Governor Albert Bryan Jr. has vetoed legislation that would have redirected a portion of fuel-tax revenue supporting the Virgin Islands Water and Power Authority to help pay the territory's hospitals' electricity bills, warning that the measure could weaken the utility's financial position and ultimately create additional costs for ratepayers.
The governor's decision was among actions announced Thursday, on 16 measures passed by the 36th Legislature during its September 25 session. Bryan approved 15 bills, including $2.5 million for behavioral health services, $1.8 million for repairs to the St. Thomas abattoir and $500,000 for road improvements on St. John.
In his transmittal letter to Senate President Milton Potter, Bryan explained his opposition to Bill No. 36-0391, which would have revised how money deposited into the Virgin Islands Water and Power Generating and Infrastructure Fund is distributed.
The measure was intended to provide financial relief to the territory's hospitals by redirecting a portion of revenue currently allocated to WAPA and applying it as credits toward hospital electricity expenses.
Bryan argued that the proposal, while intended to address a genuine financial problem facing the hospitals, would do so at the expense of another financially vulnerable public institution.
The governor said removing an established revenue source without identifying replacement funding could undermine WAPA's financial stability, complicate its ability to secure financing and potentially increase pressure on electricity customers.
"Our hospitals need reliable electricity and the financial resources to provide the care our people depend on. But we cannot solve one financial challenge by creating another that could ultimately affect every household and business in the Virgin Islands," Bryan said.
Mr. Bryan said the proposed hospital electricity credits would cover less than half of the hospitals' reported annual energy expenses at current fuel-tax collection levels. The measure would also leave outstanding hospital utility balances unresolved.
That assessment formed a central part of Bryan's justification for the veto. He maintained that the proposal would reduce WAPA's revenue without sufficiently addressing the hospitals' larger financial obligations.
"We have to find a solution that supports our hospitals while protecting the stability of WAPA and the residents who depend on it. I am prepared to work with the Legislature and all stakeholders to get that done," Bryan said.
The governor urged lawmakers to work with the administration, the hospitals and WAPA on an alternative arrangement that could provide sustained assistance to the hospitals without undermining the territory's essential utility services.
The veto also follows conflicting descriptions of the measure in Government House's recent announcements.
As The Consortium reported October 3, Bryan's approval of the fiscal year 2027 budget was accompanied by a Government House statement identifying legislation revising the allocation of the Virgin Islands Water and Power Generating and Infrastructure Fund among the measures he had approved.
The October 8 announcement, however, specifically identifies Bill No. 36-0391 as vetoed. The earlier announcement did not identify the measure by bill number, and the latest release does not explain the discrepancy.
The veto is separate from the governor's approval of the broader fiscal year 2027 spending package, which includes $66.5 million in General Fund support for the Virgin Islands Hospital and Health Facilities Corporation.
$2.5 Million Approved for Behavioral Health Services
Among the legislation Bryan approved Thursday was Bill No. 36-0393, which provides $2.5 million for behavioral health services through the V.I. Department of Health.
The measure reprograms previously appropriated funding within the fiscal year 2026 budget to support behavioral health services, an area that has remained a priority for lawmakers amid continuing concerns over access to treatment and care for residents experiencing mental health challenges.
The Legislature approved the measure during its September 25 session after Senator Kurt Vialet brought it forward. Lawmakers emphasized the importance of sustaining behavioral health treatment, including services for Virgin Islanders receiving care both within and outside the territory.
The governor's approval authorizes the funding reallocation, providing additional resources for the department's behavioral health responsibilities.
St. Thomas Abattoir Receives $1.8 Million
Bryan also approved Bill No. 36-0394, providing $1.8 million for repairs and improvements to the St. Thomas abattoir, a facility whose prolonged closure has created challenges for livestock farmers in the St. Thomas-St. John District.
The legislation was introduced with a proposed $2 million appropriation before lawmakers reduced the amount to $1.8 million during floor proceedings.
The funding is intended to support rehabilitation of the slaughterhouse and strengthen the territory's local agricultural and food-production capacity.
As The Consortium previously reported, the Department of Agriculture had been pursuing approximately $2 million through the V.I. Housing Finance Authority for rehabilitation of the facility, but that funding became affected by the federal suspension involving VIHFA.
The department has also faced difficulties transporting livestock between St. Thomas and St. Croix for slaughter, making restoration of the local facility particularly important to livestock producers.
During the September 25 legislative session, lawmakers expressed frustration over the length of time the facility has remained unavailable and urged the Department of Agriculture to move forward with the necessary repairs.
Bryan's approval clears the legislative funding measure, although the announcement did not establish a completion date for the renovation or a timeline for reopening the abattoir.
Road Improvements on St. John and Pedestrian Safety on St. Thomas
The governor also signed Bill No. 36-0352, appropriating $500,000 from the St. John Capital Improvements Fund for roadwork on Rudolph A. Thomas Jr. Road and Contant Point Road.
The money will support milling, resurfacing and paving along the two roadways, where deteriorated pavement has raised concerns about driving conditions and traffic safety.
Senator Angel Bolques Jr., who advanced the measure during the September 25 session, had emphasized the risks posed by damaged road surfaces, including motorists maneuvering around potholes and other roadway defects.
On St. Thomas, Bryan approved separate legislation authorizing pedestrian safety improvements near the former Addelita Cancryn Junior High School.
The measure addresses pedestrian access and safety near the former school site, including work intended to improve crossing conditions.
Although he signed the legislation, Bryan objected to a provision requiring the Department of Public Works to submit an implementation plan to a legislative committee before proceeding.
The governor maintained that legislative oversight is important but that responsibility for administering and implementing laws enacted by the Legislature belongs to the executive branch.
His concerns did not prevent him from approving the measure, although they signal disagreement over the extent to which lawmakers should be involved in directing how authorized public works projects are carried out.
Contractor Bond Fund Approved, but Funding Questions Remain
Bryan also signed legislation establishing the Virgin Islands Contractor Bonds Cost Revolving Loan Fund, an initiative designed to help local contractors address the cost of obtaining bonds required to compete for major construction projects.
Bill No. 36-0392 creates the fund, but additional legislative action remains necessary before a fully operational loan program can be established.
As The Consortium reported following the September 25 session, Senator Novelle Francis Jr. advanced the measure to address a financing barrier that can prevent smaller Virgin Islands contractors from participating in large government and disaster-recovery projects.
Francis said he hoped to see at least $10 million eventually placed in the fund, although the legislation did not identify a funding source or appropriate that amount.
In approving the measure, Bryan recommended that lawmakers clarify where the money will come from, establish the associated loan program and identify the government agency that will administer it.
Those outstanding issues mean the legislation creates the legal framework for the initiative but does not, by itself, make loans immediately available to contractors.
Protections for Seniors, Public Safety and Government Facilities
Several other measures receiving Bryan's approval address public safety, consumer protection and government operations.
One strengthens protections for senior citizens against financial exploitation, including provisions intended to address abusive financial arrangements and promissory-note practices.
Another updates child passenger safety requirements applicable to rental vehicles, while separate legislation prohibits incarcerated individuals from possessing or using unauthorized electronic communication and recording devices.
Bryan also approved legislation establishing a uniform process for naming government-owned parks and recreational facilities throughout the territory.
The governor's actions additionally included approval of several government lease agreements on St. Thomas.
Among them are agreements involving the St. Thomas Cricket Association, L.J. Auto Repairs LLC and Paradise Paws VI LLC.
Another approved lease involves Eight One Subbase LLC, which plans to develop a food court at Submarine Base, adding to proposed commercial activity in the area.
On St. Croix, Bryan approved a zoning use variance allowing the construction and operation of a beauty salon at Estate Concordia.
The governor also acknowledged legislative approval of appointments to the Virgin Islands Government Hospitals and Health Facilities Corporation Board and the Virgin Islands Public Broadcasting System Board of Directors.
Taken together, the decisions advance measures affecting healthcare, agriculture, transportation, public safety and economic development while leaving unresolved the dispute over how to provide additional financial assistance to the territory's hospitals without reducing WAPA's operating revenue.
Bryan thanked members of the 36th Legislature for their work and reiterated his willingness to collaborate on a different approach to hospital utility costs, maintaining that both the healthcare system and WAPA must remain financially capable of delivering essential services.
