USVI Milestone: Elimination of Fed Unemployment Debt

M.A. Dworkin

USVI - Governor Albert Bryan Jr. and the Virgin Islands Department of Labor (VIDOL) announced the Territory has officially processed the final repayment of the outstanding federal Title XII Unemployment Insurance loan principal, marking a historic milestone in restoring the solvency of the Virgin islands Unemployment Insurance (UI) Trust Fund. 

On April 30, 2026, VIDOL submitted the final principal repayment in the amount of $11, 888,166.00 through the Federal Loan and Repayment Application System (LARAS). The repayment was subsequently confirmed by both the U.S. Department of Labor and the U.S. Treasury. 

Upon completion of the interest payment of $406,000 which is in the works, the payoff achievement represents years of fiscal recovery efforts aimed at eliminating more than $100 million in federal unemployment debt accumulated over multiple economic crisis, including the Great Recession, the HOVENSA refinery closure, Hurricane Irma and Maria, the COVId-19 pandemic, and subsequent economic disruptions. 

“This is Epic,” Governor Bryan said about the achievement. “At one point, I thought we would never fully pay this debt off. This accomplishment is proof that time, perseverance, disciplined leadership, and strategic execution can solve even the most difficult challenges. It is also a tremendous testament to the work this Administration has accomplished together on behalf of the people and businesses of the Virgin islands.’  

VIDOL Commissioner Dr Gary Molloy had this to say: “The Virgin Islands is now in a position to move from debt and  borrowing toward solvency, sustainability, resilience, and economic strength. This milestone demonstrates what can be achieved when leadership, policy, strategy, and execution are fully aligned.”