Governor Sounded the Alarm on Federal Cuts in January; Urges Legislature to Keep BPT to Fund Programs that Feds Cut

Hagåtña, Guam - Governor Lou Leon Guerrero has been sounding the alarm on potential federal funding cuts since January, when she publicly addressed President Trump's federal funding freeze, which impacted funds already appropriated by Congress. At that time, she directed her fiscal team to remain vigilant regarding the evolving federal budget landscape. Subsequently, national media outlets have widely reported on proposed cuts by the Trump Administration and the Republican Congress to programs such as Medicaid, SNAP, Social Security, and other critical support services for vulnerable populations.

In February, Governor Leon Guerrero traveled to Washington, D.C., to meet with White House and federal officials. Her goal was to gain a deeper understanding of the political climate and advocate for Guam's unique needs. Throughout these meetings, the Governor consistently emphasized Guam's strategic importance to national security, particularly in light of the region's ongoing military buildup and geopolitical tension. Additionally, after the 2025 Winter Meeting of the National Governors Association (NGA), she joined fellow governors in unanimously adopting a resolution urging Congress to protect critical programs like Medicaid, SNAP, and TANF, and warned then that shifting federal obligations without proper planning would harm states and territories, emphasizing the need for flexibility and sustained funding.

During her March State of the Island Address, Governor Leon Guerrero warned that federal cuts would jeopardize Guam's national security role. She told lawmakers to be prepared and stated, "Guam cannot be the linchpin of American security in the Asia Pacific if nearly 14,000 of our residents are without shelter because housing aid to Guam is cut, or if 36,000 of our people lose access to Medicaid and Medicare coverage, keeping them healthy, alive, and out of poverty." During this same address, she called upon Guam Delegate James Moylan and stated, "You are our lifeline to the federal government. You stand on the floor of Congress; you are in the room during Republican budget caucuses. You have close relationships with the Speaker of the House and the House Majority Caucus Chair. These relationships matter, and we hope you can count on them because Guam is counting on you."

With the potential cuts now becoming increasingly imminent, Governor Leon Guerrero is reiterating her concerns today, stating, "It's deeply concerning that the Republican majority in Congress, along with the Republican President, are even considering cuts to critical federal programs like Medicaid-programs that provide lifelines to our most vulnerable populations. If these cuts become a reality, the responsibility to sustain these essential services will fall squarely on our local government. That's why rolling back the Business Privilege Tax (BPT) is simply not an option." She added, "We must preserve the BPT, especially now, as Guam stands at the forefront of a historic military buildup. Large off-island companies are coming here to do business and make a profit, and they must pay their fair share to support the infrastructure and services our people depend on. These tax revenues are vital to ensuring we can continue to deliver healthcare, public safety, education, and other core government services for a population that is already growing. I strongly urge our lawmakers to keep the BPT in place. Now is the time to protect our people, not weaken the resources that sustain them."
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