The following is the text of Gov. Arnold I. Palacios’ remarks during a senior plenary meeting of the Interagency Group on Insular Areas in Washington, D.C. on Feb. 21, 2024.
HAFA Adai and Tirow, Secretary Haaland, Assistant Secretary Cantor, Senior Advisor Tom Perez, Governors, congressional delegates, and all our federal partners and distinguished guests.
A year ago, I shared with you the considerable challenges facing the Northern Mariana Islands. Upon entering office last year, my administration inherited a financial crisis, a struggling economy, and critical infrastructure in disrepair.
These destabilizing conditions, as they have done in the past, make us vulnerable to external threats, including malicious influence from the Chinese Communist Party.
I emphasized then, as I do today, that our fiscal, economic, and social stability is directly tied to national security and a free and open Indo-Pacific.
We have made strides towards recovery, but there is still much work to do.
To stabilize the government’s financial condition, we have implemented cost containment measures and launched a tax collection task force to raise revenues and bring delinquent taxpayers into compliance.
We have also sought help from federal partners to audit expenditures of federal tax dollars and build local capacity in tax administration and financial investigation.
To support workforce recovery, we have requested approval from the U.S. Department of Labor to extend the Pandemic Unemployment Assistance program so that we may complete the issuance of PUA benefits.
We have also asked to use the remaining PUA balance to restore work-hours for government employees, provide payroll assistance for struggling businesses, and explore options for unemployment insurance.
To shore up government operations, we have urged for flexibility in the use of federal 702 funds allotted to the Commonwealth, to enhance both infrastructure and government operations.
That 702 money comes from our negotiations with the federal government. It is the promise of funding to support the Commonwealth’s development, enshrined in section 702 of our Covenant.
Today, that 702 money gets divided among the Commonwealth and other territories. I am not asking to take money away from Guam or American Samoa.
But in addition to flexibility, I am asking for a bigger pot of 702 money so we can all get a larger share to support our collective development.
We have made progress in infrastructure projects, including the reconstruction of the Northern Marianas College campus which broke ground last August, and multiple revitalization and highway projects.
Last week we began construction of a new carbon filtration system to treat forever chemicals, or PFAS, which affect the water supply of more than half our population. This remediation project is a good start, but we need help developing long-term solutions to the PFAS problem, including but not limited to reverse osmosis powered by clean and affordable energy.
We have also been working to enhance our main industry — tourism. I have spent the past few months engaging government and industry leaders in Japan, South Korea, and Taiwan as part of this effort.
I ask the U.S. Department of Commerce and the Economic Development Authority to facilitate the release of EDA funds so that crucial economic development and destination enhancement projects can move forward.
I also ask for the continued assistance of the Departments of State and Commerce to reinvigorate tourism and investment from allied nations.
Additionally, we need help improving air service within and to the Marianas. A 30-minute economy class trip between Saipan and Guam should not cost $600.
I appeal to the Departments of Transportation and the Interior to advocate for the Commonwealth’s designation as an Essential Air Service community.
With the help of federal partners, we expect to achieve other milestones in sustainable development, from climate action and clean energy to broadband and transportation.
Last month we signed a directive launching the Commonwealth’s Green Growth Initiative. By Earth Day we will unveil our Green Growth Strategic Framework to propel our sustainable development goals into action.
At the start of my administration, I announced a pivot away from over-reliance on China to focus on strengthening ties with federal partners and regional allies.
Our economic recovery has been promising but slow, and the pressure to return to the China market persists.
A quicker recovery will enhance our resilience against external threats, and strengthen our nation’s position in the region.
I look forward to tangible commitments from federal partners in securing a prosperous and sustainable Marianas, America’s gateway to the Indo-Pacific.
Si Yu’us Ma’a’se’, Ghilisow, and Thank you.
Along with the nation’s other governors, CNMI Gov. Arnold I. Palacios is in Washington D.C. this week for the 2024 senior plenary meeting of the Interagency Group on Insular Areas organized by the U.S. Department of Interior – Office of Insular Affairs. Speaking to an audience composed of representatives from various federal agencies, Governor Palacios talked about ongoing and new projects and activities in the CNMI that need urgent federal responses. From left, Director for Puerto Rico and the Territories in the White House Office of Intergovernmental Affairs Gretchen Sierra-Zorita, U.S. Congresswoman Aumua Amata Coleman Radewagen of American Samoa, Governor Palacios, Assistant Interior Secretary for Insular and International Affairs Carmen G. Cantor, Senior Advisor and Assistant to the President and Director of the Office of Intergovernmental Affairs Tom Perez, U.S. Secretary of the Interior Deb Haaland, U.S. Virgin Islands Gov. Albert Bryan Jr., Guam Gov. Lou Leon Guerrero, and U.S. Congressman James Moylan of Guam.
