Senator Will Parkinson pushed back Monday against claims that federal Earned Income Tax Credit (EITC) reimbursements could be redirected to fix Guam Memorial Hospital, warning that such proposals offer “false hope” to the community.
As deliberations were well underway on the hospital's Fiscal Year 2026 proposed budget Parkinson explained in a release that the EITC is a federal program designed to support low-income workers by reducing taxes and providing refunds. For years, Guam covered the refunds without federal assistance, costing the government an estimated $55–$60 million annually. That changed in 2021 when Congress approved a policy to reimburse territories for the full cost of the EITC. In 2022, Guam received $56.1 million in reimbursement, which, under federal rules, must be used exclusively to pay tax refunds owed to island residents.
Some lawmakers, including Senator Sabrina Salas Matanane, have argued that $35 million from that reimbursement was unaccounted for and could have been redirected to GMH. Others even called for an investigation into the “missing” money. Parkinson rejected those claims, stressing that federal law overrides any local attempts to reallocate the funds. “We can promise $35 million to GMH on paper, but federal law says those funds can only go to tax refunds,” he said. “In effect, the amendment would be legally null.”
Parkinson said he is committed to addressing GMH’s financial challenges but urged colleagues to focus on realistic solutions. “We owe it to our people and our hospital to be truthful,” he said. “I’m ready to work with anyone on sustainable ways to fund GMH whether that’s reallocating actual dollars, cutting elsewhere, or finding new revenue. What I won’t do is pretend a problem is solved by passing a feel-good amendment that does nothing. Our people have had enough of false hope.”