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Committee hears ARPA drawdowns resumed but senators press for faster vendor payments
Summary
VIDE and BSCM told senators ARPA-funded projects resumed after federal approvals; a first drawdown and reimbursement cleared some invoices, but senators and agency officials said outstanding contractor payments, contract expirations and documentation reviews still delay some work.
Department and bureau fiscal staff told the committee that ARPA‑funded school projects resumed after an earlier federal pause, but senators pressed for faster vendor payments to remobilize contractors.
Deputy Commissioner Hasina Harris and CFO Dr. Charmaine Myers explained the federal funding flow: the department received a line of credit and completed an initial drawdown; the third‑party fiduciary processing resulted in a $4.7 million reimbursement to the territory and the department said it's preparing additional drawdown packages. "We were able to receive the $4,700,000 from the federal government," Harris said. The agencies said a second tranche of payments is being processed, but a large invoice being queried by a third‑party reviewer is delaying one major vendor disbursement.
Senators asked directly about contractors that paused work. BSCM and DOE staff confirmed some contractors had delayed remobilization pending payment. The committee's questioning identified one vendor — Hagland (Haglund/Hagland in testimony) — as awaiting a substantial payment after mobilization; a senator quoted a figure of about $1.3 million owed. CFO Myers said Hagland had received some initial payment but the contractor requested further payments before continuing certain mobilizations, and the department is working to reconcile required documentation for the larger drawdown.
Agencies emphasized that federal grant rules and third‑party fiduciary review add administrative steps before payments can be released. "Once the payment applications are submitted for construction projects, they are pushed through our system and go to the third party fiduciary who have to give the stamp of approval before we can enter them into payment through the line of credit," the commissioner summarized.
Ending: Senators directed agencies to prioritize payment reviews for contractors that paused work and to deliver a schedule of pending invoices tied to ARPA draws at the committee’s request.
