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Northern Mariana IslandsHB 24-10824th Northern Mariana Islands Legislature (2025-2026)HouseWALLET

To provide a Budget Plan of the Commonwealth of the Northern Mariana Islands for Fiscal Year 2027 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; and for other purposes.

Sponsored By: John Paul Palacios Sablan (Independent)

Enacted

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Bill Overview

Analyzed Economic Effects

34 provisions identified: 24 benefits, 4 costs, 6 mixed.

Funding for training United States workers

For FY 2027, $894,650 in Commonwealth Worker Fee Funds supports vocational education, apprenticeships, and other training for United States workers. The Northern Marianas Technical Institute receives $536,790, and Northern Marianas College receives $134,197.50. The Labor Department’s Registered Apprenticeship program receives $134,197.50, and the Public School System receives $35,786. Another $53,679 covers Labor Department administrative costs. Recipients must follow U.S. Public Law 115-218; the law sets no amount per worker.

Government workers can share sick leave

Government employees can voluntarily donate sick leave to another employee. Donated hours are multiplied by the donor’s current base hourly pay, then divided by the recipient’s current base hourly pay. The recipient can receive no more than 1,040 donated hours. This transfers leave, not cash.

Government worker pay limits and exceptions

During FY2027, General Fund employees receive pay based on 64 hours every two weeks; employees funded entirely outside that fund are exempt. Fully federally funded employees work 80 hours; partly federally funded employees retain 80 hours when federal money covers the difference. Employees working non-federal Commonwealth holidays receive basic pay without an extra holiday-pay adjustment; wholly or partly federally funded employees are exempt. Appointed officials and excepted-service employees keep salaries listed in the Governor’s July 1, 2026, budget submission, subject to a joint resolution.

Public services get budgets with spending limits

For FY 2027, 11 CNMI entities have about $200.78 million in budget authority and 2,366 authorized positions. About $104.29 million covers personnel, and $96.49 million covers operations. The entities cover utilities, ports, health care, schools, colleges, housing, economic development, tourism, public audits, and utility regulation. Each entity can spend only the lower of its listed budget limit or the funds it actually receives. Spending above its limit or hiring above its position count requires approval through a legislative joint resolution.

Funds reserved for government retiree payments

Unless the law provides otherwise, 50% of revolving and special account funds are reserved for government retirees’ 25% pension payments and GHLI obligations. GHLI covers group health and life insurance. Office of Grants Management receipts above $762,173 are also reserved for those retiree obligations. The law does not increase an individual retiree’s payment or state how much these reserves contain.

Sun Bucks funding protected for families

The law sets aside $160,000 from Nutritional Assistance Program funding for the Sun Bucks program’s 50% match. Sun Bucks is exempt from austerity measures. The law does not state household payment amounts or how many families receive help.

Travel help for inter-island medical patients

The Commonwealth Healthcare Corporation, or its successor, runs the Health Network Program’s inter-island medical referrals. Services include stipends, airfare, and lodging for patients and escorts. The law reserves $150,000 from account ORG 11850700 exclusively for inter-island referrals. It does not set individual payment amounts.

Expense funding for school board representatives

The CNMI Board of Education’s FY 2027 funding includes costs and expenses for its student and teacher representatives. The law does not set an amount or payment formula.

Funding supports professional student exchanges

For FY 2027, $50,000 of the Scholarship and Financial Assistance Office’s funding goes to the Professional Student Exchange Program. The law does not set an amount per student.

Government workers protected from furloughs

CNMI government employees cannot be furloughed until the Civil Service Commission issues rules and regulations. This protection applies during FY2027, October 1, 2026, through September 30, 2027. It is not a permanent ban on furloughs.

Medicaid systems jobs can use contracts

For FY2027, all 16 Medicaid Enterprise Systems and Health Information Technology positions funded under ORG 11850400 can become excepted-service contract positions. The Commonwealth Medicaid Agency must request this status. The Office of Personnel Management must agree. The law does not set pay or contract terms.

Waste workers get hazard pay priority

Solid Waste Management must pay FY 2027 hazard pay owed to employees on Saipan, Tinian, and Rota. Payments come from the Solid Waste Management Revolving Fund collected under Title 2, Section 3551. The fund must fully cover these obligations before paying for other programs. Finance and Public Works must report on hazard pay by the end of the first quarter of FY 2027. The law does not state each worker’s payment.

Courts can adjust and restore hours

The Supreme Court Chief Justice and Superior Court Presiding Judge can match work schedules and operating hours to available funding. During austerity, they can use available non-General Revenue funds, including revolving accounts, to restore reduced hours. The Judicial Branch can also move spending authority between staff and operations. The law adds no funding and guarantees no restored hours.

Funding supports traffic and criminal enforcement

The law reserves $200,000 from the Justice Center Fund for Department of Public Safety traffic enforcement. Beginning October 1, 2026, Attorney General receipts for services to autonomous and other agencies fund its Investigative Division’s white-collar prosecutions. Public Safety also pays all costs of transporting detainees between districts for court appearances and other legally required activities.

Government backs specified landfill closure costs

The CNMI Government pledges its full financial backing when needed to close Marpi Landfill Cells 1 and 2. This applies only if this budget law causes a funding shortfall. The law states no dollar amount or payment date.

Public lands receive maintenance funding authority

Beginning October 1, 2026, Public Lands can spend up to $800,000 annually on maintenance and security of covered properties. These include designated parks, recreation areas, and former resorts under its authority. This spending requires a formal agreement with Lands and Natural Resources and the Rota and Tinian and Aguiguan mayors. Public Lands can also pay Lands and Natural Resources personnel, including park staff in all three districts, for services. It must pay for park landscaping and grounds maintenance under the departments’ February 17, 2023, agreement.

Tobacco settlement funds health and schools

Beginning October 1, 2026, the law allocates $541,597 in Tobacco Settlement funds. Public Health gets $284,338.40, public schools get $108,319.40, and the Coalition of Private Schools gets $40,619.80. The Rota and Tinian mayors each get $54,159.70. Recipients must submit a program and spending plan to the Finance Secretary. These funds cannot be shifted to other purposes and have no fiscal-year spending limit.

Agencies gain flexibility using account funds

During FY2027, agencies gain flexible use of revolving and special accounts that are not suspended. Covered general revolving accounts can pay staff and operating costs, including fuel, communications, supplies, utilities, and training travel. This broader revolving-account authority excludes Section 202 suspended accounts and special revenue accounts. Constitutional limits and Section 605 reserves and exceptions still apply. Section 501 authority to shift appropriations does not apply to these accounts.

Legislative offices receive funds and advances

Each legislative house’s leadership account receives $174,516 for operations and activities under that house’s rules. The Presiding Officer must divide part of the allocation equally among all standing committees. House and Senate members can use office funds for rule-approved legislative travel and incidental costs. Each member can also receive a one-month advance of office funds.

Local officials control district spending

The Rota Mayor controls First District funds and resident departments’ spending; the Tinian and Aguiguan Mayor controls Second District funds. Tinian and Aguiguan’s authority also includes shifting district funds between uses. The Governor needs a prior showing of just cause to revoke authority over public-service departments, but can revoke law-enforcement authority at discretion. Mayors, municipal council chairs, or their designees control their respective office allocations. Rota and Tinian council allocations are divided equally among members in separate accounts, with each member controlling their share.

Passport collections support staff and operations

At least $150,000 of general-revenue collections received by the CNMI Passport Office must support its staff and operations. This reserve does not affect its Schedule A appropriation. The rule does not change passport fees or eligibility.

Extra tourism funds support retirees and schools

Amounts above $1.711243 million in the Marianas Visitors Authority appropriation specified in Section 201(II)(a)(1) are reserved for named uses. Those uses are retirees’ 25% pension payments, retiree group health and life insurance, Northern Marianas College, and the Public School System. The law does not state the excess amount or how it is divided.

Government backs agency utility bill payments

After general revolving account funds are exhausted, the central government must pay departments’ and agencies’ monthly Commonwealth Utilities Corporation bills. Money allocated for utilities cannot move to other uses. This provides a payment backstop for agency utilities, not a household utility subsidy.

Aging office keeps operating cost funds

For FY2027, indirect-cost funds stay with the Office of Aging for operations and utilities. They cannot be transferred to the Office of Grants Management. This protects agency funding without changing who qualifies for aging services.

Medicaid gains budget flexibility and staffing

The law combines Medicaid Agency, Medicaid Reimbursement, and Medicaid Enterprise Systems and Health Information Technology funds into one budget. The Medicaid Agency Director can move money among spending categories within those accounts. The agency can also have up to 20 administrative contract positions outside the civil service. These positions require Medicaid administrative funding eligible for 100% federal funding and must follow federal rules and funding terms. The law does not guarantee hiring or change Medicaid eligibility or benefit amounts.

Public schools gain special account flexibility

Beginning October 1, 2026, Public School System special accounts are not subject to account limitations. This gives the school system more flexibility with those funds. The provision does not state account balances or change household payments or eligibility.

Fewer government openings for job seekers

For FY 2027, CNMI government agencies generally cannot fill new or vacant jobs, including jobs that become vacant during the year. Exceptions cover essential or critical public-service jobs and specified hiring actions already filed with personnel offices on Rota, Tinian, or Saipan. Renewing an existing employee’s contract does not create a vacancy. FY 2027 runs from October 1, 2026, through September 30, 2027.

Public schools cannot fund legal costs

Beginning October 1, 2026, the Public School System cannot use allocated funds for legal fees or litigation costs. The ban includes settlements, judgments, and legal representation. The law does not state how much school funding this affects.

Government contracts require available funding

Before most government contracts are signed, the Finance Secretary must certify that lawful, sufficient funds are allocated. The Judicial Branch, Legislative Branch, Public School System, and Northern Marianas College are exempt from this certification. Finance also controls spending under the law. Agencies and programs cannot spend allocated funds contrary to law or Commonwealth fiscal policies.

Government job limits close vacant positions

Government departments, agencies, and offices must stay within the job counts authorized by the law. When an agency position becomes vacant, it closes, subject to the exception in Section 602(b). Its unused funds move to that agency’s operating budget within 30 days. Restoring the position requires a request to the Legislature and approval by joint resolution.

Department heads face pay and austerity rules

For FY 2027, Resident Department Heads in the First and Second Senatorial Districts have a $40,000 annual salary. Those officials and CNMI Department Heads are also subject to austerity measures provided by law. These provisions do not state prior salaries or explain the austerity measures, so they do not establish the net pay change.

Government funding follows monthly budget rules

The law allocates $100.726806 million in general revenues under Schedule A for FY2027, October 1, 2026–September 30, 2027. Funds are allotted monthly, with advance allotments for programs needing one-time payments. Listed recipients include scholarship and financial aid, the Healthcare Corporation, Medicaid agency, reimbursement and technology programs, public schools, Northern Marianas College, and the technical institute. Beginning October 1, 2026, monthly revenue above $8.106864 million goes into the Reserved Account rather than immediate spending. The administration must identify that reserve at the end of the third quarter for legislative appropriation.

Governor can shift funds within limits

During FY2027, the Governor can shift up to 100% of executive-branch funds; municipal funds require the mayor’s consent. Legislative, Judicial, and legislative-delegation appropriations are excluded. Shifts cannot fund new hires or change active employees’ salaries. District mayors can shift up to 50% of their office funds. The Governor must report within 30 days after each quarter and provide an annual summary within 60 days after year-end.

Program earmarks suspended, with funding exceptions

For FY2027, the law suspends listed revenue earmarks, making money available for broader budget allocation rather than its usual programs. Suspended cigarette-tax shares include Tobacco Control ($2.036773 million), retiree health and life insurance ($3.394622 million), and the Cancer Fund ($572,823). Other suspended amounts include inspection overtime ($977,393), public-school technical education ($138,253), and the visitors authority’s alcohol-container share ($87,757). Retirement Fund shares include hotel tax ($427,811), alcohol containers ($131,636), defined-benefit-plan electronic gaming ($302,643), and electronic gaming ($1.210571 million). The law also suspends developers’ infrastructure tax ($448,021), tax enforcement ($200,000), lottery revenue ($32,457), and alcohol and tobacco enforcement ($204,912). District shares include $100,881 each for First and Second District electronic gaming, plus $1.729649 million for Third and Second District amusement, poker, and pachinko slot-machine revenue. Listed indirect-cost, vehicle-registration, driver-license, maritime, weapon, and corporation-fee earmarks are also suspended; this changes revenue use, not the fee rates themselves. Debt service and earmarks protected by Section 201 remain exempt, and $500,000 is reserved for the CIQ Overtime Revolving Fund. All funds earmarked under Section 202(b) must serve that overtime purpose. Collections above projections identified by Finance on July 1, 2026, automatically go to the intended beneficiaries; Section 202(t) excess goes to Medicaid’s state/local match.

Sponsors & Cosponsors

Sponsor

  • John Paul Palacios Sablan

    Independent • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 0 • No: 0

Senate vote • 9/27/2026

Senate Final Reading — Passed

Yes: 0 • No: 0

House vote • 9/18/2026

House Final Reading — Passed (S1)

Yes: 0 • No: 0

Actions Timeline

  1. P.L. 24-40 (IV)

    10/5/2026House

  2. House Report Action — Approved

    9/30/2026House

  3. Senate Final Reading — Passed

    9/27/2026Senate

  4. House Final Reading — Passed (S1)

    9/18/2026House

  5. House First Reading — Passed (HS1)

    9/18/2026House

  6. Introduced

    9/18/2026House

Bill Text

  • CCR 24-7 (HS1 SD1 CCS1)

    9/18/2026

    PDF

  • HB 24-108

    9/18/2026

    PDF

  • P.L. 24-40 (IV)

    9/18/2026

    PDF

  • [HS1 SD1]

    9/18/2026

    PDF

  • [HS1]

    9/18/2026

    PDF

  • [S1]

    9/18/2026

    PDF

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