Guam is expected to receive $105 million in Section 30 funds on Sept. 15, according to the governor's office, which said the payment is an advance on federal revenues owed to the territory.
The funds represent "revised estimates" of federal income taxes and fees collected by the U.S. government and returned back to the government of Guam as "cover back funds" through Section 30.
“The Governor and I successfully made Guam’s case to officials at Interior and the Treasury Department that increased military presence and federal activity in Guam should be generating more Section 30 monies,” Acting Gov. Josh Tenorio said.
The military tax reimbursements ensure that federal revenue generated on the islands stays within the territory to support the local economy and public services.
According to the governor's office, the U.S. Department of Interior informed Tenorio Tuesday night.
Tenorio also credited Department of Administration Director Edward Birn and Bureau of Budget Management and Research Director Lester Carlson who along with the fiscal team ran the numbers presented to Washington.
Governor Lou Leon Guerrero who is in Palau for the Pacific Island Forum called it "great news," and characterized the development as validation that Guam's fiscal house is "in order" and "holding the federal government to account for what is due the island."