system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How do territories, specifically Puerto Rico, work in the U.S.?

For example, how are federal funds allocated? How are they represented in government, if at all? What benefits are there for the citizens of PR to remaining a territory versus becoming a state?
gpt
They have a non voting representative in the House of Representatives. They have no representation in the US Senate or electoral college. They do not pay Federal Income tax, although they do have Social Security and Medicare taxes pulled from their paychecks, and are eligible to receive benefits from those programs. Federal Funds are allocated as part of the regular budget process. They have the right to live and work in the United States, and can travel abroad with a US Passport.