Senators override Guam Governor’s veto on 2026 budget

On September 4, Guam Governor Lou Leon Guerrero (D) vetoed the legislature’s proposed Bill 44-38, which set the 2026 budget.

“I vetoed the Legislature’s proposed budget bill for the coming fiscal year, warning that it underfunds Guam Memorial Hospital (GMH) at a time of crisis,” she explained.

GMH is the only public hospital on Guam. The hospital’s annual operating losses have increased over the past nine years. In the first six months of 2025 alone, GMH lost $37 million.

According to reporter Joe Taitano II, the most controversial provision in the bill is the tax rollback of the business privilege from 5% to 4.5%, starting October 1, and further to 4% on October 1, 2026. He claims the provision will reduce the government of Guam’s tax collections by an estimated $40 million this year and the following year.

“Lawmakers must now choose: Protect GMH for all of us, or deliver tax cuts to the favored few,” Guerrero said in an Instagram post.

The tax rollback clause was strongly supported by the Guam Chamber of Commerce, a non-profit voluntary association of businesses. The members argued that the clause was necessary for recovery from COVID-19 and Typhoon Mawar.

The budget aims to provide $62.3 million to the Department of Public Health and Social Services. It would also provide $59.6 million to the Guam Police Department, $41.2 million to the Guam Fire Department, and $16.8 million to the Mayor’s Council of Guam. All funding to each organization is an increase from the current fiscal year.

Thus, on September 29, lawmakers voted 11-4 to override Guerrero’s veto of the $1.35 billion 2026 fiscal year budget. All nine members of the Republican majority and two Democrats voted in favor of overriding the veto. This also led to the prevention of a government shutdown. In the case of a shutdown, agencies would be forced to discontinue all non-essential services until a new funding legislation is passed and signed into law. Thus, this prevention allows organizations to continue all of their functions.

“The successful override of the veto of Bill 44-38 marks a pivotal step in ensuring Guam’s fiscal health and advancing the interests of every man, woman, and child who calls Guam home,” Speaker Frank Blas Jr. (R) said.

Ultimately, despite efforts made by the Guerrero administration to veto the bill, the majority of lawmakers worked to overturn it. Some may find it controversial as it underfunds GMH and reduces tax collections. However, others may be in favor of Bill 44-38 as it provides aid to the police and fire departments. What is certain is that the passing of the budget bill will prevent any shutdown of Guam’s government at the start of fiscal year 2026.