Millions for NMI in American Recovery and Reinvestment Act

PRESS RELEASE

February 13, 2009

Millions for NMI
in American Recovery and Reinvestment Act

Kilili: Marianas must use funds wisely and quickly

WASHINGTON, DC – The Congress of the United States today passed an economic stimulus bill that could bring as much as $105 million in new federal funds directly to the Commonwealth Government. President Obama is expected to sign the American Recovery and Reinvestment Act shortly.

Northern Mariana Islands Delegate Gregorio Kilili Camacho Sablan said he was glad after weeks of working on the massive $789 billion spending and tax cut bill money would soon become available to help stimulate economic activity in the Commonwealth and help build a better economic future.

“This bill provides money for school modernization, for government operations, for highways and water and sewer systems,” reports Sablan. “This bill has money to help those in need with food assistance, to train workers for new jobs, and to weatherize homes to help people cut back on power expenses.

“Use it or lose it.”

“But the money does not come without strings attached. The Commonwealth Government will now have put together applications for the funds, sometimes competing with other jurisdictions. And the CNMI Government will have to do so quickly. Because this money is meant to stimulate immediate economic activity, so there are ‘use it or lose it’ provisions throughout the bill.”

The bulk of the money available to the CNMI is targeted at education. Approximately $8.5 million are projected to go to the Public School System through existing programs. In addition a pool of $251.5 million will be available to American Samoa, Guam, the Virgin Islands, and the Northern Marianas on a need basis. The Secretary of Education in consultation with the Secretary of Interior will make the distribution.

Another large pool of $54 million will be available to the four insular areas for police and other public services, including higher education. These funds, too, will be distributed on a need basis based on grant applications submitted by the Governor.

The criminal justice system in the CNMI will receive another $6.2 million under the Byrne Justice Assistance Grant program.

“Congressional leadership and the Obama Administration made the decision to send much of the stimulus money to the States and Territories through existing programs. The idea was that this would reduce the time it would take for money to begin to be spent,” explains Sablan.

“And a lot of the money—the highway funds, for instance—have to be used within a short period of time or they will be taken back and given to other States or Territories that are spending quickly.” The Marianas is estimated to receive almost $4 million in new highway money.