In the nation’s capitol, a $400 million bailout legislation proposed by CNMI congresswoman Kimberly King-Hinds as she admits the CNMI is on the cusp of economic collapse. This amid defense think tanks look to shut down its visa waiver program with China to close what they call a backdoor to the United States.

The CNMI is on the cusp of economic collapse, according to its congresswoman, Kimberly King-Hinds.  During a House Committee on Natural Resources oversight hearing, she introduced a bill asking Congress for a $400 million bailout as requested by Governor Arnold Palacios.

"I’ve been writing letters to every agency requesting to spare the CNMI from any cuts to grants or federally funded personnel because our economy is dependent on these funds and positions for survival," she said.

The congresswoman says Palacios just refinanced a loan to cover the remainder of this year’s fiscal budget. She says that budget doesn’t fully fund government operations, like gas for police in rota, leaving them unable to patrol.  She explained, "Legacy businesses like the Hyatt have shut down. Duty Free shoppers just announced that it too would be closing shop. Every day when I leave here at 5:30pm and the Marianas’ day begins, I go home and I field phone calls from more legacy businesses who are talking about shutting their doors because we don’t have enough tourists to keep the doors open."

She adds even the common wealth port authority is “begging for relief” because it can’t sustain operations with the current rate of visitor arrivals.  Her remarks come amid federal funding uncertainty and as several defense think tanks look to shut down its visa waiver program to “close China’s back door into the US.”

Non-resident senior fellow Cleo Pascal with Foundation of Defense of Democracies testified that chinese tourism is a threat, saying, :The idea is to isolate the sector of tourism that is incredibly unreliable, that comes and goes, that uses itself for economic leverage for political and strategic advantage. The united states could decide tomorrow that no Chinese tourist can come into the US. And if the CNMI has built its tourism around Chinese tourism, it is going to be incredibly vulnerable." 

Pascal emphasized the importance of federal funding from the Office of Insular Affairs, which manages federal relations with the territories. The think tank recommends smaller changes like a waiver from cabotage to break United’s monopoly and even a fast ferry between Guam and Rota for military tourists. 

Meanwhile, Guam Congressman James Moylan told the committee that while the OIA provides essential funding for the territories and Freely Associated States, many programs remain unfunded and have not been adjusted for years.  "We must work to increase funding for OIA to deal with problems such as the invasive and stray animal control, [Illegal Unreported, and Unregulated] fishing, and counter narcotics operations," he stated.

"And over the last several years, methamphetamine use has skyrocketed, creating a public health and safety crisis. Recently, we have even seen fentanyl enter our shores."

He warns against ‘one size fits all policies’ that ignores the territories' unique situation that could have the potential to negatively impact our economies, education institutions and healthcare systems.