ST. THOMAS, U.S. VIRGIN ISLANDS — Lawmakers of the Committee on Budget, Appropriations and Finance, chaired by Senator Novelle E. Francis Jr., convened at the Capitol Building and voted to advance key measures aimed at strengthening the Territory’s economic landscape. The Committee approved a bill to increase the Virgin Islands minimum wage and advanced one lease agreement submitted by the Governor and sponsored by Senate President Milton E. Potter. All approved items will be forwarded to the Committee on Rules and Judiciary for further consideration.

Senator Novelle E. Francis Jr. confirmed commitment to advancing measures that support the Territory’s economic growth and ensure responsible stewardship of public resources. He noted that the bills approved today will help strengthen workforce stability and enhance development opportunities across the Virgin Islands.

Bill No. 36-0030- An Act amending Title 24, Virgin Islands Code, chapter 1, section 4, to increase the Virgin Islands minimum wage. Sponsored by Senator Franklin D. Johnson. The bill aims to update the Territory’s wage standards to reflect current economic conditions and ensure fair compensation for workers. Noting that the federal minimum wage has remained unchanged since 2009, Senator Johnson stated that raising the local minimum wage is essential to keeping pace with rising costs, supporting working families, and strengthening the Territory’s overall economic resilience.

Dr. Gary Molloy, Commissioner of the Virgin Islands Department of Labor, expressed support for Bill No. 36-0030, citing the rising cost of living and the erosion of workers’ purchasing power since the last increase in 2015. Moreover, the proposed phased schedule from $12 in 2026 to $15 in 2028 as a balanced approach that restores wage value while giving businesses time to adjust, particularly with the recent FUTA Credit Reduction Waiver easing financial pressure on employers. Molloy encouraged lawmakers to clarify the cost-of-living adjustment set to begin in 2029 to ensure predictability and cautioned that excluding students from the wage increase could create inequities and unintended consequences.

Scott Barber, representing the St. Thomas–St. John Chamber of Commerce, said local businesses generally support a modest increase but warned that larger or automatic hikes could strain employers still recovering from hurricanes, inflation, and rising shipping costs. Citing national economic research, he noted that significant increases can reduce opportunities for youth and low-skill workers and may lead businesses to raise prices, cut hours, or reduce hiring. The Chamber supports raising the minimum wage to no more than $13.00 per hour, without automatic escalators, to prevent unintended impacts on the Territory’s fragile economy.

The Committee also advanced one out of four lease agreements submitted by the Governor and sponsored by Senate President Milton E. Potter. The measures authorize commercial use and development of several Sub Base parcels on St. Thomas, including space for WSTA Radio, new subtenant operations managed by Accent Property Management, a logistics warehouse for Commercial Investments LLC, and bulk storage and related uses for Submarine Base Warehouse, LLC. Lawmakers noted that the leases support continued growth and activity within the Sub Base area. 

The approved measure is below: 

• Bill No. 36-0089- An Act approving the lease agreement between the Government of the Virgin Islands and PEO Productions, LLC d/b/a WSTA Radio, for Parcel No. 121 Submarine Base, No.6, Southside Quarter, St. Thomas, Virgin Islands, Parcel No. 167 Sub Base, No. 6, Southside Quarter, St. Thomas and Parcel No. 171 Sub Base, No. 6, Southside Quarter, St. Thomas. Sponsored by Senator Milton E. Potter by Request of the Governor

However, lawmakers voted to hold in committee the following measures: 

• Bill No. 36-0199- An Act approving the lease agreement between the Government of the Virgin Islands, acting through the Commissioner of the Department of Property and Procurement, and Accent Property Management, LLC, for Parcel Nos. 123 and 129 Sub Base, South Side Quarter, St. Thomas, to develop the premises to operate, establish, and manage a slate of subtenants,  pursuant to an approved development plan. Sponsored by Senator Milton E. Potter by Request of the Governor
• Bill No. 25-0204- An Act approving a multi-year lease agreement between the Government of the Virgin Islands, acting through its Commissioner of the Department of Property and Procurement, and Commercial Investments LLC, for Parcel No. 30 Submarine Base, No. 6 Southside Quarter, St. Thomas, Virgin Islands, for a logistics storage warehouse and other related purposes. Sponsored by Senator Milton E. Potter by Request of the Governor
• Bill No. 36-0205- An Act approving the lease agreement between the Government of the Virgin Islands, acting through the Commissioner of the Department of Property and Procurement, and Submarine Base Warehouse, LLC for Parcel Nos. 12 and 12A Submarine Base (Crown Bay Fill), No. 6 Southside Quarter, St. Thomas, and 145 (Consolidated) (Crown Bay Fill) Submarine base, No. 6 South Side Quarter, St. Thomas, for the purpose of bulk storage, establishing a slate of subtenants on the premises, parking, and other permitted purposes. Sponsored by Senator Milton E. Potter by Request of the Governor

Senators present at the meeting were Chairman Novelle E. Francis Jr., Marvin A. Blyden, Dwayne M. DeGraff, Franklin D. Johnson, Marice C. James, Ray Fonseca, Hubert L. Frederick, Carla J. Joseph, Milton E. Potter, and Kurt A. Vialet. 

The Division of Public Affairs is committed to providing the community with accurate information on legislative proceedings and other events at the Legislature of the Virgin Islands. Visit legvi.org. 

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Press Contact: Africah N.T. Harrigan

Email: aharrigan@legvi.org