The 38th Guam Legislature convened on August 16, 2025, to discuss critical amendments related to the Fiscal Year 2026 budget, particularly focusing on the management of American Rescue Plan (ARP) funds. A significant point of contention arose regarding an amendment that stipulates unspent funds by March 28, 2026, would be redirected to sports facilities. Concerns were raised about the implications of this amendment, especially regarding the potential for incomplete projects and the financial responsibilities that would fall on the government.

Senator Perez expressed apprehension about the amendment, highlighting the risk of incurring additional costs if projects are not completed by the deadline. He referenced a recent situation involving the Department of Education, where the abrupt cessation of ARP fund usage led to chaos and contractual issues with vendors. Perez cautioned that the current amendment could similarly jeopardize the government's financial standing, particularly if penalties for nonpayment were involved.

Despite these concerns, the motion to set the amendment aside for further consultation with the relevant board was met with opposition and ultimately failed. Senator Perez continued to advocate for caution, questioning the rules surrounding ARP fund usage and the lack of a specific account for these funds. He emphasized the need for clarity on what would happen if projects were not completed on time, noting that local funds would then be required to cover costs, which would not be reimbursed.

The discussion underscored the urgency of ensuring that ARP funds are managed effectively to avoid financial pitfalls. As the legislature moves forward, the implications of this amendment and the management of federal funds will remain a critical focus, with potential impacts on local projects and financial obligations looming large.