Save the CNMI Economy

Regarding the CW visa program, when Congress extended the Federal immigration laws to the Northern Marianas in the Consolidated Natural Resources Act of 2008 (CNRA), it sought “to minimize, to the greatest extent practicable, potential adverse economic and fiscal effects of phasing-out the Commonwealth’s nonresident contract worker program and to maximize the Commonwealth’s potential for future economic and business growth.” To that end, Congress created a special transitional worker program, designed “to ensure an adequate number of workers for legitimate businesses in the Commonwealth.” Although originally established for five years, Congress expressly recognized that the program may need to continue beyond that initial period. Congress authorized the U.S. Department of Labor to extend the program in five-year increments, so long as necessary for the Northern Marianas’ existing and anticipated labor needs.
In May 2014, the Department of Labor granted such an extension, extending the transitional worker program until December 31, 2019. In making this decision, the Department emphasized Congress’ intent to minimize adverse economic consequences to the Northern Marianas’ economy and to promote the region’s economic growth. The Department concluded, after a rigorous analysis, that there was “an insufficient number of U.S. workers to meet CNMI businesses’ current needs,” and that a five-year extension was necessary to ensure that the “current and future needs” of the Commonwealth’s businesses are met. The Department indicated that, together, with the Northern Marianas government, it would continue to monitor the labor needs of the Commonwealth’s employers and the efforts to educate and train U.S. citizen workforce, in order to determine whether to grant any additional extensions of the program.
The Department of Labor’s decision ensured that the Northern Marianas’ businesses could continue to operate smoothly and averted a potentially severe economic downturn. The extension of the temporary workers’ program was in the best interest of the Northern Marianas and in line with Congressional objectives.
We are especially concerned that in December 2014, Congress eliminated the Secretary of Labor’s authority to provide any further extensions of the transitional workers program beyond December 2019. Thus, this program—which provides the Commonwealth’s businesses with access to essential workers—is now set to terminate in only two years. The program’s termination, without any possibility of a future extension, would have a detrimental impact on the Northern Marianas’ economy, and would impede the Commonwealth’s growth and prosperity. The seriousness of these consequences cannot be overstated. Currently, some 12,784 non-citizen workers are employed in the Northern Marianas under this program, providing essential services in such labor-intensive and specialized industries as hospitality, construction, and health care. The islands’ economic development remains heavily dependent on these skilled workers at least in the short-term future.
On April 27, 2017, the United States Government Accountability Office was requested to review the effects of PL 110-229 and concluded that if the foreign skilled laborer program no longer existed in the Commonwealth, the “…preliminary economic analysis projects a 26 to 62 percent reduction in [the] CNMI’s 2015 gross domestic product (GDP). Furthermore, on October 15, 2017, the US Department of Commerce’s Bureau of Economic Analysis reported that the Commonwealth’s “…real GDP – GDP adjusted to remove price changes – increased 28.6 percent in 2016 after increasing 3.8 percent in 2015.” Based on these 2 federal agencies’ reports, the effects on the Commonwealth’s economy would be catastrophic absent an amendment to PL 110-229 to amend and continue the CW program in the Commonwealth.
Access to skilled foreign workers is particularly critical given the ongoing economic development in the Northern Marianas, which is aimed at constructing world-class recreational facilities and enabling the territory to fully realize its tourism potential. As the Commonwealth’s industry leaders and residents, we strongly support these efforts. Their benefits will rebound to the entire Northern Marianas population, making our Commonwealth more prosperous and establishing it as a leading regional tourist destination. These plans, however, risk being put on hold or abandoned entirely if, only a few years down the line, the Commonwealth’s employers would be unable to meet their labor needs. The mere uncertainty about the program’s fate is already imperiling and stifling investor and employer confidence.
We wish to emphasize that the continuing access to skilled non-resident workers is not in conflict with the goal of reducing unemployment among the U.S. citizens residing in the Northern Marianas. As the Department of Labor has concluded, on the basis of the latest census, the total number of unemployed U.S. workers in the Northern Marianas is only about 7.5 percent of the current transitional worker quota. Even if the Northern Marianas were to achieve full employment—a worthy but presently unrealistic economic goal given the Commonwealth’s limited total population including children and the elderly of 50,000—the economy’s current labor needs still could not be met through the resident U.S. citizen workforce alone.
With respect to the parole program, we are also deeply concerned with the renewed attention it has received in Washington. As you recall, the CNRA established the Guam-CNMI visa waiver program (Guam-CNMI VWP) and federalized the CNMI immigration system. Shortly after enactment, DHS used parole authority to continue allowing Chinese and Russian nationals access to the CNMI without a visa, continuing the practice that had been in place prior to federalization. Parole was used because DHS was unwilling to place those countries on the Guam-CNMI VWP, largely because of the military presence on Guam. Nearly ten years after its enactment, the Guam-CNMI VWP needs to be re-examined. Congress expressly stated that it created a regional VWP to allow and promote tourist travel between the islands. Instead, two separate immigration programs effectively continue to exist. In addition to the confusion for tourists traveling to the region, the use of parole authority has come under scrutiny as a result of the Obama Administration’s wide use of its discretionary immigration authority, such as with the Deferred Action for Childhood Arrivals (DACA). We are concerned that—although we firmly believe the CNMI parole program is different and rests on firm legal footing—DHS can nevertheless revoke parole at any time—crippling the CNMI tourism industry.
Therefore, we ask for your support in having a hearing to examine the Guam-CNMI VWP nearly ten years later, and to discuss whether the current system should be bifurcated between Guam and the CNMI in an effort to further stabilize and grow the CNMI tourism economy. Tourism in the CNMI has experienced a welcome rebound in recent years, and many new investments are coming onto the islands as a result. Should Washington take away our parole program—or modify it by excluding either Chinese or Russian nationals—our fragile economy would quickly go into recession again and prospects for future job growth would be bleak. Therefore, we urge you to support a comprehensive, lasting legislative proposal that will address the CNMI’s long-term immigration and economic needs. We hope that you will support such an effort, and would welcome an opportunity to meet with you to discuss it.
We thank you in advance for your attention and for your leadership on these issues, as well as on other issues of vital importance to the Northern Marianas.