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Governor to Travel to Washington, D.C. to Press for Congressional Action
U.S. VIRGIN ISLANDS— Governor Albert Bryan Jr. on Friday acknowledged the introduction of bipartisan legislation in the U.S. House of Representatives by Delegate to Congress Stacey Plaskett (D-VI) and Congressman Ron Estes (R-KS) to extend the temporary increase in the rum cover-over excise tax rate. The proposed bill would maintain the current $13.25 per proof gallon rate for funds returned to the U.S. Virgin Islands and Puerto Rico from rum excise taxes collected by the federal government.
While this House bill is an important first step, Governor Bryan emphasized that the focus must now shift to securing passage in both chambers of Congress. He reiterated his commitment to working with Governor Jenniffer González-Colón of Puerto Rico and key Senate leaders to ensure that the extension moves forward.
“The rum cover-over program is a crucial source of revenue that supports essential government services and economic stability in the Virgin Islands,” Governor Bryan said. “Ensuring the continuation of this funding at the higher rate is a top priority for my administration, and I look forward to working with our federal partners to see it through. I appreciate the ongoing collaboration between the territories and members of Congress to advance this measure, and I remain committed to advocating for a long-term solution that provides certainty for the Virgin Islands.”
As part of his ongoing federal advocacy efforts, Governor Bryan will travel to Washington, D.C., on Monday to attend the 2025 Interagency Group on Insular Areas (IGIA) meeting at the U.S. Department of the Interior. During his visit, he will continue pressing for the rum cover-over extension and other key federal priorities for the territory in discussions with senior White House officials and congressional leaders.
The rum cover-over program provides a critical source of revenue for the Virgin Islands and Puerto Rico by transferring a portion of the federal excise tax collected on rum imported into the mainland United States. While $10.50 per proof gallon is established by permanent law, the additional $2.75 per gallon requires periodic congressional reauthorization. The bipartisan House bill seeks to extend this increase until 2032 and make it retroactive to January 1, 2022.
Governor Bryan reaffirmed that his administration will continue working aggressively with the Delegate, other members of Congress and the Government of the Virgin Islands’ lobbyists in Washington to ensure the territory’s interests are fully represented as Congress considers this legislation.
