Governor outlines Guam’s path forward in 2025 State of the Island address

Gov. Lourdes A. Leon Guerrero delivered the 2025 State of the Island Address on Wednesday evening at the Guam Congress Building, highlighting Guam’s economic recovery, efforts to ease the cost of living, and proposals to strengthen the island’s economy, workforce, and quality of life. 

“Tonight, we gather at a pivotal moment in our history,” the governor began, reflecting on Guam’s resilience amid global uncertainty. “This is not the first time Guam has faced an uncertain world, but we have fought, endured, and rebuilt.” 

Leon Guerrero pointed to significant progress since her administration took office, including six straight years of budget surpluses, near-record-low unemployment, and wage increases for teachers, nurses, and law enforcement officers. “Guam is good, but we will not stop until it is better,” she said. 

She acknowledged the ongoing struggles of working families, noting that inflation and rising costs continue to burden many. “Too many families are one missed paycheck away from economic disaster,” she said. To combat this, her administration has expanded childcare assistance, rental aid, and power credit programs. 

Leon Guerrero also called for tax relief for small businesses, proposing to raise the Business Privilege Tax cap from $500,000 to $1 million in revenue. “These businesses are the backbone of our economy, and they deserve a break—not another burden,” she said, while opposing tax breaks for large corporations and federal contractors. “I will not support another tax break for big businesses or federal contractors making millions on Guam,” she said. “Not when one of the largest corporate tax cuts in recent memory is likely to pass in Washington, D.C.” 

The governor emphasized that the issue transcends political divides. “This is bigger than politics. Whether you’re a Republican, a Democrat, or somewhere in between, we can agree on this: We should invest in our people, our communities, and the businesses that call Guam home. And those who come here to profit from our growth must be willing to pay their fair share.” 

Leon Guerrero also proposed exempting Medicaid-related revenue from the BPT to support healthcare access for vulnerable populations. “If you treat the most vulnerable among us—the men, women, and children on Medicaid—every cent of that revenue should be exempt from the Business Privilege Tax,” she said. “By doing so, we commit new resources to actual treatment, and it may increase the number of medical professionals willing to treat those who need it.”  However, Leon Guerrero stressed that tax policy alone is not enough to secure Guam’s future. “To truly make Guam better, we can’t just cut taxes; we must grow our economy, and that requires the full return of our tourism industry,” she said.

Tourism remains a cornerstone of Guam’s economy, but the governor warned that competition from destinations like Thailand and Okinawa poses a challenge. “Our tourism product is outdated,” she said. “To compete, we must modernize Tumon, emphasize cultural experiences, and elevate Guam to an unforgettable destination.” 
The administration has committed $5 million in airline incentives and partnered with South Korea’s Shinhan Card to boost visitor spending. Leon Guerrero also urged the Legislature to consider a second Hotel Occupancy Tax Bond to fund tourism infrastructure. 

Workforce development remains a top priority, with the governor highlighting apprenticeship programs and partnerships with Guam Community College. “We are not just training for today’s jobs but preparing our people for the jobs of tomorrow,” she said. 

On housing, Leon Guerrero addressed the affordability crisis exacerbated by federal projects and military housing subsidies. She called on Congressman James C. Moylan to amend federal laws to allow H-2B workers for civilian projects and to allocate a portion of military construction funds for affordable housing. 

The governor reaffirmed her commitment to building a new hospital, despite legal challenges from the Attorney General. “We will not lose $104 million in ARP funds committed to this new hospital,” she said. “The people of Guam want a new hospital, and we will build it.” 

Leon Guerrero also outlined efforts to address homelessness, including expanding shelters and transitional housing. “Stability comes first,” she said. “We are building more homes and facilities to address mental health, substance dependency, and domestic violence.”
 
The governor expressed concern over federal funding instability, which impacts programs like Medicaid, SNAP, and infrastructure grants. “Guam cannot be the linchpin of American security in the Indo-Pacific if 14,000 residents are without shelter or 36,000 lose access to Medicaid,” she said, urging Congressman Moylan to advocate for Guam in Washington, D.C. 

Leon Guerrero said, “In the spirit of Mes CHamoru: Manetnon Hit, Ta Na’guahåyi. “We Have Gathered, So Let Us Provide.” mbj

Read Gov. Lourdes A. Leon Guerrero's full speech here: Gov. Lourdes A. Leon Guerrero's full text of the 2025 State of the Island Speech