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Northern Mariana IslandsHB 24-8024th Northern Mariana Islands Legislature (2025-2026)HouseWALLET
To Repeal and Re-Enact Public Law 24-14 to further Define and Identify General Revenues and approve revenues and resources of the Commonwealth of the Northern Mariana Islands as identified pursuant to Article III, Section 9 (a) of the CNMI Constitution, as amended, and 1 CMC Division 7, for Fiscal Year 2026 and make appropriations for the operations and activities of the Government of the Commonwealth of the Northern Mariana Islands, its agencies, instrumentalities, and independent programs, and to provide budget authority for government corporations for Fiscal Year 2026; and for other purposes.
Sponsored By: John Paul Palacios Sablan (Independent)
Became Law
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Bill Overview
Analyzed Economic Effects
18 provisions identified: 12 benefits, 1 costs, 5 mixed.
FY2026 government budget and funding rules
The FY2026 budget approves about $298.2 million in agency spending authority. Agencies can spend only the lesser of the money they actually have or their listed amount. General Revenues total about $152.2 million. Many statutory earmarks are suspended for FY2026, except debt service and a few allowed items, giving budget managers more flexibility. Agencies may use revolving funds for pay and operations this year, but the CIQ Overtime fund must still be used for its purpose.
More money reserved for retiree checks
The Secretary of Finance reserves $2,490,000 to pay the CNMI’s 25% share of Settlement Fund payments in FY2026. If the Office of Grants Management gets more than $937,843, the extra is also set aside for retirees’ 25% pension payments. OGM must provide a budget and spending plan for the grants it manages.
Classroom funds protected in public schools
At least 96% of Public School System money goes straight to classroom instruction. Funds cannot pay Board of Education staff, central director raises during austerity, or legal fees. The law sets aside $400,000 for inter-island student travel and lodging and $100,000 for teacher and support staff incentives. Some school-level staff are exempt from austerity rules.
More money for worker training
The law provides $1,300,000 for vocational training: NMTech $780,000; Northern Marianas College $195,000; PSS $52,000; Department of Labor $273,000. Recipients must submit education plans under U.S. Public Law 115‑218 and file quarterly fund reports. It also sets worker‑fund shares: Public Health $216,638.80; PSS $108,319.40; Youth Affairs $67,699.62; Coalition of Private Schools $40,619.78; Rota Mayor $54,159.70; Tinian & Aguiguan Mayor $54,159.70. CNMI DOL must also send $10,000 each to Rota and Tinian DOLs for apprenticeships for U.S. citizens.
Guaranteed base funding for Legislature
Each year the Legislature gets at least 9% of funds identified for appropriation, or last year’s amount, whichever is higher, within the constitutional cap. Each house has a $200,000 leadership account, and a share must be split equally among standing committees. Every member controls a sub‑account for office operations and may take a one‑month advance, subject to house rules.
Stable hotel-tax funds and mayor control
Finance must send each mayor their monthly hotel tax share. Each mayor gets at least $175,000 by year‑end and $43,750 each quarter. Mayors can reprogram up to 25% of their municipal budgets. Municipal Council funds are split evenly into separate member accounts, each with spending authority. The Northern Islands Mayor may set local revenue rules.
Keep utilities and landfill work funded
The central government pays monthly CUC utility bills for agencies after their revolving funds are used. Funds set for utilities cannot be reprogrammed. Solid Waste Management must first pay $179,691 in owed hazardous pay to staff on Saipan, Tinian, and Rota, with a report due by the end of the first quarter. The government backs closure of Marpi Landfill Cells #1 and #2 if other funds fall short.
Public lands: $4M to Trust and upkeep
DPL must pay $4,000,000 to the Marianas Public Lands Trust by October 15, 2025, in addition to other remittances. DPL can spend up to $800,000 each year for maintenance and security of public lands, including former Rota Resort, former Tinian Dynasty, former Kanoa Resort, and former Marianas Resort. DPL may pay Parks and Recreation staff and landscaping costs under written MOUs with DLNR and local mayors.
Tighter pay and hiring rules for workers
The government freezes hiring for new or vacant executive-branch jobs in FY2026, unless an essential post is approved by both the Governor and the Legislature. Any job that becomes vacant is closed, and its pay is moved to operations within 30 days unless the Legislature restores it. Employees fully funded by federal money work 80 hours per pay period; partially federally funded jobs also stay at 80 hours if federal money covers the gap. If you work on a Commonwealth legal holiday, you get only your base pay unless you are federally funded. Pay is capped for appointed officials, and Resident Department Heads are set at $40,000 a year unless extra pay comes from federal or non-General Revenue funds.
Single Medicaid budget with flexible use
All Medicaid funds for FY2026 are treated as one budget. The Medicaid Director can move money between reimbursement, agency operations, and health IT to keep services running. Benefits and who can get Medicaid do not change under this rule. Up to 12 Medicaid IT positions can be set as excepted-service contract jobs with OPM’s agreement.
State worker pay cuts and leave help
Salaries paid by the General Fund that rose after Public Law 24‑14 revert to the earlier amounts. The savings go to the 25% Retirees’ Pension Benefit. Hiring is capped by agency employment ceilings for FY2026. Workers can receive donated sick leave hour‑for‑hour, up to 1,040 hours.
Tighter budget controls and penalties
The Secretary of Finance must send monthly fund status reports and meet with lawmakers. Agencies must file monthly spending reports. For FY2026, non‑General Revenue funds are allotted monthly; one‑time payment programs can get advances. The Governor can reprogram up to 25% of an executive budget, but not for new hires or raises; more needs a joint resolution. Overspending or missing reports triggers at least 30 days without pay and loss of legal defense until fixes are accepted. No Commonwealth contract is allowed unless the Secretary certifies funds exist. Any outside money that replaces general revenue must be identified and reported; the replaced general funds revert for land compensation and tourist site upgrades.
More funds for Sun Bucks food aid
The government sets aside $160,000 to cover 50% of the NAP Sun Bucks program. Sun Bucks is protected from austerity cuts, so the matching money stays available.
Back pay for former casino staff
$210,000 from the IPI settlement is set aside to pay salaries owed to former Commonwealth Casino members, as laid out in Schedule B.
More scholarship help for students
$50,000 is reserved for the Professional Student Exchange Program. All salaries that elected officials waive go into the Scholarship Trust for scholarships, with no further appropriation and no fiscal‑year limit; quarterly reports are required. For FY2026, non‑General Revenue funds are allotted monthly and the Secretary must report quarterly on their transfers.
Tobacco funds for health programs
The law allocates $541,597 from Tobacco Settlement funds as allowed by law. These funds are not subject to reprogramming or fiscal‑year limits. Recipients must submit a program and spending plan and send quarterly reports within 30 days after each quarter.
Support for passport and business filings
At least $50,000 from passport fee collections is reserved for Passport Office staff and operations, on top of its Schedule A amount. The Registrar of Corporations reserves $149,236 for personnel and $30,000 for operations and adds seven positions, including three ABTC Officer I and a Foreign Corporation Office Director.
Courts gain flex; DPS pays transport
The courts can move funds between personnel and operations and use non‑General funds to restore reduced hours. No retroactive allotment cuts are allowed without a new budget amendment. DPS must pay all costs to move detainees between districts for court or other legal needs.
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Sponsors & Cosponsors
Sponsor
John Paul Palacios Sablan
Independent • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 12/22/2025
House Final Reading — Passed (HS1)
Yes: 0 • No: 0
Senate vote • 12/22/2025
Senate Final Reading — Passed (HS1)
Yes: 0 • No: 0
Actions Timeline
P.L. 24-20
12/23/2025HouseSenate Final Reading — Passed (HS1)
12/22/2025SenateHouse Final Reading — Passed (HS1)
12/22/2025HouseHouse First Reading — Passed (HS1)
12/22/2025HouseIntroduced
12/22/2025House
Bill Text
HB 24-80
12/22/2025
P.L. 24-20
12/22/2025
Related Bills
HB 24-63 — To amend Title 4 sections 1991 to 1995 relating to the 3% construction tax on gross revenues derived from certain non-residential construction projects and to enact a new section 1996 pertaining to Applicability; and for other purposes.
SB 24-04 — to advance Chamorro & Carolinian language education in the CNMI
HB 24-13 — To amend the fee structure for the Office of the Registrar of Corporations under the Department of Commerce and to remove daily penalty fees.
HB 24-35 — To amend certain provisions of the CNMI Good Samaritan Act [7 CMC § 2801 et seq.]; and for other purposes.
HB 24-11 — To provide greater authority to government transit buses owned and operated by the Commonwealth Office of Transit Authority (COTA); to establish traffic safety measures, enhance public engagement, ensure fiscal responsibility, and comply with existing CNMI laws and federal standards; and for other purposes.
HB 24-82 — To amend Section 704(k) of Public Law 24-20 to prevent disruption or delay of allotments, payments, or expenditures of the Legislative Branch by adding a transition period of up to 270 days for the implementation of the Legislature’s Finance Department; and for other purposes.
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