The 38th Guam Legislature convened for its Third Special Session on September 10, 2025, to discuss pressing budgetary concerns, particularly regarding funding for the Guam Memorial Hospital (GMH). A significant point of contention was the allocation of $40 million, which was debated as necessary yet insufficient to address the hospital's ongoing financial challenges.

Senator Sabrina Salas Matanani raised concerns about a previous appropriation of $35 million, which had been labeled a "phantom appropriation" by the administration. This term refers to funds that are allocated but not readily available for use, leading to questions about the practicality of such budgeting practices. The discussion highlighted the need for clarity on the definition of "phantom" in the context of appropriations, with senators acknowledging the complexities involved.

The $40 million earmarked for GMH includes $26 million for vendor payments, $14 million for operational costs, and specific allocations for medical supplies and equipment. Senators questioned how long this funding would sustain hospital operations, given the ongoing financial strain. The hospital's leadership indicated that the funds would likely last less than six months, emphasizing the urgency for long-term solutions to the hospital's financial issues.

Senators expressed frustration over the recurring need for emergency funding, with discussions pointing to systemic problems such as inadequate reimbursement rates from Medicare and the challenges of discharging patients who cannot afford care. The consensus among lawmakers was that without addressing these underlying issues, the hospital would continue to face financial instability.

The session concluded with a commitment to seek long-term solutions to GMH's financial challenges, but the immediate future remains uncertain as the hospital prepares for potential funding shortfalls in the coming months.