U.S. Virgin Islands — Governor Albert Bryan Jr. delivered a frank and urgent message to Virgin Islanders today from Government House on St. Thomas, following a series of high-level meetings in Washington, D.C. In his remarks, the Governor highlighted key federal victories while sounding a clear warning about looming financial challenges that demand serious leadership, discipline, and accountability from local lawmakers.
“We are facing a moment that requires clarity and courage,” Governor Bryan said. “Federal support is shifting. The safety nets many of our families rely on are under threat. If we do not make decisions based on data and long-term sustainability, we risk undoing years of hard-fought progress.”
Governor Bryan announced that the U.S. Virgin Islands has successfully regained $34 million in federal education funding that had been clawed back during the Trump administration. He credited this win to direct engagement with the U.S. Department of Education and consistent advocacy on behalf of Virgin Islands students and families.
“This is a major victory for our children and our schools. It shows what we can achieve when we fight with purpose and unity,” the Governor said.
He also reported progress on federal legislation to increase the rum cover-over rate from $10.50 to $13.25 per gallon. The measure, championed by Senator Mike Crapo of Idaho, is included in the Senate’s reconciliation bill. Although the provision is not retroactive, it will strengthen the territory’s long-term fiscal outlook. The Governor urged the Government Employees Retirement System to assess the financial implications of this change before implementing its planned employer contribution increase on October 1.
While these federal victories bring hope, the Governor said they are not enough to offset the looming cuts proposed in the federal spending bill. These include reductions in Medicaid, SNAP benefits, and Section 8 housing support.
“These are not abstract numbers. These cuts mean fewer meals for children, less access to affordable housing, and reduced medical coverage for those who need it most,” Governor Bryan said. “We must be prepared to protect our people if Congress does not.”
The Governor warned that in the face of these threats, local leaders must show fiscal responsibility. He pointed to the Legislature’s recent override of his veto of Bill 36-0053 as a clear example of poor decision-making. The bill raises the minimum salary for government workers by 30 percent, yet was passed and enacted without any financial analysis, consultation with agencies, or understanding of its overall impact.
“I believe in fair pay for our public servants. But we cannot afford to pass laws without knowing what they cost or who they affect,” Bryan said. “This was a political decision, not a responsible one.”
The Governor said the override of the minimum salary increase is especially troubling given other financial pressures that are set to take effect within months.
Government health insurance premiums are projected to rise significantly in the upcoming fiscal year. The Government Employees Service Commission Health Insurance Board has confirmed that these increases will add more than $30 million to government spending, pushing the total annual health insurance cost above $190 million.
At the same time, the Government Employees’ Retirement System is scheduled to implement a 3 percent increase in the employer contribution rate on October 1. Together, these increases could overwhelm the government’s financial capacity and reverse the economic gains made over the past six years.
“We are taking on massive recurring costs without a clear plan for how to pay for them,” Bryan said. “That is a recipe for fiscal instability.”
Governor Bryan reminded the public that his administration has worked to restore fiscal integrity. Under his leadership, the government has paid down more than $500 million in debt, reinstated the 8 percent salary reduction, and issued more than $60 million in retroactive pay to public employees.
But he warned that progress is fragile.
“We still have unpaid bills. Our hospitals are underfunded. Our Waste Management Authority is behind on payments. We owe millions in retroactive pay to the Steelworkers and other unions,” Bryan said.
“Every time we see the light, we get careless with the oil in the lamp. If we are not careful, we will find ourselves back in the dark,” he continued. “We must not repeat the mistakes that put us in crisis before. We must lead with responsibility, not short-term politics.”
###