Guam's senate has voted to repeal a bill that gave retroactive pay raises to the territory's lawmakers in November 2014.
If enacted, the bill would reduce the salaries of the attorney general, governor, lieutenant governor, senators, cabinet appointees, as well as mayors and vice mayors.
The Pacific Daily News reports the government has been short of money to pay many residents' tax refunds and cost-of-living allowances for senior citizens.
A Republican Senator, James Espaldon, who voted to repeal the bill, said he couldn't consciously support pay raises for lawmakers while government agencies struggled to pay vendors.
The bill will now go to the Governor, Eddie Calvo, to sign into to law or veto.
Mr Calvo has staunchly opposed repealing the bill, defending the raises by saying government finances are in much better shape than they were when he took office in 2014.