With the veto override behind them, lawmakers are diving into the rest of the session. What’s at stake now? The future of Guam’s only public hospital and whether cancer patients get the support they need.

Kicking-off October’s legislative session on Monday, after weeks of grueling debate, Guam lawmakers have voted to override the governor’s veto of Bill 44, cementing the Fiscal Year 2026 budget into law. For supporters, it was about duty and financial discipline.

“A balanced budget," noted Senator Chris Duenas, "a budget that can move forward and keep promises that we have made while keeping operations for our government robust."

Senator Shawn Gumataotao said this budget strikes the right balance between resources and restraint, pointing out, “Mr. Speaker, in Bill No. 44-38, not only does the government's spending policy for the new fiscal year provide the resources that are needed to deliver critical public services in health, safety, and education, it represents the legislature's pledge to prioritize long-term economic recovery over growing and already unsustainable bureaucracy.”

But the heart of the clash was over the 1% reduction in the Business Privilege Tax – taking the rate from 5% to 4%, which will cost the Government of Guam an estimated $80 million in revenue over the next two years. Senator Therese Terlaje argued it’s the biggest businesses that will actually benefit the most.

“The data from the Department of Revenue & Taxation shows that the bill disproportionately benefits larger businesses, not the smaller ones that make up most of Guam’s economy," she said. "And it abruptly reduces the government's ability to care for all of our people's needs in health, education, public safety for the next two years at a minimum.”

“And if we really wanted to help those smaller struggling businesses that are currently paying 5%, there were several proposals, an excellent one by my colleague Senator Perez, one that I proposed myself where we would tier this system so that those true smaller struggling businesses would be would be rated under a different cap.”

Senator Sabina Perez questioned whether savings would ever trickle down to local families, saying, “The roll back of the BPT in a budget bill, the loss of income tax revenues due to the defunding of agencies or programs in whole or apart due to the One Big Beautiful Bill Act result in the shrinking of local government coffers that will exacerbate addressing issues that proponents of the bill are likely to were quick to highlight. There are no guarantees that this money will be reinvested in our island to support a more resilient economy or lower the cost of living by passing on the savings to the consumer which will drive the demand for more government services.”

And Senator Chris Barnett issued the bluntest warning: “This budget bill is a death sentence for the Guam Memorial Hospital. It’s a disaster for the Guam Department of Education. It’s a short-changing of the people’s hard-earned tax refunds.”

Despite these objections, the override passed 11-to-4.

Governor Lou Leon Guerrero fired back, warning that republicans “chose their contributors over their constituents”. She called the BPT rollback “an $80 million gift to the largest corporations”. She also pointed to Moody’s warning of a possible negative credit action – raising the risk of higher borrowing costs for Guam. 

With federal aid running out and a US Government shutdown looming, the governor says this budget leaves Guam dangerously exposed. But the session didn’t stop there.

Senator Terlaje reintroduced her measure to explore a public-private partnership at GMH – arguing it should be included in this sessions agenda as it has broad support from the community and could finally stabilize hospital care. “The former GMH medical director advocates for a PPP using his own experience as a former lieutenant governor where he learned that, ‘Government run health care fails not because of dedicated frontline workers but because of systemic mismanagement,’” she said.

Her motion failed.

Another proposal gained momentum – Bill 1 by Senator Telo Taitague, which aims to ensure no less than $4 million a year for the Guam Cancer Trust Fund. She said, “Given our history and the ongoing crisis of cancer that claims so many lives, this bill is about justice. This measure ensures that no less than 15% of the Healthy Futures Fund – or $4 million annually, whichever is greater – is dedicated to the Guam Cancer Trust Fund.”

She tied the measure to Guam’s history of exposure – from Agent Orange and nuclear fallout to contaminated drinking water.  Taitague said underfunding of GCTF has already cost lives, adding, “How many lives were denied that chance to fight?” and also “From the FY19 budget until today, this body has underfunded the GCTF by a staggering $19 million.”

Senator Perez added some crucial statistics to the discussion saying that according to the 2022 Guam Cancer and Health Disparities Report, there were 1,587 new cancer cases and 86 cancer deaths over a five-year period

“And the majority of the cancers were caught at late stages or could not be staged at diagnosis. So many of our families, because they lack the funds, do not seek help when it’s treatable," she said.

The legislation has also gained unanimous support by the Guam Youth Congress through their resolution.

Bill 1 has now been moved to the Third Reading File – setting up another critical vote in the days ahead.