Guam senators approved the fiscal 2026 budget bill by a vote of 11-4 on Friday, drawing praise from members of the Republican majority and sharp criticism from the governor’s office.
Speaker Frank Blas said the $1.35 billion budget was “a win for the people of Guam.”
“I am especially encouraged by the bipartisan support it received,” he said in a statement. “It shows that when we put politics aside and focus on what’s best for our island, we can deliver meaningful results.”
Blas said that moving forward, the island cannot continue to rely on federal funds or revenues from the military buildup.
“We must actively identify and develop new, sustainable revenue streams that will support our healthcare system, strengthen our schools, and ensure public safety for future generations,” he said.
Sens. Therese Terlaje, Chris Barnett, Sabina Perez and William Parkinson voted against the measure.
The bill was described by Finance Committee Chairman Chris Duenas as a “big, beautiful compromise.”
In remarks following the bill’s passage, Barnett said, “It’s been called the big, beautiful compromise. And I think that’s appropriate because this bill compromises public education, public health care, our people’s tax refunds. They say it’s balanced, but we’ll see how balanced this budget bill is when our critical public services fall flat on our face and our people are left to foot the bill for $80 million in corporate tax discounts.”
The administration's original budget bill left the business privilege tax at 5%, but the substitute budget bill proposed by the Legislature cut the BPT from 5% to 4.5% in October 2025. An amendment later rolled back the rate to 4% by October 2026. The administration said the cuts would result in an $80 million shortfall.
The Guam Chamber of Commerce supported the tax cut, saying in a statement that “this effort, coupled with the responsible reduction of government spending, represents a critical step toward a stronger economy.”
“A small group of senators, under the guise of serving the ‘little people,’ has instead vilified businesses, the very entities that create jobs, pay taxes, and keep our economy running,” the Chamber stated in a news release. “Many of those businesses are precisely the ‘little people’ they claim to defend.”
Soon after the budget was approved, the governor’s office issued a statement saying the budget “is a scam, built on phantom money and false promises. The Republican-led Legislature chose lining the pockets of select millionaires over our kids’ classrooms, our hospital beds, and families just trying to get by.”
The governor has 10 days to either approve or veto the budget. If she takes no action, the budget will lapse into law.
If the governor vetoes the budget, the senators can override the veto with 10 votes.
