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)

Became Law

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Bill Overview

Analyzed Economic Effects

23 provisions identified: 13 benefits, 3 costs, 7 mixed.

2026 general revenues: $127 million

The government provides $127,455,066 in General Revenues for Fiscal Year 2026. These funds pay for core government operations and programs during the year. Agencies must use this funding under the rules in this law.

Job training money for U.S. workers

The law provides $1.3 million for vocational education, apprenticeships, and other training for United States workers. Funds are split by plan: 40% to Public Health, 20% to the Public School System, 12.5% to Youth Affairs, 7.5% to the Coalition of Private Schools, and 10% each to the Rota and Tinian mayors. Recipients must register with the Department of Labor, report job placements, and file quarterly fund reports.

More funding for student travel and scholarships

The Public School System reserves $500,000 for student travel and lodging within the CNMI for the 2025–2026 school year. The Scholarship Office sets aside $50,000 for the Professional Student Exchange Program. Waived salaries of elected officials are deposited into the Scholarship Trust and can be spent on scholarships without another appropriation or year limit. The Scholarship Administrator must report trust activity every quarter.

More public school money to classrooms

At least 70% of all public school funds must go to instruction. Teacher pay and instructional jobs cannot be cut until all non‑instruction admin cuts are used first. Funds cannot pay Board of Education staff, central office director raises until austerity ends, or legal fees and lawsuits. Austerity rules do not apply to federally funded jobs or programs with a CNMI fund match.

Tighter hiring limits in government jobs

No new or vacant executive‑branch job is filled unless it is essential for public services. Other exceptions need the Governor’s OK and a legislative joint resolution. Agencies cannot spend beyond this law or add positions without a joint resolution. Mayors in all three senatorial districts cannot use MOUs to make personnel contracts.

Government guarantees Marpi Landfill closure costs

If this budget law causes a shortfall, the CNMI government must use its full faith and credit to pay for closing Cell #1 and Cell #2 of the Marpi Landfill. This makes the government the backup payer if appropriations fall short.

Medicaid budget flexibility for 2026

Medicaid funds in this law are treated as one budget. The Medicaid director can move money between categories and accounts as needed. For FY2026, certain Medicaid IT jobs under ORG 11850400 may be set as excepted service contract positions if OPM agrees. These steps support day‑to‑day Medicaid operations.

Law officers leave cash-out and overtime

Eligible law enforcement staff can get a lump‑sum payout for up to 208 hours of annual leave without leaving the job, if funds are available. Overtime pay for eligible officers must come from non‑General Revenue funds. If overtime, retirement, or benefits cause a shortfall, the municipality must cover it. For Rota and Tinian, law enforcement overtime must be paid from non‑General Revenue sources.

Public employees: pay, benefits, and hiring rules

Resident Department Heads in Rota and Tinian are paid $40,000 for FY2026 and are subject to austerity rules. Even during austerity in FY2026, employees still earn a full pay period for leave accrual. The law sets staffing caps for agencies. Vacant positions close and their funds move to operations within 30 days unless the Legislature reinstates the job. On Saipan, Tinian, or Rota, a vacancy with a processed personnel action may be filled.

Budget rules shift: fewer earmarks, more flexibility

For FY2026, many earmarks and automatic set‑asides are suspended, except debt service and those allowed in Section 201. The Secretary of Finance controls agency spending to enforce fiscal rules. Agencies may use federal or other non‑General funds to pay salaries. General revolving account limits are suspended for personnel, fuel, communications, office supplies, and training travel, with constitutional limits and excluding special revenue and suspended accounts.

Courts can shift funds; hours protected

Court leaders can adjust work schedules to match available funds and use non‑General funds to restore reduced hours. The Judicial Branch can move money between personnel and operations. The courts cannot face across‑the‑board allotment cuts without a new budget submission.

CHCC runs medical referral program

CHCC runs the Health Network Program for inter‑island and off‑island medical referrals. The CHCC CEO or a designee controls spending for referrals and related administration. $150,000 is reserved only for inter‑island referrals. This helps patients who must travel for care.

Extra funds boost retiree health insurance

If the Public Auditor’s office gets more than $1,728,908, the extra money goes to Group Health Life Insurance for CNMI retirees. This reserves any excess for retiree health coverage.

Proof of funds before contracts; 1% audit fee

Before any CNMI government entity signs a contract, the Finance Secretary must certify that enough lawful funds are appropriated. This does not apply to the Judicial Branch, Legislative Branch, Public School System, or Northern Marianas College. A 1% Public Auditor fee applies to each entity’s total appropriation; non‑General‑funded entities must remit monthly.

Executive offices and parks funding set

The Governor controls funds for the Governor’s Offices, and the Lt. Governor controls funds for the Lt. Governor’s Office. The Passport Office must keep at least $150,000 from its collections for staff and operations. For FY2026, indirect costs stay with DCCA and do not move to the Office of Grants Management. Public Lands gets $4,892,548 and can pay DLNR Parks staff and park maintenance costs under an agreement.

Legislators control office funds and staffing

Each legislator controls spending in their office subaccount, including staff, authorized costs, travel, and a one‑month advance. Each legislative house gets $200,000 for leadership operations, and part must be shared equally with all standing committees. The Legislative Bureau can move money between personnel and operations.

Who can spend library, museum, AG funds

The law names who may spend funds for key programs. The Library Council chair (or designee) controls Joeten‑Kiyu Public Library funds. The Museum Board chair (or designee) controls museum funds. The elected Attorney General (or designee) controls AG funds. The Governor’s Authorized Representative controls Public Assistance Program funds.

Tobacco funds locked for health programs

The law allocates $541,597 in tobacco settlement money to program plans under 3 CMC § 2173. These funds cannot be reprogrammed and do not expire by fiscal year. Spending authorities must file a quarterly expenditure report within 30 days after each quarter.

Who controls Northern Marianas College funds

The college president (or designee) can spend funds under ORG 11881000. The Board of Regents chair (or designee) can spend funds under ORG 11882100. This names who may obligate and use each college account.

No extra holiday pay for work

If you work on a CNMI legal holiday, you are paid only your basic rate for those hours. You do not get extra holiday pay. This rule does not apply to employees paid fully or partly with federal funds.

Governor fund shifts and cash-flow rules

The Governor can reprogram up to 100% of executive‑branch funds, but not for new hires or salary raises, and not for the courts, legislature, or delegation funds. Non‑General funds are allotted monthly, with advance allotments allowed for one‑time payments. If the Marianas Public Land Trust loan is not effective by October 1, 2025, agencies may receive first‑quarter allotments. The government pays CUC bills for agencies after revolving accounts run out.

Local mayors gain spending and fee powers

The Rota Mayor controls First Senatorial District funds. Municipal Council funds are split equally into separate accounts, and each member controls their share. The Northern Islands Mayor can set local fees such as tour, fishing, or hunting fees. Money collected goes into a revolving fund and is appropriated locally.

Stronger budget reporting and penalties

The Secretary of Finance must send quarterly revenue reports and reports on non‑General fund transfers. Agencies and PSS must send monthly personnel spending reports. All reprogramming actions must be reported within 30 days after each quarter, with an annual summary due within 60 days after year‑end. Legislative fiscal analysts must get system access and listed reports within 30 days, and other data within 10 days of request. Officials who overspend are suspended without pay for at least 30 days and until both houses accept a fiscal plan, and they get no indemnification for the violation.

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 9/26/2025

Voice vote on HB 24-46

Yes: 0 • No: 0

House vote 8/15/2025

House Final Reading — Passed (HD1)

Yes: 0 • No: 0

Actions Timeline

  1. P.L. 24-14 (IV)

    9/30/2025House
  2. Senate Final Reading — Passed

    9/26/2025Senate
  3. House Final Reading — Passed (HD1)

    8/15/2025House
  4. House First Reading — Passed (HD1)

    8/15/2025House
  5. Introduced

    8/15/2025House

Bill Text

  • HB 24-46

    8/15/2025

  • P.L. 24-14 (IV)

    8/15/2025

  • [HD1 SS1]

    8/15/2025

  • [HD1]

    8/15/2025

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