Governor continues the challenge to reported population decline

Pago Pago, AMERICAN SAMOA — Despite concerns highlighted by the Government Accountability Office (GAO) regarding public debts, Governor Pulaalii N. Pula noted that the focus is on promoting financial and economic self- reliance through strategic debt management, ensuring sustainable long-term projects. While the current bond debt is stable, there is a need to address operational debt. He is optimistic about overcoming these challenges and fostering a prosperous future for American Samoa.

This was the governor’s response in his five-page letter addressed to Yvonne D. Jones, Director, Strategic Issues Team, U.S. Government Accountability Office, dated June 9, 2025, to their latest Public Debt and Economic Outlook- 2025 Update, as of September 30, 2023 report, released last month.

There are two areas of interest the governor notes in his response letter that should be highlighted due to ongoing community concerns. They are deepsea mining and nature’s risk on the island’s residents. Both have serious impact on the territory’s financial and economic self- reliance strategies.

For deepsea mining, the governor noted that “ASG recognizes the potential for mineral extraction if that development can be accomplished in a sustainable fashion.”

However, he states, “Our oceans are sacred places to us and must be used with care, prudence, and thanksgiving. We will work closely with the federal government and private enterprises to ensure economic benefits and environmental stewardship go hand in hand.”

The governor, in addition, observed that the challenge of natural risk is significant and continuous.

Sea levels are rising. King tides are becoming more impactful. Since the 2009 earthquake and tsunami, Tutuila has been sinking at a faster rate. Tropical storms continue to be a potential reality for our territory. 

“We have adopted plans to address these challenges. Many of these challenges will require financial assistance from outside entities, including federal assistance programs. We have not caused these problems, but we are required to address them,” he said. 

ISSUES OF CONCERN

Governor Pulaali’i noted several issues of concern in his response letter, including challenging the accuracy behind the Population Decline as conducted by the Census Bureau, as well as the effect of federal funding tapering off.

He said the methodology used by the Census Bureau especially during COVID-19 disruptions, significantly undercounted residents due to the lack of physical addresses and underreporting by foreign nationals. 

“As we all know, official statistics and data play a significant role in planning and development efforts that lead to a better quality of life for all of our people. 

“The data collected by the federal government also plays a significant role in how federal funds are apportioned to the states and territories. These gaps have led to substantial disparities for the people of the territories, especially American Samoa. 

“We respectfully challenge the reported population decline in American Samoa. Based on local observations and administrative records, we believe the Census Bureau's methodology, especially during COVID-19 disruptions, significantly undercounted residents due to the lack of physical addresses and underreporting by foreign nationals.” 

He said undercount has downstream effects on funding, classification of disadvantaged communities, and policy development. American Samoa likely maintained a stable population between 2010 and 2020, contrary to reported data. 

Pulaalii pointed out that it is an honor to inherit from our ancestors' culture, way of life — Fa'a Samoa, government institutions, infrastructure, and policies. 

“We want to give our children an improved legacy. For this reason, American Samoa continues to seek to increase its financial and economic self-reliance. “To do this, we use debt as a tool to spread out the cost of projects with a long-life over a long period of time. We are prudent in our use of debt. 

“Our policy for debt issuance is to ensure a long stream of revenue to pay for the debt service for any new project. “While the current bond debt standing for the American Samoa Government remains stable and well-managed, operational debt continues to be a significant concern. 

“This includes outstanding obligations with the American Samoa Government Retirement Fund (ASGRF) and potential vendor liabilities related to construction projects inherited from the previous administration.” He said these issues must be factored into any assessment of the territory's economic outlook. 

Pulaali’i does note that “our debt to GDP ratio of 20% is one of the lowest among the territories.”

He also points out that there is growing concern that the territory's economy may face a period of contraction due to “the record levels of federal funding and financial contributions to the American Samoa Government since 2021 now tapering off.

“Preliminary audit data for FY 2024 already signals early signs of slowdown, and revenue collections in FY 2025 are tracking below budget projections-further pointing to a sustained economic deceleration.” 

In response, the governor states that the government has prioritized the strategic use of remaining American Rescue Plan Act (ARPA) funds for critical infrastructure investments aimed at supporting near-term economic activity.

At the same time, active discussions between the local administration and federal counterparts continue, with a focus on long-term investments in digital infrastructure and a potential expansion of military presence on the island.

Should these initiatives result in timely and tangible outcomes, they could serve as vital economic stabilizers, the governor said.

FOCUS ON CORE INDUSTRIES

However, if the observed support fails to materialize or is delayed, the governor states that the territory must be prepared to adopt a leaner fiscal posture to preserve stability in the face of diminishing external assistance. In the meantime, it is imperative to concentrate on the performance of our core industries — the Tuna Industry and Tourism.

“Tuna is our largest private industry. We work closely with our local peers through the Western Pacific Fishery Management Council to manage this precious fish industry while maintaining the beauty and diversity of our ocean and insular environments. 

“We are grateful for the recent proclamation issued by President Trump to reopen U.S. Fishing Grounds to U.S. commercial fishing fleets, which will allow for proper stewardship and management of this resource. 

“The tuna industry supports over 83% of private-sector jobs in American Samoa, it accounts for 99% of local exports, producing 100,000 tons of tuna annually. primarily for the U.S. Market. One of four cans of shelf-stable tuna sold in the U.S. originates from American Samoa.” 

The governor further noted that in past communications, the critical 30A tax credit is awaiting congressional extension for not only the StarKist cannery but also to be made available to other investments in American Samoa. 

He said that “we continue to develop the tourism industry,” pointing to cruise ships and that “we are preparing a visionary plan to become a hub of tourism and healthcare in the South Pacific.

“This will be a collaborative endeavor involving airlines, healthcare providers, renewable energy, convention space, sports complexes, and local entrepreneurs to bring people to the natural beauty in which we are honored to live each day.” 

The governor also requested the federal policies and mandates that hinder the territory’s ability to expand local economic pillars be reviewed and amended to support American Samoa. 

“In addition, the administration's advancement of major Airport and Port infrastructure investments is expected to play a central role in supporting an economic rebound and long-term resilience. 

“Together, these efforts, combined with data-driven oversight of our core industries, will help guide American Samoa through this transitional period and towards a more sustainable economic footing. 

“We are grateful and acknowledge the federal programs such as the State Small Business Credit Initiative that is working alongside our Territorial Bank of American Samoa to provide needed capital to local entrepreneurs to implement economic development opportunities.”

(Samoa News will report next week on the Public Debt and Economic Outlook- 2025 Update, as of September 30, 2023, released last month by the Government Accountability Office (GAO) that the governor responds to in his letter.}