AGP Executive Report

Coast Guard & Defense: The U.S. Coast Guard accepted delivery of the USCGC Jeffrey Palazzo, the fifth Fast Response Cutter homeported in Guam, with a commissioning planned for September in New York City and an expected late-fall arrival on island. Tourism & Trade: Guam’s Visitors Bureau led a 12-business delegation to the Seoul International Travel Fair, pitching Guam as a “Wellness Island” and winning top marketing honors, while local firms reported strong interest in packages and pricing. Power Costs: Guam Power Authority secured a $35 million Bank of America credit line to cover fuel purchases as fuel costs surge, with a potential $58 average bill increase tied to a July 1 fuel surcharge. Local Economy: Guam added 790 net jobs year-over-year in March 2026, driven by private-sector gains, while unemployment held at 3.4%. Education Oversight: Sen. Vincent Borja called for an education oversight hearing and requested school visits ahead of possible closures, targeting GDOE’s transparency on decommissioning and reopening plans. Housing Policy: GHURA began downsizing Section 8 units under federal cost-cutting, reducing bedroom allowances and standards. Construction Lawsuit: A contractor sued Black Construction Corp. in federal court, alleging he was crushed by a fuel pipe incident at a $225M Tinian jobsite. Workforce & Training: BTACS is seeking to expand into middle school, and Guam’s agriculture department is hosting its first wildfire training sessions with Hawaii partners.

Maritime & defense buildout: The U.S. Coast Guard accepted delivery of the 63rd Fast Response Cutter, the USCGC Jeffrey Palazzo, the fifth FRC homeported to Guam, with commissioning planned for September in New York and an expected late-fall arrival. Local jobs: Guam added 790 net jobs year-over-year in March 2026, driven by private-sector growth (+1,110) while government payrolls fell. Power costs: Guam Power Authority secured a $35 million Bank of America credit line to cover fuel purchases as the average residential bill could rise about $58; lawmakers debate whether to fund a proposed $100 monthly power credit. Tourism push to Korea: The Guam Visitors Bureau won top marketing honors at Seoul’s International Travel Fair while promoting Guam as a “Wellness Island” with a 12-business delegation. Construction liability: A contractor sued Black Construction Corp. in federal court over an alleged 2024 Tinian jobsite incident involving a crushed worker at a roughly $225M fuel-tank pipeline project. Housing assistance squeeze: GHURA is downsizing Section 8 units and reducing payment standards as part of federal cost-cutting, potentially affecting bedroom sizes and payments. Education oversight: Sen. Vincent Borja set a June 24 oversight hearing on GDOE school closure plans, readiness for SY 2026–27, and financial concerns. Energy & infrastructure financing: CCU authorized GWA to use federal COVID-era funds for eligible water projects, while Mangilao hospital-related ARPA funds face reallocation deadlines.

Tourism & Trade: The Guam Visitors Bureau is pitching Guam as a “Wellness Island” at the Seoul International Travel Fair, sending a 12-business delegation to meet Korean travelers and promote packages tied to nature, relaxation, sports and CHamoru culture. Aviation & Travel Connectivity: Philippine Airlines’ planned return of direct Manila–Saipan service in October is expected to restore a key leisure and business/medical link for the Marianas, with GVB also planning to restart postponed media familiarization efforts. Energy & Utilities Finance: Guam Power Authority secured a $35 million Bank of America credit line to cover rising fuel costs, with repayment terms pending and a potential customer bill impact tied to a proposed fuel surcharge. Education & Local Governance: Sen. Vincent Borja set a June 24 oversight hearing on Guam Department of Education plans, including proposed southern school closures and financial readiness for the next budget cycle. Public Works & Procurement: Marines helped Finegayan Elementary clear and prep space for a new CHamoru language classroom, while a separate local procurement story highlights calls for deeper reform to avoid repeated delays and inefficiencies. Community & Workforce: Guam’s first trading card café expanded into a larger Dededo location, blending a collectibles shop with an in-house café concept. Health Funding: Del. James Moylan says Guam could receive over $5 million in federal agriculture bill investments for hospital upgrades, emergency response, and forensic/DNA lab improvements.

Tourism Marketing: The Guam Visitors Bureau led a 12-business delegation to the 41st Seoul International Travel Fair, pitching Guam as a “Wellness Island” to Korean travelers and highlighting local hotels, golf and experiences. Energy Costs: Guam Power Authority secured a $35 million Bank of America credit line to cover rising fuel costs, with repayment monthly and a potential customer impact tied to a proposed fuel surcharge. Public Works & Utilities: Consolidated Commission on Utilities authorized GWA to use federal COVID-era recovery funds for eligible water and wastewater projects, while CCU discussions also addressed reallocation pressure tied to the Mangilao hospital timeline. Education Oversight: Sen. Vincent Borja set a June 24 oversight hearing on GDOE school closure and consolidation plans, including southern school impacts and financial readiness. Local Business Growth: Guam’s first trading card cafe expanded to a larger Dededo location, blending card shop and cafe concepts for collectors and coffee lovers. Maritime & Security: The U.S. Coast Guard accepted delivery of the fast response cutter Jeffrey Palazzo, expected to join Guam’s homeport fleet after commissioning. Health Funding: Del. James Moylan said Guam could receive over $5 million from a federal agriculture bill for hospital, fire/emergency response, and forensic lab upgrades.

Tourism & public finance: Guam faces a potential $61.5M debt risk after a federal lawsuit alleges sexual harassment and assault tied to former Guam Visitors Bureau leadership, with the AG warning taxpayers could be on the hook. Education oversight: Sen. Vincent Borja set a June 24 oversight hearing on GDOE plans to close southern schools and other issues, including finances and special education readiness. Infrastructure funding: The Guam Waterworks Authority was authorized to use ARPA/CSLFRF funds for eligible water and wastewater projects tied to the Mangilao medical complex timeline. Disaster recovery: Guam’s GPA estimated $5.8M in Sinlaku power restoration support for CNMI, with payment timing still uncertain. Local business: Guam’s first trading card cafe opened in Dededo, pairing cards with a coffee shop concept. Procurement reform debate: An opinion piece argues Guam’s procurement system needs real overhaul, not “piecemeal” fixes. Maritime security: The Coast Guard accepted delivery of the Jeffrey Palazzo fast response cutter, expected to join Guam’s homeport fleet.

GDOE Oversight: Sen. Vincent Borja set a June 24, 9 a.m. hearing to demand “transparency” on Guam Department of Education school closures, including the proposed shutdown/consolidation of southern schools and J.P. Torres Success Academy, plus special education services, facilities upkeep, and GDOE finances for SY 2026–2027. Hospital Funding Shift: Consolidated Commission on Utilities talks say $104M in ARPA money for the proposed Mangilao hospital will be reallocated so it can be spent before the Dec. 31 deadline, with GWA positioned to expend most of it amid ongoing legal fights. Typhoon Relief Checks: GovGuam released the first batch of Sinlaku crop-loss payments—$239,000 total—to help farmers and livestock producers recover. GVB Legal Risk: AG Douglas Moylan warned a federal “Jane Doe” lawsuit against the Guam Visitors Bureau could expose taxpayers to about $61.5M in debt liability tied to alleged misconduct by former GVB leadership. Coast Guard Cutter for Guam: The U.S. Coast Guard accepted delivery of the new fast response cutter Jeffrey Palazzo in Key West; it’s expected to be commissioned in September and homeported on Guam later this fall. Tourism Push to Korea: GVB and local partners marketed Guam as a “Wellness Island” at the Seoul International Travel Fair, booking consultations and driving interest in pricing and packages. Local Business Spotlight: Guam’s first trading card café expanded in Harmon, adding more play space and a café concept for the growing card-game community.

Tourism & Markets: The Guam Visitors Bureau and 12 local partners pitched Guam as a “Wellness Island” at the 2026 Seoul International Travel Fair, using one-on-one consultations and a Guam pavilion that drew strong interest in pricing and packages. Public Finance & Risk: Guam’s attorney general Douglas Moylan warned a $61.5 million federal lawsuit against the Guam Visitors Bureau could create major public-debt exposure for taxpayers. Energy & Jobs: Renewable energy groups sued the Pentagon, saying national security reviews for new wind farms have stalled for months, putting $47 billion in investment and thousands of jobs at risk. Defense & Infrastructure: The U.S. Coast Guard accepted delivery of the new fast response cutter Jeffrey Palazzo, expected to join Guam’s homeport fleet after commissioning. Fishing & Local Economy: President Trump opened parts of three Pacific marine national monuments—including the Mariana Trench area off Guam—to commercial fishing, a move supporters say boosts jobs and seafood supply, while critics warn it sacrifices protected waters. Local Business: Guam’s first trading card café expanded in Harmon, adding play space and a café concept for Pokémon and other card-game communities. GovGuam Services: Guam Veterans Affairs Office in Assan closes June 15 and reopens June 22 in Hagåtña.

Defense & Local Industry: The U.S. Coast Guard accepted delivery of the 63rd Fast Response Cutter, Jeffrey Palazzo, the fifth FRC homeported in Guam—another boost for maritime readiness and local defense-linked activity. Public Safety: A woman was taken to Guam Regional Medical City after a vehicle crashed into Don Don Donki in Tamuning; injuries were non-fatal and police are investigating. Pacific Fisheries & Cost Pressure: President Trump lifted fishing limits in parts of three Pacific marine national monuments, including the Mariana Trench area near Guam, aiming to expand access and lower seafood prices. Construction Pipeline: Guam’s SAME Industry Forum 2026 (July 28–30) is being positioned as a key networking and contracting hub for Indo-Pacific readiness, with infrastructure and workforce capacity front and center. Tax & Cash Flow: Guam’s Department of Revenue and Tax reports 36,692 returns filed for tax year 2025, with $59.84M in refunds so far, though processing is running slower after Sinlaku-related disruptions. Small Business Spotlight: Guam’s first trading card café expanded in Harmon, pairing a larger card shop with a new café concept for the growing collector community. Government Operations: Guam Veterans Affairs Office in Assan will close June 15 and reopen June 22 in Hagåtña. Legal/Compliance Watch: A Southern High School elevator accessibility case is still sparking dispute over what GDOE did and when, after a court ruling favored the superintendent.

Guam Budget Watch: Bureau of Budget and Management Research Director Lester Carlson says nearly $10M of Sinlaku emergency funds is likely to be returned to GovGuam after spending tapers off, with $9.9M held in reserve. Tax & Revenue: Rev and Tax Director Maria Lizama reports 36,692 tax returns filed for tax year 2025, with $59.84M in refunds paid so far; refund processing is slower (13–14 weeks) due to Sinlaku-related system disruptions. Public Works & Compliance: DPHSS says only half of required high-risk inspections are being completed because it has just three fully trained inspectors. Education Oversight: Senators call for a June 23 oversight hearing on GDOE school closure plans and reopening for 2026–2027 amid transparency concerns. Legal/Accessibility: District Court ruled in favor of GDOE superintendent in the Southern High elevator accessibility case, closing the matter at the district level. Local Business & Community: Guam’s first trading card café expands in Harmon, adding play space and a café concept under a husband-and-wife duo. Workforce/Contracts: S.A.M.E. Guam Industry Forum 2026 returns July 28–30 at Dusit Thani, pitching defense and infrastructure contracting opportunities to local firms. Guam Veterans Services: Guam Veterans Affairs Office in Assan permanently closes June 15 and reopens June 22 in Hagåtña. Tourism & Events: Mall Ball 3x3 summer circuit opens registration at Micronesia Mall, with the high school tournament starting June 19.

Guam Tax Update: Property tax collections are down about $24M versus projections for FY2026, but overall tax and fee revenues are up roughly $21M, with GovGuam expecting the shortfall to “self-rectify” as delayed invoices get paid. Public Finance & Hiring: Speaker Frank Blas Jr. and Vice Speaker Tony Ada propose freezing limited-term/unclassified hiring and suspending pay increases through FY2027, while Acting Gov. Josh Tenorio says the Legislature can’t encroach on executive staffing powers. Education Oversight: Sen. Vincent Borja schedules a June 23 GDOE oversight hearing focused on school closure plans and reopening for 2026-27 amid transparency concerns. Health Inspections: DPHSS says only three trained inspectors are handling high-risk facility inspections, completing about half of required checks. Tourism Strategy: An opinion argues Guam should shift from chasing visitor counts to boosting visitor spending and authentic experiences. Local Business & Events: Registration is open for Micronesia Mall’s Mall Ball 3x3 summer circuit, with high school, adult/open, and middle school tournaments. Conservation Funding Model: UOG’s Research Corporation (RCUOG) highlights how it manages grant-funded conservation work, growing to $100M in its first decade and managing $130M+ across 200+ awards.

Education Oversight: Sen. Vincent Borja called a June 23 GDOE oversight hearing focused on school closure plans, decommissioning, the J.P. Torres Success Academy situation, and reopening for SY 2026-2027, after criticism that the process lacks transparency. Public Health Staffing: DPHSS told lawmakers it’s completing only about half of required high-risk inspections due to a shortage—26 of 52 for Category 4 food facilities and 62 of 124 for Category 4 institutional facilities. Hospital Legal Fight: A Guam District Court remanded the governor’s hospital authority case back to the Guam Supreme Court and awarded attorney’s fees against the AG, after the AG’s attempt to move it to federal court was rejected. GovGuam Hiring/Pay Freeze: Speaker Frank Blas Jr. and Vice Speaker Tony Ada proposed freezing limited-term/unclassified hiring and suspending pay increases, but Acting Gov. Josh Tenorio says it conflicts with prior AG opinions. Tourism Strategy: An opinion urges Guam to shift from chasing visitor counts to boosting visitor spending and satisfaction, and to build more authentic experiences as arrivals remain well below pre-pandemic levels. Aquaculture & Seafood Supply: UH Hilo is joining a $13.5M national NOAA aquaculture consortium (CIFARM) to expand sustainable U.S. seafood production. Power Relief in Tinian: FEMA and the U.S. military are covering generation and fuel costs temporarily, so Tinian residents are billed only a basic $7 service fee until around July 10. Local Business: Guam’s first trading card café expanded in Harmon, pairing a card shop with a new café concept.

Aquaculture & Food Security: The University of Hawaiʻi is joining a new $13.5 million NOAA-backed aquaculture consortium (CIFARM) aimed at boosting U.S. seafood supply and sustainable marine farming, with UH Hilo’s Chatham Callan leading the research team. Disaster Relief (FSM): FEMA approved a Compact Disaster Declaration for the Federated States of Micronesia after Typhoon Sinlaku, releasing an initial $8 million for immediate unmet needs in Chuuk. Guam Tourism Strategy: An opinion piece argues Guam should shift from chasing visitor counts to targeting higher-spending travelers and building more authentic Guam experiences. Public Health Staffing: DPHSS says only three trained inspectors are handling high-risk facility inspections, completing about half of required Category 4 checks. Hospital Legal Fight: A District Court ruling remands Guam’s hospital authority case back to the Guam Supreme Court and awards attorney’s fees against the AG. Government Finance: A proposed GovGuam hiring/pay freeze faces pushback from the acting governor, who says it conflicts with prior AG opinions. GVB Audit: Guam Visitors Bureau cleared a clean FY2025 audit but reported $9.3M lower revenue amid weaker appropriations and visitor arrivals. Local Business: Guam’s first dedicated trading card café expands in Harmon, combining a card shop and a new café concept. Community & Events: Micronesia Mall opens registration for Mall Ball 3x3 summer tournaments, running June through August.

Tourism & public finance: Guam Visitors Bureau’s FY2025 audit landed a clean opinion, but revenues fell $9.3M to $23.7M as GovGuam appropriations dropped $8.3M and visitor arrivals slipped 3%, while operating expenses rose and a new $4.6M airline incentives push drove higher payables. Local governance & staffing: Acting DPR director Robert Lizama told lawmakers Guam’s parks system is stretched thin—5 workers covering 85-plus parks—with 35 DPR positions vacant and park maintenance and recreation hit hardest. Deep-sea mining regulation: Experts warn proposed U.S. seabed-mining rules are “bare bones” and may weaken environmental oversight as leasing and permitting move forward. Election politics & government costs: Speaker Frank Blas Jr. and Vice Speaker Tony Ada propose a hiring freeze for limited-term/unclassified staff and a pay-raise suspension through Sept. 30, 2027; Acting Gov. Joshua Tenorio calls it unenforceable. Environment & consumer compliance: Public Health is investigating banned, coral-hurting sunscreen chemicals and says violators could face civil fines. Business growth: Guam’s first trading card café expanded in Harmon, pairing a bigger retail space with a new café concept for the island’s card-game community. Regional economy: The U.S. approved an initial $8M disaster package for FSM after Typhoon Sinlaku, with FEMA funding under the Compact.

GVB Audit: Guam Visitors Bureau cleared a clean FY2025 audit but still took a hit: revenues fell $9.3M to $23.7M as GovGuam appropriations dropped $8.3M and visitor arrivals slipped 3%, while expenses rose to $30M, including a new $4.6M airline incentives push. GovGuam Finances: April tax collections were down $36.6M after Sinlaku delayed income tax filings, but May is expected to rebound. Workforce Policy: Guam lawmakers propose a hiring freeze for limited-term/unclassified staff and a pay-raise suspension through Sept. 30, 2027; Acting Gov. Tenorio says it’s unenforceable. Public Health Enforcement: The Department of Public Health is investigating banned coral-hurting sunscreen ingredients (oxybenzone, octinoxate, octocrylene) and says violators face removal orders and fines up to $5,000. Telecom & Retail: DOCOMO Pacific opens at Donki’s Village of Donki in Tamuning, expanding local connectivity. Regional Relief: The U.S. approved an initial $8M disaster package for FSM after Typhoon Sinlaku. CNMI Recovery: Guam/CNMI typhoon response updates show power and water restoration progress. Elections: A University of Guam poll shows Tenorio and Terlaje in a statistical deadlock; Ada leads Blas among Republicans.

GovGuam Fiscal Tension: Speaker Frank Blas Jr. and Vice Speaker Tony Ada propose suspending broad pay raises and freezing limited hiring through the election year, citing audit concerns and uncertainty over federal funds—Acting Gov. Joshua Tenorio calls the move unenforceable and warns it could disrupt essential services. Tourism Watch: Guam Visitors Bureau’s FY2025 audit shows an unmodified clean opinion, but net position fell by $5.9M as visitor arrivals dropped about 3%, hitting Tourist Attraction Fund collections while spending rose. CNMI/Guam Travel Push: Guam and CNMI governors renew calls for adding the Philippines to the Guam-CNMI visa waiver program, arguing it would boost tourism and regional air connectivity. Disaster Recovery: CNMI reports major progress restoring power and water after Super Typhoon Sinlaku, with nearly all primary power lines re-energized on Saipan and generation capacity back above pre-storm levels. Public Works Funding: DPW says it can spend $20M in federal ARP funds on village street paving and seeks tougher rules for abandoned vehicles, including $5,000 fines. Energy Supply Risk: Guam Power Authority reviews alternative fuel sources beyond Asia as regional oil stocks tighten, while officials say current supplier channels remain intact. Defense & Security: Guam’s National Guard begins another THAAD site security rotation, underscoring ongoing local support for U.S. missile-defense operations. Education Expansion: SIFA secures a new Tamuning lease to add a ninth-grade program starting 2026–27, with plans for science labs and robotics.

Energy & Finance (FSM): Vital FSM Petroleum Corp. says President Wesley Simina signed Public Law 24-65 on June 2, formalizing up to $5M in loans for fuel price stabilization, boosted by a Japan grant for about $3.1M—adding roughly $8M in stabilization capacity to protect electricity, transport, food distribution and essential services. Transportation (Guam/Region): United Airlines will move its 737 MAX 8 “Island Hopper” service earlier—shifting FSM/Marshall/Palau/Saipan operations to all-MAX 8 by early October 2026, with Guam-Saipan starting July 19 and Guam-Koror-Manila Oct. 2. Local Infrastructure (DPW): DPW says it will use $20M in federal ARP funds for village street paving and is asking senators to introduce a $5,000 charge for abandoned vehicles and bar repeat offenders from registering new cars. Courts/Shipping (Sinlaku): A District Court of Guam judge approved a $226,800 claims fund in the M/V Mariana limitation case tied to Sinlaku deaths and injuries, directing claims to be filed in Guam by July 31. Governance & Business Risk (GVB): Guam AG Douglas Moylan is reviewing allegations in a federal complaint involving public funds and sexual misconduct, while senators call for criminal investigation and police review whether complaints were filed since 2022. Tourism & Travel Policy: Guam and CNMI governors are pushing the U.S. to add the Philippines to the Guam-CNMI Visa Waiver Program to boost tourism and air connectivity. Food & Markets (UOG): UOG’s Land Grant Extension is inviting farmers and food entrepreneurs to a 5P Agricultural Marketing Workshop series focused on product, price, place, promotion and people to grow Guam-grown sales. Environment/Compliance (GICC): Guam EPA issued a notice of violation and compliance order with administrative penalties to Guam International Country Club over underground storage tank documentation and testing issues. Disaster Watch (Philippines): A 7.8 quake off Mindanao triggered tsunami warnings and evacuations across parts of the Philippines, Indonesia and Malaysia, with at least four deaths and 200+ injuries reported.