The US Department of Interior has informed American Samoa's Governor that all Department of Interior funding to the territory will be reduced by five percent if massive federal budget cuts start today as planned.
By law, at some point today in Washington, President Barack Obama must issue an order formally initiating the reductions, known as sequestration, if negotiations to avert them fail.
There will be automatic across the board cuts to federal agencies totaling 1.2 trillion US dollars over 10 years.
The executive assistant to Govenror Lolo Moliga, Iulogologo Joseph Pereira says the DOI acting deputy secretary of insular areas Eileen Sobeck has notified the governor that five percent of all DOI funds to American Samoa will be reduced.
DOI provides grant in aid of 23 million to American Samoa every year to help operate the local government.
DOI has also relayed to the governor that all programs except the Veterans Administration and acting military personnel serving in all war theaters will be subject to federal spending cuts.