The Guam Legislature has overridden Gov. Lou Leon Guerrero’s veto of Bill 44-38, enacting a new budget that lowers the Business Privilege Tax from 5% to 4.5% while funding essential services. Republican leaders hailed the move as a long-promised victory for taxpayers and a safeguard against a government shutdown, while the governor blasted the plan as fiscally reckless.
Sen. Christopher M. Duenas, chair of the Committee on Appropriations, said the override represents “a reaffirmation that the people’s voice guides governance.” He pointed to robust revenue collections as evidence Guam can afford the tax cut, arguing the budget secures jobs, supports police and fire recruitment, and invests in schools and hospitals. Speaker Frank F. Blas Jr. echoed the message, calling the measure a commitment to fiscal responsibility. “Your 38th Guam Legislature has demonstrated leadership by holding the line both on spending and in reducing taxes for our people, putting more money directly into the hands of Guam's families,” Blas said.
But Leon Guerrero warned the plan will strip $120 million in government revenue over two years, jeopardizing funding for healthcare, education, and public safety. She said the budget amounts to “an $80 million gift to the largest corporations over the next twelve months,” and will make borrowing for schools and infrastructure more expensive. “They chose their contributors over their constituents,” the governor said, adding that looming federal cuts and a possible shutdown could compound the strain on local services.
Both sides framed the override as a defining moment for Guam’s political future. Republicans described it as ushering in a new era of accountability, where agency funding will be tied to transparency and performance. The governor, however, said the move leaves the island more vulnerable at a critical time. “Guam deserves stability, responsibility, and a future built on sound planning — not a government that puts contributors first and constituents last,” Leon Guerrero said.