House Passes Bill for Budgetary Support From NHT

A Bill to facilitate the withdrawal of $11.4 billion annually from the National Housing Trust (NHT), to provide budgetary support for the Government over the next five years, was passed in the House of Representatives on May 19.

The National Housing Trust (Amendment) (Special Provisions) Act 2026 was piloted by Minister of Finance and the Public Service, Hon. Fayval Williams.

In her remarks, Mrs. Williams noted that in 2013, under the Extended Fund Facility with the International Monetary Fund (IMF), the Government of the day obtained contributions towards fiscal consolidation from the NHT in the amount of $11.4 billion.

She noted that this was achieved by way of an amendment to the National Housing Trust Act, the provisions of which came to an end in March 2017.

She added that given the need for further budgetary support for the Government’s economic programme, a further amendment of the NHT Act was undertaken in August 2017 to facilitate the continuation of annual transfers from the NHT for the fiscal years 2017/2018 to 2020/2021, and again in December 2020 to facilitate a further continuation of annual transfers for the fiscal years 2021/2022 to 2025/2026.

Mrs. Williams stated that 2025 was an unprecedented year for the country, with the passage and impact of Hurricane Melissa on October 28, 2025.

“The resulting damage from the hurricane materially altered the Government’s fiscal environment. Extensive destruction to critical infrastructure, productive sectors and public assets, has placed severe pressure on the public finances and increased the need for continued recovery spending,” the Minister said.

“So, in February of 2026, the Government of Jamaica announced revised revenue measures to include the continuation of the annual transfers from the National Housing Trust to the central government. Notably, the contribution of the transfers from the NHT to the central government have averaged approximately 12.6 per cent of non-tax revenue over the past five years, 2021/2022 to 2025/2026,” she added.

Mrs. Williams noted that the NHT continues to maintain a strong asset position, with assets exceeding liabilities by approximately 1.8 times over the medium term. It is expected that the NHT will be able to continue to operate profitably while seeking to expand access to housing.

The Minister noted that based on the NHT’s expected expenditure plans, strong revenue base and robust asset allocation position, the NHT will be able to sustain the annual $11.4 billion transfers to the Government over the medium term, while maintaining adequate cash surpluses.

“Having regard to this and the need for recovery spending due to the impact of Hurricane Melissa, the Government has decided to maintain the financing of $11.4 billion from the NHT as one of the revenue measures adopted to support the Government’s Budget for the fiscal year 2026/27,” Mrs. Williams said.

“This revenue measure is expected to continue for five years and the financing provided will be by way of distribution, grant or otherwise as may be determined by the Minister of Finance and the Public Service,” she added.

The Minister noted that while the Government reluctantly opted to continue this revenue measure, the rationale is that the discontinuation of this measure during the current economic climate, which has significantly been altered by the passage of Hurricane Melissa, would result in a significant falloff in government revenues.

Mrs. Williams noted that the Government’s economic programme continues to rely on these transfers from the NHT to fund expenditure outlined in the National Budget.

She added that without this revenue measure, the Government would either have to reduce expenditure or table a tax package to cover the shortfall.

The Act will continue in force until March 31, 2031 and will then expire.