Defense policy bill includes $3 billion authorization package for Guam

NDAA2026 backs public-private partnership model to address military housing shortage

By Pacific Island Times News Staff

The U.S. House of Representatives’ version of the new defense policy bill, which narrowly passed last week, includes a proposed $3 billion package for Guam to maintain the island's strategic defense posture.

Guam Del. James Moylan said the National Defense Authorization Act for fiscal 2026 tacks down direct investments for the territory and establishes policy reforms aimed at boosting the island’s housing and power infrastructure.

“These measures reflect ongoing efforts to ensure our island’s needs are recognized and resourced at the federal level,” Moylan said.

The NDAA2026, which cleared the House on a 231-196 vote on Sept. 12, authorizes $848 billion for national defense.

For Guam, the bill incorporates $1.06 billion in military construction and $1.17 billion for family housing to be executed in FY26, including $105 million for 250 new housing units, plus an additional $795 million to be distributed across multiple fiscal years.

Additional provisions include a feasibility study on transitioning military housing to a public-private partnership model. On Sept. 14, the Navy launched the process to solicit private developers' proposals to provide 2,400 housing units for service members and their families.

For Guam’s missile defense capabilities, the NDAA authorizes $11.35 million in procurement funding and $128.49 million for research and development.

Key amendments include the expansion of the living quarters allowance to include civilians on Guam and local hires. It also authorizes retention bonuses of up to 50 percent of base pay for critical civilian roles.

Environmental and cultural priorities are addressed through a new initiative to control the invasive Greater Banded Hornet and funding for the Guam Cultural Repository.

The Department of Defense is also authorized to enter into joint energy projects with the Guam Power Authority and increase the minor construction cap for the Indo-Pacific Command from $30 million to $40 million.

The NDAA directs the assessment of infrastructure needs associated with the Guam missile defense system, such as power, water, housing and other concerns raised in the final environmental impact statement.

While the recently released record of the decision for the Guam missile defense system rejected the governor's request for an Economic Adjustment Committee meeting, the NDAA calls for a House briefing on the feasibility of convening a panel.

Transparency measures were added regarding nuclear energy, requiring

notification to Guam’s leadership and Congress for any reactor presence, excluding naval propulsion systems.

The NDAA also directs a reassessment of per diem rates, which Sen. Jesse A. Lujan welcomed.

Lujan, chair of the federal and foreign affairs committee, said the per diem rates review responds to Guam’s tourism industry’s concerns that federal per

 diem rates have undervalued Guam compared to neighboring jurisdictions.

“This is something I have consistently advocated for, dating back to my previous

term when I served as vice chair for tourism,” Lujan said.

“The Guam Hotel and Restaurant Association has repeatedly raised  this

concern, highlighting how outdated per diem rates not only disadvantage

federal employees working in Guam but also limit the economic benefits to our hotels, restaurants and service industry," he added.

The senator noted that revisiting Guam’s per diem rates is critical to aligning  the island with comparable destinations and ensuring that federal employees and contractors assigned to Guam can fairly access local accommodations and amenities without hardship.

“The reassessment will help strengthen our visitor industry, stimulate small businesses, and ultimately support the hundreds of families who rely on tourism-related jobs,” Lujan added.

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