Lawmakers are back in session with major decisions before them – chief among the bills to be considered, whether to override the governor’s veto of Bill 44, The General Appropriations Act of 2026. Following nearly two weeks of senators’ budget session, Governor Lou Leon Guerrero vetoed the Fiscal Year 2026 budget bill on September 5. 

She warned that lawmakers’ proposal to reduce the Business Privilege Tax from 5% to 4% would cost the government an estimated $40 million in revenue in FY'26, and another $40 million in the next fiscal year.

In a letter sent to Speaker Frank Blas, Jr. over the weekend, Leon Guerrero pointed to a caution from ratings authority Moody’s. A senior analyst with the company advised GEDA, DOA, and BBMR that given Guam’s strong revenue performance, this reduction would not immediately lead to an unbalanced budget.  However, they made it clear that a reduction in any revenue would “not be a credit positive” – raising concerns about Guam’s bond rating and the cost of future borrowing.

The governor also issued a public statement this afternoon, urging the republican majority to reconsider an override.

At stake is a budget that touches every aspect of life on the island – from funding the Guam Department of Education to keep schools open and safe, to maintaining the Guam Memorial Hospital, supporting our public safety institutions, and more.

Senators voted 11-to-4 to override the governor’s veto of Bill 44, cementing the budget into law.

The Guam Chamber of Commerce said in a release following the override, in part, "The Guam Chamber of Commerce applauds the 38th Guam Legislature for voting to override the Governor’s veto of Bill No. 44-38, the FY2026 budget measure that reduces the Business Privilege Tax (BPT) - from 5.0% to 4.5% effective October 1, 2025, and to 4.0% effective October 1, 2026. For seven years, Guam’s businesses have carried an elevated tax burden that was intended to be temporary. Today’s action restores credibility to that commitment and affirms that Guam values its private sector as the engine of jobs, investment, and growth."

"The Chamber encourages members to reinvest savings into hiring, training, wage growth, facility improvements, and price stability where feasible—multipliers that benefit workers, families, and the broader economy."