Pago Pago, AMERICAN SAMOA — Governor Pulaali'i Nikolao Pula has once again expressed concern over substantial reductions made by the Fono to the Fiscal Year 2027 Special Programs budget — detailing what he believes will be far-reaching consequences for the community.

According to a statement released by the Governor's Office, the Special Programs budget was reduced from the administration's proposed $19.19 million to approximately $9.82 million, representing a reduction of about $9.37 million, or nearly half of the original request.

The statement is a reiteration of concerns he expressed during his press conference held last week Wednesday.

The administration says the cuts will have far-reaching consequences for numerous programs that directly support residents, villages, students, athletes, healthcare providers, and community organizations.

Flag Day and Christmas Programs Could Be Scaled Back:

Among the largest reductions was the Ceremonial Activities Fund, which was cut from $1 million to $350,000.

The fund supports many of the Territory's most important cultural and government-sponsored events, including Flag Day celebrations, activities in Manu'a and Swains Island, traditional fautasi races, Christmas programs, and other official ceremonies.

According to the Governor's Office, the reduced funding means the administration must now re-evaluate the scale of these events and determine whether some activities can proceed as originally planned.

Governor Pula had previously indicated that the annual fautasi races, a major attraction during Flag Day celebrations, could be among the programs affected because they account for a significant portion of Flag Day expenses.

The annual government Christmas program may also be reviewed because of the funding reductions.

Sports Programs Face Significant Funding Loss:

The Sports Development Fund was reduced from $270,000 to $50,000, a cut of more than 80 percent.

The administration noted that the funding has traditionally been used to assist local sports organizations, youth teams, coaches, and athletes participating in competitions both on and off island. Governor Pula stressed that sports programs do more than support athletic competition.

He said they help young people develop discipline, leadership, and healthy lifestyles while providing positive alternatives to drug use and other social problems.

With significantly less funding available, sports organizations may face greater challenges in covering travel expenses, equipment costs, training opportunities, and participation in regional competitions.

Village and Beautification Projects Eliminated:

Lawmakers also eliminated the entire Island Beautification Program, reducing funding from $360,000 to zero.

The program supported landscaping projects along public roadways, village beautification efforts, and improvements designed to enhance the appearance of public spaces throughout American Samoa.

According to the administration, removal of the funding means those projects may no longer be carried out unless alternative funding sources can be identified. The Fono also eliminated funding for the Small Village and Water Fund, cutting the proposed $210,000 allocation in its entirety.

The Governor's Office said the fund helped finance smaller community projects, including waterway improvements, village access projects, and assistance to families living in remote areas where emergency vehicle access can be difficult.

Healthcare Programs Among Those Affected:

Healthcare was another area impacted by the budget reductions. The Legislature reduced the local Medicaid subsidy from $6 million to $3 million, cutting the Territory's matching contribution by half.

The administration has repeatedly warned that the reduction could limit American Samoa's ability to access millions of dollars in additional federal Medicaid funding because local matching funds are required before federal reimbursement can be claimed.

Governor Pula has stated that every local dollar invested in Medicaid helps leverage additional federal healthcare funding and that fewer local matching dollars ultimately translates into fewer resources available for healthcare services.

Funding for LBJ Tropical Medical Center was also reduced, from $1.6 million to $1.2 million.
According to the Governor's Office, the subsidy helps offset healthcare and administrative costs associated with operating the Territory's only hospital and providing medical services to residents.

Higher Education Funding Reduced:

The Board of Higher Education subsidy was cut from $2.5 million to $1.8 million. The administration said the funding supports the Territory's four-year higher education programs and helps maintain accreditation and certification requirements.

Officials noted that the institution's bachelor's degree program in teacher education is particularly important because it supplies trained educators for schools throughout American Samoa.

Road Maintenance and Shoreline Protection Funding Reduced:

Funding allocated for road maintenance was reduced from $900,000 to $400,000, leaving less money available for routine maintenance and repair work on public roads.

Similarly, shoreline protection projects sustained significant reductions. Funding for shoreline protection efforts on Tutuila and Aunu'u was cut from $200,000 to $100,000, while planned funding for shoreline protection projects in Manu'a was completely eliminated, dropping from $250,000 to zero.

The administration said the reductions could affect efforts to address erosion and protect vulnerable coastal areas.

Harbor Cleanup and Public Safety Training Impacted:

The proposed $100,000 allocation for Pago Pago Harbor cleanup efforts was also eliminated entirely. The Governor's Office said the removal of funding means planned shoreline cleanup and environmental improvement initiatives may not move forward.

Public safety training programs were also affected.

Funding for the DPS/Corrections Academy was cut in half, from $200,000 to $100,000.

According to the administration, the reduction will limit resources available for training, professional development, and preparation of future law enforcement and corrections personnel.

LBJ Staff Development Funding Reduced:

Funding for LBJ Staff Development and Technical Training was reduced from $200,000 to $120,500.

The administration said the program assists with professional training opportunities for healthcare personnel, including students pursuing medical careers and specialized training programs at institutions such as Fiji National University.

Officials warned that the reduction may limit opportunities to develop future doctors, nurses, and other healthcare professionals needed by the Territory's healthcare system.

Governor: Budget Impacts Still Being Reviewed:

While expressing disappointment over many of the reductions, Governor Pula reiterated that he respects the Legislature's authority to determine appropriations.

However, he emphasized that the administration now has the responsibility of evaluating the practical effects of the cuts and determining how programs can continue operating with fewer resources. The Governor acknowledged that some activities may need to be reduced in scope, delayed, or restructured as agencies adjust to the lower funding levels.

According to the Governor's Office, the administration is continuing its review of all affected programs and will prioritize available resources to preserve essential services while minimizing disruption to residents and communities.

A more detailed assessment of the budget cuts and their projected impacts is expected to be released as that review continues.