Guam's FEMA Grants Placed on Restrictive Drawdown: Oversight and Accountability

Representatives from the Office of Civil Defense and Office of Homeland Security attended an oversight hearing on Monday, June 15, 2026, in the Public Hearing Room of the Guam Congress Building in Hagåtña.

The Federal Emergency Management Agency (FEMA) placed all grants awarded by FEMA Region 9 to the government of Guam on restrictive drawdown status on May 12. This decision was made due to longstanding and significant concerns regarding the island's management of federal grants.

FEMA cited yearslong restrictions on the Emergency Management Performance Grant and Homeland Security Grant Program due to findings for fiscal years 2016 through 2018. During that period, Guam substantiated costs for less than 5% of EMPG funding, according to the agency.

FEMA also mentioned a 2023 audit from Premier Audit Group Services Inc., which identified tens of millions of dollars in questioned costs and 11 compliance issues, and the 2025 indictment of Guam Homeland Security/Office of Civil Defense officials on charges stemming from two 2024 audits as additional rationale for the decision.

Guam Homeland Security Adviser Esther Aguigui stated that FEMA approved a corrective action plan in January and placed grants on restrictive drawdown a few months later in May. Aguigui emphasized that the actions "are not contradictory."

The first is a judgment that our plan is sound. The second is a control mechanism that keeps federal funds flowing while we prove that soundness over time," Aguigui said.

To lift the restriction, FEMA requires three consecutive years of clean monitoring and a sustained low-error rate across multiple testing cycles, according to Aguigui.

She said timekeeping procedures and pay-period audits have been running since 2023, and grants management staff completed federal grants management course certification in August 2025. Additionally, quarterly internal audits of transactions, procurements, travel, and disbursements have been in place since the middle of last year.

The Office of the Chief of Staff also established a grants monitoring committee in December 2025, Aguigui said.

Sen. Shawn Gumataotao, head of the legislative committee on emergency management, raised the issue and called for an oversight hearing on GHS/OCD, which took place on Monday."

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Guam Homeland Security Adviser Esther Aguigui responded to critics, stating, "This is the posture of a partner rebuilding trust alongside us," referring to FEMA.

The Office of Public Accountability issued significant findings in June 2024 that discussed overtime issues and highlighted grant-funding issues at GHS/OCD.

The OPA found that GHS/OCD owed $8.4 million to the general fund despite claiming to be 100% federally funded.

GHS/OCD officials stated at Monday's oversight hearing that about $500,000 of the $8.4 million has been received from FEMA, which Sen. Gumataotao called "unacceptable" in a written statement.

The governor permanently transferred Charles Esteves, who served as the Civil Defense administrator, to the Department of Public Works in January, but the transfer was rescinded in mid-April.

Gumataotao also asked about the status of Esteves, who was one of the officials indicted in 2025. Aguigui said she is in charge of OCD and GHS.

Aguigui stated that at the time the document was created, they were operating under the direction that Esteves would retain his title as administrator, but added that his "presence" is "still unknown" at OCD.

This is a developing story and we will provide updates as more information becomes available.

Gumataotao said a document submitted to his committee on May 19 listed Aguigui as the OCD administrator alongside Esteves, which would have been eight days after Aguigui's detailing as acting OCD administrator was rescinded.

Aguigui explained that the Office of the Chief of Staff also established a grants monitoring committee in December 2025 to ensure timely and effective oversight of all grants awarded to the island.

The government's corrective action plan was developed alongside FEMA, with specialists from the federal agency offering dozens of recommendations.

This plan aims to address long-standing issues and rebuild trust with FEMA, which has been a priority for the government of Guam.

However, Sen. Gumataotao expressed concerns about the lack of transparency and accountability in the government's management of federal grants.

Gumataotao stated in a written statement, "Strengthening Guam's existing all-hazards warning system, establishing or building up individual and family disaster supplies, scheduling school, workplace, and community-wide drills, and other preparedness efforts require resources and coordination.

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