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Op-Ed: Rum, Reality, and Reckoning: What the Big Beautiful Bill Really Means for the U.S. Virgin Islands

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The passage of the “Big Beautiful Bill” has been hailed as a fiscal win for the U.S. Virgin Islands due to the permanent increase in the rum cover-over rate. But beneath the surface of this celebratory headline lies a far more complex and precarious fiscal reality. With three consecutive years of declining rum sales, a history of mismanagement, and critical federal program cuts looming, the territory stands at a crossroads. This op-ed unpacks the implications of the new law and lays out blunt, fact-based recommendations for moving forward.

On July 4, 2025, the “One Big Beautiful Bill” (H.R. 1) was signed into law. For the U.S. Virgin Islands, a key provision was the permanent increase in the federal rum cover-over rate to $13.25 per proof gallon. Previously, this higher rate required regular congressional reauthorization, leading to fiscal uncertainty. The new law guarantees this rate moving forward, ostensibly offering budgetary stability.

However, recent testimony during a budget hearing revealed that rum sales have declined for the third consecutive year. According to Department of Finance officials, the USVI expects approximately $31 million less in rum cover revenue in FY2025. This trend is deeply concerning given how heavily the territory depends on this income stream.

The U.S. Virgin Islands faces significant structural weaknesses: over $2 billion in public debt, chronically underfunded pensions, and recurring budget deficits. Compounding these issues is a track record of mismanagement—federal audits regularly cite inadequate financial controls, delays in spending federal funds, and opaque budgeting practices.

The law guarantees $13.25 per proof gallon in cover-over revenue. While this stabilizes a key income stream, up to 46% of that revenue is redirected to rum producers through subsidies and incentive packages. Much of the remainder is pledged toward debt service, leaving limited flexibility for funding social services or infrastructure.

Best-Case: The government ring-fences rum revenues for strategic investment, attracts new industries, and achieves gradual fiscal stability.
Status Quo: Revenues plug budget holes while federal cuts erode services. Fiscal pressure persists.
Worst-Case: Rum sales continue to decline. Federal programs are gutted. The territory experiences a governance and humanitarian crisis.

• Establish a public rum revenue dashboard to enhance transparency.
• Mandate that a portion of rum revenues be allocated to healthcare, education, and workforce development.
• Develop a fiscal stabilization fund protected from political interference.
• Leverage rum revenues to match federal grants and attract capital investment.

The new law removes one source of annual budgetary uncertainty—but it does not solve the larger problem. Unless local leaders adopt disciplined, transparent, and forward-looking fiscal policies, the promise of a permanent rum cover-over will be undermined by the same old habits. With growing external risks and internal vulnerabilities, the territory can no longer afford to treat windfalls as a license to delay hard decisions. The time for rum-fueled optimism has passed. Now comes the reckoning.

Editor’s Note: Opinion articles do not represent the views of the Virgin Islands Source newsroom and are the sole expressed opinion of the writer. Submissions can be made to visource@gmail.com

“All Risk, All Hazard” Trainings

The U.S. Virgin Islands Community Emergency Response Team (CERT) is hosting free all-risk, all-hazard training on St. Thomas from July 25-27, 2025. Additionally, we will be offering the same training on St. John from August 15-17, 2025. These comprehensive programs are designed to help community members ages 13+ protect themselves, their families, and their community during emergencies.

Event Details:

  • St. Thomas Training: July 25-27, 2025
    • Friday: 5:00 PM – 8:00 PM
    • Saturday & Sunday: 9:00 AM – 5:00 PM
    • Location: VITEMA EOC STT, 8221 Estate Nisky, St. Thomas, VI 00803
  • St. John Training: August 15-17, 2025 (details to follow)
  • Cost: Free to participants

Skills Training Includes:

  • Fire Extinguisher Safety
  • Light Search & Rescue
  • Medical Assessment & Triage
  • Door Breaching and more

Community members can apply by scanning the QR code on the attached flyer or by emailing CERTUSVI@VITEMA.VI.GOV with questions or to attach a typed application. Please note that handwritten applications are not accepted – all applications must be typed.

Supporting Local Careers Through Technical Training at WAPA

The Virgin Islands Water and Power Authority proudly announces the successful completion of a specialized training session in plant operations for its scholarship recipients, new hires, and recently promoted employees. The sessions, held both on St. Thomas and St. Croix, provided participants with an in-depth overview of Combustion Turbines and Balance of Plant (BOP) operations — critical components in the Authority’s generation system.

A training at the Richmond Power Plant. (Submitted photo)

Training sessions took place on June 25–27 at the Randolph Harley Power Plant on St. Thomas and June 2–4 at the Richmond Power Plant on St. Croix.

Leading the sessions was Cyril Andrew, Electrical Engineer III, a member of the St. Croix plant operations team who also began his career as an intern at the Authority. Mr. Andrew shared both technical knowledge and personal experience with the participants, having once been in their very position.

“I remember sitting in their shoes as an intern, eager to learn and understand the complexities of power generation,” said Mr. Andrew. “To now have the opportunity to help train and guide the next generation of talent at WAPA is a full-circle moment for me. It’s a reminder of how much growth is possible within this organization, and I’m proud to contribute to that journey for others.”

Mr. Andrew was supported by his colleagues, Shamade Burke, Manager of Operations, Alfredo Josiah Jr., Electronic Technician II, and Vicente Donastorg, Instrument Engineer I, during the sessions, each playing an important role in delivering a comprehensive, hands-on learning experience. The Authority’s Safety Team was also on-site, ensuring all participants were properly outfitted with personal protective equipment (PPE) and adhered to all safety protocols throughout the training.

This initiative reflects WAPA’s continued dedication to workforce development, internal promotions, and supporting scholarship recipients in building meaningful careers within the utility industry.

The Virgin Islands Water and Power Authority Communication’s department is committed to reaching, informing, and connecting with the youngest members of the community to the eldest, through meaningful, transparent and effective communication.

Project Promise Complete’s Second Summer of Service

Project Promise’s Caterpillar students embarked on a rail trip across America this summer to make an impact on communities outside the U.S. Virgin Islands. The Caterpillars touch down in Washington, DC. on June 27, 2025, and during their time there, the group volunteered at the United Way of the National Capital Area by creating Healthy Snack Kits for local area youth. The group then headed west with stops in Illinois, Washington, British Columbia, and California, and undertook various service projects that included helping to prepare and serve meals, creating encouragement cards, and more.

Alejandro creating his Cardz For Kidz. (Submitted photo)

Community service is one of the nine components at the core of the Project Promise program. Over the last ten years the Caterpillar Project students have completed monthly community service projects locally, nationally and even internationally. “Community Service is an instrumental part of who we are as an organization. The activities are designed to expand the students’ outlook and help them think of themselves as citizens of the world”, said Project Promise Executive Director Resa O’Reilly Shearn.

The epic 12-day coast-to-coast and back adventure has officially ended! This journey covered about 5,313 miles, crossed 22 states, impacted 5 organizations, and allowed participants to explore 5 cities in 2 countries. “This opportunity of a lifetime will undoubtedly have a long-lasting, life-changing impact on our students. We are incredibly grateful for connecting with old friends and making new ones along the way, and we are thankful for the positive impact we were able to make,” Resa stated.

Group prepping for lunch service at New Horizons. (Submitted photo)

This opportunity of a lifetime was the second undertaking for Project Promise. In 2019, the Caterpillar Project embarked on their first Summer of Service. This year’s Summer of Service was sponsored by One Communications, Atty Joel Holt, Tropico Management, Judge Steele, Frederiksted Twin City Lions Club, Cruzan Creations and several other businesses and individuals. The rail trip wrapped up in California. The Caterpillars then rode the train back to Washington, DC and flew back to St. Croix on July 9, 2025.

Adelina C. Frank Dies at 91

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Adelina C. Frank of Estate Coble transitioned into eternal life on July 3, 2025. She was 91 years old. 

Adelina C. Frank

She is survived by her daughters, Marva Farrell and Sharon Solomon (adopted); Sons, Heraldo Brooks and Charles Salomons; Grandchildren, Benicio, Tamara, Janeene, Jason, Chantal & Salome Brooks, Heraldo, Wayne, Wanda & Dwayne Farrell, Athena & Catherine Salomons; Great Grandchildren, Yliada, Achilia & Meliah Yenice-Brooks, Thorin & Ahria Moore; Daughter-In-Law, Kaiwen Cheng; Special Friends, Louisa Edwards, Gwenda Hobson, Tammy Boothe, Kellisa Daniel, Dezel Noel, Lystra Copel, Milton Smith, Clive Brown, Pastor Lorenze & Buelle Davis, Mr. & Mrs. Winston Powell, Samuel Solomon, Mary Benjamin, The Jones Family; Cousin & Other Relatives, Justine Baly, Analise Peets & Family, The Brooks Family (St. Martin), The Maccow Family (St. Martin), The Baly Family (St. Martin), Amorite Connor, Amorite Connor, Ebenezer Methodist Church Family & Bus Drivers. Other relatives and friends too numerous to mention. 

Funeral service will be held on Thursday, July 17 at Ebenezer Methodist Church, Christiansted. Viewing will begin at 9 a.m. with service at 10 a.m. Interment will follow at Kingshill Cemetery.

Professional services are entrusted to James Memorial Funeral Home, Inc. 

Governor Bryan Reschedules Special Legislative Session to Aug. 1, Calls for Action on Proposals to Protect Public Resources and Expand Civic Participation

Governor Albert Bryan Jr. has rescheduled the special session of the 36th Legislature to Friday, August 1, 2025, and is urging lawmakers to give full and serious consideration to three proposals aimed at addressing unsustainable government spending, restoring fairness in public compensation, and expanding access to public service.

“These are not theoretical issues. These are urgent challenges that affect how we manage public funds, how we treat our workers, and how we ensure equal opportunity for all who want to serve,” Governor Bryan said. “We cannot continue to delay responsible action while the costs and consequences grow.”

The proposed legislation includes the following:

1. Reforming Government Health Insurance Through a Self-Funded Model

This measure directs the Government Employee Service Commission to issue a request for proposals for a self-funded group health and dental insurance plan for government employees and retirees. The change would move the government away from a fixed-premium plan and toward a structure that pays for actual health care costs as they occur. A self-funded approach offers greater flexibility, improved transparency, and the potential for significant savings.

Proposals would be required to address claims administration, stop-loss coverage, wellness and disease prevention programs, transition planning, and employee communication. Once responses are submitted, the Commission must report its findings and recommendations to the Legislature.

“This is a financially responsible step that will help us control rising costs and ensure continued care for our employees and retirees,” Bryan said.

2. Ending Double Compensation for Legislators

The Double Dipping Repeal Act of 2025 seeks to eliminate special provisions in Virgin Islands law that allow members of the Legislature to collect a government pension for prior service while receiving a legislative salary. This practice, known as double-dipping, is currently prohibited for other elected officials and public employees who return to government service.

Governor Bryan called the carveout for senators unfair and fiscally harmful.

“This is about treating all public servants by the same standard and protecting the long-term health of our retirement system,” he said. “It is a matter of equity and public trust.”

3. Expanding Equal Access to Public Office for Government Employees

The third proposal repeals the requirement that government employees take a leave of absence upon filing for public office. The measure creates a legal framework that allows employees to run for office while maintaining their jobs, provided they do not campaign during work hours or use government resources. Strict penalties, including fines and disciplinary action, would apply for violations.

Governor Bryan said the measure will remove unnecessary barriers and allow more Virgin Islanders to participate in the democratic process without sacrificing their financial security.

“Our public service should reflect the full diversity and experience of our community,” Bryan said. “This bill makes that possible by removing a policy that has kept too many voices out of the conversation.”

Governor Bryan noted that members of his Cabinet and advisory team will be available to offer testimony and respond to questions during the August 1 session. He urged the Legislature to approach the proposals with the seriousness they deserve.

“These are not easy choices, but they are necessary and long overdue,” Bryan said. “The people of the Virgin Islands deserve a government that leads with fairness, discipline, and vision.”

St. Croix Man Charged in March Sexual Assault Case

A 56-year-old man was arrested Thursday on multiple charges related to a sexual assault reported in March, according to the V.I. Police Department.

VIPD said Juan Rodriguez turned himself in Thursday with his attorney after investigators secured an arrest warrant on July 7 from the Superior Court. Rodriguez faces charges of first-degree rape, second-degree rape, and first-degree unlawful sexual contact.

The charges stem from a report received March 4, when VIPD’s Criminal Investigation Bureau responded to a sexual assault complaint at the emergency room of Juan F. Luis Hospital around 7:30 p.m. During the investigation, Rodriguez was identified as the suspect, according to police.

Rodriguez was booked and unable to post the $100,000 bail. He was transported to the Golden Grove Adult Correctional Facility, where he remains in custody pending his advice of rights hearing.

Man Found Dead From Multiple Gunshot Wounds on St. Thomas

Police respond to a fatal shooting early Friday on lower Kronprindsens Gade, St. Thomas. (Photo courtesy VIPD)
Police respond to a fatal shooting early Friday on lower Kronprindsens Gade, St. Thomas. (Photo courtesy VIPD)

A man was found dead from multiple gunshot wounds early Friday in an abandoned structure in downtown St. Thomas, the V.I. Police Department reported.

The emergency 911 Call Center was alerted by the ShotSpotter system to multiple shots fired in the area of lower Kronprindsens Gade at 2:32 a.m. Friday, according to the police report. Officers arriving on scene found an unresponsive man inside an abandoned wooden structure with multiple gunshot wounds to his upper body. Emergency Medical Technicians determined he had no vital signs, police said.

The victim’s identity is unknown and pending notification of next of kin, the report stated.

His death marks the ninth homicide of the year on St. Thomas, and the 20th for the territory, according to the Source Homicide List.*

The case is under investigation by the Major Crimes Unit. Anyone with information is urged to contact the VIPD at 340-774-2211 or the Criminal Investigation Unit’s Major Crimes Division at 340-714-9823 or 340-714-9829. You can also contact Crime Stoppers anonymously at 1-800-222-8477 (TIPS).

*The Source Homicide List is a chronological log of the homicides recorded in 2025 in the U.S. Virgin Islands, as reported by the VIPD. Cases are broken down by island. While this listing is based on VIPD reports, the Source does not include suicides or vehicular homicides in its listing, which the police and some other media do. This can lead to a discrepancy in the number of incidents reported.

Woman Leaps From Moving Car at Airport To Escape Alleged Domestic Assault

A woman jumped out of a moving rental vehicle at Cyril E. King Airport July 3 to escape what she described as a series of violent assaults by her husband, according to the Virgin Islands Police Department.

Officers responded to the airport terminal after being alerted to a female victim seeking assistance. When they arrived, they met with an adult Hispanic woman who said her husband, 54-year-old Tizoni Mahoney, had repeatedly strangled her and driven her around the island while threatening her life, according to the police report.

The woman told officers the abuse began on June 22 when Mahoney began accusing her of infidelity. She said Mahoney told her he would force her to “self-deport” to the Dominican Republic and later drove her to a remote location in the Fortuna area, where he pointed a firearm at her head and threatened to kill her. She also said Mahoney repeatedly returned to the airport to harass her. Fearing for her life, she said, she jumped from the moving vehicle and ran for help, the police report stated.

According to the police, Mahoney appeared at the Domestic Violence Unit Tuesday where he was read his rights and declined to provide a statement. He was arrested, booked, and turned over to the Bureau of Corrections pending his advice of rights hearing.

Mahoney has been charged with second-degree assault (domestic violence), third-degree assault (domestic violence), simple assault (domestic violence), disturbance of the peace (threat, domestic violence), and possession of a firearm during the commission of a violent crime, the report stated.

The case is being investigated by the Domestic Violence Unit. Police urge anyone with information to contact 911, the unit at 340-715-5534, or the Office of the Police Chief.

Feeder 9B Repairs Outages Planned

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The Virgin Islands Water and Power Authority is providing an update regarding recent service interruptions affecting customers on Feeder 9B over the past several days. The intermittent outages, which have impacted approximately 356 customers, were necessary to safely complete critical electrical system repairs.

To expedite the work and minimize long-term disruptions, WAPA engaged a contractor to assist with the restoration effort. Crews have had to periodically de-energize sections of the electrical system to ensure a safe working environment for the lineworkers making the repairs.

As part of the ongoing work, customers on Feeder 9B should expect two intermittent outages tomorrow, Thursday, July 11, 2025:

  • The first outage is scheduled to begin at approximately 8:00 a.m. and last about two hours.
  • The second outage will occur in the afternoon for approximately two hours as well.

WAPA apologizes for the inconvenience these service interruptions have caused and is dedicated to completing the repairs as swiftly and safely as possible.

For updates, customers are encouraged to sign up for WAPA alerts at https://member.everbridge.net/892807736728730/new.

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