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Committee holds bill to allow municipal control of indirect‑costs on grants pending clarifying language
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Summary
Senate Bill 24-26, which would permit Tinian and Rota municipalities to concur and retain indirect costs (IDCs) for grants awarded to their districts, was held for further drafting after OGM noted statutory and operational complexities; mayors expressed support.
Chair opened discussion on Senate Bill 24-26, a proposal to allow the municipalities of Tinian and Rota to concur on grant-management applications and to retain indirect costs (IDCs) tied to grants for projects on their respective senatorial districts.
Office of Grants Management (OGM) comments noted the current enabling statute centralizes indirect-cost distribution and that OGM neither guarantees nor approves federal grants for municipalities; OGM urged clarity and consistency in key areas. Mayors (including Rota Mayor Aubrey Hokkuk, whose support was recorded) indicated they favor more local expenditure authority. Members discussed that the budget law already appropriates a 35% IDC for OGM, and that excess IDCs or IDCs tied to grants awarded directly to municipalities might be candidates for local retention. The committee directed staff to draft clarifying language, to call OGM in for testimony, and to revisit the bill once the municipality/OGM operational boundaries were specified.
The committee did not vote; members agreed to hold the bill and to prepare amendments clarifying which IDCs municipalities may retain, how excess amounts would be treated, and how the change would interact with existing appropriation law.
