Senate bill included provision to make rum cover-over rate permanent for Virgin Islands

Gov. Albert Bryan Jr. said on June 28, 2025, that the Senate version of a federal tax reconciliation bill included a provision to extend the rum cover-over rate at $13.25 per proof gallon for the U.S. Virgin Islands and Puerto Rico.

According to Government House, the provision in the Senate Finance Committee bill would make the higher rate permanent, effective after Dec. 31, 2025, if enacted. The measure was championed by Senate Finance Committee Chairman Mike Crapo, Republican of Idaho.

Government House said the provision was not included in the House version introduced by Delegate Stacey Plaskett and Rep. Ron Estes, Republican of Kansas. The administration said it had pressed for the change through outreach by Bryan, his federal affairs team and Puerto Rico Resident Commissioner Jenniffer González.

The bill still required approval by the full Senate and reconciliation with the House version before it could be sent to the president.

Government House said rum cover-over revenues support the Virgin Islands government, including the Government Employees’ Retirement System, education, health care, law enforcement, infrastructure and workforce programs.

Official source: https://www.vi.gov/governor-bryan-announces-major-step-forward-in-rum-cover-over-extension-efforts/