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B 86-38

AN ACT TO ADD A NEW § 3135 TO ARTICLE 1, OF CHAPTER 3, TITLE 17, GUAM CODE ANNOTATED, RELATIVE TO THE CREATION AND TO THE ADMINISTRATION OF THE AMERICAN RESCUE PLAN ACT (ARPA) UPFRONT PAYMENT FUND; AND TO APPROPRIATE THIRTY MILLION DOLLARS ($30,000,000) FROM THE RAINY DAY FUND TO THE ARPA UPFRONT PAYMENT FUND.

38th Guam Legislature

Bill establishes ARPA Upfront Payment Fund and transfers $30 million from Guam's emergency Rainy Day Fund to cover initial costs before federal reimbursement.

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Bill Summary · B 86-38

Legislative bill overview

This bill creates a new fund in Guam's legal code to receive $30 million transferred from the territory's Rainy Day Fund (emergency reserve). The money would be held in the ARPA Upfront Payment Fund to cover expenses related to the American Rescue Plan Act, a federal COVID-19 relief program that requires upfront state/territory spending before federal reimbursement.

Why is this important

Guam, like other territories, received substantial ARPA funds but must often spend its own money first to access federal reimbursements. This bill establishes the financial mechanism to do so. However, it depletes the Rainy Day Fund—Guam's emergency cushion—by one-third, potentially limiting the territory's ability to respond to unexpected fiscal crises independent of federal support.

Potential points of contention

  • Emergency fund depletion: Withdrawing $30 million from the Rainy Day Fund reduces Guam's fiscal resilience during uncertain economic times and natural disaster vulnerability
  • Federal reimbursement timing uncertainty: The bill assumes federal ARPA reimbursements will arrive reliably and on schedule, but delays or disputes could leave Guam short-staffed financially
  • Opportunity cost: The $30 million could address other immediate territorial needs (infrastructure, healthcare, education) if alternative ARPA funding mechanisms exist

Compiled from official sources — confirm details with the bill’s official record.

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