans-Pacific Partnership and an authorization to fight ISIS: http://bit.ly/1nEdtNN.

“‘McConnell is smart to wait on issues that divide us until such time as we can achieve a consensus,’ said a senior Republican aide. ‘There’s no question that some members want to turn to some things sooner than others. But McConnell’s duty is to do what’s best for the entire conference. Seems what’s best for the conference is to focus on the things that unite us.'”

ANTI-SMOKING GROUPS, MINORITY BUSINESSES BACK TRADE DEAL: From The Hill’s Vicki Needham, President Obama’s massive trade deal won the support two interesting sectors. Anti-smoking groups are backing the Trans-Pacific Partnership because of a provision reviled by the tobacco industry (http://bit.ly/1JWfhw4) and minority businesses support the deal because they believe it will help them better access foreign markets (http://bit.ly/1KVh7bC).

SENATOR PRESSES IRS ON TAX PAYMENTS: Sen. Tom Carper (D-Del.) is asking Internal Revenue Service Commissioner John Koskinen how the agency plans to reduce improper payments of a tax credit for low- and moderate-income people.

Congress expanded the Earned Income Tax Credit (EITC) in the tax package passed in December. The new law cemented reforms to the EITC that raised payments to those with three or more children and reduced penalties for married couples. The Hill’s Naomi Jagoda has more: http://bit.ly/1PxxNeF.

STAMPS OF DISAPPROVAL: Rep. Bruce Poliquin (R-Maine) introduced a measure to ban convicted terrorists from receiving Supplemental Nutrition Assistance Program (SNAP) benefits. However, “Poliquin acknowledged … that he did not know of any actual cases of terror convicts receiving food stamps, but said he wanted his measure to prevent such a scenario from happening in the future,” according to The Hill’s Cristina Marcos: http://bit.ly/1PT4cOV.

NIGHTCAP: An Italian dairy cooperative is now selling bonds backed by Parmesan cheese.

Write us with tips, suggestions and news: slane@digital-stage.thehill.com, vneedham@digital-stage.thehill.com, pschroeder@digital-stage.thehill.com, and njagoda@digital-stage.thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill, @PeteSchroeder, and @NJagoda.