ST. CROIX — Retired and active government employees owed $22.5 million in retroactive wages can expect to receive their payments by May 30 now that Governor Albert Bryan Jr. has approved a $62.6 million appropriation bill primarily funded with monies the government received as part of a settlement agreement with the Estate of Jeffrey Epstein, according to the governor’s transmittal letter to the Senate president.
The governor’s approval on Monday of the legislation, Bill No. 36-0047 (Act No. 8985), also appropriates $20 million to support both the territory’s hospitals, providing each hospital with $10 million to cover specific items including staffing, supplies, and vendor payments.
Additionally, the bill includes $6 million to pay outstanding debt owed to Pafford Medical Services, $5 million to the Virgin Islands Waste Management Authority for wastewater services and outstanding vendor payments to solid waste haulers, $5 million to the VI Port Authority for renovations and enhancement of the Ann E. Abramson Marine Facility (Frederiksted pier), $2.5 million to the VI Bureau of School Construction and Maintenance to restore the Ivanna Eudora Kean High School track and field facilities, and $1.6 million to the VI Department of Human Services for renovation, staffing, and supplies for the expansion of the Herbert Grigg Home for the Aged on St. Croix.
In addition to the appropriation bill, Bryan approved Bill No. 36-0038 to increase the limit for outstanding bonds for the VI Port Authority to $350 million from $100 million.
The governor also approved two lease agreements.
Bryan signed Bill No. 36-0040, a lease agreement between the government and Charles M. Kim VI Foundation Inc. d/b/a Virgin Islands Museum of Art for a portion of Lot No. 48b Norre Gade on St. Thomas. The lease is for an initial term of 99 years, with an option to renew for two additional terms of 50 years each. The premises must permit use for the operation of museums, galleries, or exhibitions, as well as community and civic purposes, studios, production of art, culture, historical materials, and associated office and retail use.
Bryan also signed Bill No. 36-0028, a lease agreement between the government and Tropical Marine Inc. for Parcel No. 37-1 Estate Nadir on St. Thomas to operate a retail shop, marine engine repair shop, parking lot, and for the import and sale of goods. The lease is for an initial term of 50 years, with an option to renew for two additional terms of 10 years.
The primary funding source for the $62.6 million in appropriations is the Southern Trust Company Settlement Fund, an interest-bearing fund the Legislature created in 2024 through Act No. 8920 to deposit all proceeds from court actions related to the Epstein legal cases, including the $105,450,000 settlement from the government’s civil lawsuit against the Epstein estate, and the $47.5 million settlement with former Epstein advisor Leon Black.
All the appropriations will be funded by the STC Settlement Fund except a $7 million appropriation to be equally divided between the hospitals that will come from a line of credit transaction authorized by Act No. 8701, which the Legislature approved in 2023 to authorize the governor to engage in a line of credit in the maximum amount of $100 million to fund disaster recovery projects and provide funding to advance payment of $45 million toward the buyout of the infrastructure agreement between the VI Water and Power Authority and Vitol that resulted in the purchase of propane facilities.
The $7 million for the hospitals, or $3.5 million for the Governor Juan F. Luis Hospital and Medical Center and $3.5 million for Schneider Regional Medical Center, must be used for outstanding amounts owed to vendors. The hospitals must submit all invoices for payment to the Office of Management and Budget for disbursement to the vendors. Each hospital will receive another $6.5 million from the STC Settlement Fund to pay for staff and supplies, among other items specifically outlined in the legislation. The appropriated funds cannot be utilized for contract negotiations or alteration of existing collective bargaining agreements. The hospitals have until May 28 to submit to the governor and Legislature a comprehensive austerity plan, a report detailing the use of the appropriated funds, and proposed improvements to the billing system and collection of Medicare, Medical Assistance Program payments, and other insurance with clear processes for documentation, coding, and processing.
While the Legislature initially appropriated monies from the STC Settlement Fund in 2024 when it approved Act No. 8920, sponsored by then-Senator Donna Frett-Gregory, the new legislation (Act No. 8985) the governor signed on Monday to fund the appropriations gutted Frett-Gregory’s original legislation by eliminating access to $50 million and cutting a $20 million annual appropriation in half. Specifically, the $21.5 million to complete the Estate Nazareth Sports Complex on St. Thomas is no longer available for that project. The governor is no longer authorized to utilize up to $25 million for deposit into a high-yield investment account. The sum of $2.5 million is no longer appropriated to the VI Economic Development Authority to provide low-interest loans to homeowners for the repair, renovation, and rehabilitation of their residential homes. A $20 million annual appropriation to the Bureau of School Construction and Maintenance for the maintenance of school facilities was reduced to $10 million. The sum of $3.5 million for the VI Department of Health for the completion of renovations to the east wing of the Eldra Schulterbrandt Mental Health Facility on St. Thomas is now appropriated from the Mental Health Survivor Fund. The sum of $5 million appropriated to the Crime Prevention/Prosecution Fund was reduced by $1 million, while the $400,000 to the EDA for the Agro and Food Innovation Center in Frederiksted was increased by $100,000.
The governor approved Bill No. 36-0047 with a line-item veto to Section 4, which called for the sum of $10.5 million utilized by the VI government for vendor payments to be redeposited into the STC Settlement Fund by September 30, 2026. The governor indicated in his transmittal letter to Senate President Milton Potter on Monday that the funds were available to the government for three years, noting that the government exercised careful judgment in choosing when to use them.
“We did not rush to spend,” Bryan wrote. “Instead, we waited until it was absolutely necessary. That decision allowed us to make the greatest impact: paying our vendors, honoring our commitments, and even supporting a portion of the Legislature’s allotment. This is what responsible governance looks like — measured, intentional, and focused on what truly matters.”
