Bryan said federal cuts and local spending increases threatened Virgin Islands finances

Gov. Albert Bryan Jr. said on June 30, 2025, that the U.S. Virgin Islands faced growing fiscal pressure from proposed federal spending cuts and rising local government costs.

Speaking from Government House on St. Thomas after meetings in Washington, Bryan said the territory had regained $34 million in federal education funding that had previously been clawed back. He also said the U.S. Senate reconciliation bill included a provision to raise the rum cover-over rate to $13.25 per gallon from $10.50, though the increase would not apply retroactively.

Bryan said proposed federal reductions in Medicaid, SNAP and Section 8 housing support could strain the territory further if enacted.

He also criticized the Legislature's override of his veto of Bill 36-0053, which raised the minimum salary for government workers by 30%, saying it was enacted without financial analysis or agency consultation.

Bryan said government health insurance premiums were projected to increase by more than $30 million in the coming fiscal year, pushing total annual health insurance costs above $190 million. He said the Government Employees' Retirement System was also scheduled to implement a 3% increase in the employer contribution rate on October 1, 2025.

Bryan said the government still faced unpaid bills, underfunded hospitals, overdue payments at the Waste Management Authority, and outstanding retroactive pay owed to the Steelworkers and other unions.

Official source: https://www.vi.gov/governor-bryan-warns-of-mounting-fiscal-threats-calls-for-responsible-leadership-in-the-face-of-federal-cuts/