AGP Executive Report

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.

Guam Health Funding: The Guam Legislature passed GovGuam’s Bill 1 (11-S) after major Senate changes, reserving $19.9M in excess Section 30 revenues for Guam Memorial Hospital Authority and tying the hospital’s electronic health record upgrade to a $21M amount already set in the FY2027 budget, while lawmakers removed the University of Guam Blue Economy Innovation Center funding from the final package. Power Costs Financing: The Consolidated Commission on Utilities approved $32.5M in fuel financing for Guam Power Authority—$22.5M via Bank of America and a $10M Coast360 line of credit—aimed at managing cash timing for fuel purchases through July 2027, with the Bank of Guam option tabled. School Return Watch: After Tiyan High School’s latest health inspection earned an “A” with zero demerits, GDOE says student return timing is still being planned, pending decisions on major plumbing responsibility and possible reinspection. Retail Expansion: A popular discount retailer is set to open a second local store this weekend, taking over a former Office Depot space and adding jobs. Legal/Workplace: A Docomo Pacific employee pleaded not guilty to aggravated sexual abuse by force; trial is set for Dec. 15.

Guam Power Authority Financing: The Consolidated Commission on Utilities approved GPA’s plan to borrow $22.5M from Bank of America plus a $10M revolving line of credit from Coast360 FCU to cushion soaring fuel costs, with final approvals still needed from the governor and the Public Utilities Commission. Education & Health: Tiyan High School’s campus cleared its latest health inspection with an “A” and zero demerits after a shutdown earlier this summer; student return timing is still being planned, with major plumbing responsibility under review. Hospital & University Funding: Lawmakers are weighing a $20M Section 30 proposal to fund an electronic health records system for GMH and an aquaculture “innovation center” for UOG, while competing bills target energy credits and high school modernization. Legal Watch: A defense motion in the 2023 Route 16 crash case could hinge on a photo of when lights were installed, and a separate $1M tour-boat fraud trial was delayed as a defendant is served. Business/Trade: VirTra won a five-year CBP contract with up to $14M potential value to modernize and support its training systems. Regional Economy & Travel: Guam’s seat-capacity requirement on Korean routes is under pressure as airlines seek reductions, while Guam tourism arrivals from South Korea are down sharply.

Health & Education Funding: Lawmakers are debating Gov. Lou Leon Guerrero’s $20M Section 30 proposal—$15.9M for GMH to buy and implement a new electronic health records system and $4M for UOG’s Blue Economy Innovation Center at the Fadian Hatchery, with officials saying GMH has been planning for procurement ahead of a 2028 sunset. Courts & Business Risk: A defense attorney urged prosecutors to revisit a 2023 Route 16 crash case after a photo allegedly shows GPA light installation timing that could affect the prosecution’s case; separately, a $1M tour boat fraud trial was delayed as a defendant gets more time to be served. Local Economy & Tourism: Korean-inspired SCOOP’D is moving from a GCC tasting to a Micronesia Mall grand opening, while Smart Town expanded at Agana Shopping Center with a DIY patch station. Trade & Travel: Korean Fair Trade Commission staff recommended rejecting airlines’ bid to cut Guam route seat capacity requirements, citing merger-related obligations and insufficient demand-change justification. Infrastructure & Connectivity: Converge said it rerouted traffic after a Philippines–Singapore cable cut using its Bifrost system that links the Philippines, Guam, and the U.S. Public Safety/Weather: Typhoon Choi-wan is expected to miss Guam directly, but a monsoon surge is bringing multi-day wind and advisory conditions.

Guam Health Funding: Lawmakers met with finance, hospital and university officials on Bill 1 (11-S), seeking $15.8M from Section 30 for GMHA to buy a modern electronic health records system, while also weighing a $4M UOG Blue Economy Innovation Center proposal—amid competing bills using the same pot. Open Records Fight: Guam’s Attorney General asked the Superior Court to reconsider an order requiring release of employee annual leave records, seeking to pause production while the court reviews the request. Tourism & Air Capacity: South Korea’s Fair Trade Commission examiner recommended rejecting airlines’ bid to cut required Guam-bound seat capacity on Incheon-Guam and Busan-Guam routes by 20%, as Guam arrivals from South Korea remain down sharply. Local Business & Jobs: Micronesia Mall’s PowerUP entertainment center is targeting an early December opening and will hold a hiring fair Oct. 10 for bowling, go-karts, a zip line and more. Education & Talent: UOG civil engineering graduate Kayleena Blas Diaz became the program’s first licensed professional engineer in Guam, and UOG student Adrian Manalang was selected for the Obama-Chesky Voyager Scholarship for public service. Community & Culture: The Guam Museum Foundation held a first-ever gala marking 100 years of museum efforts, and CHamoru dancer Francisco “Frank” Rabon received a 2026 National Heritage Fellowship.

Guam Economy & Housing: Seven Democratic senatorial candidates outlined plans at a Guam Young Professionals forum, focusing on affordable housing, growing local talent, and diversifying beyond tourism, with ideas ranging from fuel vouchers to telecom expansion and leveraging military-linked demand. Air Travel & Tourism: A Korean Fair Trade Commission examiner recommended rejecting airlines’ bid to cut Guam-bound seat capacity requirements by 20%, as South Korean arrivals to Guam fell sharply year-to-date. Healthcare IT Funding: Lawmakers return Monday on a Section 30 funding fight for GMHA’s new electronic health records system and a Blue Economy Innovation Center, with timing and competing priorities still unclear. Business & Jobs: Micronesia Mall’s PowerUP family entertainment center is targeting an early December opening and a hiring fair Oct. 10, adding bowling, go-karts, and a zip line. Trade & Security: Congressman James Moylan announced $1.025M in federal funds awarded to Guam Customs and Quarantine for new inspection and border security equipment. Local Talent Pipeline: UOG civil engineering graduate Kayleena Blas Diaz became the first in her program to earn a Guam professional engineer license.

Guam Politics & Civic Engagement: A new alcohol-free event in Hagåtña drew a big crowd of young voters and independent candidates, aiming to get first-time attendees asking why they should vote in the Nov. 3 election. Healthcare & Public Funding: Lawmakers return Monday to consider Bill 1 (11-S), which would use Section 30 funds for a new electronic health records system at GMHA and seed a Blue Economy Innovation Center at UOG—though competing bills could shift priorities. Courts & Insurance: In the SelectCare coverage dispute tied to a premature birth, the parties stipulated to dismiss the case without prejudice, ending the current fight over coverage and arbitration. Education & Pay: Gov. Lourdes Leon Guerrero approved DOA’s educator pay plan, boosting Guam DOE salaries by 15% for educators and 5% for administrators, while officials flag funding sustainability. Local Business & Jobs: PowerUP, a 26,000-square-foot family entertainment center at Micronesia Mall, is targeting an early December opening and a hiring fair Oct. 10. Real Estate & Utilities: Guam Supreme Court reversed parts of a land dispute involving Core Tech, the government and GWA over property tied to the Northern District Wastewater Treatment Plant. Weather Watch: Typhoon Choi-wan is expected to miss Guam directly, but the monsoon surge is already bringing damaging winds and coastal impacts. Workforce & Engineering Milestone: UOG civil engineering graduate Kayleena Blas Diaz became the program’s first licensed professional engineer in Guam.

Retail Expansion: Smart Town is expanding at Agana Shopping Center, doubling its space and adding an on-site customization DIY station for heat-press “wappens,” as it nears a 10-year milestone. Tourism & Dining: SCOOP’D, a Korean-inspired rice bowl spot at Micronesia Mall, opened after a Guam Community College taste test that helped shape the menu. Education Funding: Gov. Lourdes Leon Guerrero approved a Guam Department of Administration educator pay plan, boosting educator salaries by 15% and administrators by 5%, though DOE leaders flag ongoing funding needs. Courts & Utilities: The Guam Supreme Court reversed part of a land dispute involving Core Tech, the government and GWA over property tied to the Northern District Wastewater Treatment Plant. Weather Impact: Typhoon Choi-wan is not expected to hit Guam directly, but monsoon surge conditions are bringing wind and coastal hazards; the Tumon Night Market was canceled as a precaution. Local Talent: UOG civil engineering graduate Kayleena Blas Diaz became the program’s first licensed professional engineer in Guam. Business Growth: PowerUP, a 26,000-square-foot family entertainment center at Micronesia Mall, is targeting an early December opening and a hiring fair Oct. 10.

Micronesia Mall Growth: SCOOP’D opened Oct. 1 after a GCC taste test, with Korean-inspired rice bowls and a ServSafe-trained team—another sign of food-court momentum on Guam. Workforce & Education: GovGuam approved a 15% educator pay increase and 5% for administrators under the Educator Pay Plan, though DOE leaders warn about the funding gap to sustain it. Real Estate/Courts: Guam Supreme Court reversed part of a land dispute involving Core Tech and GWA over property tied to the Northern District Wastewater Treatment Plant, but the case still has unresolved issues in Superior Court. Weather & Risk: Typhoon Choi-wan is missing Guam’s direct hit, but monsoon surge winds and coastal hazards are still affecting the island and Rota. Jobs & Entertainment: PowerUP, a 26,000-square-foot bowling, go-karts and zip-line center, is targeting an early December opening at Micronesia Mall with a hiring fair Oct. 10. Local Talent Pipeline: UOG civil engineering graduate Kayleena Blas Diaz became the program’s first licensed professional engineer in Guam. Fisheries: Guam boat fishers spent more time trolling in 2025 yet landed 53% less pelagic fish, with ocean conditions cited but no single cause confirmed. Legal/Politics: AG Doug Moylan moved to dismiss a lawsuit over religious-themed “Redemption Project” billboards. Regional Business Watch: Taiwan received its first F-16V Block 70 jets delivered via stops including Guam, underscoring ongoing Pacific defense spending and logistics.

Education & Business Climate: Guam lawmakers sent back a bill that would shift Education Board member selection to governor appointments, with debate centered on accountability and election timing. Teacher Pay: Gov. Lou Leon Guerrero approved a 15% pay increase for GDOE teachers and 5% for administrators, with $26.1M needed for the 2026 Educator Pay Plan. Tax Relief for Local Firms: Guam’s FY2027 start brings a half-point cut in Business Privilege Tax from 4.5% to 4%, a move the Chamber says supports jobs and pricing stability. Tourism & Local Economy: Guam pushed its brand at Tourism EXPO Japan 2026, while Oishi Curry House closed after 13 years, and Tumon Night Market was canceled due to weather. Legal/Corporate Accountability: AG Nick Brown joined a bipartisan PFAS lawsuit targeting DuPont/Corteva and the new Vylor entity over alleged asset-shielding. Finance: First Hawaiian said it will report Q3 2026 results Oct. 23. Workforce/Community: Marines and the Guam Chamber kicked off Toys for Tots, and UOG’s Kayleena Blas Diaz became the first UOG civil engineering graduate licensed as a Guam P.E.