The looming December 31 deadline to obligate any leftover American Rescue Plan funds has come and gone. Adelup says they obligated the funds in time while Guam attorney general Doug Moylan says even if they did, that’s illegal. 

Moylan suggested that Governor Lou Leon Guerrero be recalled should she lose over $100 million of federal funds. "It’s either we lose $100 million or we pay $900 million of money we don’t have," he told KUAM News. "That’s a $1 billion medical complex. So it’s like lose, lose, lose. I’m serious. If we lose $100 million, somebody out there should look into recalling our governor. To lose $100 million as an elected official because of hubris and pride, it’s unfathomable.

"I don’t think Guam has ever faced this type of situation from an elected leader."

In response, governor’s communications director Krystal Paco-San Agustin said, “We have obligated the funds, so we are not in jeopardy of losing the funds. It’s only the AG who is trying to prevent the governor from spending these funds. If he is successful, he should be held responsible for losing the funds, and thus, he should be recalled.”

As reported, the AG is suing the governor and the Guam Housing and Urban Renewal Authority for allegedly violating the law when acquiring mangilao lands for her new hospital.  

"There was a transaction that went through between the governor and GHURA. She believes that she properly encumbered that money so that when December 31 comes around, it went over to this encumbrance. That's illegal. The Open Government Law violation in itself makes that illegal," Moylan stated.

According to the latest American Rescue Plan Act Fund report posted by the Bureau of Budget & Management Research, there remains a balance of over $187.4 million. $113 million is allocated to the new Guam Memorial Hospital but has not been encumbered as of November 30. 

Adelup says the next ARP fund report is scheduled to be released on January 5 and will include the details of the allocations. It's unclear if those "allocations" mean "obligations."

The U.S. T treasury’s rules define an obligation as “an order placed for property and services and entering into contracts, sub-awards, and similar transactions that require payment”. 

The Government of Guam will be required to return any ARP funds that have not been obligated by the December 31 deadline.