THE CNMI is facing a “real risk” of forfeiting disaster recovery funds, U.S. Congresswoman Kimberlyn King-Hinds said in a May 20 letter to Gov. Arnold I. Palacios.
“FEMA’s expectations are now clear: unless demonstrable progress is made on Super Typhoon Yutu recovery projects by October 2025, there is a real risk that the CNMI could forfeit unspent recovery funds,” she said.
The congresswoman shared with the governor details of her conversation with Federal Emergency Management Agency Region 9 Administrator Robert Fenton regarding the 141 disaster recovery projects for which the CNMI was given six months to show progress — or risk having the funds de-obligated
Of the $280 million that FEMA obligated to the CNMI, only $154 million has been disbursed, Fenton told the governor in a letter on April 30, 2025.
CNMI Public Assistance Officer Patrick Guerrero said 51 of the permanent work projects are about to be “closed out,” meaning the work is completed or in the final stages. This leaves 90 remaining construction projects — mostly school buildings — still in progress
King-Hinds said Fenton has clarified that the blanket extension authorized in his April 30 letter effectively responds to all prior extension requests.
FEMA considers this blanket extension to be sufficient authorization for the CNMI to move forward with project implementation, King-Hinds said.
She said she also raised concerns about potential delays related to environmental and historic preservation reviews that may inhibit the CNMI Public Assistance Office or PAO from making substantial progress within the six-month deadline.
She said Fenton told her that only four projects remain under review and that these reviews are expected to be completed in a timely manner.
She asked Fenton whether projects that are initiated and show progress between April 30 and Oct. 31, 2025, would still be eligible for time extensions beyond the six-month window.
She said Fenton confirmed that the six-month deadline is “intended to prompt immediate action, not to preclude future extensions for projects that demonstrate genuine progress and good faith efforts toward completion.”
King-Hinds commended PAO for its “dedication and sustained work throughout the past decade in response to multiple federal disasters.”
She offered the governor assistance in ensuring that these projects move forward and meet FEMA’s expectations.
Gov. Arnold I. Palacios said Wednesday that he is aware of FEMA’s six-month deadline. He noted that, since he had just received King-Hinds’ letter, he would respond to her first before making any public comments.
