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Update: FY 2026 2nd quarter revenue falls short of projections

Governor Pulaali’i Nikolao Pula
reporters@samoanews.com

Pago Pago, AMERICAN SAMOA — Governor Pulaaliʻi Nikolao Pula at the conclusion of the second quarter of Fiscal Year 2026, released a general memorandum outlining the Territory's financial performance and several prudent management measures to ensure continued fiscal stability for the remainder of the fiscal year.

“Year-to-date revenues through the second quarter are currently tracking approximately 13.2 percent below budget projections.

“While we remain committed to maintaining essential government services and supporting our community, this shortfall requires us to exercise additional caution and discipline in managing expenditures moving forward,” said the Governor. 

The Administration is calling on all departments, agencies, and authorities to implement measures effective immediately.

In response to current budgetary constraints, all departments are requested to temporarily limit new hiring activities. This pause, according to the governor, will help manage its resources more effectively. Exceptions will be made for critical positions that are directly tied to revenue generation, public safety, healthcare services, or other essential operational needs that cannot be deferred.

Departments are encouraged to assess their staffing needs closely and identify any essential roles that may require immediate hiring.

To further reduce expenditures, all non-essential travel should be postponed until further notice. Any travel requests submitted must receive prior approval from the Office of the Governor to ensure they align with current priorities and budgetary restrictions. 

Fully grant-funded travel will still be considered, along with any associated stipends that support necessary activities. In lieu of in-person meetings or conferences, departments and agencies are strongly encouraged to utilize virtual participation options to facilitate ongoing collaboration and communication while minimizing costs.

Agencies should implement strict monitoring of overtime usage and aim to minimize it whenever operationally feasible. This measure aims to control labor costs while ensuring critical services remain functional. Exceptions may be made for emergency services or other critical operational requirements that demand a quick response and cannot be postponed.

To promote environmental sustainability and further reduce operational costs, all departments and agencies are urged to actively conserve power and fuel consumption. This includes the following practices: ensuring that lights, air conditioning units, and office equipment are turned off when rooms or offices are unoccupied; government vehicles should not be utilized for personal use and should remain off when not in operation. Agencies are expected to implement practical conservation measures that can yield both immediate savings and long-term benefits.

The Governor said these strategic measures are designed to preserve financial flexibility and help the Administration focus on increasing revenue, improving operations, and prioritizing essential government functions.

Moreover, the Administration will continue collaborating with the other branches of government to address fiscal challenges, particularly as the Fono session resumes in July.

 “I appreciate the continued partnership, professionalism, and dedication demonstrated by all agencies during this period. Through collaboration and responsible stewardship, we will continue to work together to maintain the financial stability of the American Samoa Government and the services that our people rely on,” stated the Governor.