[Congressional Record Volume 166, Number 151 (Friday, August 28, 2020)]
[Extensions of Remarks]
[Pages E800-E801]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       INSULAR AREA LIQUIDITY ACT

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                  HON. GREGORIO KILILI CAMACHO SABLAN

                    of the northern mariana islands

                    in the house of representatives

                        Friday, August 28, 2020

  Mr. SABLAN. Madam Speaker, today, I introduce the Insular Area 
Liquidity Act, which requires any department or agency of the federal 
government, awarding a grant to any of the four smaller insular areas, 
to provide at least 50 percent of the award amount up front in an 
advance payment as defined in 2 CFR 200.3. My bill will also require 
the awarding department or agency to provide enhanced grant management 
assistance and technical assistance to the recipients to assure the 
advanced funds are properly used.
  Unlike most states, the insular areas have limited cash flow. Our 
districts generally rely heavily on a single economy, tourism, that is 
highly sensitive to natural disasters and the economic fallout that 
follows. When that happens, and even in the best of times, insular 
government have little or no fiscal cushion.
  Of course, I am very grateful for the many grants the Marianas 
receives to shore up the limited resources of our islands and, of 
course, especially now to help respond to the coronavirus crisis. But 
many grants awarded require that the awardee spend their own capital up 
front to be reimbursed later.
  One result is that federal funds are slow to be spent and the 
projects and programs those funds are intended to support wait to be 
implemented. The legislation I am introducing today addresses this 
problem by providing an advanced payment of at least 50 percent of any 
grant awarded. Projects and programs would be less subject to delay.
  This advance award is not a new concept. Some federal grant programs 
already provide for an advance payment to recipients. The FEMA Public 
Assistance Grant program, to name one, under section 428 of the Robert 
T. Stafford Act, P.L. 93-288 provides a 100 percent advance on project 
cost estimates, thereby removing the burden of capital availability 
from the awardee.
  In the Marianas, we are still recovering from the devastation caused 
by 2018 Super Typhoon Yutu. And now we have the coronavirus pandemic, 
which has ground our tourism reliant economy to a halt and left our 
government short of funds. But capital limitations are not unique to 
the Marianas--it is a challenge shared by all of the insular areas. 
That is why I introduce this bill today, alongside my colleagues Mr. 
San Nicolas, Ms. Plaskett, and Mrs. Radewagen. I urge all my

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colleagues to support this bipartisan legislation.

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