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Guam Legislature approves FY2026 appropriations bill, 11–4, amid debate over tax cuts and hospital funding
Summary
On third reading the Guam Legislature passed Bill No. 44‑38 COR, an appropriations act for fiscal year ending Sept. 30, 2026, by an 11–4 vote. Supporters said the measure balances tax relief and spending; critics warned the business-privilege-tax cut and other allocations leave shortfalls for Guam Memorial Hospital and other services.
Bill No. 44‑38 COR, “an act making appropriations for the operations of the executive, legislative and judicial branches of the government of Guam for the fiscal year ending Sept. 30, 2026,” passed third reading by the Guam Legislature by a roll-call vote of 11 yeas to 4 nays.
The measure, introduced on the floor as substituted and amended and described by the clerk under the Organic Act of Guam, funds government operations for FY2026, reduces the business-privilege tax (BPT) in staged cuts and includes targeted appropriations for agencies and projects. The body recorded the tally on the chamber floor and opened the floor for brief extensions of remarks following the vote.
Supporters said the bill balances fiscal restraint with policy priorities. “Every decision made in this budget had a reason, a consequence, and a purpose,” Senator Borja told colleagues and viewers, arguing the bill represents pragmatic governing after extended negotiations. Senator Chris Duenas said the package reflects “a guiding principle, to strike the right balance between fiscal responsibility and reinvestment,” and touted provisions intended to support tourism, public safety, hospitals and education.
Lawmakers listed several specific allocations and amendments included in the final bill. The Legislature dedicated the first $20 million of obligated general‑fund revenues in FY2026 to Guam Memorial Hospital (GMH), and an amendment secured roughly $16.3 million for reconstruction of Simon Sanchez High School, legislators said. The bill also directed money for airline incentives meant to bolster visitor arrivals and provided additional funding for recruitment cycles in public-safety agencies and modernization at Customs and Quarantine.
Opponents argued the bill prioritizes tax relief for larger businesses at the expense of public services. “This is not a budget bill. This is a blueprint,” Senator Barnett said in remarks explaining his no vote, contending the package offers too large a tax break to high‑revenue businesses while leaving critical public services underfunded. Senator Tina Rosemarie Barnes, ranking member, said the bill was “far from perfect” but justified her support as a compromise that preserves some priorities while pressing for accountability in agency spending.
Several senators highlighted continuing concerns about GMH’s budget gap. One legislator told colleagues the hospital’s shortfall was substantial in their deliberations and that the final bill still left an unresolved deficit the chamber debated during amendment votes. Senator Augustine noted unanimous support for an additional appropriation that will provide near‑term funds to GMH and said the Legislature aimed to ensure the hospital had “the medicine, supplies, and maintenance it needs to provide safe, quality health care.”
Lawmakers also discussed projected revenue impacts from the BPT reductions. Opponents repeatedly cited an $80 million two‑year reduction figure; proponents said the cuts were a campaign commitment to reduce the tax burden and linked the change to economic growth and job preservation in tourism and other sectors. Several senators urged improved management across agencies and better use of existing and federal funds rather than relying solely on higher appropriations.
The bill now awaits the governor’s action. Multiple senators urged the governor to sign the budget “without delay” so agencies may begin planning and operations can continue into the new fiscal year.
Votes at a glance: Bill No. 44‑38 COR (third reading) — Passed 11 yeas, 4 nays. The clerk’s reading on the floor described the bill as an appropriations act under the Organic Act of Guam for the fiscal year ending Sept. 30, 2026.
Ending: Legislators emphasized the bill reflected compromise after lengthy debate; supporters framed it as a balanced approach to tax relief and funding priorities, while critics warned the reductions to the BPT and certain allocations risked leaving gaps in hospital and social services. The Legislature recorded its vote and adjourned the session subject to the call of the speaker.
