Leon Guerrero vetoes GovGuam 2026 budget bill, warning an underfunded GMH

BY SKYLER OBISPO
Journal Staff 

Gov. Lourdes A. Leon Guerrero vetoed the nearly $1.4 billion fiscal year 2026 Government of Guam budget bill on Sept. 5, stating that the proposed measure underfunds the Guam Memorial Hospital and provides tax cuts to the “favored few.” 

The 38th Guam Legislature passed the measure on Aug. 22 which appropriates $22.7 million from the GovGuam General fund to the Guam Memorial Hospital Authority and would lower the Business Privilege Tax rate by 1% by October 2026. 

Lawmakers debated on lowering the BPT rate over the course of two weeks in August and ultimately settled on a 4.5% rate effective Oct. 1, 2025 which will fall to 4% the next year.

Additionally, $35 million was allocated to GMHA for “technology upgrades and Capital Improvement Projects within [its] current facility” which will be issued over the course of the next eight months. 
Leon Guerrero said in a special video address that the Business Privilege Tax needs to remain at 5% and move the $40 million dollars in tax cuts to “be redirected solely to GMH to address its critical needs.” 

Sen. Christopher M. Dueñas said, however, that the BPT remained at the current rate for eight years without funding GMH. 

“Tax relief strengthens local businesses and supports the economy that funds essential services,” he said. “We can achieve both a financially secure GMH and a healthy economy.” 

The veto comes as lawmakers and the governor have been at odds at tackling GMH’s failing infrastructure, following an Aug. 21 electrical fire and HVAC failure that occurred at the hospital. 

On Aug. 30, the governor called lawmakers into a special session where senators moved the governor’s two proposed measures, to expand her emergency powers and utilize American Rescue Plan Act funding to support the construction of the Mangilao Medical Campus, to committee for public hearing. 

Dueñas said that the referral of the measure to his committee was to ensure that the public has input on the measures. 

“The people of Guam deserve a seat at the table before any final decisions are made,” he said. 

On Sept. 2, Sens. Dueñas and Jesse A. Lujan, introduced a resolution calling on the U.S. Department of Treasury and the Trump administration to authorize the reallocation of existing ARPA funds to infrastructure repairs at GMH.

The governor called this move “dangerous” in her address, fearing that it delays action and can risk the loss of federal funds altogether.

Dueñas said in a statement that the issues with GMH need to be addressed now.

“The reality is that our only public hospital is in crisis today – not ten years from now,” he said. 

Leon Guerrero submitted a “fiscally identical” replacement bill which would include an adjusted $61.2 million General Fund allocation to GMH, but she says that the hospital would still need more funding to continue on. 

“Even this won’t get us all the money GMH needs, but, coupled with the emergency measures I sent the legislature last week, it will represent our most significant step forward for GMH in a
long time,” she said. 

Leon Guerrero called another emergency session on Sept. 5 where lawmakers were slated to have discussions on the replacement budget, but halted debates until Sept. 10 to look over the measure. 

The governor, following the roughly 15-minute special session, criticised the Republican-led legislature for recessing. 

“The ‘R’ in Republican clearly stands for ‘recess’,” she said.  

Lawmakers can override the veto with at least 10 votes.

Dueñas said in a statement that the Legislature is committed to swiftly overriding the veto. 

“Our island deserves a hospital that is safe, reliable, and ready to care for families. On this, the Governor and Legislature agree,” he said. “Our differences lie in the strategy to achieve long-term stability.”mbj