Pago Pago, AMERICAN SAMOA — The American Samoa Government has requested $15 million from the Office of the American Samoa Rescue Plan Act (ARPA) in financial assistance due to financial uncertainties resulting from internal and external fiscal challenges.

The request does not identify from where exactly the ARPA office would get the funds for financial assistance, but it does detail how the government’s financial situation is in dire straits, especially the Executive Branch that will be taking the full brunt of the FY 2026 budget reduction.

The request is outlined in a letter, dated May 27, 2025, signed by Satia Aokuso Satia, the then-Acting Manager of the Office of Program Planning and Budget, addressed to ARPA Director Robert Uti Gebauer. 

According to Satia, the government’s financial situation has led to the establishment of the American Samoa Government's overall budget ceiling for the Fiscal Year 2026 at $135 million, a reduction of $30 million, or 18.6%, compared to the Fiscal Year 2025 budget level. 

And, “while the above espoused fiscal policy, to cap government spending to actual generated financial resources, is meritorious and praiseworthy, the stark reality is that American Samoa's economy will take a vicious tailspin; triggering a protracted recessionary environment, further contracting our revenue generating capacity.”

Satia notes that “federal funding uncertainty caused by incessant funding rescissions has already negatively impacted funding availability to American Samoa.

“Moreover, the ongoing tariff war being waged by the President is already triggering an extensive uptick in the prices of goods and services being paid by residents.

“The resulting inflationary force reduces the procuring power of each federal and local dollar further plummeting the buying capacity of the local budget.

Satia further points out that ASG’s proactive efforts to utilize all American Rescue Plan Act (ARPA) funds will help ease the adverse effects of the sharp budget decrease for Fiscal Year 2026 on the economy. Unfortunately, he says this relief is overshadowed by reductions in grant funding to the territory.

“The American Samoa Government currently has a considerable amount of outstanding accounts payable to private companies and vendors, in addition to its obligations toward the American Samoa Government Retirement Fund.

“Our ongoing revenue collection shortfalls exacerbate our fiscal challenges and worsen the impact of the significant budget cut for Fiscal Year 2026 on our economic and financial stability. 

“The urgent concern is that the current adverse fiscal and economic environment, exacerbated by the sudden reduction in monetary resources for our economy, could lead to a financial crisis for the territory in the coming years.

“This perceived threat forms the basis of our request for financial assistance from ARPA's Oversight Office.” 

His letter goes on to describe the situation that ASG is in and that “the basic philosophy inherent in the preparation of the Fiscal Year 2026 Budget is to preserve jobs at all cost; given its significant impact on our people's quality of lives and supporting our economy.

Satia says this means “for some agencies, only personnel costs are covered, with no funds available for operational support.

“This situation is common among major government agencies such as the Department of Education, Department of Public Works, Department of Public Safety, and many others that rely exclusively on locally generated revenues.

“The budget ceilings established for Fiscal Year 2026 for the three branches of the American Samoa Government reveal a drastic reduction in the Executive Branch's basic operating budget by 50%, along with a 50% cut in the Special Program budget. 

“The Executive Branch is absorbing the entirety of the $30,907,000 budget reduction for Fiscal Year 2026, while the other two branches are not expected to face any cuts,” he states.

Furthermore, Satia pointed out that while securing $30 million would be ideal to maintain the Fiscal Year 2026 budget at the Fiscal Year 2025 level, this request seeks $15 million to be distributed to agencies of the American Samoa Government. 

“This funding aims to support their operations, particularly for the major departments, including Special Programs focusing on improving the territory's basic infrastructure. The distribution of these funds will be based on the justifiable needs of each requesting agency. The final allocation will be reported upon the Governor's approval of the Final FY2026 Budget.” 

Satia’s letter explains the significant decline in revenue collections between FY 2023 and FY 2024 is the result of COVID-19 mitigation funds reducing, as well as the return of unused funds. “The economic stimulation provided by these federal funds helped expand the American Samoa Government’s revenue base.”

He states, “the impact of federal funds on our revenue base will continue to diminish as our economy contracts and businesses adjust their operations accordingly. 

“There is serious concern that revenues for Fiscal Year 2026 will further decline due to several factors, including rising inflation, ongoing increases in personnel costs, a drastic drop in federal funds, modifications or reductions in grant programs due to presidential decree, the removal of $30 million from the Fiscal Year 2025 budget, and a growing unemployment rate.

“These factors may trigger a severe financial emergency that could devastate the lives of American Samoa residents, emphasizing the urgent need for financial assistance to avert this crisis.” 

Also the matrix report reflects the approved locally funded operating budget for Fiscal Year 2025. 

“The percentage allocation of local resources to each budget objective class forms the basis for allocating the $30.9 million in declared budget cuts. Of this amount, $19,903,462, or 64%, is designated for personnel costs. If the policy is to preserve jobs, funding for other budget object classes must be reduced.” 

According to Satia, the requested $15 million would not fully cover personnel shortfalls. However, it would be better utilized by allocating funds to bolster the government’s basic operations based on each department's critical needs, aligning with the matrix above. 

“Attempting to secure funds from other sources will be an exercise in futility, as some federal funding sources have been discontinued caused by the President's guest to reduce spending to the level of available revenues. 

“This federal funding rescinding trend is just starting and it is deemed that additional federal programs will be abated as well thus applying greater pressure to locate additional resources to minimize pressure to the territory's already weakening economy.

“The federal minimum wage will be increased soon which adds another adverse factor to the territory's financial woes.

Satia concludes that “despite of the uncertainties and the difficulties… I truly believe our common shared conviction is to do what is best for our government and our people.