Guam’s frontline defense is under the microscope as Customs officials make their case for funding while pushing back on the possibility of federal control.

The Guam Customs and Quarantine Agency serves as the island’s frontline defense – enforcing local and federal laws across its ports of entry. From intercepting contraband to preventing biosecurity threats – the agency walks a constant balance between protection and keeping trade and travel moving. Now as they head into Fiscal Year 2027, director Ike Peredo says they're pushing to rely less on General Fund support.

The agency is requesting a $24.1 million budget — with $14.5M from the General Fund, $7.7M from its Special Fund, and $1.8M in federal support. Around 82 % – nearly $20M – is allocated to payroll, with the rest supporting operations, contractual services, and facility costs.

“Collectively," Peredo announced, "this investment ensures sustained operational readiness, enhanced enforcement capacity, and continued modernization of CQA’s border programs.” They’re also requesting an additional $3.6M for capital improvements – including infrastructure and communication upgrades, after vulnerabilities were exposed during Super Typhoon Sinlaku.

But staffing remains a critical challenge. The agency currently has 173 personnel with 148 uniformed officers on duty. A wave of retirements is expected and federal competition also continues to pull potential recruits away. To close the gap, GCQA has started mentorship programs to preserve experience and prepare the next generation.

Despite those challenges, the agency says its capabilities are growing, with the director noting, “Customs has strengthened its interdiction and detection capabilities through the successful acquisition of critical inspection assets, including advanced x-ray screening system, handheld scanners, and narcotic substance analyzers.”

Since October, officers have seized more than 376 lbs of methamphetamines, along with marijuana, cocaine, and other illegal substances. They’ve also intercepted restricted agricultural goods. At the same time, the agency has processed billions of dollars in goods — clearing aircraft, vessels, and cargo that keep Guam’s economy moving.

The latter part of Monday’s hearing then shifted to a federal report that raises a bigger question: should Guam Customs be federalized?

The agency's leadership made their position clear, as Peredo said, "We made it clear from our standpoint…that status quo is our option.”

CQA spokesperson Johnrick Mendiola warns federalization could mean losing local control and even driving up costs. “We get our fuel from Singapore. Those may be subject to duties and tariffs if we fall under the customs territory of the United States," he said.

Chief of Customs Vincent Perez says strategically, the change could compromise Guam’s borders, saying, “in Ither words, things coming in would be considered domestic. So when you consider things coming in domestically, but yet currently the GCQA is faced with the situation of battling narcotics smuggling from different areas of the United States, that means you potentially open the door and it’s free and clear.”

Meanwhile, GCQA is also looking at updating passenger fees, which haven’t changed in over a decade, as part of its effort to reduce reliance on the General Fund. But lawmakers warn any increase must be carefully weighed as Guam continues to rebuild its tourism economy.

And as questions of federal control continue, the bigger issue remains: how to protect Guam’s borders in a way that works for the island and the people who call it home.