Northern Mariana IslandsHB 24-4624th Northern Mariana Islands Legislature (2025-2026)HouseWALLET

To 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)

Enacted

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Bill Overview

Analyzed Economic Effects

37 provisions identified: 25 benefits, 5 costs, 7 mixed.

Government workers keep earned leave benefits

During Fiscal Year 2026, CNMI government employees continue earning a full pay period of leave and other job benefits despite austerity. Donated sick leave counts hour for hour, regardless of the donor's or recipient's salary. Total donated sick leave cannot exceed 1,040 hours.

Law-enforcement workers can cash out leave

Eligible law-enforcement personnel can receive a lump-sum payment for unused annual leave while staying employed. This covers personnel in Corrections, Public Safety, and Fire and Emergency Medical Services. Payment depends on available funds and cannot cover more than 208 hours.

Training funds support United States workers

For Fiscal Year 2026, the law provides $1.3 million exclusively for vocational education, apprenticeships, and other training for U.S. workers. One allocation passage assigns $780,000 to Northern Marianas Technical Institute and $195,000 to Northern Marianas College. It also assigns $52,000 to public schools and $273,000 to the Department of Labor; another passage divides the fund differently. Funding recipients must submit education plans consistent with U.S. Public Law 115-218. Spending authorities must register with the Department of Labor and report whether participants enter the workforce.

Funding keeps Commonwealth government services running

The law provides about $127.46 million in General Revenues for Commonwealth government operations, divided as listed in Schedule A. Fiscal Year 2026 runs from October 1, 2025, through September 30, 2026. Appropriated funds from sources outside General Revenues are released monthly. Programs needing one-time payments can receive those funds in advance.

Utilities receive budgets and government payments

For October 1, 2025–September 30, 2026, the Commonwealth Utilities Corporation can spend about $102.50 million, with 572 positions. The Public Utilities Commission can spend $47,568, with one position. Each entity’s spending is limited to its approved ceiling or actual funds received, whichever is lower. The central government must pay covered agency utility bills after general revolving-account funds run out; prepaid-meter managers must follow Finance payment rules. These provisions do not set household utility rates.

Healthcare corporation gets operating spending authority

The Commonwealth Healthcare Corporation has FY2026 spending authority of about $141.15 million for staff and operations. Its staffing ceiling is 1,041 positions. Spending cannot exceed either the approved ceiling or funds actually generated, collected, or received. This authority runs October 1, 2025–September 30, 2026 and does not create an individual coverage entitlement.

Department heads face pay and austerity rules

For Fiscal Year 2026, Resident Department Heads in the First and Second Senatorial Districts have a $40,000 annual salary. These officials and CNMI Department Heads are subject to austerity measures provided by law. Federal funds or other funds outside General Revenues can pay salaries above the specified legal caps. This permission does not require a raise, and the provision does not spell out the austerity measures.

Travel support for inter-island medical patients

The Commonwealth Healthcare Corporation's Health Network Program administers inter-island and off-island medical referrals. The law reserves $150,000 of program funds exclusively for inter-island referrals. Inter-island services include stipends, airfare, and lodging for patients and escorts. The law does not set a payment amount per person.

Dedicated funds support scholarships and student exchanges

The Scholarship and Financial Assistance Office must use $50,000 of its funding for the Professional Student Exchange Program. The Secretary of Finance must transfer elected officials' salaries waived under the salary-waiver law to the Scholarship Trust Account. That account's money can fund only scholarships, without another appropriation or a fiscal-year limit. The law sets no individual award amounts.

Government backs closure of landfill cells

If this law causes a funding shortfall, the CNMI Government must pledge its full financial backing when needed. That backing supports closure of Marpi Landfill Cells #1 and #2. The law does not state a dollar amount.

Passport office gets protected operating funds

At least $150,000 of General Revenue received by the CNMI Passport Office is reserved for staff and operations. The reserve supports passport services. It does not change who qualifies for a passport.

Public lands funds support park upkeep

The Department of Public Lands can pay for Parks and Recreation staff services in all three senatorial districts. Those payments must follow its agreement with the Department of Lands and Natural Resources. Public Lands must also pay for landscaping and grounds maintenance at Parks and Recreation properties. No payment amount is stated.

Tobacco settlement funds health and youth

The law allocates $541,597 in Tobacco Settlement funds to health, education, youth programs, and local governments. Public Health receives 40% ($216,638.80), and the Public School System receives 20% ($108,319.40). Youth Affairs receives 12.5%, private schools receive 7.5%, and the Rota and Tinian–Aguiguan mayors each receive 10%. Recipients must submit program and spending plans to the Finance Secretary. The money cannot be moved to other uses or limited to one fiscal year.

School funds support instruction and student travel

The Public School System must allocate at least 70% of all its funds directly to instruction. It also sets aside $500,000 for student travel and lodging within the CNMI during School Year 2025–2026. Students must participate in school-system interscholastic sports leagues, cultural competitions, or academic competitions. The law does not set a travel payment per student.

Advance funding supports health and education

For October 1, 2025–September 30, 2026, most appropriated funds are released to agencies monthly. Programs needing one-time payments receive advance funding, including scholarships, healthcare, Medicaid, public schools, Northern Marianas College, and the technical institute. Covered entities can also receive first-quarter advances if the Marianas Public Land Trust loan was not effective by October 1, 2025. These rules govern agency funding, not direct household payments.

Courts gain funding and staffing flexibility

Judicial leaders can adjust staff schedules and court operating hours to match available personnel and operating funds. During austerity, they can use available non-General Revenue funds, including revolving accounts, to restore reduced employee hours. Court spending authorities can also move money between personnel and operations. Judicial allotments cannot face reductions or proportionate cuts without a new annual budget submission. Restored work hours are permitted, not guaranteed.

Economic development agency receives operating authority

The Commonwealth Economic Development Authority can spend about $1.46 million in FY2026, with a ceiling of 13 positions. Spending cannot exceed the lower of its approved ceiling or funds actually generated, collected, or received. This authority runs October 1, 2025–September 30, 2026. It funds agency operations, not direct household or business grants.

Legislative offices gain operating spending options

Each legislative house has a $200,000 leadership account for operations and activities under its rules. Its presiding officer must divide part of that money equally among all standing committees. Member-office funds, including employee personnel funds, can cover approved legislative-business travel and related expenses. Members can receive a one-month advance of office funds.

Public auditor receives funding for oversight

The Office of the Public Auditor can spend about $1.73 million in FY2026, with a ceiling of 17 positions. Spending cannot exceed the lower of its approved ceiling or funds actually generated, collected, or received. The authority runs October 1, 2025–September 30, 2026. It funds public audit operations rather than direct household benefits.

Public land trust receives operating authority

The Marianas Public Land Trust can spend about $1.76 million in FY2026, with a ceiling of six positions. Spending cannot exceed the lower of its approved ceiling or funds actually generated, collected, or received. The authority runs October 1, 2025–September 30, 2026. It supports trust operations rather than direct household payments.

Tourism agency receives operating spending authority

The Marianas Visitors Authority can spend about $6.41 million in FY2026, with a ceiling of 31 positions. Spending cannot exceed the lower of its approved ceiling or funds actually generated, collected, or received. The authority runs October 1, 2025–September 30, 2026. It supports tourism-agency operations, not direct household payments.

Ports receive funding for daily operations

The Commonwealth Ports Authority can spend about $18.35 million on staff and operations in FY2026. Its staffing ceiling is 237 positions. Spending cannot exceed the lower of its approved ceiling or funds actually generated, collected, or received. The authority runs October 1, 2025–September 30, 2026 and supports ports that move people and goods.

Medicaid gains flexibility to move funds

For Fiscal Year 2026, Medicaid Agency, reimbursement, and enterprise systems and health information technology appropriations form one budget. The Medicaid Director can move these funds among spending categories. This authority does not itself change Medicaid eligibility or household benefit amounts.

Housing corporation receives an operating budget

The Northern Marianas Housing Corporation can spend about $7.94 million in FY2026, with a ceiling of 67 positions. Spending cannot exceed the lower of its approved ceiling or funds actually generated, collected, or received. This authority runs October 1, 2025–September 30, 2026. It funds operations without creating new rent assistance or changing housing eligibility.

College and technical institute receive budgets

Northern Marianas College can spend about $15.21 million in FY2026, with a ceiling of 166 positions. Northern Marianas Technical Institute can spend $920,944, with a ceiling of 35 positions. Each institution’s spending is limited to its approved ceiling or actual funds received, whichever is lower. These authorities run October 1, 2025–September 30, 2026. They fund operations, not new student grants or tuition benefits.

Legislative staff gain protected funding options

The Legislative Bureau Director can adjust staff schedules and operating hours to match available personnel and operating funds. Available non-General Revenue funds can restore reduced Bureau employee hours, but restoration is not guaranteed. Bureau spending authorities can also move money between personnel and operations. Legislative allotments cannot face reductions or proportionate cuts without a new annual budget submission.

Northern Islands visitors face possible fees

The Northern Islands Mayor can adopt rules charging municipal fees, including fees for package tours, fishing, and hunting. The law does not set fee amounts or itself require an immediate payment. After a revolving fund is established, the Saipan and Northern Islands Legislative Delegation appropriates the revenue locally.

Basic holiday pay for government workers

Covered CNMI employees required to work on a non-federal Commonwealth legal holiday receive basic pay for their hours worked. They receive no extra adjustment for holiday leave with pay. Employees funded partly or fully with federal money are exempt.

Government job openings face tighter limits

Most new or vacant executive-branch jobs cannot be filled. Specified essential safety and fire-service jobs in each district are exceptions; other Governor-designated essential jobs need legislative joint approval. Hiring can proceed when a notice was executed, a candidate selected, or a filling action initiated and filed with Personnel Management. Existing employee contract renewals do not create vacancies. Vacant positions must close, with unused funds moved to agency operations within 30 days; reinstatement requires legislative joint approval.

Government agencies face strict spending limits

For October 1, 2025–September 30, 2026, General Fund agencies cannot exceed approved spending or staffing limits without legislative joint approval. The Finance Secretary controls spending and must confirm sufficient lawful funding before most government contracts. Courts, the Legislature, public schools, and Northern Marianas College are exempt from that contract review. Officials who exceed spending limits lose salary for at least 30 days. Pay resumes only after both legislative houses accept a plan to retire the overspending; legal defense and reimbursement are barred.

Mayors face new personnel contract limits

The First Senatorial District Mayor cannot enter personnel contracts through memoranda of understanding. The same prohibition applies to the Mayors of Saipan and the Northern Islands. The law does not state how many workers or services are affected.

Medicaid technology jobs use contract employment

For FY2026, all 11 Medicaid technology positions funded under ORG 11850400 are designated as excepted-service contract employee positions. The change requires a Medicaid Agency request and Office of Personnel Management concurrence. It permits that employment arrangement but makes it subject to personnel-office approval. The law does not state changes to pay, employee benefits, or Medicaid eligibility.

Schools protect classrooms and limit administration

Public School System funds cannot pay Board of Education personnel or operations, or litigation fees and costs. Central administrative directors cannot receive raises while specified austerity measures, such as teacher furloughs or program cuts, remain. Teacher salaries, instructional jobs, and essential student programs cannot face austerity cuts until non-instructional administrative reductions are exhausted. These austerity restrictions exclude federally funded positions and programs, and programs receiving a CNMI General Fund match.

Government funds gain flexibility with limits

For FY2026, the Governor can move up to 100% of covered executive-branch funds, but cannot fund new hires or salary adjustments. Legislative, judicial, legislative-delegation, and Section 604 funds are excluded; municipal funds require the mayor’s consent. The Governor must report these transfers quarterly to the Legislature. Eligible revolving accounts can pay personnel, fuel, communications, office supplies, and training travel, subject to constitutional limits. Suspended accounts and special revenue accounts are excluded, and this expanded use does not give the Governor reprogramming authority.

Agency audit fees support retiree insurance

Covered government entities must allocate 1% of their total appropriations to the Public Auditor's Fee. Collections above the Public Auditor's appropriation of about $1.73 million are reserved for CNMI retirees' health and life insurance. Covered agencies outside the General Fund must send the fee monthly to the Department of Finance. This is an agency fee, not a direct household charge.

Officer overtime requires alternative funding sources

Eligible officer overtime in Public Safety and Fire and Emergency Medical Services must be paid from non-General Revenue funds. The law identifies a funding source for these payments but excludes General Revenue. It does not set overtime amounts.

Dedicated program funding paused, excess restored

For October 1, 2025–September 30, 2026, the law pauses dedicated funding from listed taxes and fees. Affected uses include tobacco control, retiree group health and life insurance, cancer programs, vehicle funds, foreign-worker fees, and customs overtime. Listed hotel, alcohol-container, electronic-gaming, school technical-education, and developers infrastructure tax allocations are also paused. Debt service and permitted earmarks remain protected, including the Solid Waste Fund’s 7% excise-tax share. Covered collections above Finance’s April 1, 2025 projections automatically go to their designated recipients without another legislative vote.

Sponsors & Cosponsors

Sponsor

John Paul Palacios Sablan
Independent • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 25 • No: 0

Senate vote • 9/26/2025

Roll call on HB 24-46

Yes: 8 • No: 0

House vote • 8/15/2025