Top 10 News Stories of 2025

Passing of Gov. Arnold I. Palacios

Tragedy struck the CNMI when Arnold I. Palacios became the second sitting governor of the Commonwealth to die in office last July 23 after being airlifted to Guam. Lt. Gov. David M. Apatang was sworn in the day after Palacios' passing with Senate President Dennis C. Mendiola also sworn in as lieutenant governor.

CNMI fiscal crisis with Apatang administration forced to revise budget

Gov. David M. Apatang signed the revised FY 2026 appropriations bill into law last Dec. 23 to ensure a balanced budget and protect healthcare coverage for thousands of retirees. The Legislature reduced overall budget resources from $179.7 million to $158 million, and the governor further exercised line-item vetoes on provisions he deemed unconstitutional or unfunded, including a $4.4 million general fund adjustment and retroactive salary hikes. Approximately $7.2 million has now been secured to sustain the Group Health and Life Insurance program for more than 7,000 covered lives. Apatang also raised concerns about cuts to key sectors such as tourism and public education, warning they could impede the Commonwealth's recovery.

High-profile cases of Lt. Gov. Dennis C. Mendiola, Apatang chief of staff Henry Hofschneider, DPW Secretary Ray Yumul, and DLNR Secretary Sylvan Igisomar

In 2025, Lt. Gov. Dennis C. Mendiola pleaded not guilty to misconduct and theft charges for allegedly using government-chartered vessels to transport private vehicles during his previous tenure at Homeland Security. Simultaneously, Gov. David M. Apatang's chief of staff Henry Hofschneider faces charges for the alleged misappropriation of $98,400 in unauthorized leave payments, while Department of Lands and Natural Resources Secretary Sylvan Igisomar was indicted for using a law enforcement boat for personal family trips. Finally, former governor Ralph DLG Torres remains under indictment for misconduct and theft of public funds, though his legal team and the Office o fthe Attorney General are reportedly negotiating a settlement as of late 2025 to avoid a trial.

REFORPAC exercises and military contracts given to off-island companies

The REFORPAC 2025 military exercise sparked controversy in the CNMI after a $238,706 meal contract for hundreds of troops was awarded to a Texas-based vendor instead of local businesses. Local leaders, including Sen. Celina R. Babauta, criticized the decision for bypassing the islands' catering industry during an exercise meant to test regional logistics. While military officials focused on the logistical scale of the deployment, the incident led to formal inquiries regarding the vetting process for military contracts. Consequently, residents and lawmakers have called for better integration of the local economy and more transparency in future military operations.

Hiroshima and Nagasaki 80th commemoration

Officials and community members gathered at the Tinian Bomb Site last Aug. 6 to mark the 80th anniversary of the atomic bombings of Hiroshima and Nagasaki, reflecting on the theme "80 years of peace in the Pacific from the ashes of war to hope." Japan Consul Akiko Tejima urged attendees to reaffirm their commitment to peace, noting the significance of holding the event on Tinian, where the B-29s that carried the bombs originated. Tinian Mayor Edwin P. Aldan and Sen. Jude U. Hofschneider emphasized remembering the lasting trauma of war while working toward unity and understanding. Local historian Don A. Farrell called for federal support to preserve historic sites on Tinian linked to World War II. The commemoration included a wreath-laying ceremony, cultural performances, and prayers for peace.

Closure of DFS Saipan, Regal Theaters, etc.

T Galleria by DFS and Regal Cinemas Saipan both closed on April 30, 2025, marking the end of two longtime pillars of Saipan's tourism and entertainment industries. Former DFS employees returned to reflect on nearly 50 years of memories and the retailer's deep community ties, calling the closure a painful consequence of global economic challenges. At Regal Cinemas, families and movie lovers gathered for the final screenings, mourning the loss of the island's only commercial movie theater and a beloved social space. Community members expressed sadness and uncertainty about the future, even as some held out hope for new opportunities ahead.

Postal woes with Trump administration

In 2025, the CNMI faced severe postal delays of up to 10 weeks due to a routing error where airmail was mistakenly sent via sea from San Francisco. Service was further disrupted in late 2025 when a federal executive order regarding low-value imports unintentionally led to the suspension of certain airmail packages to the islands. Following intervention by CNMI leadership, the USPS restored proper air routing and clarified that mail services would continue, though residents still report challenges with receiving time-sensitive legal and medical documents.

CNMI New Year's baby birthed by a foreigner sparks debate

U.S. House Republicans, including Rep. Tom Tiffany of Wisconsin, raised concerns about birth tourism in the CNMI during a Washington, D.C. press conference supporting a bill to end U.S. birthright citizenship. Tiffany called the practice a "great threat to our foreign policy" and urged action to stop it. CNMI Delegate Kimberlyn King-Hinds agreed the issue is important but said recent data shows tourist births have dramatically declined, and noted that CNMI citizenship rights stem from the Covenant-not the 14th Amendment. Commonwealth Healthcare Corp. figures show tourist births peaked at 581 in 2018 but fell to 58 in 2024. King-Hinds said she looks forward to meeting Tiffany to share updated data and discuss progress on immigration controls.

Food stamp crisis due to federal shutdown

A federal government shutdown in late 2025 halted funding for the CNMI's Nutrition Assistance Program, putting food benefits for more than 14,000 residents at risk. NAP administrator Margaret Aldan told lawmakers last Nov. 6 that the U.S. Department of Agriculture has now authorized partial benefits for the month, though a letter of credit is still pending before distribution can begin. The Legislature, at that time, was considering an emergency $1-million appropriation to help fill the gap, but Aldan said it still won't cover the full $4 million typically issued monthly. She said officials are working with their EBT processor to ensure both federal and local funds can be distributed through the new card system. The episode has heightened concerns about the CNMI's vulnerability to future federal budget disruptions. The disruption ended when the federal shutdown ended last Nov. 12.

Tinian adopts cryptocurrency for Internet gaming

In May 2025, Tinian became the first U.S. jurisdiction to issue a government-backed stablecoin, known as the Marianas US Dollar. This digital currency is fully backed 1:1 by cash and U.S. Treasury bills and is issued as a token on the eCash (XEC) blockchain. The initiative aims to facilitate regulated internet gaming and diversify the island's economy by attracting investment in financial technology. While the local legislature overrode a gubernatorial veto to enact the law, the project is currently facing a legal challenge from the CNMI Office of the Attorney General regarding the local government's authority to regulate activities beyond Tinian's physical boundaries. The stablecoin's future and the scope of local autonomy in the digital age now await a crucial judicial decision—a certified question before the CNMI Supreme Court.