Guam Officials Address $35M Earned Income Tax Credit Funding Confusion
September 10, 2025 | General Government Operations and Appropriations , Legislative, Guam
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In a recent session of the 38th Guam Legislature, lawmakers revisited the contentious issue of a $35 million appropriation that has raised significant concerns regarding its availability and impact on government services. The discussion, led by Senator Byrne, highlighted the absence of funds in the previously appropriated amount, which was intended for various government initiatives.
Senator Byrne emphasized that the funds, initially celebrated during the budget session, do not exist as anticipated. He referenced a letter from February 2022, written by the directors of the Bureau of Budget and Management Research (BBMR) and the Department of Revenue and Taxation (DRT), which clarified that the 2021 Earned Income Tax Credit (EITC) would be funded as an advance from the federal government rather than as a reimbursement from the general fund. This distinction means that the anticipated $35 million cannot be appropriated for local use.
The senator expressed frustration over the legislature's previous decisions, suggesting that the $40 million currently under discussion effectively replaces the non-existent $35 million. He criticized his colleagues for their reluctance to acknowledge the financial reality, which he believes has led to detrimental consequences for essential government services, particularly in education and healthcare.
Byrne specifically pointed to the potential negative impact on the Guam Memorial Hospital, labeling the situation as a "death sentence" for the facility, which is obligated to provide care to all patients regardless of their ability to pay. He underscored the ongoing financial challenges faced by the government, particularly in light of the rollback of the Business Privilege Tax (BPT), which he argues has further strained resources.
The session underscored the critical need for transparency and accountability in budgetary decisions, as lawmakers grapple with the implications of their financial choices on the community. As discussions continue, the legislature faces the challenge of addressing these fiscal realities while ensuring that vital services remain intact for the people of Guam.
Senator Byrne emphasized that the funds, initially celebrated during the budget session, do not exist as anticipated. He referenced a letter from February 2022, written by the directors of the Bureau of Budget and Management Research (BBMR) and the Department of Revenue and Taxation (DRT), which clarified that the 2021 Earned Income Tax Credit (EITC) would be funded as an advance from the federal government rather than as a reimbursement from the general fund. This distinction means that the anticipated $35 million cannot be appropriated for local use.
The senator expressed frustration over the legislature's previous decisions, suggesting that the $40 million currently under discussion effectively replaces the non-existent $35 million. He criticized his colleagues for their reluctance to acknowledge the financial reality, which he believes has led to detrimental consequences for essential government services, particularly in education and healthcare.
Byrne specifically pointed to the potential negative impact on the Guam Memorial Hospital, labeling the situation as a "death sentence" for the facility, which is obligated to provide care to all patients regardless of their ability to pay. He underscored the ongoing financial challenges faced by the government, particularly in light of the rollback of the Business Privilege Tax (BPT), which he argues has further strained resources.
The session underscored the critical need for transparency and accountability in budgetary decisions, as lawmakers grapple with the implications of their financial choices on the community. As discussions continue, the legislature faces the challenge of addressing these fiscal realities while ensuring that vital services remain intact for the people of Guam.
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