AGP Executive Report

SBA Women’s Business Center push: The U.S. Small Business Administration launched a $6 million grant competition to modernize Women’s Business Centers, building statewide networks of Lead Centers and local Service Centers to expand counseling, training, and access to capital for women-owned small businesses. The U.S. Virgin Islands is among the targeted territories, with proposals due Aug. 10. Federal housing funding freeze: HUD suspended additional funding to the U.S. Virgin Islands Housing Finance Authority, citing widespread financial mismanagement, fraud controls failures, false certifications, and improper payments tied to nearly $1.9 billion in hurricane disaster-recovery money—an action local officials say they will appeal. Air connectivity for the territory: Contour Airlines announced new nonstop routes starting Oct. 5, including St. Thomas–St. Maarten (twice weekly) and Dominica–Trinidad, aimed at boosting regional tourism and business travel. Local business community events: The BFA will host the inaugural U15 Girls Goombay Cup this weekend at Roscow A.L. Davies fields, featuring teams from across the region including the U.S. Virgin Islands. Gun rights lawsuit: Gun Owners of America filed suit challenging USVI firearm possession and concealed-carry restrictions for nonresidents without a residence or place of business in the territory.

Federal Housing Crackdown: HUD suspended future funding to the U.S. Virgin Islands Housing Finance Authority, citing “widespread financial mismanagement, inadequate fraud controls, false certifications and improper payments” tied to nearly $1.9 billion in hurricane recovery money; HUD says the territory has spent only about $570 million and that roughly $1.3 billion in assistance has been deprived, while Gov. Albert Bryan Jr. called the move a shock and “overreach,” saying it may be politically timed. Disaster Aid Fallout: The suspension halts additional procurements and freezes access to remaining disaster-recovery funds, with the authority able to appeal and request a hearing as the investigation continues. Small Business Support: SBA announced a $6 million Women’s Business Center Modernization Initiative competition for states and territories where WBC funding hasn’t kept pace, including the U.S. Virgin Islands; proposals are due Aug. 10. Drug Pricing Accountability: AG Brown joined a coalition settlement with Glenmark for $29.6 million over alleged generic-drug price inflation and reduced competition, with multistate litigation continuing. Air Connectivity: Contour Airlines announced new nonstop service between St. Thomas and St. Maarten starting Oct. 5, aiming to boost tourism and inter-island business travel. Local Legal Watch: Gun Owners of America filed suit challenging USVI firearm restrictions for nonresidents, arguing the territory’s rules block constitutional carry rights.

Federal Housing Crackdown: HUD suspended funding to the U.S. Virgin Islands Housing Finance Authority, citing “widespread financial mismanagement,” weak fraud controls, false certifications and improper payments tied to nearly $1.9 billion in hurricane recovery money—HUD says the territory has been deprived of about $1.3 billion in intended assistance. Local Governance & Accountability: The suspension freezes additional disaster-recovery disbursements while an investigation continues, and VIHFA can seek an appeal/hearing. Public Safety: A VIPD staffing shortfall is under scrutiny after a Senate hearing heard the force is operating at about half capacity, with 25 homicides recorded for 2026 and only one arrest. Small Business Support: SBA announced a $6 million competition under a Women’s Business Center Modernization Initiative, with the U.S. Virgin Islands included among eligible territories; proposals are due Aug. 10. Business & Tech: First Orion launched Mobile Originated Branded Calling with T-Mobile for business customers, letting mobile employees place authenticated branded calls. Tourism & Development: Club Med broke ground on a St. Croix resort with VICI Properties, targeting first guests in 2027.

Federal Housing Funding Freeze: HUD suspended future funding to the Virgin Islands Housing Finance Authority, citing “widespread financial mismanagement,” weak fraud controls, false certifications and improper payments tied to nearly $1.9 billion in hurricane recovery money—HUD says the territory has spent far less than Congress intended, and the suspension is effective immediately while an investigation continues. Local Governance & Public Safety: VIPD is operating at about half staffing needs, with 25 homicides recorded in 2026 and only one arrest at the time of a Senate hearing, prompting lawmakers to question whether current enforcement can meet community needs. Business Support: The SBA announced a $6 million competition for Women’s Business Center modernization, with the U.S. Virgin Islands included among eligible territories; proposals are due Aug. 10, 2026. Trade/Development: Club Med broke ground on a new all-inclusive resort in St. Croix, targeting first guests in 2027 and marking the brand’s return to the U.S. market. Legal/Regulatory: Gun Owners of America filed a lawsuit challenging USVI firearm restrictions for nonresidents, arguing the territory blocks Americans from exercising constitutional rights without a local residence or place of business. Economy/Infrastructure: Heat advisories and elevated fire danger are in focus across St. Croix, St. Thomas and St. John as conditions push heat index values above 100°F.

Federal Housing Crackdown: HUD suspended future funding to the U.S. Virgin Islands Housing Finance Authority, citing “widespread financial mismanagement,” weak fraud controls, false certifications and improper payments tied to nearly $2 billion in hurricane recovery money—HUD says the freeze has effectively deprived residents of about $1.3 billion intended for disaster assistance, with VIHFA able to request a hearing. Local Politics: The HUD action is already spilling into the gubernatorial campaign, with federal funding freeze allegations becoming a flashpoint in the Bryan-Roach administration’s election fight. Public Safety & Staffing: VIPD told lawmakers it’s operating at about half staffing needs while handling 25 homicides in 2026 with just one arrest, raising concerns about whether current enforcement can meet community and business expectations. Tourism & Travel Ops: Passengers at Cyril E. King Airport reported automated baggage belt failures forcing manual handling amid record heat, spotlighting infrastructure strain during peak travel. Cannabis Industry: The Office of Cannabis Regulation opened applications for multiple license categories across USVI, with a Sept. 15, 2026 deadline. Hospitality Investment: Club Med broke ground on a 150-room St. Croix resort, targeting an opening in Q4 2027 and projecting about 200 jobs, mostly local. Business & Trade: Tropical Shipping ordered four Konecranes mobile harbor cranes, including first-ever units for St. Croix and St. Thomas, to boost container handling capacity.

Federal Housing Crackdown: HUD has suspended further funding to the U.S. Virgin Islands Housing Finance Authority, citing “widespread financial mismanagement,” weak fraud controls, false certifications and improper payments—after the territory received $1.9 billion in disaster recovery funds for Hurricanes Irma and Maria but spent only about $570,000, with HUD saying roughly $1.3 billion in assistance was effectively lost. Tourism & Travel Pressure: St. Croix and the rest of the territory are bracing for extreme heat, with a Heat Advisory and fire-risk concerns as Saharan dust and low rainfall dry out vegetation. Local Airport Friction: At Cyril E. King Airport, automated baggage belts reportedly failed, forcing passengers into manual handling despite premium ticket and baggage fees. Housing Pipeline: Club Med and VICI Properties broke ground on Club Med St. Croix, targeting a 2027 opening and projecting about 200 jobs, with most roles expected to go to locals. Public Safety Staffing: VIPD told lawmakers it’s operating at about half staffing needs, with 25 homicides recorded for 2026 and only one arrest at the time of a Senate hearing. Cannabis Licensing: The Office of Cannabis Regulation opened applications for multiple license categories, with a Sept. 15, 2026 deadline. Cruise Momentum: USVI cruise arrivals surged in Q1 2026, led by St. Thomas and St. Croix, with the destination showing faster growth than other Caribbean markets.

Hospitality & Tourism Development: Club Med and VICI Properties broke ground on Club Med St. Croix, a 150-room all-inclusive slated to welcome first guests in 2027, marking the brand’s return to U.S. territory and targeting about 200 jobs (with an estimated 80% local fill). Public Safety & Local Governance: A VIPD staffing crunch is under the microscope after a Senate hearing heard the force is operating at about half the personnel needed, with 25 homicides in 2026 and only one arrest, raising concerns about whether current enforcement and community foot-patrol coverage can be sustained. Aviation & Consumer Costs: Travelers at Cyril E. King Airport are reporting major disruption during a record 91°F heatwave after automated baggage belts failed, forcing manual handling despite premium ticket and baggage fees. Food Safety & Supply Chains: The FDA/CDC traced the Cyclospora outbreak to a Central Mexico farm supply chain, prompting Taylor Farms to pull affected shredded lettuce from the U.S. market. Cruise Growth & Connectivity: New data points to surging cruise arrivals in the USVI, with St. Thomas and St. Croix driving faster growth than anywhere else in the region. Cannabis Regulation: The Office of Cannabis Regulation opened cannabis license applications across the territory, with submissions due Sept. 15, 2026.

Public Safety: The Virgin Islands Police Department is operating at about half its needed staffing, with 25 homicides recorded for 2026 and only one arrest reported during a Senate hearing, raising fresh questions about whether VIPD can sustain current enforcement without more personnel. Airport & Tourism Costs: At Cyril E. King Airport, record heat and broken automated baggage belts have passengers doing manual labor after paying premium fares and baggage fees, spotlighting infrastructure strain during peak travel. Food Safety: Federal investigators traced the Cyclospora outbreak to a Central Mexico farm, with Taylor Farms removing affected shredded iceberg lettuce from the U.S. market, after thousands of illnesses across states. Cannabis Regulation: The Office of Cannabis Regulation opened applications for multiple USVI license categories, with submissions due Sept. 15, 2026, including cultivation, manufacturing, dispensary, and micro-cultivation/research options. Cruise Momentum: Cruise passenger arrivals in the USVI hit 831,690 in Q1, up 68% year over year, with St. Thomas and St. Croix driving faster growth than any other Caribbean destination. Resort Development: Club Med broke ground on a 150-room all-inclusive resort in St. Croix, targeting a Q4 2027 opening and about 200 jobs, with most expected to be filled locally. Shipping & Ports: Tropical Shipping ordered four Konecranes mobile harbor cranes, including first-ever units for St. Croix and St. Thomas, aimed at boosting container handling capacity. Education Oversight: Senators pressed Education and Maintenance Bureau officials on school readiness for Aug. 10, including progress on major FEMA-funded reconstruction projects and security concerns at the new Arthur A. Richards Pre-K-8 campus.

Airport Disruption: Cyril E. King Airport passengers say automated baggage belts failed during a record 91°F heatwave, forcing travelers to move luggage manually and sparking complaints about VIPA and airline service. Public Health & Supply Chains: FDA/CDC traced a Cyclospora outbreak to Central Mexico produce, prompting Taylor Farms to pull affected shredded iceberg lettuce from the U.S. market. Cruise Growth Watch: New data shows USVI cruise passenger arrivals jumped 68% in Q1 2026, led by St. Thomas and St. Croix, with the territory outpacing other Caribbean destinations. Tourism & Airlift: Southwest announced new Saturday-only routes from Nashville to Aruba, Montego Bay and St. Thomas starting March 13, expanding Caribbean access for USVI-bound travelers. Cannabis Licensing: The VI Office of Cannabis Regulation opened applications for cultivation, manufacturing, dispensary and micro-cultivation/research licenses, with a Sept. 15, 2026 deadline. Hospitality Investment: Club Med broke ground on a 150-room all-inclusive resort in St. Croix, targeting a Q4 2027 opening and about 200 jobs. Cargo & Ports: Tropical Shipping ordered four Konecranes mobile harbor cranes, including first-ever units for St. Croix and St. Thomas, to boost container handling capacity. Pharma Antitrust Spillover: A multistate coalition announced a $29.6 million Glenmark settlement over generic drug price-fixing; USVI consumers weren’t mentioned, but the case underscores ongoing pressure on anticompetitive pricing.

Airport Disruption: Passengers at Cyril E. King Airport (STT) are furious after automated baggage belts failed, forcing manual handling amid a record 91°F heatwave—raising fresh questions about VIPA and airline service quality for travelers paying premium prices. Public Health: Federal investigators say the Cyclospora outbreak tied to U.S. cases traced back to Central Mexico produce; Taylor Farms says it will pull affected shredded iceberg lettuce from the market. Drug Pricing Antitrust: A multistate coalition announced a $29.6 million Glenmark settlement over alleged generic drug price-fixing and reduced competition; consumers who bought certain Glenmark-linked generics from 2009-2019 may be eligible for compensation. Cannabis Regulation: The VI Office of Cannabis Regulation opened applications for multiple cannabis license categories across the territory, with a Sept. 15, 2026 deadline. Tourism & Travel Growth: Cruise traffic is surging in the USVI, with St. Thomas and St. Croix driving faster-than-region growth in 2026 arrivals. Hospitality Investment: Club Med has started construction on a 150-room all-inclusive resort in St. Croix, targeting a 2027 opening and about 200 jobs. Shipping & Ports: Tropical Shipping ordered four Konecranes mobile harbor cranes, including first-ever units for St. Croix and St. Thomas, to boost container handling capacity. Education Oversight: Senators grilled Education and Maintenance Bureau officials on school readiness ahead of the Aug. 10 return date, including progress on major FEMA-funded reconstruction projects.

Tourism & Air Service: Southwest Airlines is adding Saturday-only Caribbean routes from Nashville to Aruba, Montego Bay (Jamaica) and St. Thomas, plus Saturday service from Columbus to Punta Cana—another boost for USVI travel demand. Resort Development: Club Med has broken ground on a 150-room all-inclusive Club Med St. Croix, targeting a Q4 2027 opening and about 200 jobs, with most hires expected locally. Cruise Momentum: USVI cruise passenger arrivals hit 831,690 in Q1, up 68% year over year, with St. Thomas and St. Croix driving growth faster than any other Caribbean destination. Cannabis Regulation: The USVI Office of Cannabis Regulation opened applications for multiple cannabis license categories, with a Sept. 15, 2026 deadline (including cultivation, manufacturing, dispensary, micro-cultivation and research). Local Education Oversight: Senators grilled Education and Maintenance Bureau officials on school readiness ahead of the Aug. 10 return, including security and construction timelines for major St. Croix projects. Shipping & Ports: Tropical Shipping ordered four Konecranes mobile harbor cranes, including units for St. Croix and St. Thomas—aimed at expanding quayside cargo-handling capacity. Business Climate Watch: The US House advanced a bill to make daylight saving time permanent, a move that could affect scheduling and operations across the region.

USVI Cannabis Licensing: The VI Office of Cannabis Regulation opened applications for cultivation, manufacturing, dispensary, micro-cultivation, and research & development licenses, with submissions due Sept. 15, 2026. Tourism & Cruise Momentum: Cruise arrivals are surging in the US Virgin Islands, led by St. Thomas and St. Croix, with growth outpacing other Caribbean destinations in early 2026. Resort Investment: Club Med broke ground on a 150-room Club Med St. Croix, targeting a Q4 2027 opening and about 200 jobs, with most roles expected to go to locals. Education Oversight: Senators grilled Education and Maintenance Bureau officials on school readiness ahead of the Aug. 10 return, including progress on major FEMA-funded reconstruction projects. Shipping & Port Capacity: Tropical Shipping ordered four Konecranes mobile harbor cranes—first units for St. Croix and St. Thomas—aimed at boosting quayside cargo handling. Health Policy Spillover: Multistate attorneys general, including West Virginia and others, announced a $29.6 million Glenmark settlement tied to generic drug price-fixing; eligible buyers in the 2009-2019 window may seek compensation. Local Business & Travel Access: New nonstop service is coming to St. Thomas from Tampa this winter, adding another winter travel option for USVI visitors.

Tourism Momentum: Cruise arrivals in the U.S. Virgin Islands hit 831,690 in Q1 2026, up 68% year over year—faster than any other Caribbean destination, led by St. Thomas and St. Croix. Hospitality Investment: Club Med broke ground on a 150-room all-inclusive Club Med St. Croix, targeting a Q4 2027 opening and about 200 jobs, with 80% expected to be filled locally. Education & Infrastructure: Senators grilled Education and Maintenance Bureau officials on school readiness for Aug. 10, as FEMA-funded reconstruction moves forward on multiple campuses, including the new Arthur A. Richards Pre-K-8 School. Cannabis Licensing: The VI Office of Cannabis Regulation opened applications for cultivation, manufacturing, dispensary, micro-cultivation and research licenses, with a Sept. 15, 2026 deadline. Shipping & Cargo Capacity: Tropical Shipping ordered four Konecranes mobile harbor cranes—one for St. Croix and two for St. Thomas—boosting quayside handling for 2027 delivery. Air Access: Breeze Airways plans new nonstop service from Tampa to St. Thomas starting Dec. 16, adding winter travel options for U.S. visitors.

Local Cannabis Regulation: The VI Office of Cannabis Regulation opened applications for multiple cannabis license categories, with deadlines set for Sept. 15, 2026, via the OCR online portal—St. Croix covers cultivation, manufacturing and dispensary, while St. Thomas/St. John focus on cultivation and manufacturing, plus territory-wide micro-cultivation and research and development. Tourism & Cruise Growth: USVI cruise arrivals hit 831,690 in Q1 2026, up 68% year over year, with St. Thomas and St. Croix driving faster growth than any other Caribbean destination. Hospitality Investment: Club Med broke ground on Club Med St. Croix, targeting a 2027 opening and marking the company’s return to the U.S. with its first USVI property. Shipping & Port Capacity: Tropical Shipping ordered four Konecranes Gottwald mobile harbor cranes—one for St. Croix and two for St. Thomas—boosting quayside cargo handling with deliveries and commissioning planned for 2027. Air Connectivity: Breeze Airways plans nonstop Tampa–St. Thomas service starting Dec. 16, and United is adding daily XNA–Newark flights beginning Sept. 24. Business/Tech Mobility: SpaceX updated Starlink roaming rules by grouping countries into shared regions; for American users, the “home region” now includes the U.S. Virgin Islands and Puerto Rico, avoiding the international roaming clock. Antitrust & Consumer Relief: A coalition of states and territories announced a $29.6 million Glenmark settlement over alleged generic drug price-fixing, with consumers potentially eligible for compensation if they bought certain drugs between May 2009 and Dec. 2019.

Tourism & Development: Club Med broke ground on Club Med St. Croix, its return to the U.S. and first U.S. Virgin Islands property, targeting an opening in 2027 with a development partner VICI Properties. Education & Public Safety: On St. Thomas, senators pressed Education and Maintenance Bureau officials on school readiness for the Aug. 10 return, including security plans for the new Arthur A. Richards Pre-K-8 campus. Local Economy & Travel: Bahamian marina leaders say Bimini’s independence-weekend business was “very slow,” warning the recent uptick after fee changes may not last—an indirect read-through for regional yachting demand. Air Connectivity: Breeze Airways announced a new nonstop Tampa–St. Thomas route starting Dec. 16, twice weekly, boosting winter access via Cyril E. King Airport. Governance & Compliance: The U.S. House advanced the Sunshine Protection Act to make daylight saving time permanent nationwide, sending it to the Senate; meanwhile, the U.S. DOJ rejected New Mexico’s push for unredacted Jeffrey Epstein files. Antitrust & Consumer Relief: A multistate coalition announced a $29.6 million Glenmark settlement over alleged generic drug price-fixing, with eligibility for consumers who bought certain drugs from May 2009 to Dec. 2019.

Local Business & Real Estate: Advance Auto Parts is moving into Beauclerc Village in the Jacksonville area with a “market hub” format, taking 31,582 sq. ft. at 9718 Old St. Augustine Road after Big Lots vacated the space, with plans showing most of the footprint devoted to parts storage and a smaller sales area. Tourism & Air Connectivity: Breeze Airways says it will add a new winter nonstop between Tampa and St. Thomas (Cyril E. King Airport), launching Dec. 16 with twice-weekly service (Wednesdays and Saturdays), aiming to capture more U.S. mainland demand for the Virgin Islands during peak season. Territory Courts & Public Safety: St. Croix Superior Court featured a heavy docket, including the Sion Farm gas station homicide case and other high-profile assaults and related charges. Energy & Weather Risk: St. Thomas and St. John face a converging threat of extreme heat and wildfire danger tied to Saharan dust, overlapping with scheduled WAPA power grid shutdowns. Regional Business Climate: WICO reported strong cruise performance through May 31 and outlined its fiscal 2027 outlook, including projected calls and passenger volume, alongside capital planning for upland development and water system upgrades.