Guam Education Faces Crisis as GDOE Loses $27M in Federal Funds

URGENT UPDATE: The Guam Department of Education (GDOE) is grappling with a severe financial crisis following the loss of approximately $27 million in federal education grants, threatening nearly $150 million more in future funding. This crisis coincides with significant administrative shake-ups, including the resignation of Education Superintendent Erik Swanson, who stepped down on December 20, 2025, due to health concerns.

The closure of Chief Brodie Memorial Elementary School and Lyndon Baines Johnson Elementary School in May marked a troubling trend for GDOE, which has been forced to make drastic decisions amid declining student enrollment and dwindling resources. These closures reflect a systemic failure within GDOE that has been exacerbated by ongoing fiscal challenges.

Officials confirm that GDOE has faced unprecedented scrutiny after the expiration of federal grants designed to support vital educational services. In a shocking report, nearly $26,877,038.76 in federal funds went unused, primarily due to management failures and bureaucratic delays. This revelation has triggered legislative hearings and emergency appeals to federal authorities.

In an alarming twist, Senator Vince Borja, chair of the education committee, expressed grave concerns over the lost funding, indicating that it represents missed opportunities for student programs and infrastructure improvements. The fallout is expected to significantly impact GDOE’s ability to provide essential educational services for the upcoming school year.

With a staff of about 2,300 employees, GDOE faces cash flow issues as a new federal policy mandates that the department must use local funds to front project costs before receiving reimbursement. This shift has left GDOE unable to secure funding for critical programs, including after-school services and teacher training.

Newly appointed Superintendent Judi Won Pat will step into her role in 2026 amid these challenges. She will inherit a system under pressure from significant financial deficits projected at $38 million to $40 million for fiscal 2026.

GDOE’s operational issues are compounded by staffing shortages, with procurement staff reduced from 12 to 5, leading to delays in essential services and payments. Recent testimony revealed that approximately $8 million in federal bills have been temporarily covered using local funds while awaiting reimbursement.

The U.S. Department of Education has also imposed a 26% cut to GDOE’s consolidated grant funding for fiscal 2025, dropping from $35.8 million in fiscal 2024 to $26.48 million. This reduction delays critical educational programs and services, further straining GDOE’s already precarious financial situation.

As GDOE prepares for another challenging academic year, the community waits anxiously for solutions to these pressing issues. The recently completed management audit highlighted ongoing procurement delays and accountability concerns, revealing a need for immediate intervention.

WHAT TO WATCH: The Guam Education Board’s upcoming decisions on funding and program implementations will be crucial in determining the future of education in Guam. The community’s support will be essential as GDOE navigates these tumultuous waters.

With the stakes so high, parents, students, and educators alike are left wondering how these financial setbacks will impact their schools and educational opportunities in the coming years.