Diego Vincent Camacho
VICE Speaker Diego Vincent F. Camacho on Thursday pre-filed House Bill 24-38, which proposes the establishment of a dedicated CNMI Emergency Reserve Fund — known as the “Rainy Day Fund” — with mandatory annual deposits for emergency use.
The bill would require the Department of Finance to deposit $1 million or an amount equal to 1% of the CNMI government’s general fund revenues — whichever is greater — annually into the Rainy Day Fund, beginning in fiscal year 2026, which starts on Oct. 1, 2025.
It prohibits the use of the Rainy Day Fund to fulfill the 25% allocation to the Public School System mandated under Article XV, Section 1(e) of the CNMI Constitution. The fund would not lapse at the end of a fiscal year and may not be used for any other purpose unless specified.
However, the proposed measure allows the governor — or a designee — to request the use of the Rainy Day Fund by submitting a written request to the Legislature following the issuance of a valid emergency declaration. The request must specify the nature of the emergency, the total amount of funds requested, and the intended use of the funds.
Camacho said H.B. 24-38 prioritizes preparedness over reaction, without displacing localized or existing statutory tools, and establishes a permanent fiscal safeguard aligned with best practices in public finance. By separating emergency savings from political budgeting cycles and reinforcing — but not replacing — existing statutory mechanisms, the CNMI government, he said, can secure long-term stability, address financial vulnerabilities, uphold separation of powers, ensure accountability, and strengthen fiscal resilience.
