AGP Executive Report

Indo-Pacific Military Presence: The USS George Washington is set for a Guam port visit June 16-20 as it heads out on spring deployment, with the USS Blue Ridge also departing Yakuska and Guam/Andersen Air Force Base participating in drills tied to Valiant Shield 2026. Tourism Watch: Marianas visitor arrivals fell sharply in April—3,277 total, down 72% year over year—after Super Typhoon Sinlaku disrupted flights; South Korea remains the top source market and Jeju Air plans to resume Seoul-Saipan service June 20. Local Business & Community: UOG’s Farmer Focus launches Hotnu Heals, a community gathering for agricultural producers starting June 7, plus UOG Nursing graduates (35 BSN recipients) are preparing to enter Guam’s healthcare workforce. Government & Oversight: A Parks and Recreation budget hearing was postponed after the appointed department head didn’t show, drawing criticism from Sen. Chris Duenas. Legal & Risk: A $61.5M federal lawsuit targets the Guam Visitors Bureau over alleged sexual harassment and assault by former president Carl Gutierrez and broader leadership failures.

Tourism Slump: Marianas Visitors Authority reported April visitor arrivals at 3,277, down 72% year over year, with Sinlaku disrupting flights after repairs at Saipan’s airport. Tourism Slump: March arrivals were 12,865, down 8% from March 2025, with South Korea still the top source market but down 17%. Local Governance: A Parks and Recreation budget hearing was paused after no appointed department head showed up, drawing criticism from Sen. Chris Duenas and raising questions about performance-based budgeting. Legal & Risk: Guam Visitors Bureau faces a $61.5M federal lawsuit alleging repeated sexual harassment and assault by former bureau president Carl Gutierrez, plus alleged institutional failures by leadership. Energy & Cost Pressures: Guam Power Authority rate increase coverage continues to spotlight household affordability concerns as residents brace for higher electricity costs. Business & Trade: DB Insurance completed its $1.65B all-cash acquisition of U.S. insurer Fortegra, expanding warranty and surety lines and marking the group’s largest U.S. market entry. Regional Recovery: After Super Typhoon Sinlaku, officials say NMI supply chains are rebounding toward full capacity, though logistics and costs remain a strain for local distributors and small businesses. Corporate Appointments: Coffman Engineers named UntenKimo Unten incoming general manager for Guam and Honolulu offices, alongside other regional leadership moves. Indo-Pacific Security: Defense Secretary Pete Hegseth’s “partners, not protectorates” message landed in Guam amid renewed debate over burden-sharing and the island’s role in U.S. strategy.

GVB Legal Storm: A former Guam Visitors Bureau employee has filed a $61.5M federal lawsuit alleging years of sexual assault and harassment by former Gov. and GVB GM Carl Gutierrez, plus alleged coverups and institutional failures by GVB leadership, including board chair George Chiu. Education Costs & Capacity: Guam Department of Education officials are weighing possible closure of six southern elementary schools as enrollment declines and operating costs rise, part of a multi-phase rightsizing plan. Typhoon Supply Chain Check: One month after Super Typhoon Sinlaku, Guam’s commercial supply chain is back to full operational capacity, though perishable grocery logistics, fuel distribution, and emergency utility dependencies still pose headaches. Energy & Household Budgets: A proposed Guam Power Authority rate increase would add about $58.31 per month for an average residential customer, raising pressure on already strained family budgets. Local Business Upside: Optimism is rising in Guam’s small business sector of commerce, even as operators continue to manage post-storm and cost pressures. International Deal Watch: South Korea’s DB Insurance completed its $1.65B all-cash acquisition of Fortegra, expanding its U.S. footprint that includes a Guam branch.

Defense & Burden Sharing: Guam is pushing back on Defense Secretary Pete Hegseth’s “partners, not protectorates” message at the Shangri-La Dialogue, arguing Washington must treat Guam as a true partner given the island’s role in basing, logistics, and deep-water port access. Tourism Lawsuit: The Guam Visitors Bureau is named in a $61.5M federal lawsuit alleging sexual assault, harassment, and institutional failures tied to former GVB leadership, with the bureau saying it has hired an off-island investigator. Public Finance & Operations: Guam Department of Education is weighing closing six southern elementary schools as enrollment declines and costs rise, as it seeks more than $307M for FY2027. GVB Numbers: April visitor arrivals fell 28% year over year, with declines concentrated in Korea and Japan amid travel softness and higher jet fuel surcharges. Housing & Construction: Island housing remains a major unresolved issue as accessory dwelling unit policy and small contractor activity point to incremental fixes, while larger projects and procurement timelines still cloud the market. Cyber & Utilities: Auditors found GPA didn’t revoke some employee system access quickly enough after separations, raising cybersecurity risk. Agriculture & Skills: UOG’s Land Grant launches a free Mental Health First Aid training for farmers June 6, and a marketing workshop series for agricultural entrepreneurs begins June 9.

GVB Legal Storm: A former Guam Visitors Bureau employee filed a $61.5 million federal lawsuit on June 1, alleging sexual assault, harassment, and institutional failures tied to former GVB president/general manager Carl Gutierrez and board chairman George Chiu, with the bureau saying it has hired an independent off-island investigator. Education & Costs: GDOE is weighing closing six southern elementary schools as enrollment declines and budgets tighten, with Phase II of a multi-year rightsizing plan now targeting Marcial Sablan, Harry S. Truman, Merizo Martyrs Memorial, Talofofo, Inarajan, and Manuel U. Lujan. Tourism Watch: April visitor arrivals fell 28% year over year to 36,818, with declines concentrated in Korea and Japan amid Super Typhoon Sinlaku impacts, travel softness, and higher jet fuel surcharges. Housing & Construction: A new analysis says Guam’s housing market is bracing for a Navy push for up to 2,400 housing units, but procurement delays could be driving confusion about when real demand will hit. Cyber Hygiene: Auditors found GPA didn’t revoke some employees’ system access quickly enough after separation, creating potential security risk. Bitcoin Fallout: Victims in a $5.5M bitcoin fraud case say about 200 forfeited bitcoins remain in federal limbo while they wait for repayment conversion. Local Business Pulse: GVB approved about $118,000 in contracts and sponsorships, including a $55,500 push to revitalize the Sella Bay Overlook trail.

Tourism Watch: Guam Visitors Bureau reported April visitor arrivals at 36,818, down 28% year-over-year, with the steepest declines tied to Korea and Japan amid Super Typhoon Sinlaku impacts, higher jet fuel surcharges, and reduced airline seat supply. Local Spending & Projects: GVB approved about $118,000 in sponsorships and contracts, including a $55,500 deal to revitalize the Sella Bay Overlook trail with new parking, safety, lighting, accessibility, and multilingual site descriptions. Public Finance Oversight: Guam Department of Education is holding roughly $51M in federal ARP reimbursement funds received in November 2025, with EFSC members pressing for why spending hasn’t started while officials cite caution tied to an audit-related determination letter. Cybersecurity Controls: Auditors found Guam Power Authority didn’t revoke some employees’ system access quickly enough after separation, leaving accounts active for months in certain cases. Legal & Fraud: Two Guam brothers were indicted for allegedly collecting their late father’s federal retirement benefits for more than seven years, totaling about $45,153 in improper payments. Governance & Compliance: Port Authority of Guam board members OK’d negotiations for an inflatable ocean park on Port property with Splash Village Ocean Park. Community & Workforce: UOG’s Farmer Focus will host a free Mental Health First Aid training June 6 in Guam, aimed at helping farmers and farm workers recognize and respond to mental health and substance use challenges. Regional Business/Trade: Taiwan’s former Guam envoy, Paul Chen, was indicted on corruption and fraud allegations involving housing subsidies and misused expenses.

Cybersecurity & Utilities: Auditors say Guam Power Authority removed system access for some separated employees months late, creating a potential cyber risk for a utility serving the U.S. Navy. Education Funding: GDOE is holding about $51M in federal ARP reimbursement received last year, citing caution while it seeks a determination letter after an audit question. Immigration & Labor: A new USCIS policy shift treating adjustment of status as discretionary is drawing criticism from Guam and CNMI candidates, with concerns about worsening labor shortages and costs. CNMI Tourism Governance: CNMI House Floor Leader Marissa Flores urges the Marianas Visitors Authority to bring the arts council under one tourism framework to better market local culture. Port & Tourism Development: Port board OKs negotiations for an inflatable ocean park on Port property, aiming to boost visitor appeal. Maritime Legal Fight: Owners of the cargo vessel Mariana seek to block lawsuits and cap liability after it capsized in Super Typhoon Sinlaku. Disaster Cleanup: Partners begin June 1 work to clear damaged vessels from Smiling Cove, funded through FEMA. Local Business & Cost of Living: Gas prices on Guam dropped 15 cents, with regular at $5.829 and diesel unchanged at $6.849. Agriculture Relief Debate: Farmers and officials clash over how Guam compensates crop losses after typhoons, with one case highlighting limits on covering market value. Sports Tourism: Guam Marianas Open Taiwan sold out and topped 1,000 athlete entries, reinforcing Guam’s sports tourism push.

Tourism & Local Economy: Guam Visitors Bureau says summer arrivals should build momentum despite Super Typhoon Sinlaku’s April hit, higher jet fuel costs, and air capacity limits, while reporting modest gains year-to-date. Port & Development: Port of Guam board OKs talks for Splash Village Ocean Park, an inflatable ocean park concept that could boost tourism and create a new Port Beach attraction. Education Funding Watch: Guam Department of Education is holding about $51M in federal ARP reimbursement funds received last year, with EFSC pushing for clarity on why spending is delayed pending a U.S. determination letter. Immigration & Labor Costs: Candidates in Guam and CNMI are criticizing a new USCIS policy memo that treats adjustment of status as discretionary, warning it could worsen labor shortages and raise living costs. Government Cash Risk: Lawmakers warn excess annual leave above Guam’s 320-hour cap could trigger millions in payouts, with a still-pending tally of how much leave workers have. Courts & Health Infrastructure: Guam Supreme Court backs GovGuam’s authority to move forward with the federally funded Mangilao hospital project, limiting the Legislature/AG’s ability to block it via procurement. Energy & Household Budgets: Gas prices on Guam fell 15 cents to $5.829 for regular and $6.219 for premium, while diesel stayed at $6.849.

Guam Tourism & Local Business: The Guam Visitors Bureau says summer arrivals should build momentum despite Super Typhoon Sinlaku, high jet fuel costs and air capacity limits, noting April arrivals fell 28% year-over-year but the year-to-date picture is still up. GVB Operations: The Tumon Night Market is moving to a new spot directly in front of Tumon Sands Plaza for the Summer Showcase series, aiming to boost visibility for vendors and improve walkable access. Energy & Infrastructure: KEPCO has completed Guam’s Ukudu Gas Combined Cycle Power Plant, launching full commercial operations and set to supply about 75% of Guam’s peak demand under a long-term power purchase agreement. Local Governance & Health Care: Guam’s Supreme Court ruled Gov. Lou Leon Guerrero can use federal authority to build and operate the Mangilao hospital, blocking attempts to interfere through local procurement. Education Finance: The Education Finance Commission reviewed GDOE accounts payable, showing millions in unpaid bills with a sizable portion past due. Immigration & Labor: A USCIS policy memo signals tighter scrutiny for in-country green card adjustments, which could affect Guam’s foreign workforce. Agriculture: A farmer’s plea to lawmakers highlights a crop relief debate after typhoon damage, with questions over whether programs cover lost market value. Sports Tourism: Guam Marianas Open Taiwan sold out ahead of the May 30–31 championship, topping 1,000 athlete entries.

Energy & Utilities: KEPCO officially launched full commercial operations of its Ukudu Gas Combined Cycle Power Plant in Guam, a 198 MW project expected to cover about 75% of peak demand and generate roughly $2.37B in confirmed revenue over 25 years under a power purchase agreement. Local Governance & Health: Guam’s Supreme Court ruled the governor can establish and operate hospitals under the Organic Act, blocking the Legislature/AG from using procurement laws to veto the federally funded Mangilao hospital project. Tourism & Finance: The Guam Visitors Bureau says its financial position remains “healthy” despite April’s near-$1M shortfall in attraction fund collections, while expecting summer arrivals to build momentum as jet fuel costs level off. Economy Watch: Gas prices fell another 15 cents to $5.829 for regular and $6.219 for premium; diesel stayed at $6.849. Business Development: GEDA secured an additional $19.5M to support Guam small businesses. Workforce & Education: A Guam Education Board candidate, Isaiah Aguon, filed his packet, pitching accountability and student success. Policy & Compliance: A new USCIS memo signals tighter scrutiny for in-country green card adjustments, likely affecting many foreign workers and entrepreneurs in Guam.

Guam Supreme Court Ruling: Guam’s Supreme Court backed Gov. Lou Leon Guerrero’s authority to build and run the federally funded Mangilao hospital, saying the Legislature and AG can’t use local procurement rules to block the project. Hospital Funding Fight: A federal judge also ordered settlement talks over the stalled Mangilao utilities funding, but Leon Guerrero warned some money may have to be returned if timelines can’t be met. Power Deal: KEPCO completed Guam’s Ukudu Gas Combined Cycle Power Plant and moved it into full commercial operations, with the project expected to cover about 75% of Guam’s peak demand under a long-term power purchase agreement. Tourism Watch: The Guam Visitors Bureau said finances remain “healthy” despite April’s weaker attraction-fund collections and typhoon impacts, while expecting summer arrivals to build as jet fuel costs ease. Education Costs: The Education Finance Commission reviewed GDOE arrears and utilities-related spending projections, with millions in unpaid bills across funds. Legislature Ethics: An ethics complaint was filed over a nearly $200k AI contract for lawmakers, alleging procurement rule violations and a potential conflict of interest. Small-Business Capital: GEDA secured a second $19.5M tranche under the State Small Business Credit Initiative to expand loan guarantees, surety bond help, and a venture capital fund. Immigration Policy Shift: A new USCIS memo signals tighter scrutiny for in-country green card adjustments, likely affecting Guam’s foreign workforce.

US Immigration: A new USCIS memo says in-country green card adjustments will face “extraordinary circumstances” and most applicants may need to return home for consular processing—an issue for Guam’s construction, healthcare and small-business labor pipeline. Tourism Finance: Guam Visitors Bureau says its financial position remains “healthy” despite April TAF collections running about $1M lower than last year, citing seasonality, jet fuel costs and Super Typhoon Sinlaku impacts. GEDA Lending: Guam Economic Development Authority secured a second $19.5M tranche under the State Small Business Credit Initiative, expanding loan guarantees, surety bond help and the Destinu Guåhan venture fund. Energy & Business: KEPCO commissioned the 198MW Ukudu power plant in Guam, saying it can supply up to 75% of peak demand and supports long-term revenue via its PPA with GPA. Local Governance: A judge ordered settlement talks over a $100M+ Mangilao hospital utility dispute, while the governor warns federal “free dollars” may be lost. Public Accountability: Guam’s public auditor told the business community the 2024 compliance audit was much larger and found more issues, pushing for tighter recordkeeping in procurement and compliance. Community & Markets: Tumon Night Market’s Summer Showcase series moves to a new Tumon Sands Plaza-front location starting May 31.

Energy & Investment: KEPCO commissioned the 198-megawatt Ukudu combined-cycle power plant in Guam, saying the project can supply about 75% of peak demand and is expected to generate $2.12B over 25 years under its power purchase agreement with GPA. Small Business Finance: GEDA received a second $19.5M tranche under the State Small Business Credit Initiative, bringing total SSBCI funding to $58.6M for loan guarantees, surety bond help, and the Destinu Guåhan venture capital fund. Local Crime & Courts: A Mobil gas station worker, Michele C. Ibanez, faces theft and forgery charges after police said she pocketed customer payments and took unpaid items totaling $601.92, tied to a 2025 bank check forgery attempt. Tourism & Community: GVB and GIAA unveiled winners of the 2026 Guam Youth Art Contest at A.B. Won Pat Airport, turning arrivals into a youth-led “Håfa Adai Spirit” showcase. Policy & Compliance: The Second Circuit again held state mortgage escrow-interest laws are preempted, while the OCC finalized rulemaking aimed at avoiding a circuit split—an issue that could affect national banks’ mortgage servicing pricing. Weather Watch: Guam saw record rainfall from Tropical Depression Jangmi (Invest 99W), with the system tracking north-northwest and no direct Marianas threat reported.

Disaster Readiness: FEMA acting administrator Bob Fenton says the agency is ready for the June 1 hurricane season, even as it faces internal and external pressure to reshape disaster response. Cybersecurity & Government Ops: GovGuam websites were hit via a zero-day flaw in cPanel; no sensitive data was taken, but officials say security staffing and patching gaps were exposed. Tourism & Markets: Guam tourism agencies are pushing Marianas promotion in Japan, while a new opinion argues Guam must shift from “restoration” to innovation to regain competitiveness as arrivals lag. Public Finance & Accountability: Public Auditor Benjamin Cruz told the Guam Chamber the delayed FY2024 compliance audit is triple the prior size, with questioned costs of $22.6M and findings that GovGuam disputes; he also says the FY2025 audit could be out by November. Small Business Funding: Guam’s GEDA received a second SSBCI tranche (~$19.5M) to keep lending and venture support flowing for local firms. Energy Costs: Gas prices fell on Guam (regular down 15 cents to $5.979; diesel down 50 cents to $6.849). Regulatory/Legal: The AG is seeking settlement talks in the Mangilao hospital dispute as federal funds near an end-of-year deadline. Infrastructure & Defense: The Coast Guard commissioned the fast response cutter Vincent Danz, the fourth homeported in Guam, and military exercises are shifting beyond Guam’s usual economic certainty.

Coast Guard Expansion: The U.S. Coast Guard commissioned the new fast response cutter USCGC Vincent Danz in New York, the 62nd in its class and the fourth homeported in Guam, adding to regional disaster response capacity after Super Typhoon Sinlaku. Local Business Costs: Guam Power Authority is moving toward a fuel surcharge increase after CCU approval, with the average residential bill projected to rise about $58 starting in July as oil costs tied to the Iran war keep climbing. Small-Business Funding: The Guam Economic Development Authority received a second tranche of federal SSBCI money (about $19.5M) to keep capital flowing through loan guarantees, surety bonds, and venture support. Immigration Scrutiny: A new USCIS memo signals tighter review for people seeking green cards from within the U.S., likely affecting foreign workers and entrepreneurs in Guam. Regulatory Compliance Watch: Guam’s Cannabis Control Board may take action against applicants whose government credentials expired and haven’t responded. Household Pressure: Gas prices at Mobil Guam fell again, with regular dipping below $6, while diesel also dropped. Government Accountability: The fiscal 2025 GovGuam audit could be released by November, after the entrance conference began this week.

Farm-to-School Funding: Northwest Tennessee Local Food Network says it’s been picked for a $500,000 USDA Farm to School grant to expand school cooking labs and local food sourcing through its C.H.E.F. program. Mangilao Hospital Fight: Guam Attorney General Douglas Moylan is pushing for settlement talks in the long-running Mangilao hospital cases, aiming to avoid more delays as $100M+ in federal American Rescue Plan funds nears its Dec. 31 deadline. Mortgage Rules: The OCC finalized escrow-account preemption, confirming state limits on interest-on-escrow are overridden for national banks. Power Costs: Guam’s rate path tightened after CCU approval of a fuel surcharge jump that could lift the average residential bill about $58 starting in July. Tourism Pressure: Guam Visitors Bureau reports April arrivals down 28% year-over-year, with jet fuel surcharges and regional softness still biting. Deep-Sea Mining Watch: Multiple companies are eyeing deep-sea mining licenses as Guam lawmakers move to ban seabed mining with steep daily penalties. SNAP Drop Concerns: SNAP participation is falling nationwide under new work rules, while Guam faces its own ABAWD enforcement timeline.