THE House of Representatives on Friday unanimously passed H.B. 24-46, which identifies $132.3 million in local revenue resources. Of that amount, $127.4 million will be made available for appropriation.
All 17 House members present voted to pass the bill, authored by Rep. John Paul P. Sablan, who chairs the House Ways and Means Committee. Reps. Blas Jonathan Attao, Denita Yangetmai, and Patrick San Nicolas were excused.
Then-Gov. Arnold I. Palacios’ budget submission in April 2025 identified $179.7 million in budgetary resources for FY 2026 and proposed to make $147.5 million available for appropriation. The current fiscal appropriation stands at $133.5 million.
Palacios’ FY 2026 budget proposal included increases for certain government agencies, including raising the Public School System budget from $33.6 million to $40 million. However, these increases depended on a $29 million loan from the Marianas Public Land Trust to fund 75% of the retirees’ pensions.
Palacios, who passed away on July 23, 2025, did not revise his budget submission, relying on the MPLT loan, which requires legislative approval.
The FY 2026 budget bill, H.B. 24-46, now moves to the Senate. The bill does not account for the MPLT loan and maintains agency budgets at FY 2025 levels.
Sablan explains House decision
Prior to the roll-call vote, Sablan said, “We made adjustments to free up $29 million from across the Commonwealth so that we can fulfill our obligations to our retirees.”
“These men and women are those who built the foundation of our government, our schools, and our infrastructure. They gave decades of service believing their retirement would be there for them,” he said, citing a federal court ruling that requires the CNMI government to fund 75% of the retirees’ pensions.
“This is not optional. It is both a legal and moral duty,” Sablan added.
He said the administration of Gov. David M. Apatang has shared plans to borrow $29 million from MPLT to help meet this obligation. However, the loan has not yet been secured.
“We cannot wait for something that is not certain. Until the MPLT loan becomes a reality, we need to pass a budget with the resources we have now,” Sablan said.
To do so, his committee recommended an FY2026 budget that keeps government agencies at their current FY2025 funding levels. No cuts, no increases — “holding steady,” he said.
He said Ways and Means also reviewed new and vacant positions and decided not to fund them for the new fiscal year.
“That is how we are able to set aside the $29 million without taking away from the essential services our people depend on. This is not easy,” Sablan said.
Budget responsibilities and community impact
Sablan emphasized the serious responsibility of passing a budget that keeps the government running while meeting the needs of the people.
“We owe it to our people to respond to the challenges we face today. That is what this House budget bill tries to do,” he said, noting that the late governor’s proposed budget remained unchanged last month, “even as our economic situation did not get much better.”
Also on Friday, Sablan introduced H.B. 24-50 to authorize the CNMI government to borrow $29 million from MPLT.
In an interview after the House session, Sablan said that once the MPLT loan is secured, the increases proposed by the late governor will be restored. He added that his committee will meet Tuesday to discuss the MPLT loan bill, aiming to expedite action.
