Governor Pulaalii Nikolao Pula presented his second State of the Territory Address as Governor at a session to open the Third Regular Session of the 39th Legislature at the Lee Auditorium, Monday morning. His speech highlighted achievements of his administration in their first year in office.
The Governor said he and Lt Governor Pulumataala Ae Ae Jr’s goal was to restore hope in the institution of government with a resolve of leaders to do all they could to provide critical needs of our people.
On the financial front he reported that local revenues collected in the first quarter of Fiscal Year 2025 amounted to $28 million, with a projected shortfall of $55 million for the year.
He said government finances were stressed. Over $1 million was paid out by the former administration for political appointees, and ASG owed over $9 million in unpaid contributions to the Retirement Fund. In their first month in office their administration instituted a 10% reduction in General Fund spending, limiting hiring and overtime, tightening procurement rules and oversight of Special Programs. 
On Feb 6, in consultation with the Fono leaders, an emergency declaration was issued to speed up ARPA funded projects.
The Governor reported that total revenues collected for Fiscal Year 2025 was $133.2 million compared to the approved budget of $165.9 million, a shortfall of $32.7 million. He said due to cost containment measures by the administration, the shortfall was reduced to $29.1 million. He referred to a Territorial Audit Office audit report which indicated that the shortfall could exceed $42 million. The audit report, he said, showed deeper problems with unauthorized projects, weak procurement policies and unapproved expenditures from the General Fund and Special programs.
Since 2021 the territory received nearly $495 million as part of the stimulus package related to the covid pandemic, said the governor. When their administration took office just 18%, equating to $92.2 million had been expended in ARPA funds. He was happy to report that in their first year in office over 35%, totaling $175 million has been spent.
The Governor listed some of the ARPA funded projects which have made an impact on the quality of life of residents.
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Governor Pulaalii also reported on the planned new undersea fiber cable to be developed by Google in partnership with ASG and the US Department of War.
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Much of the Governor’s address centered on ARPA funded projects.
In the area of port infrastructure and transportation services, $8 million was used to purchase two tugboats to ensure compliance with US Coast Guard regulations.
$28 million is being spent on modernizing the main port of Pago Pago, including critical repairs to the main dock in Fagatogo. The government is also purchasing 2 ferry vessels to provide daily service between Tutuila and Man’ua, an a new terminal is being constructed in Ofu The Governor said the new ferries would reduce travel time between Manu’a and Tutuila from 6-8 hours to 2 hours.
The Governor reported that once ASPA completes alternative energy projects, using solar and wind power, its expected that the power rate would be reduced from 44 cents per kilowatt hour to 20 cents per kilowatt hour.
Major projects have also been completed or underway to transform the health sector. There are 20 ARPA funded projects for the LBJ Tropical medical Center which includes construction of a new Emergency Room, a new MRI facility, new Intensive Care unit and a new central plant.
Projects that have been completed include a new CT scanner, renovated operating suites, modernized cafeteria , installation of Led Lighting and storm shutters.
Meanwhile 15 projects for the Department of Health have been completed. These include an emergency medical vessel for the transportation of patients and medical personnel, a pandemic response operations center, upgrade of the Tafuna Clinic lab and renovations to the Amouli Community Health Center.
Projects that are underway or starting soon include expansion of the Tafuna Community Health Center, Drug and Alcohol Rehabilitation Clinic, Behavioral Health Services Facility and Dementia Friendly Center.
Still on the health sector, the governor highlighted the effective response to dengue fever which had the Department of Health, LBJ Hospital, Office of Samoan Affairs, EPA and ASPA working jointly on an island wide effort to control the spread of the disease. He said these efforts protected the lives of our families.
ARPA funding for local non profit organization American Samoa Community Cancer Coalition was used to purchase a portable MRI which achieved the first pediatric brain scan in the territory.
The Governor also referred to the innovative readiness mission which brought more than 90 service members from multiple branches of the military to provide medical services for residents.
In conclusion, he called for the support of Fono leaders, senators and representatives in ensuring that ARPA funded projects are completed before the December 31, 2026 deadline.
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In his response Senate President Tuaolo Manaia Fruean commented that no new revenue generation measures had been submitted in the past year, and in order to carry out the necessary improvements for the territory new revenues are needed. He suggested an increase in excise taxes or even introduction of a sales tax. Tuaolo also recommended to the Attorney General to raise the immigration bonds for foreigners entering the territory.
He said the Fono would comment on the Governor’s address when it is presented in writing.
House Speaker Savali Talavou Ale who presided at the joint session reminded the Governor that there were still outstanding issues with the Fiscal Year 2026 budget and the Fono was also expecting directors who have not been confirmed to be submitted for approval.
