Senate Finance Committee includes key provision in reconciliation bill after sustained territorial advocacy
U.S. VIRGIN ISLANDS — Governor Albert Bryan Jr. announced Saturday that the Virgin Islands’ long-standing push to secure an extension of the rum cover-over at the $13.25 per proof-gallon rate has advanced significantly with the provision’s inclusion in the Senate’s version of the federal tax reconciliation bill that will make the extension permanent. The increase would become effective after December 31, 2025.
The measure, championed by Sen. Mike Crapo, R-Idaho, the ranking member of the Senate Finance Committee, would generate additional revenues for the Virgin Islands and Puerto Rico from federal rum excise taxes if enacted into law.
“This marks an important step toward greater economic certainty and fiscal stability for the Virgin Islands,” Bryan said. “Senator Crapo gave me his commitment, and he followed through. His support and the Senate’s action reflect the effectiveness of our direct and persistent engagement at the federal level.”
The provision had not been included in the version of the reconciliation bill previously introduced in the U.S. House of Representatives by Delegate Stacey Plaskett and Representative Ron Estes. Its addition to the Senate version follows ongoing and focused outreach by Governor Bryan, and his federal affairs team, along with Governor Jennifer Gonzales who have made the rum cover-over extension a top priority for the territory.
“If this bill is signed into law, it will not only prevent a rollback to $10.50 per gallon—it will ensure the necessary revenues that supports our pension system, public services, and economic development over the next decade,” Bryan said. “It’s a reminder that when we show up, stay at the table, and build the right relationships, we can move the needle for the Virgin Islands.”
The measure now awaits a vote by the full Senate, followed by a conference committee process with the House of Representatives before it can be finalized and sent to the president for signature.
The Bryan-Roach Administration’s Washington Office, led by Director of State-Federal Relations Teri Helenese, has worked closely with Senate staff, committee leaders, and national stakeholders and the Government of the Virgin Islands’ lobbyists in Washington to secure the provision’s inclusion.
“We understood from the beginning that this would be a long-term effort, and we never let up,” Helenese said. “Our strategy has been consistent—targeted engagement, bipartisan coalition-building, and an unwavering focus on what this funding means for Virgin Islanders.”
Cover-over revenues fund a wide range of government priorities in the Virgin Islands, including:
- The Government Employees’ Retirement System (GERS)
- Public education, health care, and law enforcement
- Infrastructure improvements and climate resilience efforts
- Job creation and workforce development initiatives
Governor Bryan reaffirmed his administration’s commitment to ensuring the provision remains in the final version of the bill as it continues through the legislative process.
“We’re not done yet—but we’re in a stronger position today than we were just weeks ago,” Bryan said. “This is the kind of federal result that comes from building a presence in Washington and working with Delegate Plaskett and other congressional leaders speaking up with one voice for the people we serve.”
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