Governor warns delay threatens retiree healthcare as administration races to secure FY2026 funding by Dec. 15
Governor David M. Apatang is urging the Legislature to convene an emergency session no later than Dec. 15, 2025, to pass a revised fiscal year 2026 budget, following his successful execution of the $29 million loan from the Marianas Public Land Trust to pay the NMI government’s obligation to the NMI Settlement Fund.
In a letter to Speaker Edmund S. Villagomez and Senate President Karl King-Nabors on Tuesday, December 9, the governor informed them that his administration has secured the $29 million loan with MPLT. He said this is essential to fully support his budget proposal, which allocates over $144 million for FY2026.
The governor stated that the funds will go directly to the NMI Settlement Fund to meet the minimum annual payment obligation, with remaining funds allocated for other critical obligations in his revised budget proposal.
Apatang stressed the urgency of immediate action on the revised FY2026 budget to avoid a healthcare crisis if retirees’ insurance is not renewed before Dec. 31, 2025. He noted that all active employees, retirees, and autonomous agencies rely on the continuation of the group health and life insurance program.
“My revised budget package secured the necessary funding to ensure the continuity of this program and the stability of our healthcare system,” the governor said.
He told the Legislature’s presiding officers that a piecemeal approach would underfund this vital program and damage the current affordable and competitive health plan. Renegotiation of a new plan, he warned, would increase premiums for all employees and retirees.
The governor further said that delays in passing the revised budget “will reduce my administration’s ability to mitigate the major disruption caused by a late open-enrollment period or, worse, force the termination of the plan.”
