Gov. Albert Bryan Jr. is calling on lawmakers to reconsider a sweeping pay mandate passed earlier this month that would raise the minimum annual salary for government employees to $35,000, warning that the measure, if enacted without funding, could derail the territory’s financial recovery and force cuts to essential public services.
The proposal, laid out in Bill No. 36-0053 and sponsored by Sen. Kurt Vialet, was approved unanimously by the Legislature earlier this month and would raise the government’s current minimum salary from $27,040 to $35,000 beginning Oct. 1, 2025. The increase would apply to full-time employees in the executive branch, semi-autonomous agencies, and independent instrumentalities. Though the bill requires a fiscal impact report by March 2026 and biennial reviews starting in 2028, it includes no funding source—a point that has drawn sharp criticism from the governor.
“This bill, while sounding good in principle and aiming to help people with the rising cost of living, is nothing more than a feel-good measure that gives struggling Virgin Islanders a false sense of hope,” Bryan said in a statement issued Thursday. “If enacted into law, it will lead to cost-cutting measures that will directly impact the very employees it claims to support and will set us back financially as a government and a people.”
Citing data from the Office of Management and Budget, Bryan pegged the total first-year cost at $37.9 million. That figure includes roughly $5.2 million for approximately 1,300 employees receiving average $4,000 raises; $12 million in salary adjustments for an additional 3,000 employees who would need to be brought into compliance with the new minimum; $7.9 million in fringe benefits; and $13 million to account for increased employer contributions to the Government Employees’ Retirement System. Bryan said the mandate would further strain already underfunded agencies like the hospitals, Waste Management Authority, and WAPA, while putting needed infrastructure investments at risk. “Hope is not a plan,” he added. “Kicking the can down the road does not make this mandate any more affordable.”
But in a phone interview with the Source on Tuesday, Vialet pushed back, saying the Legislature has the authority to set the minimum salary for government workers and that doing so does not override or interfere with ongoing union negotiations. He emphasized that collective bargaining units would still negotiate their own wage structures—and said many of those agreements will not be finalized before the bill’s Oct. 1 effective date. “The governor and his collective bargaining team would still need to address those contracts as they always have,” Vialet said.
The senator also took issue with the administration’s financial projections, arguing that the real impact of the bill is being overstated. Vialet estimated the raise would directly apply to just over 900 employees and said the administration’s larger figure appears to include costs associated with adjusting union-negotiated wages upward in tandem. “The bill addresses those at the bottom,” he said, pointing out that some groups, including custodial workers, haven’t seen an increase since 2015, when their salaries were brought up to $27,000. “These are just responsible decisions that have to be made.”
According to Vialet, senators deliberately chose the Oct. 1 implementation date to align with the close of the budget markup process, giving them time to identify savings. He said a targeted reduction in overtime by as much as 50 percent, for example, could free up approximately $12.5 million. Other potential savings could come from scaling back the use of government vehicles or eliminating redundant positions—moves Vialet described as difficult but necessary trade-offs. “We are at the beginning of the budget process, and this gives us time to make adjustments and set priorities,” he said.
Still, the governor remained firm in his opposition. He said the measure not only puts the government at risk of overextending itself financially, but also undermines the structure of collective bargaining and jeopardizes the progress made over the past six years—progress that includes repaying 2011 salary cuts, distributing over $60 million in retroactive wages, and negotiating raises for teachers, law enforcement, and frontline staff.
“We have fought hard to stabilize our finances, repay workers, and invest in infrastructure and essential services. This bill threatens all of that,” Bryan said. “It does not build on our progress. It threatens to dismantle it.” He urged senators to return to the table and work collaboratively with the executive branch on a phased, fully funded plan. “If we are truly serious about helping working families and building a stronger government, then we must be just as serious about how we pay for it.”
