AGP Executive Report

Airport and Fuel Infrastructure: Guam’s airport recorded 106,321 passengers in October, nearly flat from September but up 27% in capacity from a year earlier. The airport authority is seeking funding for fuel infrastructure. Housing: A proposed mixed-income housing program would create local financing and subsidies for households that earn too much for federal assistance but still struggle to afford housing. Bavi Recovery: FEMA and the SBA urged residents and businesses affected by Supertyphoon Bavi to apply for aid, emphasizing the need to document storm-related losses. Tourism and Aviation: United has replaced its Guam fleet with 10 Boeing 737 MAX 8s ahead of schedule and started installing free Starlink Wi-Fi, with two planes connected so far. Power Costs: Regulators approved $32.5 million in credit lines for GPA to buy fuel; the utility expects to repay the borrowing through customer bills, while the current LEAC rate remains in place.

Airline Investment: United has completed its switch to 10 Guam-based 737 MAX 8s ahead of schedule and equipped two with free Starlink Wi-Fi; the rest are due by year-end. The newer jets are more fuel-efficient and serve routes across Micronesia and Asia. Power Costs: Regulators approved $32.5 million in credit lines for GPA to help pay for a $55.5 million fuel shipment. The utility faces a projected $9 million shortfall, while the LEAC rate stays unchanged. Tourism: Marianas visitor arrivals reached 5,001 in August, still 61% below a year earlier as air service gradually returns. Business Growth: GEDA is seeking land for an industrial and technology park, while the Chamber is urging candidates to address business fundamentals as Guam’s business privilege tax drops to 4%.

Power Costs: Guam’s utilities commission approved $32.5 million in credit lines for GPA to help pay for a $55.5 million fuel shipment. The borrowing will be recovered through power bills, while the LEAC rate stays unchanged. Air Travel: United has added free Starlink Wi-Fi to two Guam-based 737 MAX 8s and plans to prioritize the island as it equips the rest of its fleet. Disaster Aid: Bavi survivors can apply for FEMA assistance for home repairs, lost belongings and other disaster-related costs by Dec. 7. Tourism Investment: Gov. Lou Leon Guerrero says talks in San Francisco could bring $5.1 billion in funding for Guam; she is awaiting federal agencies’ response. Airport Finances: The Guam airport expects to save more than $143,000 on insurance this fiscal year, largely due to lower property coverage costs. Retail: Ross Stores completed its 2026 expansion, adding 51 locations and bringing its total to about 2,377 stores, including Guam.

Bavi Recovery: Guam homeowners and renters can now apply for FEMA assistance for Super Typhoon Bavi damage; the deadline is Dec. 7, and residents who previously reported damage must still submit an application. Air Travel: United has added free Starlink Wi-Fi to two Guam-based Boeing 737 MAX 8s and plans to prioritize the island for fleet upgrades, aiming to equip its Guam aircraft by year-end. Public Finances: The airport expects to save more than $143,000 on insurance in fiscal 2027, while GPA has received only about $700,000 of roughly $16 million in Mawar reimbursements discussed at an oversight hearing; documentation remains outstanding. Tourism and Investment: Guam is seeking $5.1 billion in federal funding for infrastructure tied to military expansion. Separately, a plan to convert the vacant Tumon Bay Mall into a school serving up to 1,200 students has cleared a local council recommendation, but still needs land-use approvals.

Airport Costs: Guam’s airport expects to save $143,272 on fiscal 2027 insurance, a 6.6% drop from last year, largely because property coverage became cheaper. Tumon Redevelopment: A village planning council backed converting the long-vacant Tumon Bay Mall into an iLearn Academy campus, but zoning and development approvals are still needed before the proposed 2027 opening. Public Finances: GDOE received a clean audit opinion, but auditors flagged $9.3 million in questioned federal costs and control weaknesses; the department remains a high-risk federal grant recipient. Utility Recovery: GPA has about $16 million in Typhoon Mawar reimbursements approved, but only $700,000 has been paid as federal officials await document validation. Economic Diversification: GEDA is looking for land for an industrial and technology park aimed at attracting data and clean-technology businesses; the effort is still at the site-identification stage. Federal Funding: Gov. Lou Leon Guerrero is awaiting a federal response to Guam’s $5.1 billion request for infrastructure upgrades tied to the military buildup.

Public Finance: Guam’s Department of Education received a clean FY2025 audit, but auditors questioned $9.3 million in federal costs and flagged control weaknesses. The department remains a high-risk federal grantee. Industrial Investment: GEDA is searching for land for an industrial and technology park, aiming to attract industries such as data and clean technology; the site, cost and schedule are still undecided. Regional Business: Six Guam companies explored expansion and investment opportunities in Palau, including construction, housing, food retail and insurance, and are pursuing follow-up talks. Military Buildup Costs: Gov. Lou Leon Guerrero is seeking $5.1 billion in federal support for infrastructure and other impacts, as Guam estimates the buildup could cost $11.7 billion over 30 years. Retirement Fund: The fund’s net position rose $278.3 million to $3.1 billion in FY2025, though its defined-benefit plan’s unfunded liability increased to $1.34 billion. Fishing Economy: Guam’s pelagic fishing revenue climbed 39% to about $164,000 in 2025, but fishers said trip costs still exceeded sales.

Guam’s Economic Agenda: Republican candidates discussed affordable housing, local talent and the economy at a forum with young professionals. Local Materials: University of Guam researchers are testing whether recycled plastics and other local resources can become construction materials, potentially cutting imports and growing manufacturing skills. Military Buildup Costs: Gov. Lou Leon Guerrero is seeking $5.1 billion in federal help for infrastructure and services tied to the buildup, and expects a response from federal agencies in the coming weeks. New Industries: GEDA is looking for land for an industrial and technology park, with data and clean technology among the sectors it hopes to attract. Regional Trade: Guam businesses are pursuing opportunities in Palau in construction, insurance, housing, food retail and beverage distribution. Public Finances: The Retirement Fund’s net position rose to $3.1 billion in fiscal 2025, but its defined-benefit plan’s unfunded liability also grew. Guam’s pelagic fishing revenue increased 39% to $164,000, though fishers said trip costs exceeded sales.

Retirement Fund: Guam’s fund received a clean FY2025 audit and grew its net position to $3.1 billion, but its defined-benefit plan’s unfunded liability rose to $1.34 billion. Federal Funding: Gov. Lou Leon Guerrero is awaiting a response to Guam’s $5.1 billion request to offset the military buildup’s impact on local services and infrastructure. Fishing Industry: Pelagic fishing revenue rose 39% to $163,621 in 2025, but fishers said trip costs still exceeded sales returns. Economic Development: GEDA is seeking land for a proposed industrial and technology park aimed at attracting data and clean-technology businesses; no site, cost or timeline has been set. Business Climate: The business privilege tax has dropped to 4%, and the Guam Chamber is urging candidates to focus on remaining economic basics. Regional Trade: Guam companies are pursuing opportunities in Palau in construction, insurance, housing, food retail and beverage distribution. Utilities: The Consolidated Commission on Utilities approved $32.5 million in borrowing to help GPA cover fuel costs through July 2027.

Industry Growth: GEDA is searching for land for an industrial and technology park to attract data and clean-technology companies, but the effort is still in early planning, with no site, budget or timeline set. Regional Trade: Guam businesses are pursuing investment opportunities in Palau across construction, housing, food retail and distribution. Tourism: Korean airlines are seeking to reduce required Guam-bound seats, renewing concerns about weak demand for an industry that relies heavily on visitor flights. Business Costs: GPA approved $32.5 million in borrowing to cover fuel purchases through July 2027; meanwhile, the Chamber says the business privilege tax rollback to 4% is welcome but urges candidates to address broader economic basics. Tax Status: Guam remains on the EU’s list of non-cooperative tax jurisdictions, one of eight places still listed after Panama and Vietnam were moved to a monitoring annex. Funding: USDA has $5 million available for wetlands and floodplain conservation, but says Guam currently has no conservation easement partners.

EU Tax Status: Brussels removed Panama and Vietnam from its non-cooperative tax list, but Guam remains among eight jurisdictions on the blacklist, alongside Palau. Health Care Investment: Gov. Lou Leon Guerrero signed a law making $21 million available to Guam Memorial Hospital, with $19.8 million in additional Section 30 revenue intended for a new electronic health records system. Regional Business: Six Guam-based companies explored opportunities in Palau, including construction bonding, insurance, housing, food retail and beverage distribution; follow-up investment discussions are underway. Business Taxes: The business privilege tax fell from 5% to 4% on Oct. 1, offering companies some relief, though the Guam Chamber warns weak consumer demand could limit the benefit. Utilities: Guam’s Consolidated Commission on Utilities approved $32.5 million in borrowing to help GPA cover fuel costs through July 2027.

Tax Status: The EU removed Panama and Viet Nam from its tax blacklist but kept Guam among eight listed jurisdictions, maintaining scrutiny of the island’s tax-governance standing. Regional Trade: Guam companies are pursuing opportunities in Palau in construction bonding, insurance, housing, food retail and beverage distribution after a trade mission with government and business leaders. Health Investment: Gov. Lou Leon Guerrero signed a law allowing GMH to use $21 million for operations and a new electronic health records system, including $19.8 million in additional Section 30 funding. Business Costs: Guam’s business privilege tax fell from 5% to 4% on Oct. 1. The Chamber called it a welcome but modest relief, saying businesses still need customers and stronger economic fundamentals. Energy Finance: The Consolidated Commission on Utilities approved $32.5 million in borrowing to help GPA cover fuel purchases through July 2027. Storm Recovery: FEMA assistance is now available to eligible Guam residents and business owners affected by Typhoon Bavi, including grants and low-cost loans for uninsured losses.

Health-Care Investment: Gov. Lou Leon Guerrero signed a law directing nearly $20 million in excess revenue to Guam Memorial Hospital’s electronic records upgrade, alongside $21 million already budgeted for the project. Business Taxes: The business privilege tax fell to 4% on Oct. 1, offering some relief, but the Guam Chamber says weak sales and unreliable government services remain challenges for local firms. Tourism: Lawmakers will hear Oct. 16 from small businesses, cultural practitioners and community groups on a proposed shift toward tourism that benefits residents as well as visitors. Workforce: Guam’s In-School Youth program extended applications to Oct. 24 and offers paid summer placements with private-sector employers. Disaster Recovery: FEMA assistance is now available to eligible residents and businesses affected by Typhoon Bavi, including grants, low-cost loans and support for damaged public facilities.

Business Taxes: Guam’s business privilege tax fell from 5% to 4% on Oct. 1, leaving businesses with as much as $80 million a year that had gone to government. Chamber President Catherine Castro called it relief, not recovery: businesses still need customers and reliable public services. Election and Economy: At a Chamber forum, leaders said construction is thriving on military spending while retail and restaurants struggle. Gubernatorial candidates faced questions about affordability, infrastructure and turning the buildup into lasting local economic gains. Disaster Recovery: FEMA approved individual and public assistance for Typhoon Bavi losses, including support for eligible business owners and repairs to public facilities. Power Costs: The utilities regulator approved $32.5 million in borrowing for GPA to cover fuel purchases through July 2027.

Disaster Recovery: Federal aid is now available to Guam residents and businesses hit by Typhoon Bavi, including housing grants, repair help and low-cost loans; funding can also support damaged public facilities. Business Priorities: Gubernatorial candidates faced questions from private-sector leaders about the cost of living, reliable services and turning military spending into lasting local jobs. The Chamber says construction is strong, but other industries are struggling. Power Costs: GPA won approval for up to $32.5 million in financing to manage costly fuel purchases. It will not erase fuel costs or replace the surcharge; fuel shipments are running about $55 million, up from $24 million to $25 million before the Iran war. Public Funding: Lawmakers directed nearly $19.9 million in additional Section 30 revenue to GMHA, removing $4 million proposed for UOG’s Blue Economy Innovation Center and leaving a separate proposal for power credits without that funding. Business Taxes: Guam’s business privilege tax returned to 4% on Oct. 1, but business leaders caution that lower taxes alone won’t bring customers back or guarantee lower prices.

Education Oversight: Guam’s FY2025 audit flagged $9.3 million in questioned costs at the Department of Education, including $4.26 million tied to missing Davis-Bacon wage provisions and payroll records. Business and Elections: Gubernatorial candidates met with private-sector leaders as the Chamber warned that store and restaurant closures and slowing retail sales point to a tough economy. Power Costs: The utilities commission approved $32.5 million in financing to help GPA pay for fuel purchases through July 2027. It eases payment timing, but does not reduce fuel costs or customer surcharges; fuel shipments are now estimated at $55 million, up from $24 million to $25 million before the Iran war. Business Taxes: Guam’s business privilege tax returned to 4% on Oct. 1. Chamber Chair Ed Untalan called the cut a win, but said businesses still need customers and families need relief from high living costs.

Guam Power Authority Financing: The Consolidated Commission on Utilities approved $32.5 million in fuel financing—$22.5 million from Bank of America plus a Coast360 line of credit—to help GPA manage higher fuel shipment costs through July 2027, while keeping the LEAC fuel surcharge in place. Hospital Funding Fight: Guam lawmakers passed Bill 1 (11-S) shifting $19.9 million in excess Section 30 funds to GMH alone, tying an electronic health record upgrade to the already-budgeted $21 million for fiscal 2027 and removing UOG’s planned aquaculture innovation center funding from the bill. School Campus Update: Tiyan High School passed its latest health inspection with an “A” and zero demerits, but GDOE says students’ return is still being planned after ongoing plumbing responsibility and renovation issues. Election Logistics: Guam Election Commission early voting begins Thursday at the Westin Guam Resort, with homebound voting already underway and electronic poll books used again for early voting. Small Business & Community: SBA opened nominations for National Small Business Week 2027 awards, including a Guam slot for state winners. Community Drive: Be Heartfelt and Tower for Humanity launched Cans for Humanity, targeting 30,000 canned goods for kids facing food insecurity. Legal Case: A former Docomo Pacific employee pleaded not guilty to aggravated sexual abuse by force; trial is set for Dec. 15. Tourism Letter: A letter urges lawmakers to “save the tourism industry” by fixing visible eyesores and keeping Guam welcoming.