Moody’s Issues Warning: Governor Urges GOP to Halt Override That Risks Guam’s Credit
Hagåtña, Guam – Governor Lou Leon Guerrero today urged the Republican majority in the Guam Legislature to reconsider any attempt to override her veto of the FY26 Budget Act in light of a direct caution from Moody’s Investors Service.
In correspondence received on September 27, Moody’s Senior Analyst Pisei Chea advised that the proposed cut to Guam’s Business Privilege Tax (BPT) from 5% to 4%—slashing $40 million in FY26 revenues and another $40 million in FY27—“would not be a credit positive” despite Guam’s recent strong performance.
Speaker Frank Blas was notified of this correspondence in a letter from Governor Leon Guerrero yesterday.
“This statement should ring alarm bells,” Governor Leon Guerrero said. “Moody’s has made it clear that cutting government revenues jeopardizes Guam’s creditworthiness. An override of my veto risks triggering higher borrowing costs for every new school, every hospital upgrade, and every infrastructure project our people need. It will saddle taxpayers with higher costs for years to come.”
The Governor emphasized that this override attempt comes amid federal instability, with budget cuts already weakening agencies such as the Guam EPA and FEMA, and the real possibility of a federal government shutdown further threatening vital programs.
“At the very moment Washington is making us carry more responsibility, Republicans in Hagåtña are stripping away the resources we need to meet it,” the Governor added. “The Legislature must put fiscal prudence above politics and reconsider this reckless course of action.”
Governor Leon Guerrero reaffirmed her administration’s commitment to protecting essential services like healthcare, education, and public safety, while working with lawmakers to find responsible solutions that safeguard Guam’s long-term stability.
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