“Let us choose a compromise without compromising GMH.”

That's how Governor Lou Leon Guerrero framed her veto of the legislature’s budget bill for the upcoming fiscal year, rejecting what she says would underfund the Guam Memorial Hospital during a time of crisis, while offering back a nearly identical version with one key change.

“I ask only this—that the Business privilege tax remain at 5%--allowing the 40 million dollars set aside for tax cuts this year to be redirected solely to GMH to address its critical needs. Now, our legislature must choose: support GMH for all of us, or secure tax giveaways to the favorite few,” said Leon Guerrero. 

The Governor delivered the announcement in a special address Friday morning.

It came as lawmakers urged her to declare a state of emergency at GMH, and after two of her proposed bills were sent back to committee for public hearings.

“Last week, when I called the legislature into special sessions to address the emergency at GMH, I also sent down measures that would give me the legal tools to act. Tools to repair failing electrical systems, pay the power bills, and keep patients safe,” said Leon Guerrero. 

She also weighed in on a resolution by lawmakers requesting the u.s. treasury and president donald trump to allow the government of guam to reallocate american rescue plan funds—originally set aside for a new hospital—toward immediate GMH repairs.

“Instead of putting real money into GMH, the republican majority authored a resolution asking the federal government to reallocate funds already locked away by Congress. That is dangerous for two reasons. First, if GMH is truly in an emergency, it needs help now. It cannot wait for an act of Congress or the sprawling machinery of the federal government. Second, by arguing over the use of these funds after the federal deadline for their obligation has passed, we risk losing them altogether,” added Leon Guerrero. 

But her decision drew pushback from the Guam Chamber of Commerce, which issued a statement in part:

“Disappointingly, despite inheriting a 5% BPT, the administration has delivered little substantial progress. The persistent crisis at GMH cannot be blamed on recent legislative proposals to reduce the BPT; rather, it is the result of repeated executive inaction.”

The chamber also reaffirmed its support for using remaining ARP funds for GMH repairs.

Meanwhile, republican senators Chris Duenas and Shawn Gumataotao also voiced criticism.

Duenas stated in part, “The legislature has consistently provided supplemental funding to keep essential hospital services running. What we cannot accept is weaponizing GMH for political gain or using it to extort the legislature. Leaders who change or ignore laws for political advantage undermine democracy.”

Gumataotao added, “The veto of the fiscal year 2026 budget act by the Governor of Guam is disappointing. For eight months, members of the legislative majority and I have been in lockstep with her administration on so many issues facing the people of Guam. While she disagrees with this policy proposal, I agree that Bill 44-38 is a responsible spending plan that gives the governor the resources and flexibility she needs to effectively manage the resources of the executive branch for the next 12 months.”

Both expressed hopes for a swift override.

All this unfolding as the maga’håga called the legislature into a second special session to consider her legislation.