Palacios Confident Congress Will Repurpose $400M for CNMI

CNMI Governor Arnold Palacios is confident that the U.S. Congress will pass a bill that would repurpose $414 million in leftover Pandemic Unemployment Assistance and Federal Pandemic Unemployment Assistance funds to jumpstart the local economy.

When asked what would happen if Congress does not approve the funds, Gov. Palacios said, “I’d be very surprised if Congress says no. Congress can do anything. They can introduce anything.”

However, Palacios acknowledged, “I mean it is a hard sell, but you are never going to get there if you do not try.”

Palacios added, “There are other individuals in the federal government that are looking into it to see what the possibilities are.”

The governor first made the ask early on in his administration, but the U.S. Department of Labor responded in March 2024 and said it could not authorize the use of the remaining PUA and FPUC funds outside of their intended purpose.

In a March 4, 2025, letter to King-Hinds, Palacios detailed how his administration will use funds from PUA and FPUC: $231 million for economic recovery, $120 million to strengthen public services, $55 million to strengthen public health priorities, and $8 million for community enhancement.

CNMI Delegate Kimberlyn King-Hinds started drafting a bill in early March at Palacios' request. MP has reached out to the delegate for the status of the proposed legislation.