AGP Executive Report

CNMI Budget & Shutdown Fallout: Gov. David M. Apatang signed the FY 2027 budget into law (Public Law 24-40), ending the Oct. 1 partial shutdown, but he also vetoed more than a dozen provisions and ordered most workers onto a 26.5-hour workweek; he warned CUC’s proposed rate increases would be a “drastic hike” for ratepayers. Utilities & Cost Pressures: CUC is seeking CPUC approval for a three-year rate plan that would more than double some electric base rates by Year 3 and raise water and wastewater charges. Labor & Immigration: Delegate Kimberlyn King-Hinds urged HR leaders to back federal action to eliminate the CW touchback requirement, while immigration attorney Bruce Mailman warned employers to “upgrade” admissions planning as CW and H-1B/H-2B cap exemptions face tighter pressure. Federal Power/Indigenous Rights: A symposium at Fordham Law will examine federal authority over U.S. territories and Native nations after the U.S. Supreme Court hears a Guam case tied to Air Force detonation operations. Saipan Airspace Security: FAA review is underway for a new Mount Petosukara radar to restore long-range surveillance in CNMI’s northern airspace, tied to broader Indo-Pacific defense buildout. Elections Admin: The CEC set Oct. 9 as the deadline to apply for absentee ballots for the Nov. 3 general election. After the Storm: Authorities declared Saipan and Tinian “all-clear” as Typhoon Choi-wan moved away, though hazardous seas and lingering weather remain.

CNMI Government & Budget: Gov. David M. Apatang signed the FY 2027 budget into law but vetoed more than a dozen provisions, citing not enough time to review impacts before the Oct. 1 start; the partial shutdown continues, and he amended the essential-services order to add more Finance, Lands, Public Works, and Office of the Public Auditor staff allowed to work. Elections: The Commonwealth Election Commission says absentee ballot applications for the Nov. 3 general election are due Oct. 9, with late approvals under 11 days requiring in-person pickup. Utilities & Cost of Living: CUC is seeking CPUC approval for a three-year rate plan that would more than double some electric base rates by year three and raise water and wastewater charges. Labor Policy: Delegate Kimberlyn King-Hinds urged HR leaders to back federal legislation to eliminate the CW touchback requirement, calling it urgent for the islands’ labor pipeline and economic recovery. Immigration: An immigration attorney told SHRM-NMI employers to prepare for tighter federal immigration pressures, warning the CNMI could lose key CW and cap-exemption pathways without congressional action. Storm Recovery & Safety: After Typhoon Choi-wan moved away, Saipan and Tinian were cleared, but officials warned hazardous seas and monsoon-driven winds could linger; separate typhoon conditions remain for the Northern Islands. Campaign Events: The Saipan Chamber of Commerce will resume the gubernatorial candidates forum on Oct. 8 after a storm-related power outage cut the Oct. 1 debate short. Aviation/Defense: FAA review is underway for a new Saipan radar at Mount Petosukara to restore long-range surveillance, tied to broader Indo-Pacific defense buildup. Sports & Community: Saipan Chamber hosts its Oct. 7 general membership meeting featuring PSS interim education commissioner updates; meanwhile, PSS girls volleyball saw Agape and Mount Carmel post wins.

CNMI Courts: Superior Court Judge Joseph N. Camacho denied a defense bid to bar autopsy photographs and related medical evidence in the voluntary manslaughter case against Jeremy Guillermin, keeping the materials available for trial later this month (jury trial set for Oct. 19). Utilities & Cost of Living: CUC is seeking a three-year CPUC rate plan that would more than double some residential electric base rates by Year 3 and raise water/wastewater charges, with hearings slated for Oct. 19-21. Immigration & Workforce: Immigration attorney Bruce Mailman told SHRM-NMI employers to “upgrade the level of admission” as federal CW pressures tighten, while Delegate Kimberlyn King-Hinds urged business support for federal legislation to eliminate the CW-1 touchback requirement. Budget & Shutdown: Gov. David Apatang signed the FY 2027 budget into law but vetoed more than a dozen provisions, and amended his partial shutdown order to expand the list of essential workers. Typhoon Recovery: After Typhoon Choi-wan moved away, Saipan and Tinian were cleared, but hazardous seas and lingering monsoon impacts continue; Northern Islands remain under Typhoon Condition I. Ports & Infrastructure: Port Authority of Guam crews restored Gantry Crane 4 to service; Crane 6 recovery and assessments continue after a high-wind incident. Defense & Aviation: FAA public comment closed on a proposed Saipan radar at Mount Petosukara to strengthen north-facing surveillance tied to broader Indo-Pacific defense needs. Local Politics: The Saipan Chamber gubernatorial forum was cut short by a power outage at the Gilbert C. Ada Gymnasium, with the debate likely to resume online.

Typhoon Choi-wan Aftermath: Saipan and Tinian got an 8am all-clear as Choi-wan moved away, but officials warned of lingering monsoon-driven winds, hazardous seas, flooding risk, and continued advisories; Pagan, Agrihan, and Alamagan remain under Typhoon Condition I. Utilities & Elections: A power outage at the Saipan Chamber of Commerce gubernatorial forum cut the debate short, with organizers planning to reschedule online; separately, CUC is seeking CPUC approval for three years of rate hikes plus a typhoon recovery surcharge, with hearings set for Oct. 19-21. Federal/Defense Infrastructure: The FAA is reviewing public comments for a new long-range radar on Mount Petosukara, aimed at closing a north airspace surveillance gap and supporting civilian and defense needs. Labor Policy Push: Delegate Kimberlyn King-Hinds urged business and HR leaders to back federal repeal of the CW touchback requirement, calling it a major drag on the local labor pipeline. Legislative/Local Politics: The Tinian casino bill veto override deadline passed with the Senate session canceled due to storm disruptions, leaving the fate of the measure unclear. Campaign Trail: Independent delegate candidate Galvin Deleon Guerrero said his campaign has shown widespread poverty alongside household resilience ahead of the Nov. 3 election.

Tropical Storm Choi-Wan Aftermath: CNMI weather officials canceled Tropical Storm Condition I for Saipan and Tinian effective Oct. 3, but warned the “all clear” isn’t here yet as monsoon surge winds, hazardous seas, and flood risks linger. Utility Costs: The Commonwealth Utilities Corporation filed a three-year rate hike plan plus a typhoon-recovery surcharge; CPUC hearings are set for Oct. 19-21, with potential changes starting Dec. 1. Labor Policy Push: Delegate Kimberlyn King-Hinds renewed calls to eliminate the CW touchback requirement, saying it’s disrupting projects and businesses, and highlighted her H.R. 8931 proposal. Legislature & Casino: A Tinian casino bill veto override deadline passed Oct. 4, but the Senate canceled its session due to the storm, leaving uncertainty about whether the deadline still stands. Campaign Trail: Independent delegate candidate Galvin Sablan Deleon Guerrero says visits to families show widespread poverty and resilience ahead of the Nov. 3 election. Local Government Request: CNMI mayors appealed to President Trump for federal help amid economic strain and super typhoon recovery. Education & Community Needs: Interim Education Commissioner Jacqueline Che asked businesses and civic groups to help repair storm-damaged school bus stops.

Storm Response: Gov. David Apatang canceled Tropical Storm Condition I for Saipan and Tinian effective 8 p.m. Oct. 3, but warned it’s not an all-clear as a monsoon surge keeps gusty winds, hazardous seas, and flood risk through the weekend; Saipan and Tinian still face strong winds, intermittent outages, and dangerous surf. Utilities & Cost of Living: The Commonwealth Utilities Corporation filed a proposal for three years of rate hikes plus a typhoon recovery surcharge; CPUC says current revenue no longer covers service costs after inflation and storm impacts, with hearings set for Oct. 19-21. Elections & Campaigns: Independent delegate candidate Galvin Sablan Deleon Guerrero says his campaign is giving voters a close look at families’ poverty and resilience ahead of the Nov. 3 general election. Government Operations: The CNMI government shut down over lack of a 2027 budget, and a gubernatorial forum was cut short when Choi-wan-related power outages plunged the venue into darkness. Air Travel: Philippine Airlines will resume nonstop Manila–Saipan flights on Oct. 25, aiming to boost tourism and family travel. Workforce Policy: Delegate Kimberlyn King-Hinds renewed her push to remove the CW-1 touchback requirement, saying it disrupts businesses and recovery after recent super typhoons. Public Health/Legal: CNMI residents may be watching a broader U.S. generic-drug price case as states seek court approval of a $400M Sandoz settlement over alleged anticompetitive price manipulation.

Storm Response: Gov. David Apatang canceled Tropical Storm Condition I for Saipan and Tinian effective 8:00 p.m. Saturday, Oct. 3, but warned it’s not an all-clear as a monsoon surge keeps gusty winds, hazardous seas, and flood risk through the weekend and likely into early next week; Local Impacts: Choi-wan battered the Northern Marianas with outages, school and office closures, and a Saipan Chamber gubernatorial forum cut short by a power outage; Energy Costs: Commonwealth Utilities Corporation filed a proposal for three years of rate hikes plus a typhoon-recovery surcharge, with CPUC hearings set for Oct. 19-21 in Saipan, Tinian, and Rota; Elections & Governance: The Saipan Chamber forum was postponed after the outage, and candidates’ plans are now set to be revisited; Federal/Legal: A multistate push for court approval of a $400 million Sandoz generic-drug settlement continues, with CNMI residents potentially eligible depending on purchases during the covered period; Travel & Economy: Philippine Airlines will resume direct Manila–Saipan flights on Oct. 25, aiming to boost tourism and ties.

Storm Response: Tropical Storm Choi-wan kept battering Saipan and Tinian with strong winds, outages, dangerous seas, and a growing flash-flood threat, prompting school and Northern Marianas College closures and early government releases as officials moved toward Tropical Storm Condition I and typhoon watches for the northern islands. Utilities & Cost of Living: The Commonwealth Utilities Corporation filed a plan seeking three years of rate hikes plus a typhoon recovery surcharge, with hearings set for Oct. 19-21 and proposed residential increases starting Dec. 1. Elections & Governance: The Saipan Chamber gubernatorial forum went dark mid-event after a Choi-wan-linked power outage, with the Chamber planning to reschedule. Federal-legal Fallout: A multistate coalition is pushing court approval of a $400 million Sandoz/Fougera settlement over alleged generic drug price manipulation, with Iowa’s share reported at about $1.38M—part of a broader push for accountability that could affect consumers across U.S. territories. Travel & Economy: Philippine Airlines announced it will restore nonstop Manila–Saipan flights on Oct. 25, aiming to boost tourism and family travel ties.

CNMI Government Shutdown: Gov. David Apatang ordered a partial government shutdown at the start of FY 2027 after the 2027 budget arrived too late for review, closing offices and furloughing an undetermined number of employees except federally funded posts, autonomous agencies, public corporations, and “essential services.” Storm Response: Tropical Storm Choi-Wan passed closest to Saipan and Tinian but kept the pressure on, with NWS warning dangerous conditions could continue as it strengthens and turns; schools, Northern Marianas College, and government offices closed, employees were released early, and Saipan/Tinian were under Tropical Storm Condition I. Power Disruption: CUC reported a Kiya 1 outage affecting multiple Saipan areas, with phone lines down. Air Connectivity: Philippine Airlines will resume nonstop Manila–Saipan flights Oct. 25 (twice weekly). Local Advocacy: CNMI mayors asked President Trump for federal help amid economic strain and recovery from Super Typhoons Sinlaku and Bavi, backing the governor’s 902 appeal. Workforce Policy: Delegate Kimberlyn King-Hinds renewed her push to remove the CW-1 touchback requirement, saying it disrupts businesses and recovery projects.

Storm Response: Tropical Storm Choi-Wan continues moving west-northwest away from Anatahan, but the Northern Islands remain under typhoon conditions as Saipan and Tinian face tropical storm warnings and schools, Northern Marianas College, and government offices close. Local Governance: CNMI government operations were suspended after Gov. David Apatang declared a partial shutdown over lack of an approved 2027 budget, with only “essential services” continuing. Public Safety & Infrastructure: Power outages hit Saipan (including Kiya 1), and the governor ordered employees released early to prepare for the storm. Workforce Policy: Delegate Kimberlyn King-Hinds renewed her push to eliminate the CW-1 touchback requirement, saying it disrupts businesses and recovery after super typhoons Sinlaku and Bavi. Aviation & Connectivity: Philippine Airlines will relaunch nonstop Manila–Saipan flights on Oct. 25, while Jeju Air warned of possible Saipan delays and cancellations as Choi-Wan approaches. Health Costs: Attorney General-led multistate action seeks court approval for a $400 million Sandoz settlement over alleged generic drug price inflation and reduced competition. Retiree Concerns: Retirees say they may sue over pension cuts tied to the FY 2027 budget. Community Needs: Interim Education Commissioner Jacqueline Che asked the business community to help repair storm-damaged school bus stops. Local Leadership: CNMI mayors appealed to President Trump for federal help amid economic strain and storm recovery.

Tropical Storm Choi-Wan: The CNMI is bracing for damaging winds, heavy rain, flooding and rough surf as Choi-Wan strengthens and is forecast to become a typhoon Friday; Saipan and Tinian are under Tropical Storm Condition I, with Pagan and Alamagan under Typhoon Condition I, and officials are urging residents to monitor updates. Government shutdown: Gov. David Apatang declared a CNMI government shutdown after the 2027 budget review deadline passed without enough time to approve the appropriations act; only “essential services” continue, and an undetermined number of employees were released/furloughed. Budget and pensions hit: The House advanced the FY2027 conference budget at $100.7M, but the Department of Finance says there’s no funding for the Oct. 15 25% pension payment, warning retirees may need to pay insurance and loans directly. Air travel disruptions: PAL plans to restore Manila–Saipan flights Oct. 25, while Jeju Air warns of possible Saipan delays/cancellations as the storm nears. Local politics and federal push: CNMI mayors asked President Trump for help through the Covenant Section 902 process as the islands face economic strain and storm recovery. Economy pressure: A senior official told federal partners CNMI is losing about 1,000 residents a year due to lack of opportunity, shrinking the private sector and tax base. Tourism outreach: Marianas Visitors Authority promoted the islands at Tourism Expo Japan 2026. Courts and claims: A Saipan boat owner sued CNMI and DLNR officials over a marina grounding, alleging repeated assurances the channel was safe.

Tourism & Economy: The Marianas Visitors Authority boosted ties at Tourism Expo Japan 2026, aiming to keep the Japanese market “connected” and visible. Local Governance & Federal Aid: CNMI mayors asked President Trump for help through the Covenant Section 902 process, citing economic strain and typhoon damage. Budget & Shutdown Risk: The House adopted a FY2027 conference budget around $100.7M; without a balanced budget by Oct. 1, Gov. Apatang ordered a partial government shutdown. Retiree Impact: Finance says the Oct. 15 pension payment won’t be funded, ending the 25% payment after Sept. 30. Public Services & Funding Fight: Lawmakers are still negotiating PSS funding after a House-Senate split, with conference talks moving toward a $32M target. Weather: Tropical Storm Choi-Wan prompted warnings for Saipan and Tinian, while Depression 26W triggered watches for the Northern Islands. Military Presence: A top Joint Task Force Micronesia commander said Marines will come to Guam, with CNMI and Guam project lists already sent to federal partners. Aviation Costs: The Commonwealth Ports Authority paused airline fee increases for 60 days to keep service viable. Courts & Claims: A Saipan boat owner sued CNMI and DLNR officials over a marina grounding after alleged assurances the channel was safe.

CNMI Budget Fight & Shutdown Risk: The House voted 18-1 to adopt the FY2027 conference budget, keeping the General Fund ceiling at $100.7M but setting up a partial shutdown if no balanced budget is in place by Oct. 1; the deal now heads to Gov. Apatang. Pension Shock for Retirees: The Department of Finance says the scheduled Oct. 15 25% pension payment won’t be funded, and retirees may need to pay insurance and loan obligations directly through GHLI/NMIRF. Public Schools Funding Clash: Lawmakers are still reconciling PSS funding—conference talks reportedly aim to lift PSS to $32M after the Senate pushed a $25M level, with warnings of “structural collapse” under the lower figure. Tropical Weather Watch: Tropical Depression 26W strengthened east of the Marianas; CNMI issued Tropical Storm Condition III for Saipan and Tinian and a Tropical Storm Watch for the northern islands. Population & Economy Pressure: CNMI officials told federal partners the territory is losing about 1,000 residents a year due to lack of opportunity, shrinking the private sector and tax base. Airline Fees Pause: The Commonwealth Ports Authority halted scheduled airline fee increases for 60 days to keep service running while it navigates a deficit. Deep-Sea Mining Pushback: NRDC and local voices are urging slower, more participatory federal action on seabed mining, while regional leaders continue to call for science-based safeguards. Community & Culture: Friends of the Mariana Trench announced a board leadership transition as Chair Sheila Babauta steps down; Rotary is reviving its trash-can program with a new collection plan.

Population & fiscal risk: CNMI officials told federal partners in San Francisco that the Commonwealth is losing about 1,000 residents a year due to lack of economic opportunity, shrinking the private sector and tax base and raising the specter of government financial insolvency. Public schools budget fight: House and Senate budget plans for FY2027 remain in conflict, with lawmakers sending the issue to a conference committee after rejecting each other’s versions; the dispute centers on major cuts proposed for PSS and Northern Marianas College. Air service survival: The Commonwealth Ports Authority board voted to pause scheduled airline fee increases for 60 days, extending an existing rate reduction through Nov. 30 to prevent carriers from abandoning CNMI routes. Typhoon recovery emergency: Gov. David Apatang extended the State of Significant Emergency for 30 more days to keep emergency powers in place for ongoing repairs after Super Typhoons Sinlaku and Bavi. Legal/consumer protection: A Saipan boat owner sued CNMI and DLNR officials over a marina grounding, alleging repeated assurances the channel was safe. Local governance & community: The Saipan Chamber of Commerce set its Oct. 7 general membership meeting featuring the PSS interim education commissioner. Sports: Rota’s Dr. Rita H. Inos Jr./Sr. High School stayed undefeated in mid-season PSS-NMIVA girls volleyball, while SIS and SCS posted decisive wins in middle school soccer.

Self-Government Warning: A new opinion piece argues CNMI self-government could fail unless the local economy improves, stressing leaders must act to restore revenue and essential services. Public Schools Funding Fight: After a House-Senate budget clash, a conference committee agreed on a framework to bring PSS FY2027 local funding to $32M, moving away from the Senate’s $25M level. Emergency Powers Extended: Gov. David Apatang renewed the State of Significant Emergency for 30 more days to keep recovery efforts moving after Super Typhoons Sinlaku and Bavi, with Rota still far behind. Airline Fees Standstill: The Commonwealth Ports Authority paused scheduled airline fee increases for 60 days (through Nov. 30) to prevent carriers from dropping CNMI service amid a looming deficit. Legal Liability in Marina: A Saipan boat owner sued CNMI and DLNR officials over a Smiling Cove Marina grounding, alleging repeated assurances the channel was safe after Typhoon Bavi. Consumer Protection: AG Alan Wilson urged residents to file claims tied to multistate settlements over inflated generic drug prices. Sports & Community: SIS and SCS posted decisive wins in PSS girls soccer, while volleyball and cross country results highlighted continued momentum for local youth athletics.

Emergency Management: Gov. David Apatang extended CNMI’s State of Significant Emergency for 30 more days, citing ongoing recovery from Super Typhoons Sinlaku and Bavi and the need for emergency powers to keep repairs and restoration moving—especially on Rota, where displacement and power/water rebuilding remain unfinished. Aviation Costs: The Commonwealth Ports Authority Board voted to pause scheduled airline fee increases for 60 days (through Nov. 30), aiming to prevent carriers from cutting or abandoning service amid a looming multimillion-dollar deficit and volatile airline economics. Budget Fight: House and Senate leaders are headed to a conference committee after rejecting each other’s FY2027 budget versions; the Senate plan would cut about $15.1M combined from PSS and Northern Marianas College, with lawmakers racing against the Oct. 1 start date. Education Crisis Warning: PSS funding disputes are escalating toward a possible “structural collapse,” with education officials warning that a proposed $25M baseline would force major schedule reductions and school consolidation. Consumer Protection: Tinian Sen. Frank Q. Cruz introduced a bill to expand enforcement authority against price gouging during post-disaster price freezes beyond the AG’s consumer counsel. Deep-Sea Mining Pushback: NRDC and other voices say the federal seabed mining process is moving too fast and lacks meaningful local participation ahead of a Dec. 16 lease sale. Public Health/Community: A new CPA airline fee pause and continued emergency powers come as CNMI leaders weigh how to keep recovery, services, and connectivity on track.