Government Spent Epstein Funds on Vendor Payments, Vexing Legislature

Leadership from Gov. Albert Bryan Jr.’s financial team appeared before the Senate Finance Committee Tuesday with nine days of cash-on-hand and after ending the 2024 fiscal year with a $152 million deficit.

When Sen. Novelle Francis Jr., who chairs the committee, asked Finance Commissioner Kevin McCurdy to describe the territory’s financial health in a single word, the latter took a long pause before answering.

“It can be ‘stable.’ I would say ‘stable.’ Optimistically, ‘stable,’” he said.

The meeting offered the most comprehensive accounting of the territory’s finances since the government’s financial team appeared before the 35th Legislature in early September to present the 2025 executive budget. During that meeting, the testifiers requested a $50 million line of credit to help the government meet its obligations amid revenue shortfalls. Lawmakers later loosened restrictions on the $100 million line of credit they authorized in 2023 — meant to kick-start disaster recovery projects — allowing half to be used for vendor payments or payroll.

On Tuesday, McCurdy said $40 million of that had been drawn down and $11 million was repaid. Despite those efforts, the government still owes $66.1 million to its vendors — even after it used $33.6 million in funds received through settlements related to Jeffrey Epstein toward vendor payments.