Governor Albert Bryan Jr. has vetoed legislation that would have redirected fuel-tax revenue supporting the Virgin Islands Water and Power Authority (WAPA) to help pay the territory’s hospital electricity expenses, opening the door to further debate over how the government should balance healthcare funding with utility stability.

The decision was announced on October 8 after the governor reviewed measures passed by the 36th Legislature during its September 25 session. While rejecting the fuel-tax measure, Bryan approved 15 other bills covering healthcare, infrastructure, public safety and economic development.

The vetoed legislation, Bill No. 36-0391, was intended to provide financial relief to hospitals through credits toward electricity expenses. Bryan argued that diverting an established source of revenue without replacing the money could weaken WAPA’s finances, complicate its ability to secure financing and potentially increase pressure on electricity customers.

The governor also questioned whether the proposed credits would adequately address the hospitals’ needs, saying they would cover less than half of reported annual energy costs at current revenue levels and would not eliminate outstanding utility balances.

Bryan called on lawmakers, hospital representatives and WAPA to develop an alternative that supports healthcare facilities without undermining essential utility services.

The veto sets up a significant policy discussion in the USVI: how can the government ease hospital electricity costs while protecting the financial health of the territory’s power utility?