S.1547 to Reauthorize National Parks and Public Land Legacy Restoration Fund

Morning. The committee will come to order. We're gonna conduct a brief business meeting, uh, before our hearing today, so we'll start with that. In today's business meeting, the Senate will take up S fifteen forty-seven, reauthorizing the National Parks and the Public Land Legacy Restoration Fund, sponsored by Senator Daines. First, let me ask if any senator wishes to offer an amendment. Ok.

Miss, Mr. Chairman.

Yes, Senator Padilla.

Thank you, Mr. Chairman. Uh, uh, first I want to note that reauthorizing the legacy restoration fund is a priority for me as it is for many of us uh on this committee. In California alone we have nearly a five billion dollar deferred maintenance backlog on our federally managed public lands and this reauthorization could provide nearly a billion dollars to address that over five years it's why I co-sponsored the America the Beautiful Act which I thanked Senator Daines and Senator King for all their hard work on however the substitute amendment before us today would change the bill significantly from the one I chose and agreed to co-sponsor specifically I'm concerned about the amendment's approach towards non-resident visitor fees in january the Park Service implemented a whopping one hundred dollar per person surcharge for non-resident vis visitors at eleven national parks, including Yosemite, Kings Canyon, and Sequoia National Parks in California, some of the most heavily visited parks in the country. I'm concerned that this bill would codify this surcharge and apply it to all park service units that collect fees. I'm also particularly concerned about how the park service determines who is required to pay these extra fees. Our national parks are significant contributors to local economies, and should be welcoming to all who visit our country. Under the current practice, these fees have been collected on the honor system. However, if we codify this, I fear that parks could become de facto immigration checkpoints, where hardworking park service staff will be required to check passports, or birth certificates, and that's not their job. It's not something they're trained to do and that's not what i signed up for uh now as to the amendments i have a couple quick ones to my understanding the goal of the non-resident fee is to apply to foreign tourists however the definition of non-resident has been left very vague in the text before us that's why i filed a second degree amendment with senator hickenlooper that would only apply these surcharges to foreign visitors on tourist visas which i believe was the original intention The language in our amendment would bring the bill in line with the bipartisan House version led by Chairman Westerman and Ranking Member Huffman on the House side. Uh, this is uh amendment one A two. Uh, but, Mister Chairman, I understand that our staffs are having encouraging and productive uh conversations to resolve this drafting issue. So I certainly like to see these issues addressed in the bill before its final passage. Uh, but I believe since members of both sides want to address this uh or won't bring up the Padilla Hickenlooper Amendment one a two but I have another critical issue that we need to address which is how revenue from nonresident visitor surchar surcharges would be shared across the park service system colleagues currently at least eighty percent of the fee of the fee revenue collected at a park service unit stays in the unit where it was collected while twenty percent benefits other parks around the country. But, the bill before us does not keep any of the surcharge revenue in the park where the fee was collected. Instead, it would redirect all of the additional revenue into the broader legacy restoration fund. A strong belief that parks are that are heavily visited and experience additional strain on their natural resources and infrastructure should be which should be proportionally supported, based on these surcharges. So um second amendment padilla hickenlooper one a one has been filed that would require at least eighty percent of these foreign tourists' surcharges be dedicated to addressing the maintenance maintenance in the park where it was collected. Now I understand that this is the the surcharge was added as a pay-for and that we still do not have a CBO score for the bill. But in good faith, I will not bring up this second degree amendment for a vote today, knowing that we're continuing to work uh on this issue and maintaining the spirit that the parks that collect high levels of revenue receive uh uh their proportionate share of support for deferred maintenance. And lastly, Mister Chairman, uh my um amendment, my third amendment that I want to bring up, I believe it's critical that gateway communities and the public be able to have a say in these foreign tourist surcharges when the department of interior created these non-resident visitor fees in january they did not consult with the public in any way despite consultation being a legal requirement of the federal lands recreation enhancement act there was no public consultation on how expensive these fees should be there were no studies on the potential impacts on visitational levels and a analysis on the impacts to gateway communities and local businesses. Uh, I sent a letter to the Department of Interior in December with several of my colleagues on this committee requesting information on what public consultation occurred and how these fees would be implemented and we have yet to receive a response. Now, as written, the bill would strive to " maximise revenue" while " retaining non-resident visitation" when deciding the amount of the surcharge. It only seems appropriate that the gateway communities and local stakeholders should be consulted given the impacts to local economies and the bottom line for many businesses and families. Mister Chairman, I appreciate you working with my staff to include language in your substitute amendment to provide public participation opportunities uh to gateway communities and local stakeholders in accordance with existing law and given these surcharges would no doubt impact local communities I appreciate you supporting us in allowing all of our constituents to have a voice in this process and I appreciate that the uh manager's amendment includes language to address this third concern. Thank you, Mr. Chairman.

Uh, thank you so much, uh, Senator Padilla. Uh, look forward to continue to work with you on these on these matters. I appreciate that. Senator Hirono.

Thank you, Mr. Chairman, I share the concerns that Senator, uh, Padilla has expressed and the amendment bill would expand the authority of the National Park Service charge international visitors higher fees at all fee collecting parks and since january of this year eleven fee collecting parks have charged higher fees for non-residents we don't yet have data on what revenues what revenue that has generated or the impacts that those higher fees have had on visitations to gateway communities which is why as senator padilla noted it is important for our community input and consultation regarding these uh higher fees. We should have that information before we expand that uh to all fee collecting parks and codifying it into law. Another change to the underlying bill uh is that an entire provision has been included, giving the Department of the Interior the authority to license intellectual property. The amendment would give the Department of the Interior authority similar to that given to the Department of Defense, and the Department of Homeland Security, but without requiring similar governing regulations. I think that is an important uh aspect to giving this kind of authority to the Interior Department that uh the other two departments that have this kind of authority they did have to undergo rule making in in to implement that authority. So I'm a co-sponsor of the underlying bill which has brought bipartisan support, so I'm glad that we are uh moving the bill and I and I do support the basic purpose of this bill even in the amended form and the concerns that I have. Um and the underlying purpose is to extend the authority uh for the Department of the Interior to address uh deferred maintenance needs on our public lands and we know that that that's in the billions of dollars that of deferred maintenance, and it's something that I very much support. So I would again associate myself with Senator Padilla's remarks and hope that we can improve this bill before the full Senate considers it. Thank you, Mister Chairman.

Thanks so much, Senator Horno. Uh, I'm gonna defer my opening statement and my remarks on the bill until, uh, after we vote and, uh, we'll allow everybody else to speak afterwards if they like, but would like to turn now, uh, to my amendment that I've offered jointly, uh, with Senator Heinrich. And I wanna thank Senator Heinrich and his team for, uh, a- and all the others who have participated in, in this, including Senator King, uh, uh, or, uh, or Uh, teams have worked, uh, very hard on this and, uh, grateful for it. Um, uh, this will be, uh, amendment one A, the Lee-Heinrich amendment, and this will be a voice vote. Uh, all those in favor of the Lee-Heinrich, uh, amendment number one A, all those in favor of that amendment say aye.

Aye. Aye.

All those opposed say nay. The ayes appear to have it. The ayes do have it and the amendment is agreed to. We'll now go to the bill, S fifteen forty seven. Uh, as amended, um, and, uh, the question is on the bill. All those in favor of the bill, uh, signify by saying aye.

Aye.

Aye.

Aye.

Opposed, nay. The ayes appear to have it. The ayes do have it. And, uh, the bill S fifteen forty-seven, as amended, will be reported favorably to the Senate. Um, I'll now recognize any speaker who wants to be heard on this legislation. Uh, I I see uh hands up from Senator Daines and Senator Murkowski on this side, Senator King and Senator Heinrich on this side.

Mr. Chairman, we just witnessed something that looked very easy, but was very hard. Um, this was a very profound moment to have a voice vote on what we just accomplished. And, uh, it's nice to have some good news in Washington, D. C., for a change of bipartisan cooperation. compromise and a great outcome. Uh, the teams were up literally until about six thirty this morning, working to get to this point, and I wanna commend them. Uh, Chairman Lee, Rank Member Heinrich, thank you, uh, for your leadership. And thanks to all the staff who were bleary-eyed and bushed this morning for working very late nate late nights and long hours to get to where we're at here today. This is a big step forward. The Great America Outdoors Act was viewed as one of the greatest conservation wins in fifty years. I think similarly now we extend the work that was done with that bill by reauthorizing this tremendous investment in in addressing the maintenance backlog, International Parks and National Forest. Uh, this amendment and the bill we're sending to the full Senate represents a bipartisan and bicameral collaborative outcome. We've been working with the administration both sides of the aisle here in the Senate, as well as keeping our House colleagues in the loop, Chairman Westerman and Ranking Member Huffman, so that we can move it not only out of the Senate, but get it through the House and to the President's desk. We've taken priorities from the House, the Senate, the administration, many members on this committee, and there were reforms made. The reforms we did make strengthened the Legacy Restoration Fund, helped us tackle that growing maintenance backlog on our parks and public lands, It's a great down payment to help fix the aging infrastructure and bolster our recreation economy. This is supported by over one hundred groups. It has sixty-four Senate bipartisan cosponsors. And I want to thank my co-chair, Senator King, his staff. As many of you know, on the National Park Subcommittee we don't have a chairman and ranking member. Uh, Senator King and I have always agreed on a handshake, we are co-chairs. No matter which way the gavel falls in majority minority position, Senator King and I are co-chairs. Been a wonderful partner on that subcommittee, and we have an outcome here today. I also wanna thank Senator Murkowski and her staff, Secretary Burgum and his staff. I can't tell you how many text messages I have on my phone right now in the last seventy-two hours, with the secretary. working together with the administration to get to this point here today, this morning. I know their teams work all night with many of the staff that are sitting behind us here on this dais today. I look forward to working with Chairman Westerman. They had a big hearing. They even had Kevin Costner in Hot Springs, Arkansas on Friday, uh, to, uh, to have a hearing about this, this bill, as well as ranking member Huffman. We want to thank them for the work already done. And now, once we have done the work here to toss it to the House and get it through there as quickly as possible. So I urge my colleagues here and my friends in the House, let's get this bill on President Trump's desk before the fourth of July. I can't think of no better president, uh, no better president for the president in the country on the America's two-fiftieth birthday than supporting our national parks and our public lands. Chairman Lee, thank you.

Thank you, Senator Daines, and I, uh, a minute ago I'd - I'd - I thanked, um, Senator Heinrich and uh Senator King and their teams and uh neglected to mention others including Senator Murkowski you Senator Daines for your great work on this um a- a- and I know you and your teams have also been working uh really hard on it and burned the midnight oil along with uh Senator Mark Lewis.

And and Chairman if I may say uh you are the Chairman you have the gavel,

Yep.

were it not for your cooperation on this bill we wouldn't be here today as well,

Thank you.

Mr. Chairman, and I thank you for that because you hold the gavel and without your cooperation and leadership we wouldn't have this outcome. So thank you.

Thank you. Senator Borkoski.

Thank you, Mr. Chairman. And Senator Daines, I'm I'm pleased to be able to follow your comments. Um, you have been a leader in this space with the Great American Outdoors Act from the very beginning. Um, you have, uh, had a passion and a purpose, I think, towards this, and it is, it's reflected in the working relationship that you have with your Vice Chair. uh, Senator King. I too want to acknowledge the extraordinary hard work, uh, that so many people put into this. And I was somewhat amused by your statement, uh, Senator Daines, that we made this look easy this morning. Um, and it was, it was anything but, but I think that that is reflective of the hard work to get to yes, instead of people who were coming to the table, dead set to oppose it, just just to be able to oppose something. And in fairness, that's kind of the political climate that we are operating in. And so I think it says much about what we're talking about here this morning, which is our great American outdoors, something that whether you are from Montana, Alaska, Hawaii, California, Mississippi, doesn't make any difference where you are. There is a deep uh love for our national treasures. um, and for those, those areas that, um, uh, that we find very personally, uh, connected and attached to. And so when we look at the list of deferred maintenance around the country, um, for these treasured spaces and places, uh, we should all be worried about it. And so what was put in place with the Legacy Legacy Restoration Fund was significantly important. Uh, we need, we need to be aggressive in how we are handling our, our deferred maintenance. And so this reauthorization was very important. What was equally important in this, and I think the role that I and and and really my staff on the Appropriations Committee, um, uh, worked aggressively, uh, around the clock with Senator Merkley's, um, uh, team, I chair the Appropri- Interior Appropriations Subcommittee along with Senator Merkley. And so, uh, our role here is to make sure that Congress's role in in understanding how we're going to implement these priorities is maintained. And so ensuring that there was a list that is presented, um, from the president to the legislative branch, as outlined in in Goa, was important to maintain that, and how we, how we are able then to, to not only receive a list, but to be able to, um, insure that there is accountability on on both sides, that we are not um establishing a a venue for the administration, um any administration going forward to to to kind of pick and choose,

Mm-hmm.

um and inject layers of politics into what should not be political, but again really caring for our treasures. So I'm I'm very appreciative uh Mister Chairman of your leadership in this and Senator Heinrich your willingness uh, to work with all of us, not only on this committee but outside the committee as well. Um, truly very appreciative.

Thanks so much, uh, Senator Heinrich, and then we'll go to Senator King.

I wanna thank you, uh, Mister Chairman, for marking up, uh, this legislation. Uh, this is a good model for how we can get things done on this committee. Um, you know, when I go home, left, right and center, uh, people make their their family memories on our public lands. And so reinvesting in that infrastructure is incredibly important. Uh, I also wanna thank, um, Senator Dain, Senator King, all of the co-sponsors, the appropriation staff who worked all night, uh, to land this deal. And, uh, and we got it done with minutes to spare. So, um, I, I, I don't think, uh, it may look easy this morning, but this was a big lift and I wanna thank everybody who worked so hard to make it happen. Thank you.

Senator King.

Well, I wanna provide my thanks just as all of us have, uh, particularly to the staff, uh, who often don't get the recognition, who are working as, uh, Senator Heinrich said all night, literally, to to finalize this document. Um, Steve, uh, Senator Daines, great to work with you, and, uh, this is the way this place is supposed to work. uh bipartisan work together on a common cause important to the American people uh Mister Chairman I appreciate your accepting my amendment that this money will be allocated alphabetically by PARC alphabetical starting with Acadia actually I'm that's no no such thing but it's a good idea

um this is a strong objection from the guy who loves Yellowstone

uh

which I know I know Senator Barasa would associate himself with those numbers

and

and you'll see

and and and he's got Zion.

I guess Zion is not gonna fare well in that one, eh?

We- we're gonna have the why caucus or rebel here, but go ahead, Angus. Proceed at great risk.

Uh, yeah. No, seriously. Um, and I do want to in- inject one note, uh, of - of frustration, not with this bill, but - but for the necessity of the bill. Uh, through multiple administrations I had great problems with the last administration on not providing adequate maintenance in the regular budget. uh we're doing a bill on deferred maintenance because we haven't adequately done maintenance which should have been done every year as part of the base budget of the of the interior department of the national park service so um this is a major accomplishment but i think we should also work with the current administration the next administration uh to to be sure that that uh this doesn't we don't have to do this every five years uh uh because not doing maintenance is a kind of debt. It's incurring a debt, and we're now gonna pay that debt, but going forward I I hope that uh whoever's in charge of the Department of the Interior and the uh National Park Service budget will take the maintenance responsibility as seriously as they do the other portion. So uh uh but with that note I uh this is an extraordinary achievement and it's being done on the on in exactly the right way with a lot of work uh a lot of compromises, a lot of uh Uh, uh, but as I think Senator Mikowski said, a lot of the impulse was to get to yes. And we made that happen. And we're not there yet. We've gotta work with the House. We gotta continue to refine the bill, uh, get through the, on the Senate floor, but, uh, this is an important step forward for America and for our national parks. And I wanna thank the Chairman and the and, and, uh, Ranking Member Heinrich for their leadership on this. We wouldn't be here without you. Thank you.

Thank you. Um. OK, what - what we're gonna do now, we'll - we'll go ahead and conclude the business meeting and then I'll give my opening statement for the hearing and - in which I'll also, uh, give my brief remarks on this bill, uh, put those, eh, i- into the record. Uh, our - our national parks are

Mm-hmm.

Our national parks are among the most popular features of the U. S. government. Not everything we do in this town necessarily brings about absolute popularity, but people like their national parks. The national parks are iconic. They're among the most recognizable places in America.

Yeah.

Millions of people travel from across America and from throughout the world to witness their beauty. And we, as Americans, have a responsibility to make sure that they're well-maintained and that they're, uh, gonna be there for generations to come, uh, as, as beautiful, uh, as ever. By twenty twenty, however, there were was some broad agreement that the federal government had fallen short of that responsibility. Roads, trails, uh, visitor centers, campgrounds, water systems, and other critical infrastructure at many of our national parks and on other federal lands were piling up. Uh, they were piling up these, uh, huge deferred maintenance backlog lists. faster than the agencies responsible for managing them were able to address them. The Great American Outdoors Act, uh, uh, uh, often pronounced as GOA, was Congress's answer to that challenge. But when GOA first came before Congress during the first Trump administration, I had serious concerns about how the program was structured and whether it would actually solve the problems that it was set up to solve. Specifically, the dra- the, uh, uh, the - the drafters included a permanent extension of the Land and Water Conservation Fund in Goa, which allowed the government to continue permanently growing a federal estate that it's uh proven not to be able to to manage uh uh as evidenced by its massive and growing deferred maintenance backlog uh increasing costs and restricting uh many communities, especially in the western United States where a lot of these lands are found, and ultimately adding to the deferred maintenance backlog. At the time of passage of Goa, the deferred maintenance backlog across federal land management agencies, uh, clocked in at about twenty-six billion dollars. Today, after six years and roughly ten billion taxpayer dollars, that maintenance backlog has skyrocketed up to forty-three billion dollars. Reasonable people can disagree as to why the backlog has increased instead of decreased. But whatever explanation one prefers, the fact remains that Congress should not reauthorize programs on autopilot. We ought to stop from time to time and ask whether they're achieving their intended purpose. And if the intended purpose of GOA was to reduce the backlog, and six years later the backlog is larger than when the program began, significantly larger, I would add, then what should Congress do? Well, one of the things that I appreciate about this committee is that members can disagree and then keep talking and work forward toward a stronger product and a better outcome. I'm very proud of that. And as I've mentioned earlier, uh, um, uh, together with, uh, Senator Daines, Senator King, uh, Ranking Member Heinrich, uh, Senator Murkowski, and, uh, so many others, uh, and the Trump administration, we've done just that. I'm also, uh, very grateful uh, for secretary Burgum at the Department of the Interior for his help and encouragement. Mm. And, um, I also, uh, again want to thank the staff who worked literally all night, uh, and, um, uh, uh, uh, given that we recently experienced another, uh, all night photo-rama, I, I know that that can be very taxing. And so I, I thank them and, uh, uh, all those involved. Uh, but the amendment that we adopted today, um, along with this bill, uh, uh, to, to pass it on to the Senate floor represents a real compromise. And while I've got concerns uh that language added at the behest of of my colleagues on the Appropriations Committee uh could slow down the issuance of twenty twenty-seven funding to our states, and the legislation does not include needed reforms to the Land and Water Conservation Fund, the improvements reflected in the legislation demonstrate what can be accomplished. when members are willing to engage in good faith negotiations and work through legitimate concerns to figure out what can pass. So I hope that we can carry the same approach into conversations that lie ahead, because there's still a lot of work to be done. We ought to continue examining how federal agencies prioritize maintenance and how and what in what order projects are selected uh uh for maintenance, whether the current policies are encouraging the federal government to acquire land faster than it can maintain the land, uh, the vast acreage that it already owns. Look forward to continuing those talks with my colleagues in the months ahead. The drafters at the original go-up made, um, uh, not a t- uh, Uh-huh. uh, there - there - there wasn't an adequately serious attempt to offset spending within the bill even though many of the ideas were proposed. Uh, the late Senator Enzi proposed a solution. Include a modest surcharge on foreign visitors to our national parks. This is done in other countries when Americans visit foreign destinations, and it makes sense to codify President Trump's executive order on the, on this point. That said, the bill before us is already partially offset. This is a positive step, but we all have a responsibility to ensure that legislation of this size is, is fully paid for, uh, before it reaches the President's desk. And I also believe that will be crucial to its passage. uh, i- um, i- in - in the House, if not also the Senate. And I hope we can continue working together to identify additional offsets, uh, as the bill moves, uh, through the Senate process and advances to and through the floor. America's national parks are a source of great national pride. It's my hope that if we can continue working together, as we have today and, uh, in the days leading up to it, we can pass them on to the next generation in a condition that will make us all proud. Anyone else wanna speak on this bill before we uh uh proceed to the separate hearing on the Great American House- Outdoors Act? I'm actually doing Yeah. Yep. Alright, the business meeting is now adjourned and uh uh we'll begin the hearing.

Right.

With a separate table. Yep, got you. Thanks. What would you like to have?

This one.

OK, we'll now uh open the hearing portion of our of our meeting today. Today we're pleased to be joined by the governors uh uh or representatives of five U. S. territories. These territories are beautiful and distinctive regions of America, and I look forward to hearing from each of these uh uh governors and representatives uh as to the state of affairs of the U. S. territories, and what, if anything, uh, they would ask of Congress. These governors, or their senior representatives, are as follows. The Honorfer, uh, Jennifer Gonzalez-Colon, um, uh, Governor of Puerto Rico, welcome. The Honorable Albert Bryan, Junior, the Governor of the U. S. Virgin Islands, welcome, sir. Mister Henry Hoffschneider, uh, Chief of Staff, uh, to Governor David Appetung. Uh, uh, the Commonwealth of the Northern Mariana Islands. We're CNMI here today because the governor is dealing with the impact of a major typhoon that has hit his territory. Welcome. Uh, uh, also the the honorable Lord of the St. Aflage Leon Guerrero, Governor of Guam. Welcome. And the honorable Nick Pula, uh, the Governor of American Samoa. I, uh, wish to welcome each of you, uh, to this committee. America's territories occupy some of the most strategically important ground under the American flag. Uh, they strengthen American national security and support our economy, extend America's presence i- i- into regions that will play a defining role well into the twenty-first century. In the Pacific, Guam, and the Northern Mariana Islands. Um, uh, we see lands that are key to America's ability to deter aggression and maintain stability in the region increasingly threatened by China's growing military ambitions and its potential designs with regard to Taiwan. Further south, American Samoa expands our presence in the region, providing valuable logistical support for U S operations while strengthening our relationships with Pacific island nations. In the Caribbean, Puerto Rico and the U. S. Virgin Islands anchor America's security and economic interests in that region. Their location gives the United States a strategic foothold to stride some of the hemisphere's most important shipping lanes, while Puerto Rico has become a hub of America's pharmaceutical manufacturing capacity. These territories have been part of the American family for generations. They've contributed greatly to our country, and they'll continue to play a really important role in its future. Their importance to our country is undeniable. So, too, are the challenges they face. In Puerto Rico, the island continues to struggle with energy reliability, aging infrastructure, and concerns about the management of public resources. Millions of citizens still live with an electric power grid that too often experiences devastating rolling blackouts. The Virgin Islands face similar challenges, public debt, high energy costs and aging infrastructure continue to place pressure on residents and on businesses. Residents of the Virgin Islands pay some of the highest electricity rates anywhere under the American flag, rates that are roughly three times the U. S. national average, while continuing to endure service disruptions and aging infrastructure. If the northern Mariana Islands' economic concerns increasingly intersect with and affect national security concerns, The CNMI sits just sixty miles from Guam, which houses some of America's most important military installations. Earlier this year, my colleagues and I called on the Department of Homeland Security and the Department of the Interior to terminate the CNMI Economic Vitality and Security Travel Authorization program, a Biden-era policy that allows nationals from the People's Republic of China to enter the Northern Mariana Islands for up to fourteen days without a visa. This policy has threatened, uh, uh, to create, and in some cases created, serious problems. Chinese nationals have been convicted of, uh, trafficking methamphetamine into the CMN- CNMI. The program has facilitated birth tourism and created additional travel avenues to Guam. At a time when the Chinese Communist Party is actively seeking To expand its influence in that region, and seemingly everywhere, we shouldn't be providing special access to a US territory for PRC nationals. I continue to urge the Department of Homeland Security, along with the Department of the Interior, to terminate the CNMI, Economic Vitality and Security Travel Authorization program, and to end Hong Kong's participation in the broader Guam CNMI visa waiver program. Guam remains indispensable to America's security posture in the Indo-Pacific. As tensions in the region grow, Guam's importance will only increase, making it all the more important that we take seriously the challenge, uh, the challenges that we face in that region as a whole. The circumstances facing each territory are very unique, but a common theme run runs through them all. Strong infrastructure, sound governance, economic opportunity, and national security are deeply connected. Our territories are not peripheral to America's future. As competition in the Pacific intensifies, as economic pressures continue in the Caribbean, and as these communities confront challenges of their own, Congress has a responsibility to pay attention. Their future matters, not only to the people who live here, uh, uh, uh, not only to the people who live there, rather, uh, i- in those territories, uh, but to the United States of America as a whole. Uh, cheers. Uh, happy now to recognize, uh, our ranking member, Senator Heimer.

Thank you, Chairman Lee, and I want to thank all of our governors and witnesses for being with us here today. Um, this hearing reflects an important duty of this committee to invite and provide a platform for leaders from the United States territories to address Congress, and speak directly about the issues affecting their communities. And what we as senators and members of this committee are doing here today is simple but important. We are listening to you. Uh, we can review reports and data, but there is frankly no substitute to hearing directly from all of you about the experiences, the challenges, and the future plans of your communities. Taken together, you represent roughly three point five million Americans living in Puerto Rico and Guam, in the Northern Mariana Islands, American Samoa, and the US Virgin Islands. Uh, the people you represent serve in our military, they strengthen this nation, they live under the policies passed by Congress, and yet too often their voices reach this chamber only when Congress chooses to make space to hear them. As our nation prepares to mark two hundred and fifty years since the Declaration of Independence I also recognize that more than a hundred and twenty-five years ago the United States established the governing framework for the territories that still shape these relationships today. These relationships are deeply important to our nation, but they have also created a reality where millions of Americans continue to experience a very different relationship with the federal government than those of us living on the mainland. That reality makes hearings like this one even more important. This morning we will hear uh from these representatives about energy costs, about disaster recovery, health care access, food security, and economic development in their communities. We will hear what it takes to build resilience in places that have experienced extraordinary hardship. One challenge facing every territory represented here today is the rising cost of energy. Families, small businesses, schools, hospitals, and local government are all feeling the impact of high electricity and fuel co- and fuel prices. And while we are seeing energy costs skyrocket across the country, island communities often feel those impacts first and more severely because much of their energy supply depends on imported fuel. I know you all are working with your communities to modernize aging energy infrastructure, strengthen grid reliability, but - but I also know that these efforts take time. resources and sustained commitment from the federal government as well. And many of your communities are also still recovering from devastating natural disasters from the hurricanes that reshaped Puerto Rico and the Virgin Islands to recent typhoons in the Northern Mariana Islands and Guam that have once again demonstrated how important it is that we invest in durable infrastructure in island communities. And climate change is making all of these challenges harder. from increasing the frequency and severity of extreme weather events, to placing even greater strain on already fragile infrastructure, agriculture, and critical services. Energy resilience is not a luxury for island communities. It is the foundation for everything else. When electricity prices run two or three, even four times higher than the national average, that is not simply an inconvenience. It is. every part of daily life and every corner of the economy. Uh, the issue is not a lack of local leadership or willingness to do the work. The question is whether the federal government is following through on the commitments that have already been made, funds already appropriated, projects already underway. Too often implementation moves far slower than communities can afford to wait. But these challenges extend far beyond energy and disaster recovery. For many families, unequal access to basic federal programs remains part of that same story. I have long supported greater parity for the territories in federal nutrition, and health programs, and I believe that this committee should continue using every tool within its jurisdiction to help communities build resilience against storms against habitat loss and invasive species, against rising energy costs, and against the kind of slow federal response that can turn a disaster into a decade-long crisis. At a time when families are already paying more for electricity, for fuel, groceries, and other daily necessities, Congress has a responsibility to understand whether federal policies are helping communities build resilience or making those challenges harder to overcome. To our witnesses, thank you for making this trip. The Senate does not always come to you, but you are here. And we are listening. Thank you.

Thanks so much. Uh, and he makes an excellent point. A lot of our witnesses come from across the country. You've traveled, uh, much farther distances than many of them have to travel, and, uh, we're grateful for that. Um, I'll now invite each of you, uh, to give your opening statements, um, and your full written statements will also be made part of the record. We'll begin today with Governor González-Golon. Um, uh, uh, who has been serving as, uh, the fifteenth Governor of Puerto Rico since the ratification of the Puerto Rico Constitution in nineteen fifty-two. She formerly served, uh, in the Puerto Rico House of Representatives from two thousand two, uh, to twenty seventeen, and as Resident Commissioner of Puerto Rico from twenty seventeen to twenty twenty five. Uh, Governor Gonzalez-Colon, you may proceed.

Thank you, Chairman Lee, Ranking Member Hendrik, and all members of this committee. Thank you for the opportunity to bring the state of Puerto Rico today. I think it's important to having the territories today. As Governor, I made a commitment to restore fiscal responsibility, accelerate the reconstruction of our energy grid and critical infrastructure, and strengthen Puerto Rico's contribution to national and economic security. And we are delivering some results. In two thousand sixteen, Puerto Rico faced bankruptcy and Congress enacted promessa. Last year, I signed our first certified balanced budget since that law. And now, for the first time in a decade, the government of Puerto Rico led the budget development process. Once approved by thirteen days, we expect this will become our second certified certified balanced budget. We have cut contract spending by over nine hundred million dollars in just one year, and and repealed nearly four hundred regulations and thirteen pages of obsolete regulatory text. And we are advancing reforms to improve the ease of doing business and attract investment on the island. As a result, total employment reached one point one million in March of this year, the highest level since two thousand and eight. In one year our trade surplus expanded by thirty percent, exports increased by three point six percent, reaching sixty-four point two billion dollars. And construction employment increased by five percent, adding n- one thousand nine hundred jobs. When I took office, Puerto Rico was facing a power generation shortfall, and projections indicated that we will experience widespread blackouts blackouts last summer. Thanks to God, and working with the Trump administration, and with emergency orders from the Department of Energy, we restored more than one uh sixteen hundred megawatts of generation capacity. and have not experienced an island-wide blackout in over a year. With DOE's support, we are investing three hundred and sixty-eight million in million dollars in grid improvements, scheduled for completion by the end of this year. With EPA permitting assistance, we are converting power plants from oil to cleaner and more affordable natural gas. A transition expected to reduce energy costs by approximately a hundred million eighteen million annually. We are also pursuing three thousand megawatts of new permanent base load generation through public-private partnerships. Throughout strong oversight of utility operators, we have accelerated FEMA funded energy reconstruction projects increasing construction by more than twenty-five percent. FEMA funded permanent works projects in execution have increased by more than thirty-seven percent. During the past week, over the thousand hundred customers lacked water due decades of underinvestment in our water utility system. We're still restoring that service, and to permanently restore it, we have committed over seven point five billion dollars in three hundred and fifty-one active capital improvement projects. We're helping bring manufacturing back to America through an aggressive reshoring strategy after all made in Puerto Rico is made in the USA. To date, twenty twenty-three manufacturing companies such as Eli Lilly Amgen, Stryker, have committed to invest more than two point six billion dollars and create more than five thousand seven hundred jobs, supporting our economy while reducing US dependence on foreign adversaries for pharmaceuticals and other critical products. With a renewed attention on the Western hemisphere, Puerto Rico is also playing a leading role supporting the counter-narcotics operations in the Caribbean, and helping keeping the homeland safe. Looking ahead, One of our most pressing priorities is securing long-term Medicaid funding for Puerto Rico after the current five-year agreement I achieved while I was serving in Congress expired in September twenty twenty seven. More than one point three million Americans on the island rely on this program. As I have outlined, we are balancing budgets, rebuilding our new infrastructure, and strengthening the American supply chain, and creating new opportunities. As the United States approaches its two hundred and fifty anniversary, Puerto Rico stands ready to continue contributing as an equal full-fledged member of the union. Since two thousand and twelve, Puerto Rico voters chosen statehood in four plebiscites. I look forward to working with Congress to respect that democratic mandate, and secure equal rights, responsibilities and representation for the three point two million Americans who call Puerto Rico home. Thank you, and I look forward to your questions.

Thanks so much, Governor. Uh, we'll now turn to Governor Brian, uh, of the U. S. Virgin Islands. Governor Brian is serving as the ninth governor of the U. S. Virgin Islands, a role that he has held since January seventh, two thousand nineteen. Governor Brian, you're recognized and you may proceed.

Chairman Lee, Ranking Member Heinrich, distinguished members of the committee, thank you for the opportunity to appear before you today. I am honored to be here on behalf of the more than eighty-seven thousand American citizens and other residents who call the United States, Virgin Islands, their home. As I prepare to conclude the services, as I prepare to conclude the service as Governor, I do so with great pride. I've had the privilege and the test of serving through some of the most difficult chapters in our history. I've watched our people recover from two category five hurricanes, and endure a global pandemic that temporarily brought our tourism economy to a standstill. But despite this, we have come out of the other side with a tourism industry and a community that is stronger than before. And through it all, I have watched Virgin Islanders rebuild with the resilience, determination, and patriotism that have always defined our community. We are proud Americans. Our sons and daughters serve in uniform. Our students pledge allegiance to the same flag that flies over this capital. But throughout my years as Governor, I have come to understand a difficult truth. Despite our American citizenship, Virgin Islanders are asked to overcome barriers that Americans elsewhere never have to face, simply because we're because we're in this great nation we call home. That is not simply unfair to the people of the Virgin Islands. It is also a missed opportunity for the Union. We occupy one of the most strategic locations in the Caribbean. We can strengthen America's maritime presence, support energy security, expand regional commerce, and serve as a gateway to the hemisphere. Yet our ability to contribute is too often constrained by outdated federal policies and foreign actions beyond our control. And over the past seven years I have learned that these issues are not faced only by our territory the American territories have increasingly come together to identify shared challenges and speak with a common voice. That cooperation has shown that these are not isolated concerns, they are common American challenges that can and should be addressed, through partnership. So my message today is simple, the people of the Virgin Islands are not asking for special treatment. We are asking Congress to remove these barriers to guarantee that we have the same opportunities, the same tools, and the same chance to succeed that every American community on the mainland enjoys. One of the clearest examples of these barriers is health care. More than twenty-four percent of our population is over the age of sixty-five, and thousands of Virgin Islanders rely on Medicaid, Medicare and disability benefits. Congress has already taken important steps to improve the health care funding for the territories, such as a permanent adjustment to the territory's Medicaid matching rate. And I thank the members of both parties who helped make that progress possible. But the work remains unfinished. While the Medicaid funding in the States automatically expands whenever enrollment or economic needs rise, the Virgin Islands continues to operate under a permanent federal funding cap. Our hospitals face similar challenges. Even Ver- when Virgin Islanders can access care, the institution serving them must operate under a reimbursement system, TEFRA, that has not kept pace with the realities of modern medicine. Similar disparities exist with supplemental Security Income or SSI. An elderly American citizen living in a state may qualify for SSI benefit. But that same American citizen with the same disability and the same financial need may lose access to those benefits simply by moving to the Virgin Islands. Their citizenship has not changed, their circumstances have not changed, only their address. The promises and benefits of American citizenship should not depend on the geography as the Supreme Court recognized in United States versus Vallejo Maradero. Only Congress can address these disparities. And the same principle applies to economic opportunity. For generations, the refinery on St. Croix was an economic engine for our territory, created jobs and strengthened families. But it remains closed due to the uh heavy-handed application of environmental rules. That is not only a loss for Virgin Islanders, it is a missed opportunity for the united states we need the kind of future at home that helps the federal policies help today under the net cfc tested income regime federal tax rules can treat investment in the virgin islands as much like the investment in foreign jurisdiction discouraging companies from investing in an american community but the virgin islands is not a foreign country we opened under a miracle tax system established by congress itself, yet we are treated disparately by the European Union as we are uh a blacklisted uh entity even though our taxes are cons- are controlled by the US. I want to conclude by saying, as my see my time is running out, that I I really want to thank the Congress uh over the last eight years, we have made tremendous progress. We have fixed our retirement system, by the end of the year over fifty percent of our grid will be renewable. We have recovered uh over twenty five billion dollars for our recovery. We have out of that eleven billion of that is already uh created opportunities in contracts uh our tourism product is on fire all we need now is to get the same treatment as everybody else and yes our our power woes are becoming less and less but we still need some help there as well so I'd like to thank the committee for their that they have done for listening to us over the years and for the tremendous support of the bipartisan budget act which has really set us on a course for, that is anchored in progress. Thank you.

Thank you, Governor Brandt, uh, the chair now recognizes Mister Hofschneider, uh, testifying on behalf of the governor of the Northern Mariana Islands. Mister Hofschneider serves as chief of staff to Governor Apateng, who again unfortunately was not able to join us today, as uh CNMI continues to recover from the effects of Typhoon Sinlaku, which made landfill in April but has caused significant destruction to CNMI, necessitating uh his ongoing presence there uh to uh to dig out from that mess. Uh, Mister Hofschneider, thanks for joining us, you're now recognized.

Thank you. Hofidei, Tiro, Buenos Dias, Chairman Lee, Ranking Member Heinrich, and members of the committee. Thank you for the opportunity to appear before you. I am Henry Hoff Schneider and I serve as the Chief of Staff to David M. Appetine, Governor of the Commonwealth of the Northern Mariana Islands. I am honored to provide these remarks on behalf of Governor Appetine and the people of the Commonwealth. The Governor sends his regrets that he is unable to appear in person today. Conditions in the CNMI and the current demands of disaster recovery require his presence at home, as our government, our communities, our federal partners continue to work on the work of recovery following Supertyphoon Sinloku. The governor has asked me to convey his deep appreciation to this committee for its undistracted attention to the needs of the CNMI and for the federal partnership that remains essential to our recovery stability and long-term future. When the governor was last in last in Washington DC in February of this year the commonwealth participated in section nine O two consultation and the senior meeting of the inter-agency on insular group uh areas. At that time we discussed many of the same long-term challenges that continue to shape our future, economic recovery, infrastructure, energy, labor, health care, and federal partnership. In Ferber- February these challenges were already severe. The Commonwealth was facing a deep fiscal and economic crisis caused by the failure of our primary economic sector. tourism to recover from the collapse of international travel after the covid-nineteen pandemic, historically important visitor markets had deteriorated, government revenue had declined sharply, and federal pandemic resources had expired. Since then, these challenges have deepened. Nine weeks ago, Super Typhoons in Loko struck our islands, it tested our people, our infrastructure, public services, and our economy. damaged homes, disrupted power and water systems, affected businesses, public facilities, roads, ports, schools and health care services, it plays a new pressure on a government already operating under austerity. Governor has asked me to be clear with the committee. The cinema is still recovering. It is recovering from super typhoons in Lago. It is recovering from economic collapse. It is recovering from the pandemic. That is why federal assistance at this moment in the Commonwealth's history is so important. Commonwealth has limited means to resolve its fiscal challenges on its own. We have a small revenue base, a narrow private sector economy, high fixed costs, and limited access to outside financing. We must still fund schools, health care, public safety, utilities, corrections, medical referrals, employee and retiree health coverage and pension obligations. Those responsibilities do not d- do not disappear bef- because revenues decline. Post-disaster revenue data show that come well fiscal two thousand twenty-six revenue forecast had been revised downward by approximately nine percent, or twelve point three million dollars. In A- April twenty-two twenty-six, revenues fell approximately six point seven million dollars, or thirty-two percent below the established baseline. We have also incurred more than two point six million dollars in obligated unbudgeted disaster related costs. These are major losses for a government of our size. The largest recurring weaknesses in our economy here base economy ec- revenue base is the condition of the randomized tourism ministry. Tourism remains our primary private sector economic engine. It supports hotels, restaurants, transportation, retail, tours, cultural activities, airport revenues, jobs and government collections. But visitors arrive arrivals are projected at approximately four hundred four thousand five hundred eleven in fiscal year two thousand twenty six, more than five hundred thousand fewer than the six hundred seven thousand arrivals recorded in fiscal year twenty eighteen. Airline seats capacity has fallen from approximately seven hundred sixty-two thousand seats in fiscal year twenty eighteen to approximately one hundred sixty-seven five hundred seats in fiscal year two twenty two thousand twenty six, a seventy-eight percent decline. For the CNMI, air service is the foundation of our tourism rec- recovery. Visitors cannot drive to the Commonwealth, they cannot take a train. Every visitor must arrive by air. When airline seats disappear, the ceiling for recovery drops with them. This has created a difficult cycle. Fewer flights remain mean fewer visitors. Fewer visitors mean lower hotel occupancy and lower hotel occupancy tax collection. Lower collections mean fewer resources for marketing and air service development. The Mariana's Visitors' Authority's share of hotel occupancy tax revenues has declined from fourteen point two million dollars in fiscal year twenty. to approximately one point four million dollars in fiscal year twenty twenty six. We are trying to rebuild tourism for approximately twenty two percent of airline seats seventeen percent of the visitors and ten percent of the NVA occupancy tax funding that existed when the industry was healthy this is why economic the Economic Vitality and Security Travel Authorization Authorization Program EVS TAP and secure travel pathways are so important, the cinema takes national security security seriously. We do not ask the federal government to ignore security. We ask that security be balanced with the economic reality of our islands. EVS tap must be secure, accountable, and supported by strong screening. But removing it without a workable replacement would harm our economy at a time when we are still rec- covering from the disaster and years of decline. We ask for serious consideration of secure travel pathways for the Philippines and other appropriate visitor markets. The Philippines is a close ally of the United States and has strong family tie ties to our community. A Philippines waiver or or or travel authorization could strengthen tourism, support air service and r- reduce dependence on any one market. Energy cost is another major pressure. The CNMI relies heavily on imported fuel for power generation. In May two thousand twenty six, the Commonwealth Utilities Corporation fuel adjustment charge increased from approximately twenty four cents per kilowatt hour to approximately forty four cents per kilowatt hour an increase of approximately eighty one point six percent the Commonwealth government has to historically been spent approximately twelve million to fourteen million dollars per year on utilities. Under the higher fuel adjustment charge, annual utility costs could rise to approximately twenty one point eight million dollars to twenty five point four million dollars. That could mean nearly ten million dollars to eleven million dollars in additional annual costs for government operations. Schools need power, healthcare facilities need power, power, public safety, buildings, water systems, waste water systems, ports, public facilities, all depend on reliable electricity. The CNMI needs reliable baseload power, a modern generation plan, stronger grid infrastructure, energy efficiency, and continued support for the Commonwealth Utilities Corporation. Clean energy is important, but we must be practical. Our hospital cannot run on promises. Our economy cannot recover on promises. We need power that works everyday, including after storms. We are grateful for FEMA and SBA and all federal agencies working with us after super typhoons in Lokoa. Their system helps families repair homes, helps small businesses keep workers employed, restores public services and brings co- brings confidence back to our community. But I ask the committee to understand that the financial impact of a disaster in the cinema cinema goes beyond damaged buildings, includes lost business, lost wages, uh in- interrupted tourism, higher construction costs, energy power costs, and the strained place in a small government with limited resources. For that reason, I respectfully ask Congress and the administration to support an increased federal cost share for FEMA pub- public assistance categories C three G. The C three G was must repair roads, public buildings, utilities, waterways and other permanent infrastructure. We cannot fully recover if the local share for that workforce's deeper cuts to essential services. The labor impacts are also serious. As of May two thousand twenty six the CMI Department of Labor had received nineteen workforce I'm sorry. Yeah, I'm Mr. Chairman, can I continue or