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)

Enacted

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Bill Overview

Analyzed Economic Effects

45 provisions identified: 23 benefits, 4 costs, 18 mixed.

Retirees get dedicated pension payment funding

Finance must reserve the remaining $2.49 million from the IPI settlement for fiscal year 2026 retiree payments. This supports the Commonwealth's 25% share of Settlement Fund payments. Any Office of Grants Management funding above $937,843 must also support the government's 25% pension obligation. The law does not state each retiree's payment.

Families' Sun Bucks funding avoids cuts

The Nutritional Assistance Program must set aside $160,000 for the 50% match for NAP Sun Bucks. The Sun Bucks program is exempt from austerity measures. The law does not specify household benefit amounts.

Former casino members get salary funding

Finance must reserve $210,000 from the $2.7 million IPI settlement payment for former Commonwealth Casino members' unpaid salaries. Payments follow Schedule B's allocations. Individual payment amounts are not supplied here.

School competition travel and staff rewards

Public schools reserve $400,000 for inter-island travel and lodging within the Commonwealth during School Year 2025–2026. It supports students, coaches, teachers, support staff, and chaperones in sports leagues and cultural and academic competitions. Eligible academic events include Moot Court and Mock Trial. This money is in addition to federal grants. Schools also reserve $100,000 for teacher and support staff incentives and rewards; individual award amounts are not stated.

Schools must protect classrooms before administration

Public schools must direct at least 96% of all funds to instruction. Teacher pay, instructional jobs, and essential student programs are protected until non-instructional administrative cost cuts are exhausted. Administrative and management staff must face furloughs or job cuts before school-assigned staff. Federally funded positions and programs, and programs receiving a local General Fund match, are exempt from austerity measures. The law also bars listed board and legal spending and blocks central administrative directors' raises while school austerity measures remain.

Waste workers get overdue hazardous pay

Solid Waste Management must pay $179,691 in overdue hazardous pay to covered workers on Saipan, Tinian, and Rota. Payment comes from the Solid Waste Management Revolving Fund. The debt must be fully paid before that fund supports other programs. Individual workers' shares are not stated.

Workers get dedicated job training funding

For fiscal year 2026, $1.3 million in Commonwealth Worker Fee Funds supports vocational education, apprenticeships, and training for U.S. workers. Programs must be provided by Commonwealth educational entities. Allocations are $780,000 for NMTech, $195,000 for Northern Marianas College, $52,000 for public schools, and $273,000 for Labor. Labor must also send $10,000 each to Rota and Tinian for U.S. citizens' apprenticeship and training programs. Each island's Labor Resident Director controls spending in consultation with its mayor; no individual payment or placement is guaranteed.

Government programs receive yearly operating funds

The law provides about $152.21 million in General Revenues for October 1, 2025, through September 30, 2026. Schedule A divides the money among government agencies and programs. Agencies receive monthly funding allotments. Programs needing one-time payments receive advance allotments, including scholarships, healthcare, Medicaid, public schools, the college, and technical institute.

Some government workers lose recent raises

Employees with General Fund-paid salaries lose raises received after Public Law 24-14 took effect. Their pay returns to the original amounts under that law. The savings go toward the retirees' 25% pension benefit. The law does not state each worker's pay reduction.

Legislative staff hours and raises regulated

The Legislative Bureau Director can restore staff's reduced work hours using available non-General Revenue funds. Salary adjustments for Bureau and Northern Marianas Youth Congress staff require an annual performance review. They also require consultation with the House Speaker and Senate President and depend on available funds.

Utilities funded with protected agency payments

For fiscal year 2026, the Commonwealth Utilities Corporation has about $102.50 million in spending authority and 572 positions. About $22.29 million covers personnel and $80.21 million covers operations. The Public Utilities Commission has $47,568: $47,097 for personnel, $471 for operations, and one position. Each entity's spending cannot exceed actual receipts or its approved budget, whichever is lower. The central government pays agency utility bills after their general revolving accounts are exhausted; utility appropriations cannot be shifted elsewhere.

Public healthcare gets a capped budget

From October 1, 2025, through September 30, 2026, the Commonwealth Healthcare Corporation has about $141.15 million in spending authority. About $86.23 million covers personnel and $54.93 million covers operations, with 1,041 approved positions. Spending cannot exceed actual funds received or the approved budget, whichever is lower. This operating budget does not change who qualifies for care.

Patients get medical referral travel support

The Health Network Program's inter-island and off-island referral services include stipends, airfare, and lodging for patients and escorts. The program must use $150,000 of its funding exclusively for inter-island medical referrals. The law does not state per-person support amounts.

Federal funding restores government work hours

Employees in fully federally funded positions return to an 80-hour schedule every two weeks. Partly federally funded positions also use that schedule when federal money covers the funding gap. The law does not state prior hours or individual pay changes.

Students get dedicated scholarship funding streams

The law directs $50,000 from the scholarship office's funding to the Professional Student Exchange Program. Elected officials' waived salaries must go to the Scholarship Trust Account. That money can be spent only on scholarships, without another appropriation or a fiscal-year deadline. Individual awards and the total waived salaries are not stated.

Courts gain budget flexibility and protection

Court leaders can adjust work schedules and opening hours to match available personnel and operating funds. During austerity measures, they can use available non-General Revenue funds, including revolving accounts, to restore reduced hours and operations. The Judicial Branch can move money between personnel and operations. Retroactive allotment reductions or proportionate cuts require a new annual budget submission and an enacted amended budget. The law does not guarantee restored hours.

Government backs needed Marpi landfill closure

The CNMI Government must pledge its full faith and credit when needed to close Marpi Landfill Cells 1 and 2. This duty applies when the Appropriations Act causes a funding shortfall. The law states no dollar amount or household payment requirement.

Public properties can receive upkeep funding

The Department of Public Lands can spend up to $800,000 annually to maintain and secure properties under its control. Covered properties include designated parks, recreation areas, and the former Rota, Kanoa, and Marianas resorts and Tinian Dynasty. Spending requires a formal agreement with the Department of Lands and Natural Resources and the Rota and Tinian & Aguiguan mayors.

Agencies gain flexibility with revolving funds

During fiscal year 2026, agencies can use covered revolving accounts for staff, fuel, utilities, supplies, communications, and training travel. The law suspends certain spending and account-purpose limits, and the usual Section 501 transfer limits do not apply. Constitutional limits remain. Accounts suspended under Section 203 and special revenue accounts are excluded from this relaxation. Protected inspection-overtime set-asides must still serve their intended purpose.

Legislative offices gain protected spending flexibility

House and Senate members can receive a one-month advance from funds already appropriated to their offices. Members control their office subaccounts and can pay approved legislative travel and related expenses under House, Senate, or Bureau rules. The Legislative Bureau can freely move funds between personnel and operations, including utilities. Legislative allotments cannot face retroactive or proportionate cuts without a new annual budget submission and an enacted amended budget. These rules change government spending administration, not household payments.

Legislature gains protected funding and accounts

Each annual budget must provide the Legislature 9% of Governor-identified available funds or its prior-year appropriation, whichever is higher. The constitutional funding limit still applies. Each house has a $200,000 leadership account, with part divided equally among standing committees. A separate Legislature Operations Fund holds legislative receipts and receives appropriations at the start of each quarter. The Legislative Bureau keeps separate records; qualified banks hold accounts used for legislative, Bureau, and Youth Congress obligations and operating expenses.

Mayors receive guaranteed hotel tax transfers

The Finance Secretary must transfer Hotel Occupancy Tax shares so each respective mayor receives at least $175,000 before fiscal year-end. Required quarterly transfers are $43,750. The money goes to municipal governments, not directly to households.

Passport office keeps additional operating money

For fiscal year 2026, the Passport Office must reserve at least $50,000 from General Revenue collections it receives. That money supports personnel and operations, in addition to its $96,485 Schedule A appropriation.

Tobacco settlement money protected for programs

The law allocates $541,597 in Tobacco Settlement Funds under a program and spending plan submitted to the Finance Secretary. The money cannot be shifted to other uses and is not limited to one fiscal year. This provision does not identify individual household payments.

Salary increase funds redirected to retirees

Realized funds intended for the salary increases described in Section 604(a) must instead support the 25% Retirees' Pension Benefit. The law does not state the amount available or any retiree's individual payment.

Selected education and health jobs exempted

During fiscal year 2026, selected workforce, education, and health jobs do not count toward the government's position ceiling. These include Workforce Investment Agency staff, substitute teachers, summer trainees, teacher aides, student-teacher trainees, and specified health professionals and instructors. Covered part-time work cannot exceed 40 hours per two-week pay period. Short-term specialized instruction in public schools cannot exceed 90 instructional days during the fiscal year.

Corporation registrar receives protected operating funds

The Registrar of Corporations Revolving Account must reserve $149,236 for personnel and $30,000 for operations from its collections. The Department of Commerce must include the specified jobs in its authorized position counts. The funding supports registrar operations, not direct business grants.

Northern Islands mayor can establish fees

The Northern Islands Mayor can set municipal fee rules, including fees for package tours, fishing, and hunting. The law itself sets no fee amounts; charges depend on rules establishing them. After a revolving fund is established, the Saipan and Northern Islands Legislative Delegation locally appropriates the revenue.

Some government workers lose holiday extras

Covered government employees required to work on non-federal Commonwealth legal holidays receive only their basic pay for those hours. They receive no extra holiday-leave-pay adjustment. Employees funded partly or fully with federal money are excluded from this rule.

Agencies face spending and contracting limits

For fiscal year 2026, agencies receiving General Funds cannot exceed approved spending or position counts without a legislative joint resolution. Covered government contracts require the Finance Secretary to certify that lawful, sufficient funds have been appropriated. The contract certification rule excludes the courts, Legislature, Public School System, and Northern Marianas College.

Government hiring freezes retain limited exceptions

The executive branch generally cannot fill new or vacant jobs. Exceptions include essential public-service jobs, including specified police and fire-service positions in each senatorial district. Other jobs deemed essential by the Governor require approval through a legislative joint resolution. Already-processed vacancies can proceed when personnel paperwork was executed, a candidate selected, or hiring action filed with personnel offices on Rota, Tinian, or Saipan. Renewing an existing employee's contract does not create a vacancy.

Government sick leave donations count equally

Each donated sick-leave hour counts as one hour for Commonwealth government employees. The donor's and recipient's pay rates do not change that credit. Total donated sick leave cannot exceed 1,040 hours.

Medicaid technology jobs allow contract status

For fiscal year 2026, 12 Medicaid Enterprise Systems and Health Information Technology positions can become excepted-service contract positions. These positions are funded under ORG 11850400. The Medicaid Agency must request the change, and the Office of Personnel Management must agree. The law does not state changes in pay or benefits.

Public officials face salary funding limits

For fiscal year 2026, resident department heads in the First and Second Senatorial Districts receive $40,000 annually. Covered appointed officials and excepted-service employees keep salary amounts from the Governor's April 1, 2025 budget submission. Applicable budget and legal limits govern those amounts; a joint resolution can change the salary hold. Commonwealth department heads and those resident department heads are also subject to austerity measures set by law. Federal or other non-General Revenue funds can pay salaries above the cited legal caps.

Public safety pays detainee transport costs

The Department of Public Safety pays all costs of moving detainees between senatorial districts for court appearances. It also pays for transport needed for other legally required activities. The law states no dollar amount.

Dedicated program funding suspended for 2026

For fiscal year 2026, the law suspends listed funding set-asides for tobacco control, cancer care, group health insurance, and inspection overtime. It also affects technical education, tourism, foreign-worker fees, retirement funds, and the Developers Infrastructure Tax. Debt service and set-asides allowed under Section 201 remain protected. Collections above Finance Department projections dated April 1, 2025, must automatically go to the intended beneficiary entities.

Economic development agency receives capped funds

For fiscal year 2026, the Commonwealth Economic Development Authority has about $1.46 million in spending authority and 13 positions. About $1.16 million covers personnel and $305,920 covers operations. Spending cannot exceed actual receipts or the approved budget, whichever is lower. The law does not create direct household payments.

Governor and mayors can shift funds

The Governor can move up to 25% of covered executive-branch appropriations, and each district mayor has 25% transfer authority. The Governor's authority excludes legislative, judicial, legislative-delegation, and Section 604 funds. Including municipal entities requires the mayor's consent. Transfers cannot fund new hires or active employees' salary changes. Additional authority requires a legislative joint resolution.

Public auditor receives capped operating funds

For fiscal year 2026, the Office of the Public Auditor has about $1.73 million in spending authority and 17 positions. About $1.33 million covers personnel and $400,493 covers operations. Spending cannot exceed actual receipts or the approved budget, whichever is lower.

Public land trust receives additional money

The Department of Public Lands must transfer $4 million from its Holding Account to the land trust by October 15, 2025. This is in addition to other constitutional and statutory transfers. For fiscal year 2026, Marianas Public Land Trust has about $1.76 million in spending authority and six positions. Its budget includes $460,317 for personnel and about $1.30 million for operations. Spending cannot exceed actual receipts or the approved budget, whichever is lower.

Tourism funded with new revenue redirection

For fiscal year 2026, Marianas Visitors Authority has about $7.09 million in spending authority and 31 positions. About $1.62 million covers personnel and $5.46 million covers operations; spending cannot exceed receipts or the approved budget. The Governor must identify outside-source funds and report them to the Legislature for appropriation. General Revenues replaced, supplemented, or offset by other funding return to the Legislature for land compensation and tourist-site upgrades.

Ports receive a capped operating budget

For fiscal year 2026, Commonwealth Ports Authority has about $18.35 million in spending authority and 237 positions. About $6.71 million covers personnel and $11.64 million covers operations. Spending cannot exceed actual receipts or the approved budget, whichever is lower. This budget does not set household fees.

Housing agency gets a capped budget

For fiscal year 2026, Northern Marianas Housing Corporation has about $7.94 million in spending authority and 67 positions. About $5.34 million covers personnel and $2.60 million covers operations. Spending cannot exceed actual receipts or the approved budget, whichever is lower. This operating budget does not change who qualifies for housing help.

College and technical school budgets capped

For fiscal year 2026, Northern Marianas College has about $15.21 million in spending authority and 166 positions. Its budget includes about $10.76 million for personnel and $4.45 million for operations. Northern Marianas Technical Institute has $920,944: $722,572 for personnel, $198,372 for operations, and 35 positions. Each school's spending is capped at actual receipts or its approved budget, whichever is lower. These budgets do not create individual financial-aid or training grants.

Most vacant government jobs must close

Agencies must close positions when they become vacant, except positions covered by Section 602(b). Within 30 days, unused position funds move to agency operating expenses. An agency can request that the Legislature restore a position through a joint resolution.

Sponsors & Cosponsors

Sponsor

John Paul Palacios Sablan
Independent • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 23 • No: 1

House vote • 12/22/2025

Roll call on HB 24-80

Yes: 16 • No: 0

Senate vote • 12/22/2025