Advertisement
Advertisement

Legislature Approves Contractor Bond Loan Fund as Francis Seeks $10 Million to Help Local Firms Compete

With disaster-recovery construction accelerating, lawmakers approved a revolving loan fund to help local contractors meet bonding costs, but no funding source is yet identified; they advanced abattoir, St. John road, behavioral health and safety measures.

  • Nelcia Charlemagne
  • September 26, 2026
comments
3 Comments
Construction crews work on a seaside development in the U.S. Virgin Islands, illustrating the major building projects local contractors hope to access as lawmakers move to ease bonding barriers.

Construction crews work on a seaside development in the U.S. Virgin Islands, illustrating the major building projects local contractors hope to access as lawmakers move to ease bonding barriers.

The 36th Legislature on Friday approved creation of a revolving loan fund intended to help local contractors overcome one of the barriers to competing for major construction projects: the cost of securing required bonds. The measure was among several bills special-ordered to the floor and approved during a legislative session that also produced funding for the St. Thomas abattoir, St. John roadwork and behavioral health services. The approved measures now head to Gov. Albert Bryan Jr. for consideration.

Advertisement

Bill 36-0392, special-ordered by Senator Novelle Francis Jr., amends Title 33 of the Virgin Islands Code to create the Virgin Islands Contractor Bonds Cost Revolving Loan Fund. The legislation establishes the vehicle through which assistance could be provided, but does not itself identify or appropriate the money necessary to capitalize the fund. Mr. Francis said companion legislation establishing a funding source will follow. The Legislature’s official post-session account confirms approval of the new revolving loan fund.

“What's important here is to allow for our local subcontractors to have a seat at the table,” Mr. Francis said, arguing that local companies are frequently kept “out of the loop” because they lack the resources needed to satisfy bonding requirements on larger contracts.

Mr. Francis said he hopes at least $10 million will ultimately be deposited into the revolving fund, although no potential funding source was placed on the record Friday. Even that amount, he suggested, would represent a “very small drop in the bucket” when measured against construction projects valued in the hundreds of millions or billions of dollars.

Advertisement

Other lawmakers characterized the proposed fund as a way to expand local participation in major federal and territorial construction work. “That's a blockbuster bill because it actually gives contractors a skin in the game when it comes to large projects, federal and local,” Senator Marvin Blyden said. Senate President Milton Potter similarly said, “It could be a game changer when it comes to local contractors and allowing them to get a piece of the pie.”

St. Thomas Abattoir Funding Moves Forward

Lawmakers also approved Bill 36-0394, introduced by Mr. Blyden to provide money to the V.I. Department of Agriculture for repairs and improvements to the long-shuttered St. Thomas abattoir. The measure was introduced with a $2 million appropriation, while floor proceedings reflected a subsequent reduction to $1.8 million.

The funding effort follows months of concern over the stalled facility. During the Department of Agriculture’s budget hearing, Commissioner Louis Petersen said approximately $2 million being pursued through the V.I. Housing Finance Authority for the rehabilitation had become caught in HUD’s suspension of federal funding administered through VIHFA. The Consortium previously reported that the proposal had reached the environmental-review stage and that the territory could no longer rely on transporting St. Thomas livestock to St. Croix for slaughter.

“Now all we have to do now is hold them accountable,” Senator Angel Bolques Jr. said after lawmakers acted on the funding. He referenced repeated discussions surrounding the abattoir and the Department of Agriculture’s unsuccessful efforts to secure sufficient financing in previous years. “This senator right here plans to put some good pressure on the Department of Agriculture because I've been seeing a lot of things happening that I'm not happy about.”

$500,000 for St. John Roads

Mr. Bolques also special-ordered Bill 36-0352, which appropriates $500,000 from the St. John Capital Improvements Fund to the V.I. Department of Public Works to mill, resurface and pave Rudolph A. Thomas Jr. Road and Contant Point Road. The Legislature’s official session record confirms the measure was approved.

Mr. Bolques said deteriorated sections of the roadway have created safety concerns, including motorists getting into accidents while attempting to avoid damaged areas. “Before life is lost, we want to be able to curtail that and fix the issue,” he said.

Senator Avery Lewis, meanwhile, special-ordered Bill 36-0385, which calls for pedestrian safety measures in the vicinity of the former Addelita Cancryn Junior High School pedestrian bridge, including road markings intended to allow people to cross safely. The measure is separate from Bill 36-0344, whose gubernatorial veto lawmakers also overrode Friday; that broader measure deals with the repair, renovation or removal of the pedestrian bridge itself.

Senator Kurt Vialet special-ordered Bill 36-0393, amending Act No. 9035 to reprogram fiscal year 2026 money within the Department of Health and provide a $2.5 million appropriation for behavioral health services. Lawmakers approved that measure as well.

Nominations and Leases Approved 

Friday’s session also produced approval of several gubernatorial nominees. Senators supported Wilbur Smith for the Virgin Islands Government Hospitals and Health Facilities Corporation Board, along with Osbert E. Potter, Henry E. Schjang and Lisa Brown Williams, Esq. for the Virgin Islands Public Broadcasting System Board of Directors.

Lawmakers approved Bill 36-0290, granting a zoning use variance for a beauty salon on St. Croix; Bill 36-0293, approving a lease benefiting the St. Thomas Cricket Association; Bill 36-0311, involving L.J. Auto Repairs LLC; Bill 36-0331, extending and modifying the Paradise Paws VI LLC lease; and Bill 36-0339, approving a lease for a food-court project in the St. Thomas Subbase.

The Consortium previously reported on the St. Croix salon proposal as it advanced, along with the St. Thomas Cricket Association, L.J. Auto and Paradise Paws leases. It also reported that the food-yard developer proposed investing approximately $500,000 in the Subbase project. 

Other measures receiving legislative approval included Bill 36-0192, establishing the Senior Financial Protection and Promissory Note Abuse Prevention Act of 2025; Bill 36-0247, creating a uniform Territorial Park Naming Program; Bill 36-0301, prohibiting incarcerated individuals from possessing or using unauthorized electronic communication or recording devices; and Bill 36-0303, updating child passenger safety requirements for rental vehicles.

Advertisement

Lawmakers also approved Bill 36-0308, appropriating $150,000 from the Virgin Islands Education Initiative Fund for the Department of Education to conduct a biennial fixed-asset inventory. The Legislature’s official account lists that measure among the additional bills approved Friday.

Get the latest news straight to your phone with the VI Consortium app.

Advertisements

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement