“Guam is good, but it will be better,” Guam Governor Lou Leon Guerrero said Wednesday amid challenges facing the island in the thick of looming federal cuts that threaten to shrink the local government’s fiscal resources and jeopardise its social services. “If federal funds are cut significantly, we will face one of the toughest budget sessions in our history,” Leon Guerrero told the 38th Guam Legislature in her State of the Island address. Noting that the government of Guam relies on at least half a billion dollars in annual federal assistance, the governor warned that the territory’s role in national defence is at stake. The Trump administration’s new policies involving federal cuts pose the biggest challenge for the administration. “Across this country, in statehouses and city halls, governors and mayors are waking up every morning asking the same question: What will Washington do next?” Leon Guerrero said. “Because the truth is, the stability of federal funding, the programs that keep our schools running, our veterans cared for, our families fed, and our hospitals open—is no longer a given.” Sweeping federal cuts send several programmes in limbo, including education, the Supplemental Nutrition Assistance Programme, the Temporary Assistance for Needy Families, Medicaid, Medicare, Social Security and block grants for childcare. “Like you, I worry, constantly concerned, wondering whether a budget bill, an agency rule change, or a political fight thousands of miles away is about to shake the foundation of programs that keep this island moving forward,” the governor said. “But let us be clear about this: Guam cannot be the linchpin of American security in the Asian-Pacific if nearly 14,000 of our residents are without shelter because housing aid to Guam is cut or if 36,000 of our people lose access to Medicaid and Medicare coverage keeping them healthy, alive and out of poverty,” she said. Leon Guerrero called on Guam Delegate James Moylan to salvage the federal appropriations that Guam stands to lose. “You are our lifeline to the federal government. You stand on the floor of Congress. You are in the room during Republican budget caucuses,” she said addressing Moylan. “You have close relationships with the speaker of the House and the House majority caucus chair. These relationships matter. And we hope you can count on them because Guam is counting on you.” While claiming progress and accomplishments, the governor highlighted the drawbacks, which she attributed to unfavourable market conditions and other existing global crises. “Make no mistake: I am proud of how far we have come and I acknowledge all the hard work it took to get here. But while our progress is real, it is not complete,” she said. “Too many working families are being crushed by inflation and the rising cost of living. Many know they are one missed paycheque away from economic disaster, one bad accident away from bankruptcy,” she said. “Until every family feels the benefits of this growing recovery, until every person in every village has a fair shot at a better life, we have so much more work to do,” said the governor, who is serving her sixth year in office. Leon Guerrero spoke before a legislature led by the Republican Party for the first time in more than 20 years. The Democratic governor so far enjoys a honeymoon period with the fresh legislature. “I believe this new legislature has a real chance to tackle old problems in innovative ways. Leaders from both parties have talked about reforming not just how the government operates but how it procures and manages resources,” Leon Guerrero said. The State of the Island address tackled a wide range of issues, including health care, public safety, taxes, homelessness, the housing crisis, school facilities and federal affairs. Despite the impending federal cuts, the governor is optimistic about uninterrupted military investments in Guam, which is at the forefront of the Pentagon’s Indo-Pacific strategy amid the escalating geopolitical tensions in the region. “In my meetings in DC last month, federal officials reassured me that Guam remains at the forefront of national defence in the Indo-Pacific,” she said. “The Department of Defence is making significant investments here. This includes the Guam Defence System and advancements in cybersecurity and biological threat detection. These initiatives support military readiness and aim to create a stable, secure, and prosperous future for our community as a whole,” the governor said.