ASG earned interest of $4.1 million from investments of the American Rescue Plan Act grants.
According to the Director of the ARPA Office, Keith Gebauer, $440 million of the total ARPA funding of $494 million was invested last year.
The figure of $479 million has been cited as the total ARPA funding for American Samoa, but Gebauer said today that other ASPA funding was added—raising the total amount for the territory to $494 million.
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Gebauer was testifying along with Treasurer Malemo Tausaga at a Senate Budget and Appropriations hearing on the ARPA funds, interest from ARPA investments, and the $4.5 million that was transferred to a Wells Fargo Bank account.
Gebauer said the interest is treated as ASG local revenues and subject to appropriation by the Fono.
Senate President Tuaolo Manaia Fruean and Senator Togiola Tulafono told the ASG witnesses that since the investment was earned during the current fiscal year, it should be reported as revenue for FY2023. Treasurer Malemo said the earnings would be submitted for appropriation in a supplemental budget.
When the ARPA funds were awarded to American Samoa, $490 million was deposited in the Zions Bank and $470 million was then put into investments. There’s now $20 million left in the Zions cash account. This is the balance remaining from $44 million at the start of the current fiscal year, while $24 million was spent on ARPA related projects.
There was a back and forth between Senator Togiola, who’s also chairman of the Board of the Territorial Bank of American Samoa, and Gebauer, as to why the ARPA money wasn’t deposited in TBAS but kept in the Zions Bank. Togiola pointed out that the law establishing TBAS requires all ASG funds, including those of authorities to be deposited in TBAS.
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