Governor Albert Bryan Jr. (D) continued his administration’s ongoing efforts to advocate for the United States Virgin Islands at the 2025 Interagency Group on Insular Areas (IGIA) meeting, using the platform to highlight key policy priorities, including the permanent extension of the rum cover-over tax rate, the reopening of the St. Croix refinery, and the establishment of a special visa waiver program to strengthen the territory’s tourism industry and support its ongoing recovery efforts.
Governor Bryan opened his testimony by congratulating US Department of the Interior Secretary Doug Burgum, the former Governor of North Dakota and Governor Bryan’s former colleague at the National Governors Association, on his leadership role. He emphasized the importance of continued collaboration between the federal government and the territories, noting that Secretary Burgum’s understanding of state and territorial governance adds a valuable perspective to the IGIA’s work.
“The IGIA remains a critical platform for the territories to share their priorities and challenges,” Governor Bryan said. “For the Virgin Islands, the rum cover-over program, the refinery, and a targeted visa waiver are vital to securing our economic future and supporting our recovery efforts.”
The rum cover-over program, which returns federal excise taxes on rum produced in the Virgin Islands to the territory’s treasury, has been a cornerstone of the Virgin Islands’ economy for over a century. The funds directly support public services, debt obligations, and infrastructure projects—accounting for nearly 33% of the USVI’s general revenue. However, the higher $13.25 per proof gallon rate expired in 2021, leading to a 20% reduction in cover-over revenues and adding financial strain to the territory’s budget. Governor Bryan urged continued dialogue with Congress and the administration to secure a permanent extension of the $13.25 rate to provide stable, long-term funding and retroactive relief to recover revenues lost since the extension expired.
“While the Virgin Islands has always appreciated Congress’s efforts to support the territory through tax extenders, the uncertainty of temporary extensions makes it difficult to plan for the future,” Bryan noted. “We’re committed to working with our federal partners to ensure a permanent solution.”
Governor Bryan also highlighted the importance of reopening the St. Croix refinery, a key economic driver that historically generated $25 million annually in tax revenue and provided significant employment opportunities. The refinery remains shuttered following its closure in 2022 due to regulatory challenges, despite a substantial private investment aimed at revitalizing operations.
“Reopening the refinery would not only restore jobs and tax revenue for the Virgin Islands but also strengthen energy security for the broader region,” Bryan explained. “We are committed to working closely with federal agencies to ensure the refinery can reopen responsibly and sustainably.”
Recognizing the importance of tourism and labor support for the territory’s recovery, Governor Bryan continued to advocate for the establishment of a special visa waiver program for the Virgin Islands. Modeled after successful programs in Guam and the Northern Mariana Islands, the initiative would allow short-term, visa-free visits from neighboring Caribbean nations and select global markets, strengthening tourism and helping address workforce shortages.
“A targeted visa waiver program would not only expand tourism but also provide the temporary labor force we need to support ongoing recovery efforts and infrastructure projects,” Bryan said. “With so many federally funded recovery initiatives underway, the demand for skilled and unskilled workers far exceeds our local capacity. A visa waiver program can help close that gap while boosting economic activity.”
The program would attract more visitors from Caribbean and international markets, support tourism-related industries, including hospitality and retail, provide temporary workers to assist with ongoing recovery and construction projects, and strengthen the US Virgin Islands as a regional hub for business, leisure, and rebuilding efforts. Governor Bryan emphasized that the program would maintain all necessary security measures, as the US Virgin Islands remain outside the US customs zone, ensuring all travelers are screened before accessing the mainland.
Throughout his testimony, Governor Bryan highlighted the importance of strong federal partnerships and reiterated his appreciation for Secretary Burgum’s leadership at the Department of the Interior. He noted that Burgum’s experience as a former governor gives him unique insight into the challenges and opportunities facing US territories.
Governor Bryan underscored that his testimony before the IGIA is part of his administration’s larger commitment to advocating for the territory’s needs in Washington.
“We will continue engaging with members of Congress, the White House, and federal agencies to ensure that the Virgin Islands remains a priority in national policy discussions,” Bryan said. “The rum cover-over, the refinery, and the visa waiver program are all critical not just to our economic resilience, but also to our long-term recovery. We look forward to working with our federal partners to turn these goals into realities.”
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