Pago Pago, AMERICAN SAMOA — With the American Samoa Government (ASG) facing rising expenses that are not in step with its revenue collections, it has officially suspended all government-funded local travel to enhance fiscal responsibility and optimize budgetary constraints, with a little over a month left until the end of FY 2026.

Samoa News points out that the proposed FY 2027 joint Fono budget hearings are set to begin next month September and what affect this move by the ASG — if any — will have on these deliberations will be seen.

The government communicated its decision in a formal letter dated August 25, 2026, jointly signed by Acting Treasurer Carri-Lee Magalei-Tulafono and Budget Director Tauaisafune Niualama Epenesa Taifane. The letter was distributed to all Cabinet members, Deputy Directors, Office Heads, and Agency Managers throughout the government.

The directive states that, effective immediately, all government-funded local travel will be halted for the remainder of Fiscal Year 2026 [ends September 30, 2026]. 

The Governor has explicitly approved this decision, highlighting the need to conserve financial resources during this period.

However, specific exceptions apply. Court-appointed travel will still be permitted, as will official travel undertaken by the Governor and the Lieutenant Governor. Additionally, travel funded through grants remains exempt from this suspension, allowing for essential engagements vital to ongoing projects or initiatives.

In light of this suspension, departments are strongly encouraged to explore alternative communication and collaboration methods. 

Virtual meetings and other digital platforms are recommended to ensure that essential discussions and decisions can continue without the need for in-person travel. This shift towards remote engagement aims to maintain productivity and ensure effective government operations during this time.

Earlier this month, the preliminary results for the 3rd quarter of FY2026 reported that the American Samoa Government's expenditures continued to exceed its revenues. 

As previously reported by Samoa News, Treasury noted in its report that if spending is not controlled, the spending trajectory may outpace actual revenue collections. It was reported that spending was more than 2% unfavorable to the budget, which required the Governor to inform the Fono of the need for cost-containment measures across the ASG.

Furthermore, the Budget Office issued a notice to Departments and Agencies stating that, after July 30th, the Budget will halt processing for FY 2026 to clear expenses and limit expenditures in the quarter. 

The Treasury is also addressing the revenue shortfalls observed in the quarter and is following up with Departments and associated vendors. According to the report, ASG's revenue performance improved during the 3rd quarter compared to the 2nd quarter; however, it was down from the 1st quarter, which had higher revenues than both the 2nd and 3rd quarters.

Total actual expenditures for the 3rd quarter amounted to $39,720,956, compared to $38,227,661 in the 2nd quarter (a 3.9% increase) and $37,731,274 in the 1st quarter (a 5.3% increase). As a result, the year-to-date shortfall versus the budget stands at $15,787,969, or 12.5%. This represents a slight improvement from the 2nd quarter, which had a year-to-date shortfall of 13.2% due to a marginal improvement in the 3rd quarter.

The report states that the General Fund faced an unfavorable variance of about $5 million from actual revenues collected totaling $91.5 million, mainly driven by expenditures in the Treasury, Port Administration, Search & Rescue, and Miscellaneous Non-Departmental sectors, which together account for 90% of the shortfall.

The report noted, “the majority of the year-to-date shortfall from the General Fund came from Individual Tax collection (-$9,033,198), Corporate Tax collection (-$3,706,189), Excise Tax collection (-$2,113,474), and Indirect Cost (-$1,709,109).” 

It added, “Other Fund revenue measures are net unfavorable by $1,570,545 from actual revenues collected of $17,565,610, or 8.9%, mainly driven by Fund 46 Airport expenditures,” which accounts for the remaining 10% of the shortfall.

In summary, the Treasury reports a year-to-date shortfall of -$6,572,110 based on the FY 2026 budget that was passed into law. The total year-to-date budget is $123,695,750, with budgeted expenses and encumbrances of $115,679,891. 

In terms of the actual performance:
- Actual Revenues: $109,107,781 
- Budget Difference: -$15,587,969 
- Actual Expenditures and Encumbrances to Revenues Difference: -$6,572,110 

The report noted that unfavorable spending primarily came from Treasury ($923,063), driven by “unbudgeted“ Property Insurance; Port Administration ($274,066); Miscellaneous Non-Department ($193,073); Search & Rescue ($100,251); and Visitor’s Bureau ($80,417).

Additionally, special programs running at a loss year-to-date include Ceremonial Activities, EOB Electricity/Water, and the Airport General Fund Subsidy.