Why It Matters

The U.S. Virgin Islands needs to secure federal funding streams for its economic survival. The territory relies on Congress for disaster recovery assistance, the rum excise tax cover-over, and infrastructure investment—yet faces headwinds from a Trump administration increasingly restrictive on federal spending.

While the USVI achieved a major victory in permanently locking in the rum cover-over rate at $13.25 per proof gallon, the government lost $59.2 million in retroactive funding due to delayed implementation. The territory has spent only $3.8 billion of $23.9 billion in obligated disaster recovery funds nearly eight years after Hurricane Maria, making efficient use of existing resources critical to maintain federal confidence.

By the Numbers

The USVI’s continued investment in Squire Patton Boggs reflects a strategic bet that sustained federal advocacy is essential to navigate a volatile political environment where territorial interests face genuine competition for scarce resources.

Since 2003, the Government of U.S. Virgin Islands has established itself as a persistent federal lobbying player filing 211 lobbying disclosures and spending $20.9 million advocating for its interests in Washington.

The USVI’s last quarter disclosure shows a $100,000 payment to Squire Patton Boggs, continuing a relationship dating to 2017. The firm has received $5.0 million across 34 disclosures for work on disaster relief, tax policy, and the rum cover-over.

The territory employs a multi-firm strategy. Winston & Strawn LLP remains the USVI’s longest-serving partner, generating 77 disclosures worth $11.1 million since 2003, focusing on appropriations, tax, health, and transportation.

Recent filings show strategic differentiation. Squire Patton Boggs’ third quarter 2025 filing emphasized tax and energy issues, while Winston & Strawn’s concentrated on appropriations, healthcare, and transportation—allowing parallel advocacy on different priority areas.

The Agenda

The Government of U.S. Virgin Islands lobbies on core territorial priorities through Squire Patton Boggs. Key issues include the rum excise tax cover-over, disaster relief funding, healthcare programs, and infrastructure development. The territory has also focused on economic development incentives, energy policy including the St. Croix refinery, and tourism initiatives.

Broader Context

Congress is actively considering legislation directly impacting the USVI’s economy. Representative Stacey Plaskett secured a major victory when President Trump signed legislation permanently setting the rum excise tax cover-over at $13.25 per proof gallon.

Key legislative priorities include:

  • Tax and Economic Development: H.R. 1378 and S. 1986 extend rum cover-over provisions, while H.R. 364 and H.R. 858 address broader economic competitiveness
  • Disaster Recovery: H.R. 5503 proposes a dedicated FEMA program
  • Tourism Infrastructure: H.R. 362 would establish a visa waiver program

The Trump administration’s rollback of Biden-era FEMA grant programs constrains future federal support, making efficient deployment of existing resources critical.

Between The Lines

Congresswoman Stacey Plaskett has emerged as a forceful advocate, with bipartisan work on the rum cover-over rate and EPA meetings on water infrastructure funding. Her election to lead Democrats on a congressional subcommittee signals growing legislative influence.

The private sector adds another layer. Diageo North America Inc. filed its own $50,000 Q1 2025 disclosure specifically on rum tax cover-over legislation, demonstrating aligned but independent corporate advocacy.

Competitive Landscape

The USVI employs a multi-firm strategy beyond Squire Patton Boggs. Winston & Strawn focuses on appropriations, healthcare, and transportation while Squire Patton Boggs concentrates on tax, energy, and disaster relief—hedging bets across committees and issue areas.

Diageo North America Inc. independently advocates on rum tax legislation. While Diageo’s interests align with the USVI on the rum cover-over extension, the company pursues its own commercial priorities.

The USVI’s competitive advantage lies in bipartisan political support, with Republican senators joining Democrats on key territorial priorities.

The Bottom Line

The USVI’s $100,000 quarterly payment to Squire Patton Boggs represents sustained federal advocacy on core economic and recovery priorities. With $20.9 million invested across 211 lobbying disclosures since 2003, the territory maintains strategic partnerships addressing tax policy, disaster relief, and infrastructure. While Congresswoman Plaskett has secured legislative wins, ongoing pressures from slow disaster recovery spending and shifting federal priorities make persistent lobbying essential to protect existing gains and advance new initiatives.

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