Why it Matters
The Government of the U.S. Virgin Islands is making a major lobbying investment with a powerhouse firm. The $230,000 quarterly spend with Squire Patton Boggs represents a strategic shift for the territory. The USVI has maintained federal lobbying relationships for over two decades. Their longest partnership was with Winston & Strawn LLP, spanning 2003 to 2025 with over $11 million spent.
By the Numbers
- Third Quarter 2025 Spending: $230,000 to Squire Patton Boggs
- Historical Context: The USVI has spent millions on federal lobbying over decades. Their relationship with Winston & Strawn alone totaled over $11 million.
- Lobbying Team: Five experienced lobbyists are handling the account:
- John Heddens Kingston: Broad policy experience
- David Michael Schnittger: Former Deputy Chief of Staff to Speaker John Boehner
- David Matthew LesStrang: Nearly 14 years House experience, including Appropriations Committee
- David Benjamin Stewart: Former Staff Director, House Ways and Means Committee
- Michael D. Hawthorne Jr.: Territory affairs specialist
Broader Context
The USVI faces unique challenges as an unincorporated U.S. territory in the Caribbean. The territory relies heavily on federal support for economic development and infrastructure. Key revenue sources like the rum cover-over provisions require congressional action. The 2017 hurricanes heightened the territory’s focus on disaster recovery and resilient infrastructure. Energy independence remains critical given the territory’s remote location.
The Agenda
The lobbying focuses on three main areas. Energy and Environment: Advocating for the St. Croix refinery’s reopening and renewable energy expansion. Tax Policy: Pushing for permanent extension of rum cover-over provisions and removal from EU tax-haven blacklists. Economic Development: Supporting the Caneel Bay resort reopening on St. John. These priorities align with legislation already moving through Congress.
Competitive Landscape
Major beverage companies are also lobbying on rum cover-over provisions. Diageo North America Inc., Bacardi USA Inc., and Sazerac Co. Inc. all support H.R. 1378. The Climate Strong Islands Network lobbies on island climate issues. Companies with USVI operations like GCI Holdings LLC also advocate on relevant tax matters.
Between The Lines
Congress is considering multiple bills benefiting the USVI. H.R.1378 and S.1986 would extend rum cover-over increases. S.1938 proposes full repeal of fund limitations. Energy bills like the Renewable Energy for U.S. Territories Act (H.R.4339) could fund renewable projects. Delegate Stacey Plaskett has been vocal about territory needs. She’s celebrated bipartisan rum cover-over legislation and secured port fee exemptions. Her recent EPA meetings show ongoing federal agency engagement.
The Bottom Line
The USVI’s investment in Squire Patton Boggs brings serious congressional firepower to advance territory priorities. With favorable legislation pending and corporate allies on key issues, the timing appears strategic. The experienced lobbying team has direct relationships with key committees handling USVI priorities.
All data used in this article came from Legis1. Request a demo to learn more!
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