In two back-to-back meetings Thursday, Budget, Appropriations and Finance Committee members met to pass the rest of the fiscal year 2025 budget bills, which went straight onto a Rules Committee meeting that gave senators the chance to discuss two of the proposals – one a stack of appropriations from Epstein settlement funds – that they said will have a major impact on the territory’s financial and economic landscape.
The second bill introduces of a wire transfer fee aimed at combating money laundering that Appropriations and Budget Committee Chair Donna Frett-Gregory said would generate about $21 million in new revenues to “right-fit” the approximately $1.2 billion budget.
The Virgin Islands government received $75 million from the Epstein estate and an additional $62.5 million from Leon Black, who settled with the territory over his ties to Epstein. If the Senate’s proposal passes through the full body during its next session, these funds will be allocated to various projects intended to improve infrastructure, health services, and economic development across the islands.
The bill doesn’t include restricted funds included in the settlement for assistance provided to victims of human trafficking, including about $15 million Gov. Albert Bryan Jr. said Monday would support the budget for a newly reprised Council on Human Trafficking.
A good portion of the remainder, however, was divvied up by senators for key appropriations to include:
- $21.5 million to complete the Estate Nazareth Sports Complex, which Frett-Gregory said will include a soccer field, cricket pitch and possibly tennis courts;
- $10 million for the construction of a cultural center on St. John, for which plans have already been drawn up;
- $18 million for the completion of a behavioral health facility in Estate Anna’s Hope on St. Croix; and
- $10 million to establish the Virgin Islands Catalyst Revolving Fund, which will provide low-interest loans to small businesses, focusing on supporting local Virgin Islanders. The initiative, according to Frett-Gregory, aims to boost entrepreneurship and help businesses recover from the economic effects of the COVID-19 pandemic.
Further, another $25 million was set aside in a high-grade interest bearing account that can’t be tapped for at least three years, Frett-Gregory said, emphasizing the Legislature’s hope to create a mechanism for future funding.
In addition to the settlement appropriations, the Legislature introduced a new wire transfer fee under Bill 35.0375. The 3 percent fee on wire transfers is designed to combat the Virgin Islands’ role in illicit financial transactions, potentially generating over $20 million in revenue. These funds will be deposited into the newly created Money Laundering and Electronic Transactions Enforcement Fund, supporting local agencies in their efforts to monitor, investigate, and prosecute financial crimes.
Senator Marvin Blyden, who played a key role in the passage of both measures, emphasized their importance for the territory’s future, stating, “This is about accountability and responsibility.”
