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Federal watchdog warns CNMI faces severe risks if CW‑1 program ends in 2029

RNV Construction workers continue recovery work on Kannat Tabla, Saipan as crews push to clear debris and repair damaged infrastructure after Super Typhoon Sinlaku.
Bryan Manabat
/
KPRG News
RNV Construction workers continue recovery work on Kannat Tabla, Saipan as crews push to clear debris and repair damaged infrastructure after Super Typhoon Sinlaku.

In its May 2026 review, the U.S. Government Accountability Office found that foreign workers remain essential to the CNMI economy, accounting for roughly one out of every three employed workers from 2020 through 2024. According to the report, “The percentage of foreign workers in the CNMI was at least 31 percent… on average from 2020 through 2024.”

GAO analysts said the CNMI continues to lack enough U.S. workers to fill job vacancies, particularly in tourism, construction, and technical fields. The territory’s overall workforce has shrunk by 56% since 2004, a decline driven by the collapse of the garment industry, the impact of Super Typhoon Yutu, the COVID‑19 pandemic, and the closure of the Imperial Pacific casino.

Tourism remains far below pre‑pandemic levels, and the CNMI is increasingly dependent on a single visitor market. GAO noted that by FY 2025, “69 percent of all visitors came from South Korea,” heightening economic vulnerability.

The report warns that ending the CW‑1 program could trigger additional business closures and reduced hotel operations, as employers struggle to recruit enough U.S. workers. GAO wrote that neither federal agencies nor the CNMI government have conducted a full analysis of the risks associated with the program’s expiration.

GAO is recommending that the Department of the Interior, in coordination with Labor, Homeland Security, and the CNMI government, conduct a comprehensive study to identify potential impacts and develop options to stabilize the workforce.

Gov. David M. Apatang, in written comments included in the report, agreed with the findings and urged swift action. “The CNMI stresses the need to act quickly to stabilize the workforce and prevent further economic decline,” he wrote.

The CW‑1 program, created in 2011 to transition the CNMI into the federal immigration system, is set to sunset on Dec. 31, 2029. A draft bill by CNMI Del. Kimberlyn King‑Hinds proposes extending transitional worker access through 2039 and restructuring the foreign labor system, but the measure has not yet been introduced in Congress.

GAO concluded that maintaining economic stability in the CNMI is “vital to U.S. interests,” citing the territory’s strategic location and the risk of further economic deterioration without a viable labor system.

Bryan is a seasoned journalist based in Saipan, Northern Mariana Islands, reporting on regional issues for KPRG News.