Overview of the State

The Chamorro people first occupied Guam and may have migrated from the Malay Archipelago. In 1521, Ferdinand Magellan was the first Westerner to visit Guam. Miguel Lopez Legaspi claimed Guam and several Mariana Islands for Spain in 1565; colonization began a few years later but was not well established until 1688. Most of the native Chamorro population died from disease and war during the following three centuries. U.S. forces took Guam in 1898 during the Spanish-American War, and it was ceded to the United States by Spain that year. Guam was under administration by the U.S. Navy until 1941, when the Japanese captured it. It was retaken by the United States three years later, and the U.S. Navy then renewed its island administration.

The island’s Governor and Lieutenant Governor are elected on the same ticket by popular vote and serve a term of four years. A unicameral Legislature operated the legislative branch with 15 seats. The members are elected by popular vote to serve two-year terms.

Geography

Guam's position is about the same distance – 1,500 miles – from Manila, Philippines, and Tokyo, Japan, and about 3,800 miles west of Honolulu, Hawaii. This crucial strategic position with the east-Asia realm gives Guam a reason for military importance as the westernmost U.S. Territory. Guam is west of the International Dateline and is one day ahead of the United States. Hence the slogan: “Where America Day Begins.”

At 13 degrees north latitude and 144 degrees east longitude, the island of Guam is the largest (214 square miles), the most populated, and the southernmost of the 15 Mariana Islands in the Western Pacific Ocean. The northern half of Guam is composed of a relatively flat coralline limestone plateau about 260m above sea level, whereas the southern part is mountains volcanic terrain with elevations up to 406m.

Population

The population of Guam is multi-ethnic, with 153,836. The civilian population of the U.S. Territory of Guam in the Western Pacific comprised an estimated 153,836 persons in 2020 (U.S. Bureau of the Census). The majority of the population are Pacific Islanders and Asians (81.5%), which includes indigenous Chamorro (32.8%), other non-Chamorro Micronesians (13.2%), Filipinos (29.1%) and other Asians (6.4%), along with different ethnic groups (8.5%) and 10% with multiple ethnicities.

Among the population aged five and over in households, 57.3% spoke a language other than English. Of that, 65.9% spoke English "very well" and 42.8% spoke a Philippine language. Of the population ages 5 to 17 in households, 32.3% spoke a language other than English. Of that group, 71.8% spoke English "very well," and 34.5% spoke another Pacific Island language.

Of the population aged 65 and over in households, 82.9% spoke a language other than English. Among them, 61.3% spoke English "very well" and 45.1% said a Philippine language.

Employment/Unemployment

Employment and average weekly hours paid have continued recovering from the pandemic lows. Employment numbers began a moderate rebound in December 2020, and the recovery continues. Total employment as of September 2023 remains 1,020 jobs below the pre-pandemic employment of 67,580 in December 2019 despite an increase of 4,730 jobs in the construction industry, the majority of which were foreign workers under the H-2 Visa category. Private sector employment figures increased by 1,840 in the quarter ending September 2023 and were up by 1,980 jobs over the year.

The total number of persons unemployed in September 2023 was 2,980, a slight increase in the latest quarter over the year. The June 2023 data continues the general trend of reduced numbers of unemployed persons and lower unemployment rates since the pandemic high figures in December 2020.

The Unemployment rate in Guam for September 2023 was 4.1%, an increase of 0.1% from the June 2023 figure of 4% and a reduction of 0.3% from the September 2022 figure one year earlier of 4.4%

Cost of Living

The cost of living, as defined by the Cambridge Dictionary, is "the amount of money that people need to spend to buy basic goods or services such as food, clothes, and a place to live."

Presently, the median price of a single-family home is $415,000. This was a 7% decrease from 2023 and a 54% increase from the medium price five years ago. The medium condominium price is $293,000, a decrease from the 2022 median price of $320,000.

Every trip to the grocery store or paying for goods and services has become painful for Guam household pocketbooks, with cereal and egg prices soaring by 26% and 98%, respectively. Having pets and pet products increased by 23.3%, while funeral expenses went up by 23.1%.

Guam's overall consumer prices increased from the first quarter of 2023 to 13.8% compared to the same quarter of 2022 and 4.3% from October to December.

Egg prices increased by 98% in January-March compared to the same quarter last year. In the first quarter of 2023, a dozen large eggs sold for up to $7.99, while a tray of 18 extra large eggs reached up to $9.99.

However, the high cost of living in Guam may be due to the "Jones Act." The Merchant Marine Act of 1920, better known as the Jones Act for its original sponsor, Senator Wesley Jones, is a federal law regulating cabotage, or naval transport in U.S. coastal waters and between domestic ports, and other aspects of the Maritime industry. Under the Jones Act, foreign carriers and crew are banned from domestic water routes. Cabotage from one U.S. port to another is restricted to U.S.–built–crewed and – flagged vessels. The Jones Act requirement burdens shippers due to the higher costs of using U.S. vessels. The local average cost of operating a U.S.–flagged vessel is 2.7 times higher than that increased by foreign-flagged counterparts.

Compacts of Free Association

The Compacts of Free Association govern the relationships between the United States and the Republic of the Marshall Islands (RMI), the Federated States of Micronesia (FSM), and the Republic of Palau.

Citizens of the Freely Associated States (FAS) (RMI, FSM, and Palau) have the right to reside and work in the United States and its territories as lawful non-immigrants or "habitual residents." More than 94,000 FAS citizens live in the United States, including children under 18 who were born there and hold dual citizenship. The FAS does not have its military, and FAS citizens are eligible to join the U.S. military, with over 1,000 serving in the Armed Forces.

In March 2024, the Department of the Interior finalized the Compacts of Free Association amendments, which would provide 20 years of new economic assistance. The $6.5 billion of aid is critical for financial stability and quality of life for the people of the freely associated states.

The Compact of Free Association package will provide economic assistance of $3.3 billion to the FSM, $2.3 billion to the RMI, and $889 million to Palau over 20 years through 2043. The funding will support essential public support for primary public service delivery, such as health and education, improve infrastructure, and bolster the health of the Compact trust funds previously established for each FAS.

In its passage, Congress also addressed long-standing challenges for citizens of each of these FAS who choose to reside lawfully in the United States, as provided for under the Compact Agreements. The law restores eligibility for essential federal public benefit programs for FAS individuals. At the same time, they are lawfully present in the United States – a meaningful long-term solution to the financial impacts that some FAS communities may have on U.S. state and territorial governments. Restoring access to federal public benefits will address gaps in needed social services for families and significantly impact the communities where they reside.

Education

During the school year (S.Y.) 2022-23, forty-one (41) public schools provided educational services for 25,648 students. Further breakdown by levels showed twenty-six (26) elementary schools totaling 11,464 students in grades K through 5 (including Head Start and Pre-K); eight (8) middle schools totaling 5,455 students in grades 6 through 8; and seven (7) high schools totaling 8,729 students in grades 9 through 12.

The latest data shows that the Guam Department of Education (GDOE) reported that Pre-K to 12th grade student enrollment in 41 schools dropped by 4% from 26,750 in S.Y. 21-22 to 25,648 in S.Y. 22-23.The high school graduation rate was 90.7% in the S.Y. 22-23, the highest in a decade. That represented 1,739 students graduating from seven public high schools.

A "dropout" is a student who was enrolled in a GDOE high school sometime during a given school year and, after enrollment, stopped attending school without being transferred or expelled, or because of incapacitation or completed an alternative high school program that GDOE recognizes.

Poverty Rate

The 2020 Guam Census data were available, allowing for the calculation of Guam's poverty rate. According to recently released data, 1 in 5 people living in Guam were living below the poverty line. The poverty rate for those whose poverty status was determined was 20.2%. The poverty rate for Native Hawaiian and Other Pacific Islander populations was 28.5%, and the poverty rate for Asian households was 12.3%.

The medical income for all households was $58 289.00

• The median income of households with a Chamorro head was $61,028, and a Filipino head of household was $60,739.
• Households with a head of household 45 to 54 years old had a higher median income ($69,677) than other age groups.
• The median income of households with a head of household born in Guam was $61,163.00

More than one-quarter of households with a head of household 25 to 34 years old (27.3%) and 25 to 44 (28.0%) received SNAP benefits.

Medicaid

Medicaid is a joint federal-state program that finances the delivery of medical services for low-income individuals. The territories (American Samoa, Commonwealth of the Northern Mariana Islands, Puerto Rico, the U.S. Virgin Islands, and Guam) operate the Medicaid program under rules that differ from those applicable to the 50 states and the District of Columbia.

Medicaid financing for the territories is different for the territories is different from the financing for the states and D.C. Federal Medicaid funding to the states and D.C. is open-ended, but Medicaid programs in the territories are subject to annual federal capped funding. The federal medical assistance percentage (FMAP) rate for the territories is not determined funding the FMAP formula used for the states and D.C.

The main source of federal Medicaid funding for the territories is the annual federal capped funding. For all the territories, once the cap is reached, the territories assume the full cost of Medicaid services, or in some instances, may suspend services or cease payments to providers until the next fiscal year.

Certain Medicaid expenditures are disregarded for purposes of the annual federal capped funding such as 1) Medicaid Electronic Health Record Incentive Program payments; 2) design and operation of the claims and eligibility systems; and 3) services for citizens of the Freely Associated States of Micronesia.

The federal share of most Medicaid expenditures is determined by the FMAP rate. The FMAP rates for the 50 states and D.C. are determined annually and vary by state according to each state’s per capita income. The rates can range from 50% to 83%. By contrast, the FMAP rates for the territories are set at a fixed rate in statute.

The FMAP rate for American Samoa, Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and Guam was recently set at 83% permanently. This means these four territories get 83 cents back from the federal government for most dollars these territories spend on its Medicaid program, up to the federal funding limits.

Because the federal Medicaid funding for the territories is capped, the amount of the fixed FMAP rate has implications for how quickly the territories spend through their annual federal capped funding. With a higher FMAP rate, the federal government is paying a higher share of Medicaid expenditures, which means the territories might spend through their annual federal capped funding more quickly.

Food Security

Household food security is often a consequence of poverty. The U.S. Department of Agriculture's (USDA) definition of food insecurity can be paraphrased as "a limited or uncertain availability of food. Low food security is food security without hunger."

Food security has increasingly been recognized as a challenge for the Pacific region. Expanding upon the conceptual model there are three factors that pose specific challenges for food security in the Pacific region: population, climate change and governance.

In addition to food security trends demonstrated to exist throughout the pacific, the food security situation in Guam is particularly impacted by a number of highly context-specific factors. Among these factors are Guam’s political status, which has contributed to the increase of cheap imported foods. Imports have largely created a situation where there is enough to eat sufficient food availability but insufficient nutritional value. Further, adequate access and utilization components of food security are lacking in Guam. Food prices, the spread of quality nutritious food, the geographic location of major supermarkets, food assistance programs, and diets and popular consumption patterns contribute to a larger picture of poor access and weak utilization of healthy food.

The Supplemental Nutrition Assistance Program (SNAP) is one of the largest national programs to grant food benefits based on individual and household needs. Thousands in Guam saw a slight increase in SNAP benefits starting Oct. 1, 2023 (first day of fiscal year 2024). A household of one, will see SNAP benefits increase by $15 (3.6% increase) from $415 to $430. A household of six will see their SNAP benefits increase by $71, or from $1,973 to $2,044 or a 3.6% increase.

The Supplemental Nutrition Assistance Program (SNAP) is the nation's most essential and effective anti-hunger program. More than one-quarter of Guam households with a head of household aged 27 to 34 (27.3%) and aged 35-44 years (28%) received SNAP benefits.

Hunger is strongly linked to health and academic achievement. Hunger negatively impacts academic performance and behavior in school, with hungry children performing worse in math, being more likely to repeat a grade, come to school late, or miss school days entirely. Students who eat breakfast at school have better attendance and fewer behavioral problems during the day. Schools who have programs offering all students free breakfast improves behavior and increase focus in the classroom. In Guam, free meals are available to children living on Guam attending public schools.

A new permanent federal nutrition program will provide $177 per eligible child in Guam to ensure they have food when school is out for the summer. Children who qualify for the free reduced school meal program are eligible under the Summer Electronic Benefit Transfer, or Summer EBT. Guam has approximately 26,000 children who would be eligible to receive the Summer EBT.

Thousands of Guam residents who receive SNAP benefits will see a slight increase in their benefits. A household of one will see their SNAP benefits increase by 3.6% from $415 to $430. A household of six will see their benefits increase by nearly 3.6% from $1,973 to $2,044.

Monthly income eligibility also changed. This means more households could become eligible for benefits. A household with four members will qualify for SNAP benefits if their monthly income is $4,125 or less compared to an income limit of $3,007.

The University of Guam Cooperative Extension & Outreach will receive $597,267 from the U.S. Department of Agriculture’s National Institute of Food & Agriculture to work toward increasing food and nutrition security and healthy diets among children.

The grant is being provided under the Food System Resiliency for Children’s Healthy Living program, or CHL Food Systems. The first phase of the program, which resulted in a decrease in young child obesity in the Pacific region, was known as the Children’s Healthy Living Program.

The University of Hawaii is taking the lead for the Pacific region, and UOG is implementing the program in Guam. Over the next five years, the program will create a model of the local food supply chain. This model can then provide guidance toward decreasing food waste and improving food and nutrition security, dietary patterns, and health among children.

The grant will also guide the nutrition education programs offered to the community under UOG Cooperative Extension & Outreach.

Homeless

When first used in the U.S. in the 1870s, "homelessness" was meant to describe itinerant "tramps" traversing the country in search of work. The primary emphasis at this time was on the loss of character and a perceived emerging moral crisis that threatened long-held ideas of home life rather than on the lack of a permanent home.

Homelessness or houselessness – also known as being unhoused or unsheltered is the condition of lacking stable, safe, and functional housing. The general category includes disparate situations, such as living on the streets, moving between temporary accommodations such as family or friends, living in boarding houses with no security of tenure, and people who leave their domiciles because of civil conflict and are refugees within their country.

Homelessness has devastating effects on the individuals who experience it because having a home is a basic necessity to maintain health, work, school, and dignified living conditions. Lack of stable housing seriously disrupts individuals' ability to obtain or keep a job or ensure that children can attend and focus on school. Homelessness exposes individuals to serious health risks and makes it challenging to take care of one's health and access health care; therefore, homelessness can exacerbate chronic or acute health conditions. Adults experiencing homelessness often have health problems and difficulty with daily living activities that are more typical of people 20 years or older.

The stress of homelessness can also seriously harm individuals' mental well-being. Research shows that the trauma of experiencing homelessness can cause people to develop mental health problems for the first time and can worsen existing behavioral health challenges. The longer time spent without a home is linked to higher levels of mental distress and more damage from coping behaviors like substance use.

Marine Corps Relocation

The Record of Decision released in August 2015 substantially downsized and lengthened the time frame from the initial 2010 plan. The realignment cost is capped at $8.7 billion, of which about $3 billion will come from the Government of Japan. The plan was to relocate about 5,000 Marines and their dependents from Okinawa to Guam between 2020 and 2025. Delays to the plan continue. Marine Corps Base Camp Blaz will be home to approximately 5,000 Marines from the III Marine Expeditionary Force who will relocate from Okinawa, Japan, by F.Y. 2025. Summarized in the plans are a Marine base on military property at Naval Computer and Telecommunications Station; housing Marine families in homes to be built within the fence at Andersen Air Force base; developing a live-fire training range complex on 338 acres of land at Andersen and developing a hand-grenade training facility.

Department of Defense officials have also said Guam's location and strategic value make it vulnerable to attack. Guam is within range of some Chinese and North Korean ballistic and nuclear-capable missile systems, including the Chinese People's Liberation Army's DF-21 ballistic missile (which has been dubbed the "Guam Killer").

Guam frequently hosts U.S. military engagements with allies in the Pacific region. In April 2023, the United States hosted a two-week joint military exercise in Guam with military units from Japan, Korea, India, and Canada. Taiwanese troops have participated in urban combat training with the U.S. Marines in Guam. The Republic of Singapore Air Force has deployed units to Andersen Air Force Base for training. The RSAF plans to base a rotational presence of fighter jets starting in 2029.