Press Releases

For Immediate Release                                          Contact: Tionee Scotland
July 10, 2025                                                           202-808-6129

PRESS RELEASE

CONGRESSWOMAN PLASKETT ADDRESSES FEDERAL RECONCILIATION BILL IMPACTS AND VIRGIN ISLANDS RECOVERY PRIORITIES 

WASHINGTON, D.C. — Congresswoman Stacey E. Plaskett released the following statement on the federal reconciliation bill signed into law by President Trump and its potential impacts on the U.S. Virgin Islands: 

"Last week President Trump signed into law his tax and spending bill, H.R. 1, which passed the House and Senate narrowly with solely Republican votes and several Republican defections.  While the inclusion of permanent rum cover-over in H.R. 1, the One Big Beautiful Bill Act, represents a major win for the Virgin Islands and Puerto Rico and the culmination of years-long efforts by elected officials and stakeholders, as I have consistently indicated from the beginning of the year, the bill will also bring significant challenges to our territory through cuts to Medicaid, Medicare, SNAP, and other critical programs.

“My office has reached out to the Legislature of the Virgin Islands and the Government of the Virgin Islands finance team to share our concerns and offer our support as we hope the local government will begin the efforts to prepare for these impacts over the coming years. It will be imperative for the Virgin Islands local government to focus on finding new revenues and act creatively to remedy the impacts of federal cuts locally. This legislation will require us to find additional sources for increasing revenues to the general fund to continue providing support to families—supporting new businesses, jump starting local small businesses and training our own local workforce to support the rebuilding and construction projects that must come online." 

Congresswoman Plaskett emphasized the importance of the Government of the Virgin Islands taking advantage of the rebuild to create additional revenue, ancillary businesses and increased workforce.  Doing so means capitalizing on the cost-share waiver granted by the Biden-Harris administration, which has allocated billions of federal dollars for recovery projects across the territory. 

"Seven years ago, our community’s infrastructure was devasted by Hurricanes Irma and Maria, leaving our critical infrastructure decimated. Out of devastation came the opportunity to transform our territory and rebuild our critical infrastructure in a more resilient manner with profound funding from the federal government. In the Bipartisan Budget Act of 2018, I obtained provisions to allow the Virgin Islands to rebuild critical infrastructure with resilient design and features, up to the latest industry building standards and notwithstanding pre-disaster conditions in the Virgin Islands (the standard that normally applies).

“That change in law has meant the Government of the Virgin Islands has been allocated billions in federal funding for our schools, hospitals, water systems, power grid, communications infrastructure, and other critical projects. In 2024, the Biden-Harris Administration announced that rebuild projects approved before September 30, 2024, require only a 2 percent local match instead of the original 10 percent, with other projects requiring just 5 percent – projected cost savings for the local government of almost $1.5 billion. This represents an unprecedented opportunity to complete our hurricane recovery while stimulating economic growth. However, the cost share is for a ten-year period.  We must capitalize on this timeframe and utilize this opportunity not only to rebuild our infrastructure but also to attract small businesses and other industries to our territory," Plaskett added. 

"Now that the battle for the permanent increased rum cover-over rate of $13.25 is over, we need to focus on two critical areas related to the rum cover over: ensuring the Virgin Islands receives our fair share of worldwide rum cover-over revenue and working with rum companies to understand the utilization of funds for marketing and potentially increase the amount that comes directly to the Virgin Islands Government. Under the Caribbean Basin Initiative (CBI), rum produced outside the Virgin Islands and Puerto Rico and then imported into the US also has a rum cover over that is divided between the two territories.  Under the CBI, that ratio should be based upon the rum produced by each, however there was never a change in ratio made when Diageo came to the Virgin Islands from Puerto Rico.  I previously engaged both the Mapp-Potter and Bryan-Roach Administrations on this issue, and it is my hope that the Bryan Administration will take this matter up so the Virgin Islands will receive its fair share of the cover over. Additionally, we need to ensure the rum companies are utilizing these funds for the maximum benefit for our community." 

"While federal cuts will create challenges, we also have untapped resources and underutilized opportunities at our disposal. The key is acting decisively during this critical recovery window while building sustainable economic growth for our future. My team and I remain ready to work with Governor Bryan and his team along with the Legislature of the Virgin Islands to ensure that we can not only weather these changes but emerge stronger." 

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