Guam Legislature chamber during Lou Leon Guerrero's 2026 State of the Islands address conclusion. Image credit: PBS Guam
Guam Governor Lourdes A. Leon Guerrero (D) delivered her State of the Island Address on February 11, 2026, reflecting on seven years in office and outlining what she described as measurable fiscal recovery, expanded federal partnerships, and structural investments in healthcare, housing, public safety, education, and economic diversification.
The governor framed the speech around promises made in 2019: restoring fiscal order, preparing Guam for large-scale federal and military investment, and strengthening public institutions amid crisis. During her tenure, Guam navigated the COVID-19 pandemic, typhoons, and global economic disruptions.
According to the governor, unemployment now stands at 3.2%, near record lows. Annual debt service has declined from $92 million to $65 million, and the government moved from an $83 million deficit to a cumulative $297 million surplus. The Rainy Day Fund now holds nearly $60 million.
Leon Guerrero highlighted federal policy gains, including increased Medicaid funding from $18 million annually to more than $145 million, with the federal share rising from 55% to 83%. She also cited full federal reimbursement of the Earned Income Tax Credit and progress on war reparations for Guam’s manåmko’.
In healthcare, the governor warned that Guam risks losing $104 million in American Rescue Plan funds if action is not taken to advance hospital construction or related infrastructure before the December deadline. She emphasized the need to move forward on a new hospital facility and noted ongoing partnerships between Guam Memorial Hospital and Keck Medicine of USC.
On public safety, Leon Guerrero reported expanded emergency capacity, including the deployment of eight ambulances staffed by nationally certified paramedics and the opening of new police facilities. Since 2019, coordinated postal inspections with federal partners have intercepted more than 1,000 pounds of methamphetamine, according to the address.
Energy stability was also cited as a key development. The Ukudu power plant came fully online in December, reducing reliance on older oil generation and contributing to an approximate 25% decline in average energy rates between January 2025 and January 2026.
The governor outlined economic diversification efforts tied to defense expansion and global partnerships, including initiatives led by the Guam Economic Development Authority in advanced manufacturing and industrial site preparation. She also referenced expanded international engagement with Taiwan, Japan, and Korea.
Tourism, she noted, is recovering with increased arrivals from Japan and Korea despite global economic pressures.
Leon Guerrero defended her proposed budget decision to maintain the Business Privilege Tax at 4.5% rather than reducing it further, arguing that additional reductions would remove more than $40 million in revenue at a time when stable funding is needed for healthcare, public safety, education, and infrastructure.
Education outcomes, she said, include a 90% graduation rate and dropout rates below 1%, alongside pay raises for teachers.
On housing, the governor acknowledged rising home prices—now averaging above $500,000—and outlined efforts to expand supply, rehabilitate public housing, and support first-time homeownership.
Leon Guerrero concluded by emphasizing fiscal discipline, federal alignment, and institutional stability, stating that progress requires continued vigilance and sustained partnership between Guam and Washington.
“Progress lasts only when it is carried forward—deliberately, courageously, and with a clear understanding of what is at stake,” she said.
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William-José Vélez González is a native from Mayagüez, Puerto Rico, and a graduate from Florida International University in biomedical engineering, engineering management, and international relations. A designer with a strong interest in science, policy, and innovation, he previously served as the national executive vice president of the Puerto Rico Statehood Students Association. William-José lives in Washington, DC, where he works at the Children's National Research Institute and runs Opsin, a nonprofit design studio dedicated to making design more accessible. You can see him on Love is Blind as Lydia's brother. He is the founder and Editor in Chief of Pasquines.
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