American Samoa’s leaders have outlined a broad update on the territory’s economic progress and plans for future development.
At the American Samoa Economic Development Authority’s 2025 annual investor meeting in June, officials discussed improvements in the Territorial Bank’s performance, progress on major construction projects, the government’s financial outlook, support for the vital tuna industry, and initiatives to modernize infrastructure and community services.
The Territorial Bank of American Samoa (TBAS) reported significantly improved earnings over the past year. For the fiscal year ending September 2024, TBAS’s net income jumped by 46.4% to reach $10.6 million.
Bank officials attributed this rise to an expanded range of financial products, improved asset quality, and strict cost controls. The bank’s assets and deposits have also surged in the current fiscal year, with total assets up about 30% and deposits up over 32% compared to the previous year.
Financial officials provided a cautiously optimistic outlook on government revenues and budgeting. Local tax collections have begun to normalize after several years of extraordinary federal aid that temporarily boosted revenues. In FY2024, corporate and individual tax receipts saw a steep decline compared to the prior year’s peak, largely because pandemic relief and disaster recovery funds had inflated collections from 2020 to 2023. The territory’s tax revenues now stand at about $97 million –lower than the recent highs but still above the pre-2020 historical trend.
Leaders are leveraging the remaining American Rescue Plan Act (ARPA) stimulus money to strengthen the economy before the aid expires. The territory received approximately $494 million under ARPA, which must be utilized by December 2026. Governor’s Office executive advisor Brett Butler emphasized a focus on deploying these funds into critical infrastructure projects to spur near-term activity. This includes improvements to transportation and utilities that can stimulate economic growth while the support lasts.
At the same time, officials are keeping a close eye on the government budget. Midway through FY2025, actual revenues are running below original projections, raising concerns about a potential shortfall. To avoid a deficit, the government is prepared to tighten spending with mid-year adjustments and enhanced fiscal oversight, such as moving from quarterly to monthly financial monitoring. American Samoa is legally required to maintain a balanced budget, and authorities affirmed they will adjust as needed to meet that mandate. Overall, the Treasury is aiming to sustain government services by improving efficiency and relying more on local revenue sources once the infusion of federal aid tapers off. More on the ASEDA investor meeting in future bulletins.
