▶ 0:19:45Chair Lee: The committee will come to order. We will conduct a brief business meeting before our hearing. Today's business meeting, the senate will take up as 1540 seven reauthorizing the national parks and the public land restoration fund sponsored by senator daines. Let me ask many senator wishes to offer an amendment. Senator padilla?
▶ 0:20:06Sen. Padilla: Thank you, Mr. chairman. First I want to know that reauthorizing the legacy restoration fund is a priority for many of us on this committee. California alone, we have nearly a $5 billion deferred maintenance backlog on federally managed public lands in this reauthorization could provide a billion dollars to address that over five years.
▶ 0:20:34Sen. Padilla: That is why I cosponsored the america the beautiful act, which I think senator daines is senator kaine for their hard work on. The substitute amendment would change the bill from the one I agree to cosponsor. I'm concerned about the amendments toward nonresident visitor fees.
▶ 0:20:56Sen. Padilla: In january the park service implemented a $100 per person surcharge for nonresident visitors at 11 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 this would codify the surcharge and apply it to all park service that collect fees.
▶ 0:21:21Sen. Padilla: I'm 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, the fees have been collected on the honor system. If we codify this, I fear parks could become de facto immigration checkpoints where hard-working park service staff are required to take passport or birth certificates and that is not their job.
▶ 0:21:52Sen. Padilla: It is not something they are trained to do and not what I signed up for. As to the amendments come alive a couple quick ones. It is my understanding the goal of the nonresident fee is to apply to foreign tourists. However, the definition of nonresident has been left vague in the text before us.
▶ 0:22:12Sen. Padilla: That is why I filed the second degree amendment with senator hickenlooper that would only apply the surcharge to foreign visitors on tourist visas, which I believe was the original intention. The language in the mm it would make the bill in line with the bipartisan house version led by chairman westerman and ranking member huffman on the outside. This is an amendment one a2.
▶ 0:22:44Sen. Padilla: I would like to see these issues addressed before the final passage but I believe since members of both sides want to address this I will not bring up the amendment. I have another critical issue we need to address, which is how revenue from nonresident visitor surcharges would be shared across the park service system.
▶ 0:23:10Sen. Padilla: Colleagues currently, at least 80% of the fee revenue collected at a park service unit stays in the unit where it was collected while 20% 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. It would redirect additional revenue into a broader legacy restoration fund.
▶ 0:23:37Sen. Padilla: I believe that parks that are heavily visited and experience additional strain on natural resources and infrastructure should be proportionately supported based on these surcharges. So the second amendment has been filed that would require at least 80% of these foreign tour surcharges to be dedicated to addressing maintenance in the park where it was collected.
▶ 0:24:08Sen. Padilla: I understand the surcharge was added as a pay for and that we still do not have a score for the bill. But in good faith I will not bring up the second degree amendment for a vote today, continuing to work on this issue and maintaining the spirit of parks to collect high levels of revenue receive their proportionate share and support for deferred maintenance.
▶ 0:24:41Sen. Padilla: Lastly, my third amendment I want to bring up, I believe it is critical gateway communities and the public be able to have a say in these foreign tourists surcharges. The department of interior created these fees in january. They did not consult with the public in any way, despite consultation being a requirement of the federal land recreation act.
▶ 0:25:09Sen. Padilla: There was no public consultation or studies on potential impacts on visitation levels and no analysis on impacts to gateway communities and local businesses. I sent a letter to the department of interior in december with several colleagues on this committee requesting information on what public consultation occurred and we have yet to receive a response.
▶ 0:25:34Sen. Padilla: As written, the bill will strive to maximize revenue while retaining nonresident visitation but deciding the amount of the surcharge. It seems appropriate that the gateway communities and local stakeholders should be consulted give the impacts to the local economies and the bottom line for many businesses and families.
▶ 0:25:56Sen. Padilla: I appreciate you working with my staff to conclude the language in or substitute amendment to provide public participation opportunities to gateway communities and stakeholders in accordance with existing law and given the surcharges we know the impact on local communities. I appreciate you supporting us and allowing constituents to have a voice in this process and that the mm it includes language to address this concern.
▶ 0:26:24Sen. Padilla: -- amendment includes language to address this concern.
▶ 0:26:27Chair Lee: Senator hirono.
▶ 0:26:32Sen. Hirono: I share the concerns senator padilla has expressed here in the amended bill would expand the authority of the national park service to charge international visitors higher fees at all fee collecting parks. Since january of this year, 11 parks or charge higher fees for nonresidents.
▶ 0:26:52Sen. Hirono: We don't yet have data on what revenue that has generated or the impacts the higher fees have had on visitation to gateway communities, which is why senator padilla noted it is important for consultation regarding these higher fees. We should have that information before we expand that to all fee collecting parks and codify it into law.
▶ 0:27:21Sen. Hirono: Another change to the underlying bill is an entire provision has been included giving the department of the interior authority to license intellectual property. It would give the department of the interior authority similar to that given to the department of defense and department of homeland security without requiring similar regulations.
▶ 0:27:45Sen. Hirono: I think that is an important aspect to giving this kind of authority to the interior department that the other two department's that have this authority did have to undergo rulemaking to implement that authority so I am up -- a cosponsor of the underlying bill which has bipartisan support so I'm glad we are and I do support the basic purpose of the bill even in the amended form with the concerns I have in the underlying purposes to extend the authority for the department
▶ 0:28:17Sen. Hirono: Of the interior to address deferred maintenance needs on public lands and we know that is in the bill, deferred maintenance, and something I very much support so I would again associate myself with senator padilla's remarks and hope we can improve the bill before the full senate considers it.
▶ 0:28:39Chair Lee: I will defer my opening statement until after we vote and we will allow everybody else to speak afterwards if they would like. I like to turn out to my amendments I have offered with senator heinrich and I want to thank senator heinrich and his team and others who have participated in this. Our teams have worked hard on this and I'm grateful for it.
▶ 0:29:06Chair Lee: This will be amendment one a and a voice vote. All those in favor of the lee-heinrich amendment, say a ye. Those opposed, say nay. The men meant as agreed to. We will now go to the bill s. 1547.
▶ 0:29:33Chair Lee: As amended and the question is on the bill. All those in favor of the bill, signify by saying aye. The ayes have it. The bill will be reported favorably to the senate. I will now recognize a speaker who wants to be heard on this legislation.
▶ 0:30:04Chair Lee: I see hands up from senator daines and senator murkowski. >> we just witnessed something that looked very easy but was very hard. This was a profound moment, to have a voice vote on what we just accomplished. And it is nice to have some good news in washington, D.C. for a change of bipartisan cooperation , compromise, and a great outcome.
▶ 0:30:35Chair Lee: The teams were up until about 630 this morning working to get to this point and I want to commend them. Thank you for your leadership and thanks to all the staff this morning for working very late nights and long hours to get to where we are today. This is a big step forward. The great america outdoors act was one of the greatest conservation plans in 50 years.
▶ 0:31:03Chair Lee: Now we extend the work that was done with bill by reauthorizing this tremendous investment in addressing the maintenance backlog mac our national parks and national forests. This amendment and the bill we are sending to the full senate represents a bipartisan and bicameral collaborative. We have been working with the administration in the senate as well as keeping our house colleagues in the loop.
▶ 0:31:33Chair Lee: Chairman westerman and ranking member huffman, so we can move it not out of the senate but get it through the house and to the president. We have taken priorities from the house, senate, administration, and members of this committee and there were reforms made, strengthening the legacy restoration fund to help us tackle that growing maintenance backlog on our parks and public lands. It is a great down payment to help fix the infrastructure and bolster our recreation economy.
▶ 0:32:04Chair Lee: This is supported by over 100 groups. It has 64 senate bipartisan cosponsors and I want to thank my co-chair, senator king, his staff on the national park subcommittee. We do not have a chairman or ranking member. We have always agreed on a handshake. We are cochairs, no matter which way the gavel falls. We are cochairs.
▶ 0:32:36Chair Lee: A wonderful partner in that subcommittee and we have outcome here today. I want to thank senator murkowski and her staff, sec. Burgum and his staff. I cannot tell you how many text messages I have on my phone now in the last 72 hours with the secretary working together with the administration to get to this point today and this morning. I know there teams worked all night with many staff sitting behind us here today. I look forward to working with chairman westerman.
▶ 0:33:07Chair Lee: They had a big hearing and even had kevin costner friday to have a hearing about this bill as well as ranking member huffman. I 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. I urge my colleagues and friends in the house, let's get this bill on president trump's desk before the fourth of july.
▶ 0:33:33Chair Lee: I can think of no better president -- present for the president of the country then supporting our national parks and public lands.
▶ 0:33:46Chair Lee: I meant to go, I think senator heinrich and senator king and their teams and neglected to mention others, including senator murkowski, senator daines for your great work on this, and I know you and your teams have also been working hard on it and burned the midnight oil. >> were not for your cooperation on this bill, we would not be here today as well and I thank you for that because you hold the gavel.
▶ 0:34:16Chair Lee: Without your leadership, we would not have had this.
▶ 0:34:22Sen. Murkowski: I am pleased to be able to follow your comments. You have been a leader in this space for the great american act from the beginning. You have had a passion and purpose I think towards this and it is reflected in the working relationship you have with your vice chair.
▶ 0:34:46Sen. Murkowski: I want to acknowledge the extraordinary hard work so many people put into this and I was amused by your statement that we made this look easy this morning. And it was anything but. But I think that is reflective of the hard work to get to yes instead of people who are coming to the table set to oppose it just to be able to oppose something and in fairness that is the political climate we are
▶ 0:35:17Sen. Murkowski: Operating in and so I think it says much about what we are talking about here this morning, which is our great american outdoors, something that whether you are from montana, alaska, hawaii, california, mississippi -- it does not make any difference where you are.
▶ 0:35:37Sen. Murkowski: There is a deep love for our national treasures in those areas that we find personally connected and attached to. When we look at the list of deferred maintenance around the country for these treasured spaces and places, we should all be worried about it so was put in place with the legacy restoration fund is important.
▶ 0:36:05Sen. Murkowski: We need to be aggressive in how we are handling our deferred maintenance and so this reauthorization was important. What was equally important, and I think the role I am -- my staff on the appropriations committee worked aggressively around the clock with the team -- I chair the interior appropriations subcommittee along with senator merkley, so
▶ 0:36:36Sen. Murkowski: Our role here is to's make sure congress role in understanding how we are going to implement these priorities is maintained and so ensuring there was a list presented from the president to the legislative branch as outlined was important to maintain and how we are able to not only receive a list but to be able to ensure that there is
▶ 0:37:10Sen. Murkowski: Accountability on both sides, that we are not establishing a venue for the administration -- any administration going forward to pick and choose and inject layers of politics into what should not be political but really caring for our treasures. I'm appreciative, Mr.
▶ 0:37:30Sen. Murkowski: Chairman, of your leadership in this, and senator heinrich, your willingness to work with all of us not only on this committee but outside the committee as well. Truly a very appreciative.
▶ 0:37:47Chair Lee: Senator heinrich and then senator king.
▶ 0:37:50Sen. Heinrich: I want to thank you for marking up this legislation. This is a good model for how we can get things done on this committee. When I go home, left, right, and center, people make clear their family memories on our public lands and reinvesting in that infrastructure is important.
▶ 0:38:14Sen. Heinrich: I also want to thank senator daines and all the cosponsors, the appropriations staff who worked all night to end this deal and we got it done with minutes to spare so I don't think -- it may look easy this morning, but this was big and I want to thank everybody who worked so hard to make it happen.
▶ 0:38:45Sen. King: I want to provide my thanks to the staff who often do not get recognition for working, as senator heinrich said, all night to finalize this document. Senator daines, great to work with you and this is the way this place is supposed to work. Bipartisan work together on a common cause important to the american people.
▶ 0:39:12Sen. King: I appreciate your accepting my men meant that this money will be allocated alphabetically by park starting with acadia. There is no such thing, but it is a good idea. >> this is a strong objection from the guy who loves yellowstone about which I know senator barrasso would associate himself with. >> I guess zion will not fare well. >> go ahead. Proceed at great risk.
▶ 0:39:44Sen. King: >> I do want to inject one note of frustration not with this bill but for the necessity of the bill. Through multiple administrations I had great problems with the last administration on not providing adequate maintenance in the regular budget.
▶ 0:40:01Sen. King: We are doing a bill on deferred maintenance because we have not adequately done maintenance which should have been done every year as part of the base budget of the interior department of the national park service so this is a major accomplishment but I think we should also work with the current administration and next administration to be sure that we do not have to do this every five years.
▶ 0:40:29Sen. King: Because not doing maintenance is a kind of debt, incurring a debt and we are now going to pay that debt but going forward I hope that whoever is in charge of the department of the interior and the national park service will take the maiden's responsibility as seriously as they do the other portion so with that note this is an extraordinary achievement being done in exactly the right way with a lot of work and compromises and the
▶ 0:41:02Sen. King: Impulse was to get to yes. And we made that happen. We are not there yet. We have to work with the house and continue to refine the bill on the senate floor but this is an important step forward for america and our national parks and I want to thank the chairman and ranking member for their leadership on this. We will not be here without you.
▶ 0:41:26Chair Lee: What we are going to do now -- we will conclude the business meeting and then give an opening state for the hearing and brief remarks on the bill to put those into the record. Our national parks are among the most popular features of the U.S. government.
▶ 0:41:53Chair Lee: Not everything we do in this town brings about absolute popularity, but people like their national parks. National parks are among the most recognized will places in america. Millions travel across america and from through the world to witness their beauty and we as americans have a responsibility to make sure they are well maintained and that they are going to be there for generations to come, as beautiful as ever.
▶ 0:42:23Chair Lee: By 2020, there were broad agreement that the federal government had fallen short of that responsibility. Roads, trails, visitors centers, campgrounds, and other critical infrastructure at many national parks and other federal land were piling up and they were piling up huge deferred maintenance backlog's.
▶ 0:42:50Chair Lee: Faster than the agency's responsible for management were able to address them. The great american outdoors act often pronounced as goa was congress's answer to the challenge.
▶ 0:43:04Chair Lee: When it first came before congress during the first trump administration, I had concerns about how the program was structured and whether it would solve the problems it was set up to solve, specifically a permanent extension of the land and water conservation fund which allow the government to continue permanently growing a federal state that it has proven not to be able to manage, as evidenced by its massive and
▶ 0:43:35Chair Lee: Growing deferred maintenance backlog and increasing costs and restricting many communities especially in the western united states where plans are found and ultimately adding to the deferred maintenance backlog. At the time of passage, the deferred maintenance backlog across federal land management agencies clocked in and about $26 billion.
▶ 0:43:59Chair Lee: After six years and roughly $10 billion, that maintenance backlog has skyrocketed to 40 $3 billion. Reasonable people can disagree as to why the backlog has increased instead of decreased but whatever explanation one prefers, the fact remains congress should not reauthorize programs on autopilot. We have to stop from time to time and ask whether they are achieving their intended purpose.
▶ 0:44:30Chair Lee: If the purpose was to reduce the backlog and six years later the backlog is larger than when the program began, significantly larger, what should congress do? One of the things I appreciate about this committee's members can disagree and keep talking and work toward a stronger product and better outcome.
▶ 0:44:52Chair Lee: I am proud of that and as I mentioned earlier together with senator king and ranking river heinrich at senator murkowski and so many others in the trump administration, we have done that. I'm grateful for secretary burgum at the department of the interior for his help and encouragement.
▶ 0:45:17Chair Lee: And I want to thank the staff who have worked all night and given that we recently experienced another up all night vote, I know that can be taxing so I thank them and all those involved.
▶ 0:45:35Chair Lee: But the amendment we adopted today, along with the bill to pass it on to the senate floor, represents a compromise and while I have concerns that language added at the behest of my colleagues on the appropriations committee could slow down issuance of funding to our states and legislation does not include needed reforms to land and water conservation, the improvements reflected in the
▶ 0:46:05Chair Lee: 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 we can carry the same approach into conversations ahead because there is still work to be done. We ought to continue examining how federal agencies prioritize maintenance.
▶ 0:46:29Chair Lee: And how -- in what order projects are selected for maintenance, whether current policies encourage the federal government to acquire land faster than it can maintain land , the vast acreage it already owns. I look forward to continuing the stalks my colleagues.
▶ 0:46:48Chair Lee: The drafters of the original goa made -- there was not an adequately serious attempt to offset spending within the bill even though many of the ideas were proposed. A late senator proposed a solution, include a modest surcharge on foreign visitors to national parks. This is done in other countries when americans visit foreign destinations and it makes sense to codify the executive order on this point.
▶ 0:47:17Chair Lee: That said, the bill before us is already partially offset, a positive step, but we all have responsibility to ensure the legislation is paid for before it reaches the president and I believe that will be crucial to its passage in the house, if not also the senate. I hope we can continue working together to identify additional offsets at the bill moves through the senate process and advances to the floor.
▶ 0:47:48Chair Lee: America's national parks are a source of great national pride. It is my hope we can continue working together as we have today and in the days leading to it, we can pass them to the next generation in a condition that will make us all proud. Does anyone else want to speak on this bill before we proceed to the separate hearing?
▶ 0:48:23Chair Lee: The business meeting is now adjourned. And we will begin the hearing. Thanks.
▶ 0:51:48Chair Lee: We will nowchair lee: open the hearing portion of our meeting today. Today we are pleased to be joined by the governors or of five U.S. territories. These territories are beautiful and distinctive regions of america and I look forward to hearing from each of these governors and representatives as to the state of affairs of the U.S.
▶ 0:52:17Chair Lee: Territories and watch, if anything, they would ask of congress. These governors or their representatives are as follows. Jennifer -- jenniffer gonzã¡lez-colãn, welcome. Mr.
▶ 0:52:40Chair Lee: Henry hofschneider, chief of staff to the governor of the commonwealth of the northern mariana islands. The governors dealing with the impact of a major typhoon in his territory. Also the honorable lourdes aflague leon guerrero.
▶ 0:53:13Chair Lee: And america's territories occupy some of the most strategically important ground under the american flag. They strengthen american national security and support our economy, extend america's presence into regions that will play a defining role into the 21st century.
▶ 0:53:35Chair Lee: In the pacific, guam, and the northern mariana islands, we see lands that are key to america's ability to deter aggression and maintain stability in the region increasingly threatened by china's military ambitions and his potential designs with regard to taiwan. Further south, american samoa expands presence in the region, providing valuable logistical support for U.S.
▶ 0:54:04Chair Lee: Operations while strengthening relationships with pacific island nations. In the caribbean, puerto rico on the U.S. virgin islands anchor america's security and economic interests in the region. The location gives the united states a strategic foothold astride the most important shipping lanes while puerto rico has become a hub of america's pharmaceutical manufacturing capacity.
▶ 0:54:32Chair Lee: These territories have been part of the american family for generations. They have contributed to our country and they will continue to play an important role in its future. Their importance to our country is undeniable. So are the challenges they face. In puerto rico, the island continues to struggle with energy reliability, concerns about management of public resources.
▶ 0:54:56Chair Lee: Millions of citizens still live without -- with electric power grid that experiences devastating blackouts. The virgin islands face public debt and aging infrastructure and continue to pressure residents and businesses. Residents of the virgin islands peso the highest electricity rates anywhere under the american flag, rates roughly three times the U.S.
▶ 0:55:19Chair Lee: National average while continuing to endorse service disruptions and aging infrastructure. In the northern mariana islands, economic concerns intersect with an affect national security concerns. It says 60 miles from guam, which houses some of america's most important military installations.
▶ 0:55:47Chair Lee: Earlier this year, my colleagues and I called on the department of homeland security and department of the interior to terminate the authorization program, a biden you're a policy that allows nationals from the people's republic of china to enter the northern mariana islands for 14 days without a visa. This policy has learned to create problems.
▶ 0:56:16Chair Lee: Chinese nationals have been convicted of trafficking methamphetamine into the cnmi. It has 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 should not be providing special access to a U.S. territory for p.r.c. Nationals.
▶ 0:56:45Chair Lee: I urge the department of homeland security and department of the interior to determine -- to terminate the cnmi program and end hong kong's participation in the broader guam visa waiver program. One remains indispensable to americans security posture in the indo pacific. As tensions in the region grow, guam's importance will only increase, making it important we take seriously the challenges we face in that region as a whole.
▶ 0:57:18Chair Lee: The circumstances facing each territory are unique but a common theme runs through them all. Strong infrastructure, sound governance, and national security are connected. Our territories are not peripheral to america's future.
▶ 0:57:39Chair Lee: As competition in the pacific intensifies and economic pressures continue in these communities confront the challenges of their own, congress has a responsibility to pay attention. There future matters not only to the people who live here -- who live there in those territories but to united states of america as a whole. The chairs happy now to recognize senator heinrich.
▶ 0:58:08Sen. Heinrich: I want to thank our governors and witnesses for being with us today. 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. What we as senators and members of this committee are doing here today is simple but important. We are listening to you.
▶ 0:58:36Sen. Heinrich: We can review reports and data but there is no substitute to hearing directly from all of you about the experiences and challenges and future plans of your communities. Taken together, you represent a 3.5 million americans living in puerto rico and guam and the northern mariana islands, american samoa, and U.S. virgin islands.
▶ 0:59:01Sen. Heinrich: The people he represents serve in our military, strengthen this nation cannot live under policies passed by congress, and too often their voices reach this chamber only when congress chooses to make space to hear them. As our nation prepares to mark 250 years since the declaration of independence, I recognize that more than 120 five years ago united states establish the governing framework for the territories that still shape these relationships today.
▶ 0:59:30Sen. Heinrich: 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 even more important.
▶ 0:59:51Sen. Heinrich: This morning we will hear from these representatives about energy costs, disaster recovery, health care access, 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 today is the rising cost of energy.
▶ 1:00:16Sen. Heinrich: Families, small businesses, and local government are all feeling the impact of high electricity and fuel costs. While we are seeing energy costs skyrocket, island communities often feel the impact first and more severely because much of their energy supply depends on imported fuel.
▶ 1:00:37Sen. Heinrich: I know you are all working with your communities to modernize aging energy infrastructure and strengthen grid reliability but I also know these efforts take time, resources, and commitment from the federal government as well.
▶ 1:00:52Sen. Heinrich: Many of your communities are still recovering from devastating natural disasters from hurricanes that reshaped puerto rico on the virgin islands to recent typhoons in their northern mariana islands and guam that have demonstrated how important it is we invest in durable infrastructure in island communities.
▶ 1:01:14Sen. Heinrich: Climate change is making all these challenges harder from increasing the frequency and severity of extreme weather events to placing greater strain on already fragile infrastructure, agriculture, and critical services. Energy resilience is the foundation for everything else. Electricity prices run two or four times higher than the national average, that is not simply an convenience.
▶ 1:01:44Sen. Heinrich: That is every part of daily life and every corner of the economy. The issue is not a lack of local leadership or willingness to do work. The question is whether the federal government is following through on commitments that have already been made, funds already appropriated, projects already underway. Too often, implementation is slower than communities can afford to wait but these challenges extend beyond energy and disaster recovery.
▶ 1:02:14Sen. Heinrich: For many families, unequal access to basic federal programs or means part of the same story. I have long supported greater parity for territories in federal nutrition and health programs and I believe this committee should continue using every tool in its jurisdiction to help communities build resilience against storms, habitat loss and invasive species, against rising energy costs and slow federal response
▶ 1:02:44Sen. Heinrich: That can turn disaster into crisis. At a time when families are paying more for electricity, fuel, and daily necessities, congress has a responsibility to understand whether federal policies are helping communities or making challenges harder to overcome. To our witnesses, thank you for making this trip. The senate does not always come to you. You are here and we are listening.
▶ 1:03:15Chair Lee: A lot of our witnesses come from across the country and traveled further distances than many had to travel and we are grateful for that. I will invite each of you to give your opening statements and your full written statements will also be part of the record.
▶ 1:03:36Chair Lee: We begin with governor gonzález-colón, who has been serving as the 15th governor of puerto rico since the ratification in 1952. She formerly served in the puerto rico house of representatives from 2002 to 2017 and as resident commissioner of puerto rico from 2017 to 2025. Governor gonzalez-colon, you may proceed.
▶ 1:04:03Governor Gonzalez-Colon: Thank you, members of this committee, for the opportunity to bring the state of puerto rico today. As governor I made a commitment to restore fiscal responsibility , accelerate reconstruction of our energy grid and critical infrastructure and strengthen puerto rico's contribution to national economic security and we are delivering peer and in 2016, puerto rico faced bankruptcy and congress enacted.
▶ 1:04:34Governor Gonzalez-Colon: 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 developing process. Once approved by 13 days, we expect this will become our second certified balanced budget.
▶ 1:04:56Governor Gonzalez-Colon: We have cut contract spending by over 900 million dollars in one year and repealed nearly 400 regulations and 13 pages of obsolete regulatory text and we are advancing reforms to improve the ease of doing business and attract investment to the island. As a result, total employment reached 1.1 million in march this year, the highest level since 2008. Our trade surplus expanded by 30%.
▶ 1:05:25Governor Gonzalez-Colon: Exports increased by three point 6%, reaching 64 point $2 billion in construction employment increased by 5%, adding 1900 jobs. When I took office, puerto rico was facing a power generation shortfall in projections indicated we would experience widespread blackouts last summer. I'm working with the trump administration with emergency orders from the department of energy.
▶ 1:05:53Governor Gonzalez-Colon: We restored more than 1600 megawatts of generation capacity and have not experienced an islandwide blackout in over a year. With support, we are investing 360 billion dollars in grid improvements for completion by the end of the year. With epa permitting assistance we are converting power plants to cleaner and more affordable natural gas, a decision expected to reduce energy costs annually.
▶ 1:06:25Governor Gonzalez-Colon: We are also pursuing 3000 megawatts of new permanent generation through public-private partnerships. Through strong oversight we've accelerated fema fund and energy infrastructure, increasing construction by more than 25%. The fema funded projects have increased by more than 37%.
▶ 1:06:50Governor Gonzalez-Colon: Over a thousand hundred customers lacked water due to decades of underinvestment. We are still restoring that service and firmly restore it we've committed over 7.5 billion dollars in 351 active capital improvement projects. We are helping bring manufacturing back to america through an aggressive reassuring strategy.
▶ 1:07:16Governor Gonzalez-Colon: Made in puerto rico is made in usa. 23 manufacturing companies have committed to invest more than 2.6 billion dollars and create more than 5000 700 jobs supporting our economy while reducing U.S. dependence on foreign adversaries for pharmaceuticals and other critical products.
▶ 1:07:39Governor Gonzalez-Colon: With the renewed attention on the western hemisphere, puerto rico is playing a leading role in supporting 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 what I was serving in congress expires in september 2027. More than 1.3 million americans rely on this program.
▶ 1:08:09Governor Gonzalez-Colon: As I have outlined, we are balancing budgets, rebuilding infrastructure, and creating new opportunities. As the united states approaches is 250th anniversary, puerto rico stands ready to contribute as a full-fledged member of the union. Since 20 12, puerto rico voters have chosen statehood.
▶ 1:08:34Governor Gonzalez-Colon: I look forward to working with congress to respect that democratic mandate and restore equal rights and representation for the 2.1 million americans who call puerto rico home. Thank you and I look forward to your questions.
▶ 1:08:47Chair Lee: Thanks so much, governor. We will turn to governor bryan of the U.S. virgin islands, serving as the ninth governor of the U.S. virgin islands, a role he has held since january 7, 2019. He may proceed. >> chairman lee, distinguish members of the committee, thank you for the opportunity to appear before you today.
▶ 1:09:14Chair Lee: I wanted to be here on behalf of the 87,000 american citizens and other residents who call the united states virgin islands their home. As I prepared to conclude the services as governor, I do so with great pride. I have had the privilege of serving through some of the most difficult chapters in our history.
▶ 1:09:38Chair Lee: I have watched our people recover from two category five hurricanes and a global pandemic that temporarily brought a tourism economy to a standstill. Despite this, we have come out the other side of the tourism industry and community that is stronger than before. Through it all, I have watched virgin islanders rebuild with resilience, determination, and patriotism that have always defined our community. We are proud americans.
▶ 1:10:06Chair Lee: Our sons and daughters serve in uniform. Our students pledge allegiance to the same flag that flies over this capital. I have come to understand a difficult truth. Despite our american citizenship , we are asked overcome barriers that americans elsewhere never have to face. Sadly because with this great nation we call home. That is not fair to people of the virgin islands and a missed opportunity for the union.
▶ 1:10:36Chair Lee: We occupy one of the most strategic locations in the caribbean. We can strengthen american maritime presence, expand regional commerce, and serve as a gateway to the hemisphere, yet our ability to contribute is often constrained by outdated federal policies and foreign actions beyond our control. Over the past seven years I have learned that these issues are not faced only by our territory.
▶ 1:11:02Chair Lee: The american territories have increasingly come together to identify shared challenges and speak with a common voice. That cooperation has shown these are not isolated concerns. They are common in american challenges that can and should be addressed. Through partnership. My message is simple. The people of the virgin islands are not asking for special treatment.
▶ 1:11:25Chair Lee: We are asking congress to remove these barriers to guarantee that we have the same opportunities and tools and chance to succeed that every american community on the mainland enjoys. One of the clearest examples of these barriers as health care. 24% of our population is over the age of 65 and thousands of virgin islanders rely on medicaid and disability benefits.
▶ 1:11:51Chair Lee: Congress has taken steps to improve health care funding for the territories such as the permanent adjustment to the territories and I thank the members of both parties who helped make that progress possible but the work remains unfinished. While the medicaid funding expands when enrollment or economic needs rise, the virgin islands continues to operate under a permanent federal funding gap.
▶ 1:12:17Chair Lee: Our hospitals face similar challenges, even when virgin islanders can access care institutions serving them must operate under a reimbursement system that has not kept pace with realities of modern medicine.
▶ 1:12:33Chair Lee: Similar disparities exist with supplemental security income and an american citizen may qualify for benefits and the same american citizen with the same disability and same financial need may lose access to those benefits by moving to the virgin islands. Their citizenship has not changed. Their circumstances have not changed. Only their address.
▶ 1:13:00Chair Lee: The promises and benefits of american citizenship should not depend on geography, as the supreme court recognized. Only congress can address these disparities. The same principle applies to economic opportunity. For generations, the refinery was an economic engine for our territory creating jobs and strengthening families but it remains closed due to the heavy-handed application of environmental rules.
▶ 1:13:28Chair Lee: That is not only a loss for the virgin islands but a missed opportunity for the united states. We need the kind of future at home that federal policies help. Under the income regime, federal tax rules can treat investment in the virgin islands like the investment in foreign jurisdiction, discouraging companies from investing in american communities. The virgin islands is not a foreign country.
▶ 1:13:58Chair Lee: We operate under an american tax system, yet we are treated disparately by the european union as we are a blacklist entity even though our taxes are controlled by the U.S.. I want to conclude by saying, as my time is running out, that I want to thank congress over the last eight years. We have made tremendous progress. We have fixed a retirement system.
▶ 1:14:24Chair Lee: By the end of the year, 50% -- we've recovered over 25 billion dollars. Of that, $11 billion is already creating opportunities in contracts. All we need now is to get the samewhat we need now is to get e same treatment as everyone else.
▶ 1:14:53Chair Lee: I would like to thank the committee for the work they've done listening to us over the years and for the tremendous support of the bipartisan act that has set us on a course that is anchored in progress. Thank you.
▶ 1:15:04Chair Lee: Thank you. The chair now recognizes Mr. hofschneider, testifying on behalf of the governor of the northern mariana islands. He serves as the chief of staff, the governor was not able to join us today, as it cnmi continues to recover from the effects of the typhoon that made landfall in april and has caused significant destruction to
▶ 1:15:35Chair Lee: Sienna my. Thank you for joining us.
▶ 1:15:39Mr. Hofschneider: Thank you. Thank you for the opportunity to appear before you. I am henry hofschneider, I serve as the chief of staff to the northern mariana islands. I am honored to provide these remarks on behalf of the governor in the people.
▶ 1:16:06Mr. Hofschneider: The governor sends his regrets that he's not able to appear in person today. Conditions and concurrent demands our government and communities, federal partners continue to work following the super typhoon.
▶ 1:16:35Mr. Hofschneider: Our partnership remains important. When the governor was last in washington, consultation and senior meeting on the group areas. At that time we discussed many of the same long-term challenges that continued to shape our future.
▶ 1:17:03Mr. Hofschneider: Energy, labor, infrastructure, health care, and federal partnership. These challenges were already severe. The common wealth was facing a deep fiscal and economic crisis caused by our primary economic sector recovering from the collapse of international travel after the covid pandemic, a historically important visit to markets.
▶ 1:17:31Mr. Hofschneider: Our revenue had declined sharply and academic resources had expired. Since then, the challenges have gotten deeper. Nine weeks ago, a typhoon struck our islands and affected our people, infrastructure, and economy, damaging homes and water systems, affecting roads, ports, and schools, as well as health care services, placing new pressure on the government already operating under austerity.
▶ 1:18:00Mr. Hofschneider: The governor has asked me to be clear with the committee, cmi is -- cnmi is recovering from the typhoon and from economic collapse, from the pandemic. That is why federal assistance at this moment is so important. The commonwealth has limited means to resolve its fiscal challenges on its own.
▶ 1:18:24Mr. Hofschneider: We have a small revenue base, a private sector economy, high fixed costs, and limited access to outside finance. We are funding public safety, utilities, medical, employee and retirement health coverage obligations. Those responsibilities do not disappear because revenue has declined.
▶ 1:18:50Mr. Hofschneider: Disaster revenue data shows that the fiscal 26 revenue forecast has been revised downwards by approximately 9% or $12.3 million. In april of 2026, $6.7 million was over 32% below the established baseline and we have incurred more than 2.6 million dollars in unbudgeted related costs, major losses for a
▶ 1:19:24Mr. Hofschneider: Government of our size. The economic revenue base is under the condition of the tour is a ministry, which remains our primary economic engine, supporting hotels, restaurants, transportation, retail tours, revenue, jobs, and government collection.
▶ 1:19:50Mr. Hofschneider: Visitors arrive, arrivals are projected at 404,000 500 million in fiscal year 2026, more than 500,000 fewer than the 607,000 arrivals recorded in fiscal year 2018.
▶ 1:20:08Mr. Hofschneider: Airline seat capacity has fallen from fiscal year 2018 to 160 7000 seats in fiscal year 2026, 78% decline. For the cnmi, air service is the foundation of our tourism recovery. Visitors cannot drive to the commonwealth, they cannot take a train. Every visitor must arrive by air.
▶ 1:20:36Mr. Hofschneider: When airline seats disappear, the ceiling for recovery drops with them, creating a difficult cycle with fewer visitors and lower hotel occupancy and tax collection. Lower collections means fewer resources for marketing and air service development.
▶ 1:21:00Mr. Hofschneider: Visitor authority shares of hotel occupancy tax revenue has declined from 14.2 million in 2018 to approximately $1.4 million in 2026. We are trying to rebuild tourism at approximately 22% of airline seats, 17% of visitors and the tax funding that existed when the industry was healthy.
▶ 1:21:27Mr. Hofschneider: This is why the economic vitality and security travel authorization program and secure travel pathways are so important . Cnmi takes national 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.
▶ 1:21:52Mr. Hofschneider: The tap must be secure and accountable, supported by strong screening, but removing it without a workable replacement would harm our economy at a time when we are still recovering from the disaster and years of decline. We ask for serious consideration and secure travel pathways for the philippines and other visitor markets. Philippines is a close ally of the united states and has a strong family ties to our community.
▶ 1:22:23Mr. Hofschneider: A filipino waiver on travel authorization could strengthen tourism, support air service, and reduce dependence on any one market. Energy costs are another major pressure. The cnmi relies heavily on imported fuel for power generation and in may of 2026 the commonwealth fuel adjustment charge increased from approximately $.24 per kilowatt hour to approximately $.44 per kilowatt hour, increase of approximately 81.6%.
▶ 1:22:55Mr. Hofschneider: The commonwealth government has historically spent about 12 billion to $14 million per year on utilities. Under the higher fuel adjustment charge, annual rates could rise to approximately $21.8 million to $25.4 million, which could mean nearly 10 million dollars to $11 million in additional annual costs for government operations. Health care facilities the power. Public safety needs power.
▶ 1:23:26Mr. Hofschneider: Water systems, all pending on reliable electricity. Cnmi needs reliable power, generation, stronger grid infrastructure, energy efficiency, and continued support for the commonwealth utilities corporation. Clean energy is important, but we must be practical. Our house cannot run on promises. We need power that works every day, including after storms.
▶ 1:23:54Mr. Hofschneider: We are grateful for fema and sba at all the federal agencies working with us after the typhoon helping to repair homes and help small businesses keep people employed, bringing confidence back to our community .
▶ 1:24:12Mr. Hofschneider: I would ask the committee to understand that the financial impact of a disaster in cnmi goes beyond damage to buildings and includes lost businesses, wages, interrupted tourism, higher construction costs, and strain on a small government with limited resources.
▶ 1:24:32Mr. Hofschneider: For that reason, I respectfully ask congress and the administration to support an increased federal cost-sharing for fema public assistance categories c through g to repair roads, public buildings, utilities, waterways, and other permanent infrastructure. We cannot permanently recover if the local share is for deeper cuts to essential services. Labor impacts are also served as serious.
▶ 1:25:01Mr. Hofschneider: As of may, 2020 six, the cnmi department of labor had received 19 workforce -- sorry, Mr. chairman, may I continue?
▶ 1:25:12Chair Lee: If you could wrap it up in the next 30 seconds, when it's over, then you can have another 30 seconds to wrap up.
▶ 1:25:20Mr. Hofschneider: I'll just wrap up. I just have more to read from the governor, but thank you for the opportunity.
▶ 1:25:28Chair Lee: Thank you so much. Really appreciate it. We will now turn to the honorable governor lourdes aflague leon guerrero, the ninth governor of guam, the position she's held since 2019. Governor, you are recognized. Hit the microphone button, if you will. Thank you. Gov. González-colón: sorry. -- gov. Guerrero: sorry.
▶ 1:26:02Chair Lee: Members of the committee, thank you for the opportunity to testify on the behalf of the people of guam. We sit at the center of america's in the pacific defense posture. From guam, the U.S. projects power, sustains logistics, supports humanitarian operations, and maintains deterrence across the region. Today that strategic goal is expanding through one of the largest military realignments in the pacific since world war ii.
▶ 1:26:32Chair Lee: This buildup is unfolding on a small island community with finite land, aging infrastructure, and civilian systems already under pressure. Guam is the tip of the spear, but the spear is only as sharp as the community behind it. Our resilience as a community is the foundation underpinning the american defense readiness in the pacific.
▶ 1:26:55Chair Lee: It is the basis for the dod call for a hall of government one guam approach to strengthening our pay calm force posture dating back to 2006. It is what not only justifies the reconvening of the economic committee, but demands it. Health care is the clearest example. Guam is nearly seven hours from advanced care on U.S. soil. In the pacific, distance creates risk.
▶ 1:27:26Chair Lee: The department of defense has recognize the role of guam in medical search capacity and civilian military interoperability in the indo pacific, but our health care infrastructure was not built for the growth and mission demand now arriving. A modern guam medical complex will strengthen civilian care, military readiness, and regional response capacity in a theater where time and distance shade outcomes. The same challenge exists with power resilience.
▶ 1:27:56Chair Lee: The military mission on guam runs on a civilian grid vulnerable to typhoons, aging infrastructure, and aboveground transmission failures. Our recent brush with the super typhoon reminded us that we are one major storm away from becoming a critical defense community unable to fully function operationally.
▶ 1:28:20Chair Lee: Hardening and underground and critical power systems would strengthen operational continuity, emergency response, communications, health care delivery and military readiness throughout the region. Cybersecurity must also be treated as a part of the national defense picture. Cyber attacks, supply chain disruption in the gray zone operations target civilian systems that sustain military power.
▶ 1:28:47Chair Lee: Our hospitals, utilities, public agencies, communications systems and infrastructure networks are a part of the resilience architecture that supports america's pacific posture. The same principle should guide the federal government's approach to deep sea mining.
▶ 1:29:05Chair Lee: We understand the national security interests of critical minerals, as well as supply chain resilience, but decisions involving the pacific ocean cannot be made without the pacific community -- communities most directly affected by them.
▶ 1:29:21Chair Lee: The process the concerns potential mineral leasing across the vast off share area near guam and the cnmi that is one regional marine ecosystem and any environmental impacts to this ecosystem will disrupt our economy, culture, and social integrity, lasting for generations.
▶ 1:29:43Chair Lee: For that reason, congress must invest in the infrastructure that underpins both the resilience of guam and american defense readiness, including a modern guam medical complex and the hardening of our system. Guam is already doing its part, we are not sitting on the sidelines waiting to be rescued. We have eliminated our structural deficit, rebuilt our rainy day fund and reduced debt obligations for the first time in generations.
▶ 1:30:14Chair Lee: Now we ask the federal government to match the scale of the mission with the scale of the partnership, convene the eac , adopt a one guam approach, align resources with reality as we join the nation in celebrating 250 years of independence, I ask that you remember this, guam has given the lives of its sons and daughters, the best of its land, and a share of its treasure to keep this nation safe and free.
▶ 1:30:41Chair Lee: We have done so without a vote in congress, a vote for president, or a meaningful voice in our own future, yet our commitment to america has never been measured by what we receive, but by what we are willing to give. Today we ask only to be equal. I would also officially invite you to come visit our island, where you will see how beautiful it is, where america's day begins. Test
▶ 1:31:11Chair Lee: Thank you so much, governor. Last but not least, the chair recognizes gov. Pula, from american samoa, the ninth governor there, previously having held a number of roles in the U.S. government including a nearly 30 year stint at the U.S. department of the interior. Governor, you may proceed. 2 thank you -- gov.
▶ 1:31:34Chair Lee: Pula: thank you. As cultural tree, I remove my traditional lei is a sign of respect as I speak to the sustained body. Chairman lee, ranking member heinrich, distinguished members of the committee, warm greetings from the people of the american samoa.
▶ 1:32:03Chair Lee: Thank you for the opportunity to appear before you today on behalf of the yearly 50,000 american citizens and nationals who call the american samoa home. At the outset, I would like to thank this committee for its continued support of U.S. territories and I extend my complement to the congresswoman on behalf of the american samoa and territories of the U.S. house.
▶ 1:32:30Chair Lee: I am grateful to the interagency group for its role in coordinating federal engagement and in helping to advance critical infrastructure and economic development priorities across the islands.
▶ 1:32:45Chair Lee: American samoa has proudly been a part of the american family from 100 and 26 years as americans with its only sovereign presence south of the equator we have a unique place in the indo pacific, yet our greatest contribution to the nation is not our location, but our people.
▶ 1:33:08Chair Lee: For generations, american samoa territories have maintained the highest per capita military enlistment rates in our country. Our sons and daughters have proudly served this nation in times of peace and war, demonstrating unwavering commitment to the united states. Despite the commitment, we continue to face long-standing challenges. Our per capita income remains below that of every U.S. state.
▶ 1:33:38Chair Lee: Geographic isolation, high transportation costs, and limited economic scale continue to challenge our ability to grow and diversify our economy. Yet we have demonstrated that federal investments can produce meaningful results. For example, american samoa obligated is complete rescue plan act head of the federal deadline.
▶ 1:34:02Chair Lee: Some of those funds are now supporting significant health care modernization efforts at our only hospital, the lbj tropical medical center, where we are constructing a new emergency medical unit. And of the territory's first mri facility. These projects demonstrate that federal investments when paired with responsible stewardship deliver measurable results. However, significant barriers remain.
▶ 1:34:32Chair Lee: Through the I gia, american samoa has identified 59 priority infrastructure projects totaling approximately 2.6 billion across energy, transportation, health care, telecommunications, and so forth. These are foundational investments required to maintain the essential services of long-term economic viability. I would like to highlight six priority requests. First, energy security.
▶ 1:35:01Chair Lee: We request continued investment in the renewable generation of battery storage, grid modernization and water infrastructure projects. Our grid is small, isolated, and fully exposed to global fuel price volatility. Reducing diesel dependence is the fastest path to lowering costs. We have requested five projects totaling 23.3 million. Second, the port apollo,.
▶ 1:35:31Chair Lee: We seek federal partnership to modernize. We have already committed 10 million for stabilization. We are also looking at using the port as a shipment hub for critical minerals in the cook islands. Modernization is urgent.
▶ 1:35:56Chair Lee: Current cargo handling capacity lacks regional ports that process more than twice those containers per hour. This investment will lower costs, strengthen supply chains, protecting a strategic U.S. asset. Third, health care modernization. We seek continued support to modernize our hospital and expand clinical capacity. Today patients requiring specialized care must travel to hawaii or new zealand.
▶ 1:36:29Chair Lee: We request relief from the territorial medicaid match requirement, with an inclusion in future rural health transformation funding. Current statutory structures do not reflect the fiscal realities of in sealer systems. Fourth, air traffic control. Our air traffic is controlled by a control tower in independent samoa 80 miles away. We request funding for a U.S.
▶ 1:36:56Chair Lee: Operated air traffic control tower at the international airport to improve aviation safety, emergency coordination, and operational control. Fifth, deep sea mining policies. We maintain opposition to deep sea mining in our waters at this time.
▶ 1:37:16Chair Lee: Should federal policy advance, we request rigorous, science-based review, full consultation with specific jurisdictions, environmental safeguards, and equitable beneficiaries. Sixth, extensions to the december 31, 2026 deadline for arpa funds, to make sure there is a full and responsible recovery of resources.
▶ 1:37:44Chair Lee: This story is not one of dependence, it is one of partnership. Continued partnership will help us become resilient, economically viable, and capable of supporting local and broader international interests. Thank you for the opportunity. God bless the united states. God bless american samoa. Thank you.
▶ 1:38:08Chair Lee: Governor, appreciate your opening statements. We will now have five-minute rounds of questions. In order of seniority, I will go first, followed by ranking member heinrich, and then after that following the earlybird rule. Governor -- gov. González-colón: governor -- gov. González-colón, I would like to start with you.
▶ 1:38:36Chair Lee: There was a resignation setting interventions by her office following contracting investigations that made it possible to perform the duties of the position the integrity and autonomy required every secretary owes the public. His resignation was followed by 10 other senior officials who resigned under core three, the disaster recovery terminal.
▶ 1:39:05Chair Lee: Did you or anyone in your office encourage, direct, or request the disciplinary actions related to the investigations be reversed? Gov. González-colón: no, sir. Several things. The first delegations are false. Second, the core three director did resign, and he told me about that in april of this year when he got a family issue and he will continue to work with me in other assets.
▶ 1:39:35Chair Lee: So, it is false, the allegation the former secretary is making. Second, he did ask about that contract. I instructed him about can selling, as he had prompted the problem with the contract and was worried about the situation. So, I told him that if he was disrupted to cancel. No contract had been awarded whatsoever.
▶ 1:40:05Chair Lee: Those are false allegations being investigated at this time by the department of justice. >> ok, you have ordered independent review on the allegations and are categorically denying the allegations. How can congress be assured that federal funds sent to puerto rico are not being misused or misplaced?
▶ 1:40:27Chair Lee: First of all, there's
▶ 1:40:30Much -- Gov. Guerrero: First of all, there's many federal participation on the island, we've been participating with fema, the fbi, and all of the liaisons in many of the areas. We are increasing reports and all the agencies. Not federal funding at this time, but in the last year it's been misused.
▶ 1:40:53Much -- Gov. Guerrero: As a matter of fact, we are increasingly using federal funding and imposing more regulations to oversight and presenting more local laws to review in terms of federal budgeting and review.
▶ 1:41:16Chair Lee: If the allegations raise are emphatically false, any idea why he would say those things that they were untrue? Seems like the kind of accurate patient that he would know if it wasn't true he could be figured out. Gov. González-colón: I do not know the political motivations he may have had to. He submitted an allegation to one of his employees that was submitted to investigation that is a part of the department of justice.
▶ 1:41:52Chair Lee: He is right now under current investigation and that's the allegation. Saying that my office, myself, or my chief of staff is involved is completely false. It creates the narrative of any kind of involvement on this issue, which is again completely false. There is no evidence of that, and I will tell you more. The facts are there.
▶ 1:42:24Chair Lee: The employee that he is referring to is fighting the allegation as well.
▶ 1:42:30Chair Lee: Thank you. Mr. hofschneider, do you think that the presence of the people's republic of china should be allowed to enter a U.S. territory without a visa?
▶ 1:42:46Mr. Hofschneider: That's a good question. The answer to that, as we look at it from the cnmi point of view, they shouldn't. But there are other ways for other nationals to enter the cnmi. Without a visa.
▶ 1:43:02Chair Lee: You agree that secretary mullin should close that program with respect to the prc?
▶ 1:43:09Mr. Hofschneider: That's a very difficult question to answer. Our economy depends on tourism. Around us in the cnmi, the closest island is guam. Some people go to vacation or relax in the cnmi. They are U.S. citizens. Some of them maybe are not, but they entered cnmi.
▶ 1:43:33Chair Lee: But you would agree that we shouldn't sacrifice national security for tourism dollars.
▶ 1:43:40Mr. Hofschneider: Of course not, but there's got to be a way to make them both work at the same time. We take national security very seriously. We live with it, we breathe with it. The military comes and visits our governor once a month where regular meetings happen and we talk to them about their activities and what's going on on the island. As you all know, there's a big military project going on there. In guam as well.
▶ 1:44:14Mr. Hofschneider: It's very serious. But to just cut it off and the tourists from other market sources, that would be detrimental to the cnmi economy.
▶ 1:44:27Chair Lee: A time is expired. A few minutes ago I thought you said you agreed that people from china should not be able to enter your territory without a visa. But your last statement seemed to contradict that. Help me understand.
▶ 1:44:42Mr. Hofschneider: I'm saying we need to work on a system that would protect national security and protect the economy as well.
▶ 1:44:51Chair Lee: Understood, talking about tourism generally, not necessarily supporting ongoing fees of free entry by prc nationals into your territory.
▶ 1:45:02Mr. Hofschneider: Right, let's work on that.
▶ 1:45:06Chair Lee: Understood. Senator heinrich?
▶ 1:45:10Sen. Heinrich: Puerto rico residents continue to face reliability concerns and frequent outages despite billions in federal investments intended to modernize the grid. I understand you have raised concerns regarding the performance of luma and are actively moving to challenge their legal contract in court. If luma is out of the picture, who steps up to manage the grid in puerto rico with its assets?
▶ 1:45:40Sen. Heinrich: Gov. González-colón: since the last year we have been trying to resolve the, the lack of luma with the government of puerto rico. I inherited that. What we have been doing is first trying to coordinate those differences with the contract, which says that when you have a difference with the contractor or operator in this case, you manage and negotiate those differences with them and the
▶ 1:46:12Sen. Heinrich: Difference will be resolved by courts. We tried to do that. That's the reason why we filed a motion to the courts that is still pending. They tried to remand that to a federal case. Judge swain at the federal level so that that should be resolved by the local courts, so that is still in that, in that venue. The second be filed after not being resolved we had a second motion to cancel the contract.
▶ 1:46:42Sen. Heinrich: That is still pending to be reviewed. We are asking the court to make a transition process.
▶ 1:46:48Sen. Heinrich: I understand that. If you are successful, who steps in and manages the grid? Gov. González-colón: we want to have a private company that has experience in the united states. We are not looking to get into --
▶ 1:47:02Sen. Heinrich: That would require immediate transition? From some private entity. I want to understand the transition. I don't want there to be a gap. The people of puerto rico gov. González-colón: -- there should not be any gap.
▶ 1:47:19Sen. Heinrich: They need more reliability than they have now. Who would fill the gap? Gov. González-colón: the question we are asking to the court in that case is to allow a transition process of up to one year, to allow the government of puerto rico to begin a formal process to ask for companies who are interested there to begin that process of formal requests for proposals and the transition process.
▶ 1:47:49Sen. Heinrich: Would luma still retain management through the year? Gov. González-colón: that would be a part of the decision the court needs to make.
▶ 1:48:00Chair Lee: What incentive would they have to manage for a full year if they are out? Gov. González-colón: we need the court to decide how the transition process will go. The government of puerto rico is not looking to go back to government operating the system.
▶ 1:48:18Sen. Heinrich: Appreciate that. Huge challenges. Gov. González-colón: we've already got a bankruptcy, we are not looking for the government to take back the operation. We want to have a private operator like we have right now and a transition to another private operator. To make the transition process, we are looking for companies with experience in the united states. Companies with experience in the U.S. they can make that happen.
▶ 1:48:48Sen. Heinrich: In order to get that ready, we need the court to allow us that vehicle of one year to make that open process. We cannot begin it without the proper instruction of the court.
▶ 1:49:02Sen. Heinrich: You referenced 1300 megawatts of restored generation capacity. Can you walk through the specific projects that make up that? Gov. González-colón: last year we had many reports on what was going on. We've got a very old system and many people know it from the 70's in the 60's.
▶ 1:49:28Sen. Heinrich: We went with the department of energy and the other operators to try to switch. Oil and kerosene, installations, converting them to lng, right? Mostly in a combined cycle. Talking about places like san juan in palo saco that were transitioning.
▶ 1:49:56Sen. Heinrich: Even last week we were transitioning old turbines that were invested more than 58 million dollars from the department of energy. They were revamping in a few months, given now more energy. Beakers, new unit beakers have been converted on the island. They have been using oil and now are using gas. They will be installed from fema money. Tesla units for batteries across the island.
▶ 1:50:28Sen. Heinrich: Six units that will be installed through the end of the year. What we have been doing is changing the complete view of oil to a diversified basket of energy, combined cycle, of course lng, and a batteries as an opportunity to increase energy baseload.
▶ 1:50:46Sen. Heinrich: Chairman, I apologize for going over. As I wrapped, I want to ask unanimous consent to enter a letter from governor guerrero and governor for deep-sea vent mining into the record.
▶ 1:51:03Chair Lee: Without objection. Senator wyden?
▶ 1:51:08Senator Wyden: Governor, we need an update on medicaid. A number of members here on our side have worked hard to try to provide stability to the puerto rican medicaid program, but the temporary fixes are about to expire. If congress fails to ask week -- we will fall off a funding cliff.
▶ 1:51:38Senator Wyden: This is life-saving health care. Can you paint a clear picture for the committee of what this funding stability means for puerto rico? >> it would be catastrophic not having that appointment of resources. First of all, thank you, senator.
▶ 1:51:56Senator Wyden: You have always been a leader in helping us, the government of puerto rico, to achieve the vast amount of what was done during my time in congress. Here's an example, puerto rico medicaid money is always capped at 55% fmap. We cannot receive more than 500 million dollars, capped by law.
▶ 1:52:24Senator Wyden: Different from the rest of the states that the point -- depend on a formula based on the rate. We don't have that as territories. That means that congress needs to intervene. As the hurricanes hit us in 2017, we got 100% of that for two years and after that, because of the, because a pandemic, we received 86%, which is the cause share of federal money assigned to the
▶ 1:52:56Senator Wyden: Territories. At this time it is 76% and it covers 1.3 million americans, at least in puerto rico. Even with that money, talking about $3.6 billion per year on the island. That never covers all the mandatory programs for medicaid on the island, because we cannot afford the rest of the programs. That means we don't cover long-term care for elderly citizens in puerto rico.
▶ 1:53:25Senator Wyden: That's the reason you see a lot of puerto ricans moving to florida, moving to texas, moving to the rest of the states, because there they can receive all the mandatory programs. Twice I want to get in one other question I know you care about. I want you to know that those of us working with you are going to pull out all the stops they handle the situation coming up at the end of the year, and I share your view that the pain would be devastating.
▶ 1:53:51Senator Wyden: The other question I wanted to get into very quickly with you is the question of the statehood matter. The department of justice, state, and congress have made it clear again and again that the alternatives to the current unincorporated territory status under the constitution are essentially statehood. Nationhood as a purely independent nation. Or nationhood freely associated with the united states.
▶ 1:54:20Senator Wyden: Certainly, there are people in politics year who are floating ideas of a commonwealth that isn't governed by congress and could make its own treaties but is still a part of the united states. What do you think about these? I call them unconstitutional fantasies. They seem to me to be a distraction. The status question needs to say focused on if puerto rico should become a state or an independent nation and I am interested in your thoughts. Gov.
▶ 1:54:46Senator Wyden: González-colón: first of all, even republican and democratic department of justice , they've declared that unconstitutional. Non-territory can declare what federal laws apply to a territory. That cannot happen.
▶ 1:55:04Senator Wyden: In the plebiscite proposed, they are saying you can have a territory saying what federal laws apply and what don't and they can have which country they want to do a treaty or not, it's been banned by the supreme court of this land and by the department of justice, by both departments. By the department of justice of the republican administration and democratic administration both.
▶ 1:55:31Senator Wyden: The people of puerto rico have rejected not once, not twice, but four times in a row. The last one was in 2024, more than 60% of that vote against declaring territorial status. That is denying the consensus of the island of more than 60% that they want statehood.
▶ 1:55:55Senator Wyden: Senator, I believe the only option the people of puerto rico got our independence, remain as a territory, or statehood, which is the preferred option of the people of the island. You know what? 230,000 people on our island have served the united states in uniform. As we celebrate the 250 event of his river america, it's time to solve this issue.
▶ 1:56:17Sen. Wyden: Well said and I particularly appreciate your salute to the people who wear our uniform. Thank you, Mr. chairman. Senator king?
▶ 1:56:28Senator King: Lots of discussion on power in electricity today. I was surprised to learn that puerto rico, only 20% of your power sources solar and is mostly rooftop solar, rather than any major system? First, is it true that the current administration canceled some $300 million earmark for solar development in puerto rico earlier this year? Gov.
▶ 1:56:53Senator King: González-colón: during my time in congress they approved $1 billion in money for solar installations on the island. I believe that $500 million of solar panels were installed in different areas.
▶ 1:57:09Sen. King: Was there a cancellation? Gov. González-colón: it was reapportioned, $368 million, instead of helping 10,000 individuals to one point 3 million citizens on the island. With that money, we improved the 1.3 million people on the island's grid, which is the reason we don't have power outages.
▶ 1:57:38Sen. King: Strikes me as odd that there would be diminution there, you have an enormous solar potential. Gov. González-colón: and we have nothing against solar. We want, actually, it was one of, I was one of the co-authors of the bill. But the situation we have on the islands, sir, is we don't have enough generation at this time
▶ 1:58:04Sen. King: . Solar generation? Gov. González-colón: yes but to have the whole island with power we need baseload generation. And we are adding batteries this year. I signed a contract with fema to add the biggest amount of batteries on the islands. Separate question about resiliency, on the virgin islands they have installed these massive telephone poles that are carbon fiber, I think.
▶ 1:58:38Sen. King: Clearly an enormous increase in reliability. Have you done that in puerto rico? Gov. González-colón: the transmission lines are using some concrete and changing the poles that have been installed.
▶ 1:58:50Sen. King: So, that's a part of your grid restoration? >> if I may, when you refer to the solar you're referring to the solar for all program. We lost 50 million revoked by the administration. A plan that we had to subsidize low interest solar loans and a grant.
▶ 1:59:12Sen. King: That was canceled for the virgin islands?
▶ 1:59:17Gov. Bryan: Correct.
▶ 1:59:19Sen. King: Also a pretty good place for solar. Quick question, any redevelopment plans for st. Croix? That was clearly a major economic driver.
▶ 1:59:31Gov. Bryan: Thank you. Absolutely. Speaking to those interested in purchasing it since the action in venezuela, the refinery was made specifically to refine that crude. There is a lot of interest in we hope we can get it properly invested, permitted, and we have started before the end of the year.
▶ 1:59:54Sen. King: Governor, question about your grid, U.S. national security systems on guam, do they depend on the local grid or have their own energy sources?
▶ 2:00:09Gov. Guerrero: Our guam power authority is the only provider of energy to the whole island, including military bases.
▶ 2:00:18Sen. King: So, the security of that grid, you mentioned cyber, but also the vulnerability to some kind of attack, that's an important issue, only for the people guam but for our national security?
▶ 2:00:34Gov. Guerrero: Absolutely. We have been working very closely with indo pay calm and also federal governments to enhance the security for those grids and for our power transmission. One of the biggest resilient actions, I think, is putting the transmission lines underground.
▶ 2:01:03Gov. Guerrero: That's very key to hardening, efficient, effective transmission of energy. But we have, yes, we are very aware, senator, of cybersecurity.
▶ 2:01:16Sen. King: Are you under assault? I know that the people's republic of china realizes the strategic value of guam. Are you experiencing cyber attacks and sabotage, those kinds of things already?
▶ 2:01:32Sen. King: -- gov. Guerrero: yes, we had some cyber attacks just recently. The federal government, the fbi, and other various federal agencies are working very closely to monitor, investigate, and help us to identify those attackers and, of course, try to get rid of them.
▶ 2:01:57Sen. King: But we have been, yes, we have had several, just recently, cyber attacks.
▶ 2:02:05Senator King: A problem not only for the people of guam, but also for our national security in the united states.
▶ 2:02:12Gov. Guerrero: Absolutely, we have a very good relationship with the military to strengthen that.
▶ 2:02:19Sen. King: I have visited your island to look at those facilities and can attest it's a very beautiful place. Thank you.
▶ 2:02:26Chair Lee: Senator cortez masto?
▶ 2:02:32Senator Cortez Masto: Thank you to all of you, thank you for traveling a long distance to get here. I appreciate it. Just so that I understand, we have been talking a lot about your grades, are you all seeking grid modernization on your islands? Is that true? Governor, let me start with you. Yes or no?
▶ 2:02:53Sen. Heinrich: Gov. Bryan: yes.
▶ 2:02:56Mr. Hofschneider: Yes.
▶ 2:02:59Gov. Guerrero: Yes.
▶ 2:03:01Gov. Pula: Definitely yes.
▶ 2:03:04Sen. Cortez Masto: There are plans that you have undertaken and congress has appropriated funding to help support some of that modernization. I am curious, under the new administration, my understanding is that the projects previously permitted and ready to go forward have been pulled back and that they have eliminated those projects. Is that true for all of you?
▶ 2:03:33Sen. Cortez Masto: Has that happened under this administration? Gov. González-colón: in the case of puerto rico, the doe has done some of that relocation and conversion, yes.
▶ 2:03:46Gov. Bryan: Yes.
▶ 2:03:49Sen. Cortez Masto: They have as well.
▶ 2:03:52Mr. Hofschneider: We received $63 million for solar energy. We still have that. We are working on expanding that grant for the projects that we had identified.
▶ 2:04:07Chair Lee: Other than that, have any federal dollars been pulled back?
▶ 2:04:13Mr. Hofschneider: No.
▶ 2:04:15Sen. Cortez Masto: Governor guerrero?
▶ 2:04:17Gov. Guerrero: Not for us, just the solar for all. That's been pulled back.
▶ 2:04:22Sen. Cortez Masto: So, no more funding for solar. Ok. Governor?
▶ 2:04:30Gov. Pula: No, but projects are proceeding forward.
▶ 2:04:34Sen. Cortez Masto: Great, thank you. Here's what curious about. I'm hopeful, I'm going to ask all of you, obviously grid modernization is key not just for your constituents. Everyone on the island for their safety, their health, for national security, it's important to do -- to address cyber issues.
▶ 2:04:57Sen. Cortez Masto: Planning to move forward and look at that grid modernization, I would hope you would continue to talk with us to let us know what you would need in terms of modernization and most importantly based on your geography and where you're located, what is the best generation? What is the best generation for the electricity we should be focused on without playing politics? Gov. González-colón: for us, --
▶ 2:05:26Gov. Guerrero: For us, first, solar. I think senator lee said we are the saudi arabia of solar. Yes, we are aggressively in our island, we have solar farms with several projects that turn to solar generation.
▶ 2:05:46Sen. Cortez Masto: And you need the funds to move forward. By the way, nevada, solar is our number one generation for clean renewable and not only is it important, jobs, the economy connected, both batteries as well and the battery storage in it is a baseload. I don't care what the administration says, it's essential baseload and if we are not developing those batteries, we are not developing the technology.
▶ 2:06:18Sen. Cortez Masto: We will be left behind.
▶ 2:06:20Gov. Guerrero: And for us we have experienced two major typhoons and our solar farms were very resilient. Very good.
▶ 2:06:32Sen. Cortez Masto: Hit hasek to hear. Governor? Gov. González-colón: we are diversifying. We are doing hydro, solar, lng. We need to lower the costs of energy, which is so expensive. We are doing batteries to lower that costs as well. We are doing combined cycle. And of course, we would need to have some oil, but right now oil is still the most expensive one.
▶ 2:07:11Sen. Cortez Masto: We would do that for maintaining solar as well.
▶ 2:07:12Gov. Bryan: Unlike the mainland, you don't have a redundant grid. On an island -- so, if the power goes up in georgia, texas fix it up. If you are out, you are out. The focus is going on solar. The batteries are expensive. The difference is buying solar now from our public provider.
▶ 2:07:37Gov. Bryan: We have these private providers where we pay -- eight cents to $.11. It's really going to revolutionize living on an island.
▶ 2:07:48Sen. Cortez Masto: Thank. Governor?
▶ 2:07:51Gov. Pula: Great question, senator. We are all different. We are on the islands, everyone thinks sunshine, wind, american express card. You know? When you fly in, we have most of ephesus rising up. Almost no flatland.
▶ 2:08:19Gov. Pula: With solar, we don't have a lot of flatland, so we don't have a lot of solar. We tried in some places. Had some flatland. With the wind, studies have been done and it hasn't been consistent. Basically, we all kind of look at different waves. That's something.
▶ 2:08:50Gov. Pula: Let me say something that is all over the united states. It was really good in the department of the interior this year, february. Those between senator donnelly v in alaska and another governor from montana. Of course, the secretary of energy was there, the secretary of the interior, we were all talking about this and at one time the U.S.
▶ 2:09:15Gov. Pula: Attorney general, I was wondering where they were and then I realized that with the western governors there were a lot of lawsuits against the federal government with energy. I asked dudley v, from alaska, since the presence of drill, baby, drill, you gonna have a lot of oil?
▶ 2:09:35Gov. Pula: Ship it down to the indo pacific for indo pay, and then we can ship it down to the american samoa and I can sell it to the pacific island nations that china is dominating over. Dunleavy said to me -- governor, was your kilowatt per hour? I said, about $.40?
▶ 2:10:03Gov. Pula: He wrote it down and he goes -- how much do you pay for gas? I said about four dollars, something, almost five dollars. He turned to me and said governor, you know you would be better off with small nuclear energy? I was like, I really don't want to say the word nuclear to my contingency.
▶ 2:10:34Gov. Pula: We are trying to look at ways of how to get our energy use. A combination of things, that's the short answer. >> can I say something about sienna my? Our part plan is more than 50 years old, so we're looking at modernizing those power plants.
▶ 2:11:03Gov. Pula: We were also looking at small modular units. Theorize geothermal. A few years back, he wanted to restart the exploration with wind, energy. Solar, governor from america samoa, land area very small.
▶ 2:11:34Gov. Pula: Today we are reviewing contract with the attorney general. That's our power producer for solar energy that will generate somewhere between 60 to 70 megawatts of electricity. We are looking at all options, there is no one perfect answer and it is good to take a combination of a few. Thank you.
▶ 2:11:57Chair Lee: Senator padilla?
▶ 2:12:02Senator Padilla: Returning to the topic that senator -- senator wyden raised, territories being forced to run medicaid on a captive block grant, something that has been frozen out there, disproportionately negative impact on rates you might have received compared to state counterparts.
▶ 2:12:29Senator Padilla: So, part of it was a funding and reimbursement question. I had a follow-up question as it pertains to workforce, right? Testify that the a below-market federal rights are putting patients and providers off the island.
▶ 2:12:55Senator Padilla: The federal government then pays the same doctor mainland rates because of their practice in florida, higher and when patients follow the enroll in mainland mayor -- a hi. It only makes sense.
▶ 2:13:25Senator Padilla: The island, losing patients and physicians. I guess my question is, what role do training pipelines, residency slots, and licensure play in growing a homegrown workforce and where would fill for better up federal support to make a difference? Gov. González-colón: you are completely right and it's one of the main problems we have.
▶ 2:13:53Senator Padilla: It's another situation where the U.S. puts more money into the states, more costs for the system, then allocating a minor increase in the funding on the island, we are retaining the professionals on the island. Even with the last deal that was done in congress, we increased a little bit the retainer.
▶ 2:14:21Senator Padilla: Not just for the physicians, but for the entire industry on the island as well. What we did in the last few years was increase the amount of local residents for, for local doctors it. That's another situation, brain drain to our local university of puerto rico, local school of medicine's.
▶ 2:14:42Senator Padilla: They graduate, they moved to the states, get hired immediately, and they get almost half the amount of money they've been doing in the state, creating a double problem. Less doctors and professionals. Same licenses. Professionals, the rest of the health care industry as well.
▶ 2:15:10Senator Padilla: We are asking cms, who has been visiting the island for year, they visit the island and meet with the stakeholders, professionals as well. One of the problems is that we don't have, we are disproportionate and don't have the ssi, creating additional burdens to the local hospitals.
▶ 2:15:33Senator Padilla: A situation in which we might lose private hospitals because they need to cover a lot of the services not covered by the system. In the case of puerto rico, let me tell you one of the problems we have. We don't cover that. If not extended, we may take that away.
▶ 2:16:04Senator Padilla: Durable medical equipment. Taking that away as well. It was included in 2024 and we may take that away. Home care, first time included it might be taken away. Those are mandatory in the rest of the states but in the case of puerto rico, we don't have enough resourceswe shrink the ie enough resourceswe shrink the ik enough resourceswe shrink the io the $500 million, some resources
▶ 2:16:36Senator Padilla: To 600,000 people instead of 1.3 million assistance to the rest of the island. Low income subsidy. Those are different programs that medicaid got in states that we do not have the territories and that is another constraint in our system and the reason people just take a ticket and they moved to any other state.
▶ 2:17:00Senator Padilla: >> the fact is all of our hospitals are public so we don't have the ability to turn down anybody. 50 million to $60 million in uncompensated care annually. It's boring a hole in us. >> thank you, Mr. chairman. >> thank. >> thank you, ranking member.
▶ 2:17:31Senator Padilla: Obviously always good to hear from my friends in puerto rico. I love to talk about snacks because there's obviously a disparity there. 1981, it was moved from the food snap program by 25% and as you know, your part -- the current program is capped also. Unlike snap, it cannot expand with increases.
▶ 2:17:58Senator Padilla: When hurricane irma and maria -- they did not have access from usda. The island had to submit a full plan to usda. Could you speak to how this gap in nutrition assistance continues to affect puerto rico's disaster response or disaster response preparation? >> this is one of the issues we need always to come to congress.
▶ 2:18:23Senator Padilla: Whenever there is a national declaration of disaster, territories need to come to congress and enact a new law to assign new resources because we don't have that provision. We just get the program, not the supplemental nutritional assistance program. That creates another burden to the -- we need to wait until congress acts and that may take months, weeks.
▶ 2:18:51Senator Padilla: It all depends on the necessity to receive that extra money to help people in the case of a situation. It could be an earthquake. It could be a tsunami. It could be a hurricane. In the case of puerto rico, it is a cap block rent. That means you got that amount of funds designed to the island. In the case of puerto rico, we import from the states almost 95% of what we consume.
▶ 2:19:21Senator Padilla: This is not that we are taking food from china, not taking food from any other places. We are taking food from the states and is traveling directly from florida in our weekly commute so in that sense, in order to get the food to our table to people in real need, we are asking to have the transition process.
▶ 2:19:46Senator Padilla: By different measures, that is being approved by congress, making that transition. Transition not just in paper coming with the department of agriculture to allow 1.2 low income residents to receive that employment and training program to start the program to see how we can make that happen.
▶ 2:20:12Senator Padilla: But right now, there's been language approved in the assistant program to allow that to continue to happen with the department of agriculture. The house approved its version in the farm bill. And we are -- we work with our committee and in our case, the funding approved will raise a little bit of the funding for that.
▶ 2:20:42Senator Padilla: >> >> I look at -- there with 4% inflation and we have not seen less than 7% inflation in the last five years and we had it as high as 14% inflation. A bucket of chicken in the virgin islands is $56. 20 piece hot wings is $35.
▶ 2:21:14Senator Padilla: It's like you're eating for us. But that is true in the rent, the power, everything else. Our efforts now in solar is to be able to control the price and it's the only way it we can control inflation as we move forward. I would love for us to consider setting different poverty income limits for the territories because of the duress that we are receiving. >> thank you. I have three kids and I traveled to puerto rico with the three kids and they love eating so I end up paying a lot.
▶ 2:21:44Senator Padilla: The governor knows what I am talking about. One of the things that got me first interested in puerto rico is because there were puerto rican marines in the iraq war and they have the highest concentration of veterans and per capita participation in one of the things they really -- that really disturbs me is a lot of them did not receive the same benefits that they do on the mainland so if you serve your countries -- american, puerto rican, and you go to florida, you get full benefits, right? You get treated great.
▶ 2:22:14Senator Padilla: However, if you are a veteran on the island of puerto rico, you do not actually get the same benefits. Can you describe that disparity, governor, and any other governors, have you seen this kind of disparities? It's disturbing for many of us that have served with men and women from the territories that their benefits are entirely zip code related instead of the fact that they served their country? >> you just said they are just related to the place they lived.
▶ 2:22:42Senator Padilla: If they live in florida, they got their full benefits and we are not just talking about being veterans. That social security income that is related to their age is just because where they lived.
▶ 2:22:57Senator Padilla: They lose that benefit as soonest they get back home and sometimes, they just want to get with their family and cannot receive that home and it is a shame in that is the reason people are continuing to vote to end that disparity and I know that is the same situation for most of the territories. >> for us in guam, senator, we do have those benefits but our biggest problem is they are so slow in coming. Claims processing is very slow.
▶ 2:23:29Senator Padilla: When veterans apply for durable medical equipment, they had to go to hawaii to get the equipment. So one of my suggestions which I had already posted to the secretary of the veterans is that we do our own regional claims processing in guam and if we do that, then we can also service the marshall islands who also have a lot of U.S. veterans there but these people have to fly to either guam or the U.S.
▶ 2:23:59Senator Padilla: To even do with claims processing. >> because they are sovereign nations. >> they are U.S. nationals that can serve in the military. >> if we have this regional office where we can do our own claims processing, then we can also service these outer islands through satellite offices. So for us, it's more the processing. It takes months and sometimes even years to get the service.
▶ 2:24:29Senator Padilla: >> senator, I was just going to echo the same thing. During the first trump administration, I traveled with the then secretary of the veteran affairs to the islands and we went all the way to micronesia and that was the issue. We were in hawaii where a lot of people have to travel to.
▶ 2:24:50Senator Padilla: I will tell you, I was really surprised the way the veterans were talking to the secretary of veteran affairs. >> it is, to be honest. >> I was like, wow. I was working with the department of in your to what governor guerrero is saying.
▶ 2:25:21Senator Padilla: Having a regional base where the other satellite offices can help some of these veterans who fought in the war. Same thing. Thank you. >> same thing is going on. I wanted to let everyone know, the governor is a vietnam veteran and he is like 75, 76 years old and he's going through a lot.
▶ 2:25:45Senator Padilla: The other veterans that have come home -- they wait and need medical services. Answers from the veteran office. Sometimes we get word that someone is going to be over to help the veterans with medical care, medical needs, where a goatee. Sometimes, they don't come. We have to wait.
▶ 2:26:17Senator Padilla: They have to go to guam for very simple treatment or tests. The cost is so much to fight from guam and -- to fly from guam and back. It's over $600 and there's only one airline that flies between these two islands, united airlines. It used to be we can pay for a round-trip ticket to guam like $200, 300 dollars, but now it's that high.
▶ 2:26:43Senator Padilla: And veterans are, you know, they need to relax, enjoy their moments, their remaining time. They have to go through additional stress to try and get help. >> senator, if I can? >> up to the chair. I apologize. >> I just want to make a comment about air transportation.
▶ 2:27:08Senator Padilla: Throughout the islands, air transportation is very key for connectivity, for the economy, for commerce and so forth. And we are very limited in air transportation. One of the reasons is the law which says that a foreign air carrier cannot go to two U.S. ports of entry.
▶ 2:27:33Senator Padilla: With us in guam, this cost of high -- it's about $4000 to go from guam to the united -- to california and back. To hawaii, it's about 2000, 3000 so if the law was exempted from us, we can use philippine airlines. We can use china airlines.
▶ 2:27:59Senator Padilla: We can use korean airlines that can fly to guam, pick up passengers, and go on to the united states. U.S. what congress can do. If you can review this law and just give us an exemption or a waiver to be able to have the opportunity and the access, I will tell you, south pacific island is the same thing.
▶ 2:28:26Senator Padilla: They have limited, limited carriers and so is the north pacific. Removing the law will do a lot to improve commerce in the economy for islands in the pacific. >> I agree. Sender. >> thank you, Mr. chairman and thank you for holding this hearing. It's good to see our governors here. And to have the opportunity to renew acquaintances.
▶ 2:28:55Senator Padilla: We should not limit our governors to five minutes when you come back to once a year, maybe once a session. I'm hearing this is where -- this is the way our process is set up so I feel I have to offer a little bit of an apology because it is so important that you are here, that you will have flown as long as you have, as many hours as you have so I hope that you have had a good reception as you are meeting
▶ 2:29:25Senator Padilla: Individually with members of the administration to express their concerns and to state specifically the many ways that we can come of federal government can be there to help whether it's on the health care side. How we deal with transportation.
▶ 2:29:49Senator Padilla: There's so many things we need -- we are in a position to do to help but we need to understand the impact. My state of alaska is going through what I know virtually all of you are facing as governors as we are looking at the high cost of fuel.
▶ 2:30:06Senator Padilla: When your communities that are powered by diesel and the price of diesel has gone as it has, we have a little bit of an extenuating circumstance in alaska because our fuel deliveries in many of our coastal communities are twice a year, not due to distance but due to ice and so we have similar challenges again where I feel that I represent a big island in north state whereas you are islands may be smaller and warmer but many of the same
▶ 2:30:37Senator Padilla: Challenges. I wanted to ask both to governor guerrero and -- because both guam and american samoa have raised some concerns or issues regarding the potential offshore critical mineral development and we have a little bit of a chance to talk about that yesterday in my office. We are all looking to try to understand that.
▶ 2:31:05Senator Padilla: In alaska, we are not certain of how this would work. The regulations are not in place and it has raised an issue of concern in northern waters as well.
▶ 2:31:21Senator Padilla: So I am wondering if you can share with the committee what you might consider meaningful consultation with territorial governments, what they would look like before the federal government advances any future leasing decisions and further to that point, about the role possibly you see of the government when it comes to surveying, mapping.
▶ 2:31:51Senator Padilla: We don't know what we don't know oftentimes. But the ability to even characterize the resources if commercial development remains uncertain so please speak to that issue because it is very relevant to the moment. >> thank you very much senator. You're absolutely right.
▶ 2:32:13Senator Padilla: One of the biggest concerns we have in our island is the deep sea mining licensing and exploration project is really going very fast without any input if anything by the pacific islanders other than may be the time to make public comments.
▶ 2:32:39Senator Padilla: We expect that we would want -- we want actually face-to-face communications. With those entities and that we don't learn about these requests for comments through public media. You can imagine our surprise when that happened. >> have you asked for that one-on-one dialogue?
▶ 2:33:01Senator Padilla: >> I met with the head and we have asked to be heard and they did come out but very limited time with us and did not spend a lot of time with our public to get the input and even american samoa was actually the first island that had that event going on but even with 65,000 comments
▶ 2:33:35Senator Padilla: Submitted, we felt we were not heard because the next day, the process of the licensing changed and was expedited. And then a few days later, we hear that the area space was expanded without even our knowledge and information so this is what we suffer in our islands is policies that are acted on without input from any
▶ 2:34:05Senator Padilla: Of us and I guess that's because of our political status. We are in unincorporated territory. Our fear of this is the united states could come in and say you have no control. We are just going to come in and mine these waters and please know that this is our livelihood . Our lives are very dependent on these waters.
▶ 2:34:30Senator Padilla: I think more dialogue, more discussions, and listening to our concerns, genuinely listening to our concerns. >> american samoa has clearly been in the news. Press american samoa is in a very interesting situation because we do have those critical minerals out there.
▶ 2:34:58Senator Padilla: As a governor from arkansas, our lifeblood is basically tuna which is a migratory species and so in the pacific islands, and this is something I'm going to complain about, the united states for many years have kind of neglected the fishing industry in the pacific. China has now dominated. You know, our areas.
▶ 2:35:29Senator Padilla: We have the largest starkist canning tuna left for domestic tuna. The starkist supply rations for the military are hanging onto our cannery. Now the fact that we have critical minerals and the fact that territorial waters only go out to three miles, beyond that, that is federal.
▶ 2:35:58Senator Padilla: I wanted my people to know that I am against mining. However, should the federal government move forward, that we would like to have basically a seat at the table to be able to understand science and everything so that we don't damage this area because of the resources.
▶ 2:36:21Senator Padilla: On the other hand, I would rather afford national interests of the united states. We have those minerals in there. If they do it right, do it in a way that is environmentally friendly, that we -- our little territory would very much appreciate, you know, revenue sharing. Not only just for our territory but it's important for the national interest.
▶ 2:36:52Senator Padilla: I don't want my grandchildren to speak chinese 20 years from now. I want the united states to have power over energy. In terms of fuel and all that. I mean, the world is in commotion these days. I want to do right by our nation and by my territory. So that is where I am. Thank you. >> center, can I say something.
▶ 2:37:24Senator Padilla: All right. Real quick. Deep sea mining. Yes, we went through the process. The publication went out and they invited comments. We submitted comments -- they will receive over 65,000 comments. You mentioned something, meaningful consultation. That is a term that needs to be defined by -- guam included.
▶ 2:37:55Senator Padilla: If you look at the archipelago, we are a chain of 14 islands and it extends south near guam and it goes all the way up north. On the eastern side is the mariana trench and right along that, the proposed mining area, it borders the mariana trench. The second area that came out identified the western side of the chain of islands.
▶ 2:38:24Senator Padilla: Now, you have the archipelago sandwiched between two potential mining areas. Most of my permits are issued and commercial mining begins, I will leave it up to you to imagine what conflict might arise.
▶ 2:38:43Senator Padilla: We have ocean festivals that come in and deliver goods to our islands and the military uses the same ocean to exercise their training so their troops would be defense ready. We have our culture. We have lived in the islands for many years. We know the waters around us. No one has asked us about what the waters mean to us. It's our food.
▶ 2:39:13Senator Padilla: It's our identity. We have never done anything to jeopardize it. It's amazing. President trump signed the commercial -- it opens up the pacific. Our area as well. So that would create additional activity out there so can you imagine traffic. Who knows what might happen out there. He supposed to deep sea mining?
▶ 2:39:49Senator Padilla: We need to sit down with matt. He said we will be out to meet with people, our community. Their representatives on the island for just a day and they left after that. So we need more meetings, more meaningful consultation. We look at the environment over the ecosystem that might be damaged and we need to look at our economic livelihood. >> thank you.
▶ 2:40:21Senator Padilla: Senator. >> thank you. I just want to have a little bit of clarification regarding deep sea mining so governor guerrero, you mentioned that that is happening rapidly but is it the consensus of each of you -- by the way, thank you for coming this far to share with us your priorities.
▶ 2:40:44Senator Padilla: Do all of you share the concern that you are not being given meaningful consultation or input into what is happening in your environment in the seats that surround your nations? Is that a shared concern with all of you?
▶ 2:41:03Senator Padilla: >> I do want to say the office has traveled down to american samoa and they have gone out -- in april, the deputy secretary, mcgregor, of the department of interior came I came down to american samoa, spoke to the leadership of our legislature, myself and our delegate to congress.
▶ 2:41:37Senator Padilla: We are engaged. I want to say that we have been engaged -- engaging most likely because american samoa -- they do have critical minerals and therefore there has been I would say engagement with us. I am still not there yet. In terms of concurring with the speed of how they are moving forward.
▶ 2:42:01Senator Padilla: I have been told that even if they issue license through boeing in the month of august -- -- boeing in the month of august -- >> I don't have much time. This is really important for all of us to understand.
▶ 2:42:21Senator Padilla: So you are being engaged but governor, you are expressing concerns that you folks, guam has not been adequately consulted. >> on november 12, I found out through the announcement, public announcement about a public comment period for deep sea mining in mind you, guam is not identified in the deep sea
▶ 2:42:52Senator Padilla: Mining. But we are -- where they want to do the deep sea mining is very close to guam. So it does affect us and when I found out about it, I called the governor at the time to see, hey, did anybody tell you? And he said no. So that is a very concrete example going quickly without input from the islands.
▶ 2:43:20Senator Padilla: >> what would you suggest that we contemplate doing to make sure that all of you have adequate input to this particular activity, deep sea mining in your waters? >> my suggestion is that congress asked to put a pause on deep sea mining and do a lot of research on science and data.
▶ 2:43:46Senator Padilla: And to allow also, or you know, I know you cannot force people to do this but to come forward through the agencies to meet with the leaders and the people. Through public town hall meetings. And so forth.
▶ 2:44:08Senator Padilla: You can't legislate increased communication but certainly, work towards policies that might say to everyone let's look at this more closely. >> kind of a communication that -- to the powers that be that there be a pause on deep sea mining. Do you all agree?
▶ 2:44:36Senator Padilla: >> they have written a letter to chairman lee to introduce the legislation. Collects you all agree that that would be a good idea? >> we believe so. It gives them time to work and study what they are releasing. Also the materials they are releasing in the information is good for them. >> this is very serious, senator. Because the seabed is not resilient at all.
▶ 2:45:06Senator Padilla: And once you go in there, and you disrupt the seabed and the environment, it's very hard to recover. >> hawaii is very aware of the potential for minerals in the waters off of hawaii.
▶ 2:45:25Senator Padilla: I also just want to share as an island estate, we are very much -- we understand the high cost of energy if you are reliant upon importing fossil fuels which is why for all the states, why residents paid the highest for electricity and why we are so focused on alternative and renewable energies and I can very much understand why you are going in that direction of looking for other ways of keeping the costs down for
▶ 2:45:56Senator Padilla: People so for your constituents, I did want to ask a little bit about the visa waiver program. I have some familiarity with visa waiver so this is for him. As far as I know, there's still visa waiver programs that apply to japan and south korea and many of the european nations. Is that correct? Do you know? >> that is correct.
▶ 2:46:23Senator Padilla: >> in order for the travelers to come from these nations, they still have to go through a vetting process so my question is for the program that you have , are the chinese people who avail themselves of this visa waiver program, are they vetted, Mr. chairman? He expressed concerns about the kind of people who are coming in under this program. >> vetted by the immigration.
▶ 2:46:55Senator Padilla: >> they are supposed to be but they are not. Class I don't know if they are not because we are not doing the vetting. >> the chairman expressed serious concerns about this program to the point where he is suggesting we completely stop. Are they included in the visa waiver program? >> they are not. >> would you like them to be? >> yes.
▶ 2:47:21Senator Padilla: >> is at the state department that authorizes -- with they have to authorize it to have such a program? Homeland security. There are various kinds of factors that go into it. The country cannot open the program like this.
▶ 2:47:40Senator Padilla: >> the governors have written -- secretary of interior and the secretary to include the philippines. Courts haven't worked on some of these programs for a while, particularly the visa waiver for south korea, I understand how important and what kind of impact such a program has on terrorism. That's why everyone should push for a national visa waiver.
▶ 2:48:10Senator Padilla: I would suggest -- far be it for me to tell you all what to do but considering that I think this is an important program as you suggested in your testimony, I do think that there probably needs to be a more careful consideration of the process by which people come to you under this program.
▶ 2:48:35Senator Padilla: So for the governor, you know that there is a lot of military infrastructure being built on guam to deal with the movement of the marines among other reasons. You do need workers, don't you? >> yes, we do.
▶ 2:49:01Senator Padilla: We have the program and initially, it have caps the number of -- it cap to the number of workers to come to guam but congress has recently removed the cap.
▶ 2:49:17Senator Padilla: Now there is no cap and it's only for military projects in the civilian community also need those workers because our construction is also expanding in our economy is expanding so right now, this is only available to 2029 and I know that there is a provision in the ndaa to expand it to 2031 and
▶ 2:49:48Senator Padilla: That would be greatly appreciated and it was supported and passed. >> would you consider a longer timeframe? >> not even having a time. >> we have had to extend the worker visas. >> it's only for military construction. And one of my requests is that we just removed that military construction for the island.
▶ 2:50:20Senator Padilla: >> just as a last -- recent concerns about the high cost of providing health care. They have been some massive changes to medicare that will make it even harder for you to provide medicaid coverage and that is going to hit millions of people nationwide.
▶ 2:50:45Senator Padilla: I can certainly empathize with the need for us to look at what kind of reimbursements you are receiving from medicare and medicaid in the states also have the issue, by the way, because hawaii, for example, would like our medicaid reimbursements to be reviewed. I hope that these areas that we can take a look at and see what we can do to work with you all. Support your needs. Thank you, Mr. chairman.
▶ 2:51:15Senator Padilla: >> previously considered during the second round but we got about that is going to close sooner and will turn into pumpkins to head down there. I appreciate each of you for coming today and for your testimony. It's been very informative. As we close, I want to make a couple of comments. Grateful that you raised the jones act of the skies issue.
▶ 2:51:44Senator Padilla: It appears to me as I have been thinking about in response to your questions, some of our territories, and I would certainly include guam, american samoa in this, you are so far from the united states mainland and so much closer to many other countries then you are to the united states.
▶ 2:52:09Senator Padilla: It appears to unfairly affect you and your populations in a way that is fairly unique and it also seems to me the purported public policy justifications of those laws as applied for your territories might be outweighed by the unique burden that your territories face in that. In some ways, they do to your areas want the jones act might do to other territories including perhaps puerto rico and the U.S. virgin islands.
▶ 2:52:40Senator Padilla: I really appreciate you raising it. That is an important point. With regard to the issue at the visa waiver program, although I do believe we have got to get rid of that particular policy, I'm very sympathetic to the concerns you expressed about maintaining your tourism industry.
▶ 2:53:03Senator Padilla: I would be happy to work with you and your governor to help think of other creative ways that we could do that without creating the same national security concerns that we face as a result of this. I was hoping to follow up with you with an additional question but I am out of time and I am going to have to run quickly for a vote and for that I apologize. I would like to visit briefly with the witnesses so I would like to run fast to get to the vote.
▶ 2:53:30Senator Padilla: The issue I wanted to flag and that I may ask you about in a follow-up question in writing relates to a done control measure passed by your legislature on june 12.
▶ 2:53:47Senator Padilla: As I look at that, it appears to present serious questions as to whether it can withstand scrutiny under the second amendment particularly in light of the supreme court's analysis in heller and also in connection with establishing that case with respect to constitutional carry. I hope you will take a look at that and consider a veto if as I suspected he will conclude after you have done the analysis. These questions are significant.
▶ 2:54:19Senator Padilla: With that, we are going to have to conclude the hearing. Any senator who wishes to submit additional questions for the record may do so. The deadline for submitting such questions for the record is 6:00 p.m. On thursday, june 18. Senators will also have until 6:00 p.m. Next wednesday, june 20 fourth, to add statements for the record of today's hearing so thanks again to each of my colleagues for being here.
▶ 2:54:49Senator Padilla: For their participation of the business meeting earlier, for helping the committee. And again, I thank the governors and representatives for their testimony before this committee. As I sprinted to the floor, the committee stands adjourned.