SAIPAN — Governor David M. Apatang told the U.S. Senate Committee on Energy and Natural Resources on June 17 that the Commonwealth is still recovering from Super Typhoon Sinlaku, economic collapse and the pandemic, and that federal assistance is critical to keep the islands from sliding into a longer crisis.
In written testimony submitted to Chairman Lee and Ranking Member Heinrich, Apatang said he could not attend the hearing in person because conditions in the CNMI and the demands of disaster recovery made travel to Washington difficult. He said he last visited the capital in February for Section 902 consultations and the senior meeting of the Interagency Group on Insular Areas.
Apatang said he assumed the governorship in July 2025 amid a looming fiscal crisis driven by the failure of tourism to rebound after the COVID-19 pandemic, and that Sinlaku and a global fuel crisis have compounded the strain since.
He laid out the fiscal damage in detail. The Commonwealth’s Fiscal Year 2026 revenue forecast has been revised downward by approximately 9 percent, or $12.3 million. April 2026 revenues fell approximately $6.7 million, or 32 percent, below the established baseline. The government has incurred more than $2.6 million in unbudgeted disaster-related costs.
Apatang said the largest recurring source of weakness in the revenue base is tourism. Visitor arrivals are projected at approximately 104,511 in Fiscal Year 2026, more than 500,000 fewer than the 607,000 recorded in Fiscal Year 2018. Airline seat capacity has fallen from approximately 762,000 seats to approximately 167,500 over the same period, a 78 percent decline.
He said the loss of air service has hit every part of the tourism economy. T’way Air has exited the market, Jeju Air has reduced service, Hong Kong Airlines has scaled back planned expansion and Philippine Airlines has postponed service resumption until October 2026. The Marianas Visitors Authority share of Hotel Occupancy Tax revenues has dropped from approximately $14.2 million in Fiscal Year 2018 to approximately $1.4 million in Fiscal Year 2026.
Energy costs are a second major pressure, Apatang said. In May 2026 the Commonwealth Utilities Corporation Fuel Adjustment Charge rose from approximately $0.24500 per kilowatt-hour to approximately $0.44489, an increase of about 81.6 percent. He said annual government utility costs could climb to between $21.8 million and $25.4 million, roughly $9.8 million to $11.4 million more than the historical range, a burden he called extremely difficult to absorb under austerity.
Apatang said the CNMI needs reliable baseload power and a modern generation plant, and that for now that means a modern fuel-burning plant as part of the energy mix. He said the position reflects practicality rather than a turn away from clean energy, adding that the hospital, schools and economy cannot run on promises.
On labor, Apatang said the CNMI Department of Labor had received 19 workforce impact notices from employers as of May 2026, affecting approximately 865 workers including about 682 U.S. workers. Seven of those notices were tied directly to disaster impacts, business downsizing or recovery challenges and affected 435 workers including 332 U.S. workers.
Apatang asked Congress and the Administration for an increased federal cost share for FEMA Public Assistance Categories C through G, saying the Commonwealth cannot recover fully if the local share forces deeper cuts to essential services. He also pressed for continued FEMA and SBA support, help restoring air service, cabotage relief for the CNMI and Guam, secure travel pathways for the Philippines and other markets, and commonsense fixes to the CNMI Immigration Transition Program.
He urged caution on the EVS-TAP parole program, saying it must be secure, well screened and accountable but should not be removed without a workable replacement. He said he had written to Chairman Lee to correct what he described as falsehoods and misunderstandings about the program.
Apatang also asked the committee to support a moratorium on seabed mining around the Marianas until there is full consultation and environmental review, noting that he and Guam Governor Lourdes A. Leon Guerrero had jointly written to Chairman Lee on the issue. He said the waters around the islands support the region’s culture, food security and tourism economy.
Apatang closed by saying the CNMI is not asking for special treatment but for fair treatment, and that with the right support the Commonwealth can recover stronger and continue serving an important role for the United States in the Indo-Pacific.
