Gov. Albert Bryan Jr. has vetoed two significant bills passed by the Legislature, including a proposal to impose a 3 percent fee on money transfers, as well as portions of an appropriations bill tied to the combined $137.5 million in settlement funds from the estate of Jeffrey Epstein and financier Leon Black, who settled with the territory over his ties to Epstein.
Both measures, which were passed by lawmakers in late September, were intended to bolster the territory's financial resources, but on Tuesday, Bryan raised concerns about their potential unintended consequences.
Money Transfer Fee Bill
Bill No. 35-0375, introduced by the Senate's Appropriations and Budget Committee Chair Donna Frett-Gregory, was designed to generate approximately $21 million in new revenue by imposing a 3 percent on wire transfers. The funds were meant to help balance the Virgin Islands' $1.2 billion budget and establish the Money Laundering and Electronic Transaction Enforcement Fund.
While the measure was intended to combat money laundering and boost government revenues, Bryan vetoed the bill, expressing concerns on Tuesday about its broad scope and impact on the business community and consumers.
"This measure could unfairly shift the burden of additional costs onto consumers," Bryan said in a transmittal letter to Senate President Novelle Francis, noting that the fee would affect banks, credit unions, money transmitters, and others. He warned that businesses might pass the costs onto consumers, including college students, military personnel, and small business owners, at a time when inflation is already a concern.
Bryan also cited the potential conflict with the U.S. Constitution's Commerce Clause, which regulates interstate trade, indicating that the wire transfer fee could face legal challenges.
Epstein Settlement Appropriations
Bryan also exercised his line-item veto authority on Bill No. 35-0380, which appropriated Epstein estate and Leon Black settlement funds for a range of infrastructure, health services, and economic development across the islands.
The Senate's proposal, discussed in two back-to-back meetings on September 26, also included the establishment of the Southern Trust Company Settlement Fund and the Survivors and Mental Health Healing Trust Fund. While Bryan approved many of the bill's provisions, he issued line-item vetoes for two specific sections, including a section appropriating $10 million to the Economic Development Authority (EDA) for private economic development.
Tuesday, Bryan said he had struck down this allocation, explaining that the EDA had already received $67 million from the federal government through the State Small Business Credit Initiative (SSBCI), making the additional $10 million unnecessary. "Allocating additional funds now would not be an efficient use of resources," Bryan stated.
Bryan also vetoed Section 15, which directed that the settlement funds be placed into a high-interest-bearing account. The governor explained that the Epstein funds are already in such an account, making this section redundant.
Finally, Bryan vetoed Bill No. 35-0381, which sought to appropriate funds to the Attorney General's Crime Prevention/Prosecution Fund and establish a new charitable fund for vulnerable and disenfranchised individuals. The bill, tied to $25 million from the Epstein Estate Master Settlement and Release Agreement (MSA), aimed to support crime prevention and prosecution efforts in the territory.
In his veto message, Bryan criticized the bill as "unnecessary and flawed," pointing out that the MSA already ensures the automatic contribution of $25 million to the Attorney General's Crime Prevention/Prosecution Fund, making the legislation redundant. Bryan further noted that the bill's provision allowing the governor to contribute funds through the commissioner of Finance was unnecessary, as the contribution is mandated by the settlement agreement itself.
The bill also included a transfer of $5.3 million to organizations that assist vulnerable individuals, but Bryan's veto emphasized that the existing structure of the MSA already covers the intended purpose of the bill.
Despite these vetoes, Bryan expressed support for the broader goal of using the settlement funds to improve infrastructure, mental health services, and the economic outlook of the Virgin Islands but emphasized the need for careful management and efficient use of resources.
Meanwhile, the governor approved the majority of fiscal year 2025 budget bills passed during the most recent Senate session, including a measure removing restrictions on the government's existing $100 million line of credit to allow for outstanding vendor payments, among other things.
To read the governor's transmittal letter to the senate president, click here.