By Jayvee Vallejera
Conflicting guidance from the U.S. Department of Education and the U.S. Department of the Treasury on the disbursement of federal funds under a Covid-era law is creating a wrinkle in local efforts to solve the funding crisis troubling Guam’s education sector.
“This misunderstanding…is unacceptable,” Guam Del. James Moylan said in a press statement.
Moylan said his office received information on March 6 that the Guam Department of Education had received new guidance from USDOE about the disbursement of American Rescue Plan funds.
The new guidance reportedly required agencies to use local funds for upfront project costs and submit expenses for reimbursement.
Upon learning this, Moylan said he immediately reached out to the U.S. Department of the Treasury, which is in charge of delivering key portions of the ARP, to ask about this new guidance and was told it had not issued any new one in the last several months.
On March 7, Moylan received a copy of the USDOE memorandum about the new guidance.
Moylan then asked USDOE about the status of the new guidance, which was issued by then-acting Education Secretary Denise Carter. By then, Education Secretary Linda McMahon had already been confirmed and Moylan said he wanted to ensure that McMahon had not issued any new guidance.
Moylan also briefed the Guam legislature informing them that the Treasury's response conflicted with the USDOE memorandum, which stated that the ARP funding had been changed to a reimbursement-basis model.
“I am particularly concerned that any expenditure of Guam’s local general funds without clear direction from the federal government will only exacerbate the uncertainty brought on by the recent executive orders from the Trump Administration regarding state and territory finances,” he added.
Moylan said this new guidance must be confirmed with all federal agencies involved and assured he is working to untangle this confusion.
“I understand the critical need for clear and accurate communication during these uncertain times,” Moylan said.
Once the issue is clarified, the Guam legislature will be able to determine the best course of action for GDOE, he said.
“Achieving clarity on this matter will empower the Guam legislature to navigate these challenges more effectively and promote fiscal responsibility,” Moylan added.
As soon as GDOE informed the Guam legislature of this new guidance, Sen. Vince Borja, chair of the education committee, reached out to legislative leaders and key stakeholders so they could explore viable solutions that ensure the continuity of education for Guam’s students.
Borja said the education committee met with Moylan on March 8 to ask for clarification on the potential impact of the USDOE policy changes. He said Moylan is already in talks with both USDOE and Treasury to obtain further guidance on how these changes will affect GDOE’s funding and operations.
Guam’s legislative leaders and appropriate committees and their members also met with GDOE officials, Guam Board of Education Chairman Angel Sablan, and key members of the administration, including Department of Administration Director Ed Birn and Bureau of Budget and Management Research Director Lester Carlson.
Borja said the meeting provided an opportunity for all stakeholders to collaborate on viable solutions to address GDOE’s fiscal challenges.
“We are exploring immediate solutions, including reallocating unspent funds already available to GDOE, as well as the possibility of advancing allocations through the Department of Administration,” said Borja.
Sen. Christopher M. Duenas, chair of the finance and government operations committee, emphasized the importance of timely action. “We are working diligently to identify financial pathways that will stabilize GDOE’s operations without causing further disruptions.”
Speaker Frank Blas Jr. reaffirmed the legislature’s commitment to working with all stakeholders to find solutions. “I will ensure that we exhaust all options first," he said. "GDOE has their work cut out and I look forward to hearing from them in the coming days.”
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