Most government agencies on Guam will have their funding cut under the territory's $US956 million budget approved for the year ahead.
Senators have also eliminated funding for deputy level positions in the administration.
The budget bill rules out civil servant pay rises and implements a nearly universal hiring freeze.
Government travel will also be limited and many employees will lose their taxpayer-funded cellphones.
The Pacific Daily News reports the new budget cuts funding to public schools by nearly $US15 million.
The judiciary will receive a $US4 million cut, and the budgets for the Governor's Office and the Legislature will be cut by about $US800,000 each.
The Fire Department will lose nearly $US5 million next year and the Police Department's budget will be cut by about $US1.8 million.
However the Department of Public Health and Social Services will receive an additional $US12 million and the hospital gets $US15.5 million more.