The Executive Branch is absorbing a $30 million reduction in the proposed Fiscal Year 2026 budget for the American Samoa Government (ASG), and then-Acting Budget Director Satia Aokuso Satia has requested $15 million in ARPA funding to help offset the reduction.
Satia made the request to Robert Uti Gebauer, Executive Director of the ARPA Oversight Office, in a letter dated May 27.
He stated that the overall budget ceiling for FY2026 was set at $135 million—$30 million, or 18.6%, below the FY2025 budget level.
According to Satia, cuts in federal funding has already negatively impacted funding availability to American Samoa. He also noted that the ongoing tariff war initiated by the President is triggering a sharp rise in the prices of goods and services for local residents.
He said the resulting inflationary force reduces the procuring power of each federal and local dollar, further reducing the buying capacity of the local budget.
“While capping government spending to actual generated financial resources is meritorious and praiseworthy,” Satia said, “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 also pointed out that the American Samoa Government currently sits on a mountain of outstanding accounts payable to private companies and vendors—excluding amounts owed to the American Samoa Government Retirement Fund.
“The extreme fear is that the current hostile fiscal and economic environment, abetted by the abrupt reduction of monetary fuel for our economy, will precipitate a financial crisis for the territory in the coming years,” said Satia. “This perceived threat forms the basis and foundation of this request for financial assistance from ARPA’s Oversight Office.”
He explained that the core philosophy behind the FY2026 budget preparation is to preserve jobs at all cost, due to their significant impact on our people’s quality of lives and the overall support of our economy.
Satia pointed out that for some of the agencies, only personnel costs are covered—without any funding for operational support. This situation is common among large government agencies such as the Department of Education, Department of Public Works, Department of Public Safety, and other agencies that rely entirely on locally generated revenues.
To adhere to the budget ceiling established for FY2026, the Executive Branch would face a 50% reduction in its basic operating budget and a 50% cut in funding for Special Programs. For FY2025 the Executive Branch budget was $114.3, but that would be reduced to $98.9 million in FY2026. Special programs, which had a budget of $36.2 million, would see a reduction to $20.6 million in the new fiscal year.
The budgets for the Fono and Judiciary will remain unchanged. The Fono will retain its FY2025 budget ceiling of $11.1 million, and the Judiciary will continue to receive $4.2 million.
Satia said the $15 million requested from the ARPA Office would be distributed among ASG agencies to help shore up their operations—particularly the larger departments and Special Programs. The final distribution of the funds will be reported after the Governor approves the final proposed FY2026 budget.
