Territory Health Revitalization Act Reserves 5% of Social Service Grants for Territories, Starting October 2025

The Territory Health Revitalization Act is straightforward: it’s designed to ensure U.S. territories get a dedicated piece of federal funding for social services. Specifically, it targets Section 2008 of the Social Security Act, which deals with block grants for social services. The big change is that five percent (5%) of the total funds available for each fiscal year must now be set aside for the territories before the rest of the money is distributed to the 50 states and the District of Columbia (SEC. 2). This entire package of changes is set to kick in on October 1, 2025 (SEC. 5).

The Dedicated Funding Lifeline

Think of this 5% set-aside as a dedicated lane on the funding highway. Currently, territories often compete with much larger states for the same pot of money. By reserving 5% of the total funds right at the start, the bill creates a guaranteed, predictable stream of revenue for essential programs like child welfare, anti-poverty initiatives, and services for the elderly in places like Puerto Rico, Guam, and the U.S. Virgin Islands. For a social worker in a territory, this means less uncertainty and potentially more resources available to help families in need. The flip side? This 5% comes off the top of the total pool, meaning the 50 states and D.C. will be competing for a slightly smaller overall fund, though the impact is spread thinly across many jurisdictions.

Clearing the Path for CNMI

The Act also removes a specific regulatory hurdle for the Commonwealth of the Northern Mariana Islands (CNMI) regarding how they receive and use these federal allocations (SEC. 3). The bill strikes out a particular restriction (subparagraph (E)) that previously applied to the CNMI under Section 2008(a)(4) of the Social Security Act. For the CNMI government and local organizations, this means one less piece of bureaucratic red tape to worry about when accessing and managing these critical funds, potentially speeding up the delivery of services.

Guaranteeing Grant Awards

Beyond the set-aside, the bill introduces a minimum guarantee for specific competitive grants under Section 2008(a)(2) of the Social Security Act (SEC. 4). The Secretary must now ensure that at least two grants are awarded to eligible organizations that are physically located in a territory. This is a significant move to support local, grassroots efforts. If you run a non-profit in American Samoa focused on youth development and you meet all the federal requirements, this provision ensures that your application has a guaranteed shot at funding, provided there are enough qualified applicants from the territories. It’s an explicit mechanism to make sure federal dollars are channeled directly to boots-on-the-ground operations in the territories, rather than solely to mainland organizations.