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HomeNewsLocal governmentSenate Finance Committee OKs Using Epstein Settlement Funds for Nursing Homes

Senate Finance Committee OKs Using Epstein Settlement Funds for Nursing Homes

The Senate Budget, Appropriations and Finance Committee convened Friday on St. Thomas. (Photo by Barry Leerdam)

Lawmakers on the Senate Finance Committee unanimously approved a $20 million appropriation on Friday from funds received through a settlement agreement with the estate of Jeffrey Epstein for the design and construction of nursing homes on St. Croix and St. Thomas.

Sen. Dwayne DeGraff, who sponsored the measure, said the bill reflected his “passion for the senior citizen population of the territory … and it’s about making a dream come true.”

DeGraff called the U.S. Virgin Islands’ prior relationship with Epstein a “dark cloud” hanging over the territory. The territory received a combined total of $137.5 million from settlement agreements with Epstein’s estate and financier Leon Black, respectively. DeGraff said the legislation was an effort to use some of the settlement money to directly benefit the territory’s seniors.

“Now we have Herbert Grigg, we have Lucinda Millin, we have Queen Louise. We have these senior facilities here presently that are atrocious,” he said. “You go to these facilities and it is atrocious.”

Clarina Modeste Elliott, accounting director for the V.I. Finance Department, cautioned during testimony that the bill could run afoul of Act 8920, which the 35th Legislature approved during a session in September and which outlined approved uses of the funds for various projects and initiatives.

“The law does not explicitly provide guidance or authority for such expenditures,” she said. “Given this ambiguity, we recommend an entire review of Act 8920 to ensure that the proposed use aligns with the legislative intent and legal requirements governing the settlement funds.”

Human Services Commissioner Averil George echoed those concerns, citing concerns she attributed to Gov. Albert Bryan Jr., including the measure’s “lack of strategic framework,” ongoing negotiations to acquire the Sea View Nursing Home, and sustainability concerns.

“Any investment in eldercare must be tied to a comprehensive plan that addresses not only infrastructure but also staffing, training, and operational needs,” she said. “It is critical to ensure that any new facilities are supported by sustainable staffing and funding models.”

Stressing the urgent need for eldercare facilities, V.I. Housing Authority Director Dwayne Alexander called the proposed appropriation a “significant step.”

“By focusing on effective planning, community involvement and sound financial management, this initiative has the potential to greatly enhance the quality of life for seniors while also benefiting the local economy,” he said.

Returning to the matter of the Sea View Nursing Home, Sen. Donna Frett-Gregory said there needed to be more collaboration between the Legislature and the executive branch.

Earlier on Friday, lawmakers approved a lease extension between the Virgin Islands government and Coral World. The ocean park’s lease in Estate Coki was set to expire in 2036. If approved by the full body during its next session, the ocean park’s lease will instead expire in 2056. The measure also provided for additional rent in the amount of one percent of Coral World’s annual gross profit.

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