Where Will the Axe Fall? Vol. 9 No. 3 March 2025 | Page 4

FROM THE PUBLISHER ’ S DESK

‘ A wake-up call ’

The late American humorist P . J . O ’ Rourke once said , “ Giving money and power to government is like giving whiskey and car keys to teenage boys .”

Just ask Guam Public Auditor Benjamin Cruz . Uncovering anomalies in government of Guam audits is a run-of-the-mill exercise for the Office of Public Accountability . Conducting questionable transactions seems habitual for Gov- Guam .
The OPA recently flagged $ 241.1 million in dubious Medicaid payments made by the Guam Department of Public Health and Social Services to questionable health care providers , including inactive or ineligible facilities and physicians with expired medical licenses .
The questioned costs , according to the Office of Public Accountability , accounted for over 60 percent of the department ’ s $ 399.6 million Medicaid disbursements for fiscal years 2020 through 2022 .
On the day the Medicaid audit report was released , the Office of the Governor of Guam issued a press release announcing the list of demands approved by national governors during the 2025 Winter Meeting in Washington , D . C .
The governors want to “ advocate for flexibility and support for a robust health and human service system including safety net programs , such as Medicaid and SNAP .” They “ oppose shifting essential federal funding obligations to states and territories without adequate planning .”
It ’ s almost comedic — especially when it is being pushed at such an evil hour .
Despite his earlier promise to spare Medicaid from the axe , President Donald Trump has endorsed a Republican plan to fish out the federal health insurance program . A House Republican budget resolution seeks at least $ 880 billion worth of spending cuts expected to be extracted from Medicaid .
The looming reform of Medicaid is one of the countless initiatives undertaken by the Trump administration to take back the whisky and car keys from teenage boys .
Amid Trump ’ s mega house-sweeping and spending realignment , Guam leaders urged the U . S . government to spare the territory from funding cuts , attempting to make a case with oxymoronic arguments .
“ Federal assistance is an investment into the social and economic development of our Pacific islanders that leads to self-sustainment , economic growth and financial stability ,” Gov . Lou Leon Guerrero said .
Guam Del . James Moylan argued , “ The funding for these food , education , or housing programs are not ‘ handouts ’ but a ‘ hand-up ,’ intending to provide economic opportunities and self-reliance in the respective islands .”
No matter how you phrase it , you weaken your rationalization when you attempt to equate “ assistance ” with “ self-reliance ” or “ self-sustainability
”— like a teenager declaring independence while demanding allowance from their parents .
Certainly , Trump ’ s swinging axe is a shocking aberration from what we have gotten accustomed to throughout the Covid years when seemingly endless streams of federal dollars flooded the island . Guam became complacent . Covid assistance became a multibillion-dollar industry that substituted the dormant tourism sector .
Local economists have estimated that Guam received a total $ 8 billion in Covid funds in 2021 and 2022 — with nothing to show for it . They got lost to fiscal profligacy , if not invested in short-term initiatives aimed at pleasing voters .
No investments were made toward the island ’ s self-sufficiency . No new industry has been created . The much-ballyhooed aquaculture industry — promised by the governor when she was a candidate — remains an urban legend and “ economic diversification ,” a myth .
Federal spending has been the life vest for Guam ’ s economy until Trump came back to the Oval Office to puncture it .
Sulking over federal funding cuts is an anticipated reaction , but CNMI Gov . Arnold Palacios viewed it with introspection . A pause on all federal assistance programs , he said , served as a “ wake-up ” call for all states and territories .
Guam has lessons to learn from Trump ’ s radical funding turnaround — none more significant than looking inward , leveraging the island ’ s strengths , regaining our dignity and building a future that is not reliant on Washington .
Publisher / Editor-in-Chief Mar-Vic Cagurangan publisher @ pacificislandtimes . com
Contributing Writers Raquel Bagnol Ron Rocky Coloma Zaldy Dandan Theodore Lewis Bryan Manabat Joyce McClure Gabriel McCoard Jack Niedenthal James C . Pearce Alex Rhowuniong Robert Underwwod Jayvee Vallejera Aline Yamashita
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