A federal magistrate judge has recommended dismissing a lawsuit filed by Guam’s attorney general challenging the use of federal relief funds for a planned medical campus in Mangilao.

In a 31-page report, Magistrate Judge Michael J. Bordallo found that the case brought by Douglas Moylan against Gov. Lou Leon Guerrero and the Guam Housing and Urban Renewal Authority should be thrown out.

The dispute centers on the administration’s use of American Rescue Plan Act (ARPA) funds to support infrastructure for a new hospital campus.

According to the report, the complaint failed to establish a valid federal legal claim. Bordallo wrote that the governor holds “supreme executive power” in Guam’s government and that the attorney general “must yield control” in this context.

Leon Guerrero said the ruling affirms that the matter is local in nature and was improperly brought in federal court. The court also rejected an effort to expand the lawsuit to include additional government agencies.

The attorney general has argued that the use of ARPA funds violates provisions of the Organic Act of Guam, but the magistrate found that claim did not provide a basis for federal jurisdiction.

Moylan has until April 22 to file objections to the recommendation. A final decision will be made by District Court Chief Judge Frances Tydingco-Gatewood, which could come as early as May.

The governor said the decision clears the way for the administration to move forward with the Mangilao Medical Campus project, emphasizing the need to avoid further delays in healthcare infrastructure development.