After Bavi, Guam confronts recovery costs and changing FEMA policies

By Jayvee Vallejera

Guam lawmakers are taking a closer look at how millions of dollars in local funds were spent following Typhoon Bavi, with an oversight hearing Thursday examining recovery expenses, outstanding needs and lessons from the government's storm response.

The Federal Emergency Management Agency estimated Guam's damage from Bavi at approximately $19.17 million, of which about $6.14 million had been validated. No federal project obligations had been made for Bavi, and recovery scoping meetings were still underway.

Four months after the typhoon battered Guam and the neighboring Northern Mariana Islands, about $6.72 million of the $21.32 million locally allocated for Guam's response and recovery had been spent or encumbered, leaving approximately $14.6 million available, lawmakers heard.

Lester Carlson, director of the Bureau of Budget and Management Research, presented the spending figures during an oversight hearing conducted by the legislative Committee on Public Safety, Emergency Management and Guam National Guard.

The funding was made available through three authorizations: the governor's executive order, which earmarked $250,000 for emergency expenses; Public Law 38-134, which reprogrammed $7.67 million in unspent Typhoon Sinlaku funds toward Bavi recovery; and Public Law 38-135, which appropriated an additional $13.4 million from Guam's Rainy Day fund.

Although Bavi directly struck Rota, Guam also experienced destructive winds, torrential rain, flooding threats and power outages.

The storm damaged 196 homes across the island. A total of 488 businesses reported approximately $3.91 million in physical damage and an estimated $4.93 million in lost revenue.

Sen. Shawn Gumataotao, committee chairman, said Thursday's hearing concluded the first phase of the committee's review of the government's response to three major typhoons: Mawar, Sinlaku and Bavi. Typhoon Champi also affected Guam on Oct. 18.

"The numbers are significant: $50 million for Mawar, $25 million for Sinlaku, another $13 million for Bavi and $27 million recently appropriated locally for Champi. That is a combined $115 million in local taxpayer dollars over the last three years meant to protect our families from the unforgiving power of Mother Nature," Gumataotao said.

For Bavi, approximately $6.14 million of the $19.17 million in estimated public assistance costs had been validated, he said.

Gumataotao said the public deserves a clear accounting of how the money was spent.

Carlson said the bulk of the $250,000 authorized under executive order had been used by the Emergency Operations Center. About $33,000 remained as of Nov. 6.

Of the approximately $7.67 million in Sinlaku funds made available for Bavi, about $4.6 million had been spent and another $875,000 was encumbered, leaving approximately $2.14 million remaining.

The additional $13.4 million appropriated under Public Law 38-135 was designated to assist affected farmers.

Carlson said a significant portion of the remaining recovery funds— approximately $10 million—could be used to clear the debris site at Oka Point in Tamuning.

Meanwhile, the governor's office today announced that FEMA has approved an amendment releasing $984,776 in fiscal 2023 Emergency Management Performance Grant funds, enabling the Guam Homeland Security / Office of Civil Defense to submit eligible expenditures for reimbursement.

The approval lifts a restrictive drawdown hold on the award and marks the initial step in easing heightened federal oversight measures across local emergency management grants.

"Releasing nearly $985,000 in grant funding reflects the steady progress our team has made in meeting federal documentation and financial tracking standards," said Gov. Leon Guerrero.  "These funds directly support our island's ongoing emergency preparedness, operational readiness, and response capabilities."

At Thursday's hearing, the committee also examined what worked and what did not during the storm response.

One positive outcome was the legislature's advance appropriation of local funds, which allowed debris removal to begin immediately without waiting for federal reimbursement.

Farmers affected by the storm also received assistance. About $815,943 had been paid out, with compensation calculated based on farmers' reported inputs, including seeds, labor and equipment, rather than the value of lost crops.

Among Guam's outstanding recovery needs is the repair of the island's seawall. The least expensive option is estimated at $18 million.

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The U.S. Army Corps of Engineers is reportedly expected to cover up to $10 million, leaving Guam responsible for an estimated $7.6 million. The local funding source has not yet been identified.

The hearing also raised questions about Guam's emergency spending law, which limits emergency expenses to $250,000, which was set in 1979.

Lawmakers discussed the possibility of updating the 47-year-old provision and raising the spending cap.

Guam's future recovery efforts could also be affected by changes in federal disaster policy, with the Trump administration signaling that states and territories may be expected to assume greater responsibility for disaster response and recovery.

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Gumataotao said Guam's decision-makers must seek clear answers in the months ahead as the federal government gradually reduces its role, following the FEMA Review Council's recommendation to require state and territorial governments to take the lead in response and recovery efforts and bear more of the costs.

The recommendations also include raising the thresholds for federal disaster declarations.

The proposed changes would be phased in over two to three years to give states and territories time to strengthen their fiscal and operational capabilities.

"Going forward, it is important for the Guam legislature to use the lessons of Mawar, Sinlaku, Bavi, and Champi and the new federal direction to inform our review of Guam's Comprehensive Emergency Management Plan and the 47-year-old, $250,000 emergency expenses limit established by law in 1979," Gumataotao said.

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