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Press Releases_
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FOR IMMEDIATE RELEASE
March 19, 2010
Washington, D.C. - Faleomavaega commends signing of HIRE Act which includes Congressional delegates provisions to help stimulate territorial economies
Congressman Faleomavaega announced today that President Obama on Thursday March 18, 2010 signed into law legislation that would help address unemployment across the nation and spur job creation. The Hiring Incentives to Restore Employment Act (HIRE) was passed by the House on March 4, 2010 by a vote of 217 - 201 and was later agreed upon by the Senate on March 15, 2010 by a vote of 61-30.
"Several provisions in the HIRE Act will benefit American Samoa and I thank the Administration and House and Senate leadership for accepting the requests submitted by the Congressional Delegates to ensure that the Territories are included in this important piece of legislation. The centerpiece of our request that was conveyed to President Obama, and both the House and Senate leadership in letters sent on December 10, 2009 and on February 12, 2010 was to bring to their attention the fact that the Territories operate under two separate tax code jurisdictions—mirror tax codes where federal tax rules and rates apply and non-mirror tax codes where federal tax rules and rates don’t always apply," Faleomavaega said.
"As we explained in our request, special consideration should be granted to allow the Territories to benefit from the two tax credit for business owners provided for in the HIRE Act—Section 101 which would exempt employers from social security payroll taxes for every new worker hired in 2010 that was unemployed for at least 60 days; and Section 102, which would enable an employer to take a $1000 income tax credit, for every new worker hired and retained for at least 53 weeks," Faleomavaega said.
"I am very pleased to announce that business owners in American Samoa are eligible for both tax credits in the new law. While it is not clear at this point how Section 101 is to be administered, Section 102 however would allow business owners in American Samoa to be eligible to receive a tax credit of $1000 for each worker retained. This tax credit would be available through the local tax system and the federal government would reimburse American Samoan Government (ASG) for the exact amount."
"While this tax credit impacts 2011 refunds, it is important that a mechanism to acquire the tax credit is put in place by ASG as soon as possible. This will help local business owners make informed decisions on hiring and retaining employees and will lead to job creation which will help stimulate American Samoa's local economy," Faleomavaega concluded.
FOR IMMEDIATE RELEASE
March 26 2010
Washington, D.C. - Faleomavaega expresses concerns with Territory's healthcare system
Congressman Faleomavaega announced today that in light of the recent historic signing of comprehensive healthcare reform in the United States, he urges the American Samoa Government (ASG) to create a territorial plan to address American Samoa's healthcare needs.
"After 100 years of effort to reform the national healthcare system, it finally became a reality this past Tuesday, March 23, 2010, when President Obama signed it into law. Subsequently on Thursday, March 25, Congress approved further changes that President Obama is expected to sign in the next few days," Faleomavaega said.
"This epic turn of events in the history of the United States highlights the responsibility to extend affordable and high quality healthcare to all Americans. Among other things, the new healthcare law reduces the deficit by $143 billion over the next ten years; extends coverage to 32 million more Americans; establishes a purchasing pool that will give the individual choice and competition thus resulting in cheaper health insurance costs; and mandates that no individual is denied insurance coverage based on pre-existing conditions."
"For American Samoa, the new health care reform will result in an increase in federal funding for the Territory's Medicaid program and a 5 % increase in the Federal Matching Assistance Percentage (FMAP) rate, or the federal government's share of Medicaid costs. American Samoa will be eligible for: more than $180 million over 9 years in Medicaid funding; the choice to participate in the Exchange program; and many of the consumer protection provisions that are available to the States. And I want to commend my fellow territorial Delegates for working hand-in-hand on these important issues."
"The additional dollars in Medicaid funding will add to the already considerable federal share of all medical expenditures in American Samoa's healthcare system. For example, over the past five years, the federal government has provided an estimated $133.6 million to the operations of LBJ Hospital while the local government provided $19.4 million in local funds. This disparity between federal and local funding highlights some of the unique challenges facing our healthcare system."
"On June 22, 2009, I wrote a letter to the leaders and members of the Fono concerning the completion of a comprehensive healthcare report, which describes the findings of a three-year study to examine and review American Samoa's healthcare system. The federal government provided $1.2 million in grant funding to conduct the study, and special credit should be given to Lt. Governor Faoa Sunia and Mr. Keniseli Lafaele for their hard work in this endeavor. Unfortunately, the report was issued in 2007 and our local government has not taken any action on the recommendations of the report," Faleomavaega said.
"In a recent discussion I had with the former LBJ CEO, Patricia Tindall, she made an observation to the effect that the healthcare system in American Samoa is "fragmented". This is evident by the fact that healthcare services are provided primarily through LBJ. Meanwhile, there is no structural framework for partnership among all the entities providing healthcare services in the Territory."
"Furthermore, according to recent studies, it is estimated that chronic diseases account for almost 75% of all healthcare costs. And because of the increasing rate of chronic diseases, it seems to me that preventive healthcare should be our highest priority. But nowhere are ASG’s healthcare priorities or any health policy clearly stated."
"Considering the significant events of this past week in Washington, I believe this is the moment for our Fono leaders and members to take decisive action and pursue an affordable, high quality healthcare system for the Territory. And the best way to begin the process now is for the Fono to conduct oversight hearings on the 2007 Healthcare Report, and develop legislation that will address our Territory’s healthcare system," Faleomavaega concluded.
FOR IMMEDIATE RELEASE
March 25, 2010
Washington, D.C. - House passes final version of Health Care legislation, includes increase in Medicaid and Health Insurance Exchange for American Samoa
Congressman Faleomavaega announced today that by a vote of 220-207 the U.S. House of Representatives passed the final version of H.R. 4872, the Health Care and Education Reconciliation Act of 2010. The bill now goes to President Obama for signature.
"As a result of this historic legislation, for the next 9 years American Samoa will receive an increase of $180 million in its total Medicaid spending cap for a total of $285.5 million," Faleomavaega said. "American Samoa will continue to receive the 5% increase in its Federal Medical Assistance Percentage (FMAP) that was signed into law by the President this past Tuesday. This means that the American Samoa Government (ASG) will pay 45% of the Medicaid costs while the federal government pays 55%."
"This legislation continues to provide $1 billion for the Territories to participate in the Health Insurance Exchange program. Each of the Territories will be afforded the option to participate or transfer their allocation to their Medicaid program. In this case, if American Samoa chooses not to participate in the Exchange by 2014, the Territory will receive an additional $18.75 million for its Medicaid program."
"Between 2004 and 2008, ASG has received an estimated $86 million in direct and indirect federal grant funding from the U.S. Department of Health and Human Services. As you may know, ASG receives an additional $23 million per year from the federal government for the operations of its local government. ASG continues to be the only State or Territory that receives federal funding for the operation of its local government and more than $7 million per year of these operating funds, provided by the Department of Interior, are allocated for LBJ and healthcare in the Territory."
"With the hundreds of millions provided to ASG from the federal government for healthcare in American Samoa , I have every confidence that the Fono, together with the local administration, will work to establish a solid program in place for our residents who deserve affordable quality healthcare under the law."
"Again, I want to thank President Obama and those involved for making health care affordable for all Americans and for working with the Congressional Delegates to make certain that the Territories were included in this historic legislation," Faleomavaega concluded.
FOR IMMEDIATE RELEASE
March 16, 2010
Washington, D.C. - Faleomavaega thanks US Department of Transportation for $2.5 million grant for airport improvement projects in American Samoa
Congressman Faleomavaega announced today that the U.S. Department of Transportation (USDOT) has awarded the American Samoa Government two grants totaling $2.5 million. The two grants are both funded from the Airport Improvement Program administered by the Federal Aviation Administration (FAA). The Airport Improvement Program was established by Congress under the Airport and Airway Improvement of 1982 that has been reauthorized in 2003 as the Vision100 - Century of Aviation Reauthorization Act. The $2 million discretionary grant will provide funding to continue the installation of the perimeter fencing and the $500,000 entitlement grant will continue to fund improvements to the terminal building at the Pago Pago International Airport.
"This grant funding is critical for our main airport given the high priority of safety and access for visitors and locals travelling to and from American Samoa," said Faleomavaega. "The perimeter fencing will help enhance safety by restricting access for unauthorized persons within areas designated for airport operations and runways. This is critical today given the events of September 11, 2001."
"The modernization of the terminal building is welcomed during this time especially with an aging airport. The modernization project includes the upgrade of the passenger departure lobby and will also provide more space in improving the efficiency of processing passengers through the main terminal. This will make travelers more comfortable particularly with the long waiting lines and security checkpoints prior to departure."
"I want to take this opportunity to thank Matagi McMoore, the Director of the Port Administration, and the Governor for their efforts in improving our entry ports in American Samoa. I, especially, want to thank my good friend and former colleague, Secretary LaHood of the USDOT, and J. Randolph Babbitt, Administrator for FAA, for their continued support of improving American Samoa's infrastructure," concluded Faleomavaega.
FOR IMMEDIATE RELEASE
March 12, 2010
Washington, D.C. - Faleomavaega responds to Fono's request for report on ASPIRE, Minimum Wage, Health Care and Essential Air Service (EAS) for Manu'a
Congressman Faleomavaega announced today that in a letter dated March 11, 2010 he has responded to Senate President Gaoteote Palaie Tofau and Speaker Talavou Ale's request for a report on ASPIRE, minimum wage, health care and essential air service (EAS) for Manu'a. Faleomavaega copied his letter to the Senators and Representatives, and the letter and enclosures were distributed to every member of the Fono. The full text of Faleomavaega's letter is included below:
Dear Mr. President and Mr. Speaker:
I am writing in response to your letter received on February 4 in which you requested me to appear before the Legislature to provide a report on Federal-Territorial issues. Given that the U.S. House of Representatives was in session on February 24, 2010 on the date you tentatively set for me to testify, I am submitting a written report which I hope will be useful to you.
ASPIRE Bill
In response to your question about the status of the ASPIRE bill, efforts are still ongoing to provide a funding source to help level the playing field for StarKist which is the only U.S. tuna company which continues to process whole fish in America. As you know, Bumble Bee and Chicken of the Sea now purchase frozen tuna loins that have already been cleaned in low-wage rate countries like Thailand which pay their workers $0.75 cents and less per hour. Prior to its departure from American Samoa and prior to any increase in minimum wage, Chicken of the Sea was already operating in 2006 at about a $7.5 million loss per year. StarKist was operating at the same loss because neither StarKist nor Chicken of the Sea/Samoa Packing could compete against Thailand's low-wage rates and tax incentives. While Chicken of the Sea/Samoa Packing chose to leave American Samoa without the courtesy of discussing its departure with the Fono, Governor, or myself, StarKist has reached out to the Governor and my office for assistance at the local and federal levels.
Although I cannot speak to what efforts the Fono or Governor have undertaken at the local level to encourage StarKist to stay, I have worked closely with StarKist at the federal level to put in place short-term and long-term solutions, and these efforts are still ongoing. Together, we put forward the proposed ASPIRE bill and are seeking to convert 30A tax credits. Furthermore, I requested a one-time $25 million emergency appropriation from Congress for purposes of providing StarKist with the immediate help it needs and, since 2009, I have had on- going discussions with the U.S. Department of Treasury about developing a more permanent funding stream to rebuild our tuna industry and encourage broad economic development. At my request, the White House and the U.S. Department of the Interior are engaged in these discussions.
Whether or not these efforts will be successful remains to be seen since the U.S. economy is seriously in recession and given that Congress has already provided hundreds of millions of dollars in tax breaks to our tuna industry every year for the past 20-years which could have and should have helped our canneries prepare for a rainy day. Moreover, Bumble Bee and Chicken of the Sea have enlisted their Democratic Members of Congress who represent California , Georgia and Puerto Rico to oppose ASPIRE and any modifications to it. Because these Democratic Members of Congress also want to protect the jobs of their workers, they are standing with Bumble Bee and Chicken of the Sea while we are standing with StarKist. While the Obama Administration has indicated conditional support for ASPIRE if we can work out a compromise, StarKist may not have the time it needs to wait for the outcome.
As you know, the U.S. tuna industry has undergone a complete transformation in the past ten years shifting from a whole fish model to a frozen loin model and StarKist cannot continue to incur losses as it competes against Bumble Bee and Chicken of the Sea which have decided to purchase tuna loins from low wage-rate countries rather than employ workers in America to clean whole fish. Without a doubt, I am disappointed that Chicken of the Sea/Samoa Packing chose to outsource our jobs to Thailand and I am also disappointed that Chicken of the Sea chose not to downsize in American Samoa. However, it is my understanding that one of the reasons Chicken of the Sea chose not to downsize in American Samoa is because the State of Georgia offered Chicken of the Sea a better local tax incentives package.
Regardless of what decision StarKist will need to make in the very near future, I will continue to do everything I can at the federal level to create an environment where American Samoa can be the hub of the U.S. tuna industry once again, although this may take time. In the interim, I am hopeful that ASG will continue to do all it can to diversify its economy and put in place the recommendations of the American Samoa Economic Advisory Commission which released its report since 2002, well before the tuna industry was under the threat it is today and long before minimum wage hikes.
Minimum Wage
About minimum wage, for the past 50-years American Samoa was given a free pass in having our wages kept low for the sake of our tuna canneries. But when minimum wage was raised all across America in 2006, Congress determined that it was time to raise minimum wage in American Samoa and CNMI which were the only two remaining U.S. Territories which were not up to federal minimum wage standards. While I was supportive of a one-time increase of $0.50 cents per hour, I did not support further increases because there was never any report that provided an accurate accounting of the economy of the Territory.
By direction of the U.S. Congress, the GAO was directed to conduct a study and provide a report on the impact of federal minimum wages increases in American Samoa and CNMI. The report will be released next month and the advance copy shows that American Samoa ’s economy is at the tipping point. But, the report makes no recommendations about what should or could be done given that every worker in America is entitled to fair wages and an income that keeps up with the cost of living.
While you are right that minimum wage is a factor for our tuna industry, the primary factor is not our wage rates but the wage rates of foreign countries. As the GAO report will show, in 2006 our canneries were already operating at about a $7.5 million loss per year before minimum wage went into effect because the tuna industry itself has dramatically changed with Chicken of the Sea and Bumble Bee adopting a business model of outsourcing tuna preparation to cheap foreign labor and then bringing the almost finished product into small U.S. operations for final packaging. A cannery like StarKist that cleans whole fish in American Samoa simply cannot compete against canneries that buy loins from low-wage rate countries like Thailand that pay their fish cleaners $0.75 cents and less per hour.
Other factors that are also impacting our tuna industry include higher fish costs, higher shipping costs, higher fuel costs, and better local tax incentives offered by Georgia and Thailand.
These factors coupled with the tremendous shift in the way that tuna companies are now operating by outsourcing jobs to Thailand suggest that ASG should do all it can to implement the recommendations of the American Samoa Economic Advisory Commission.
American Recovery and Reinvestment Act & ASTCA Funding
For now, I am pleased to report that on February 17, 2009 Congress passed the American Recovery and Reinvestment Act which included the Congressional Delegates' initiative to make sure that the Territories would receive assistance from this bill to stabilize their economies. As a result of federal funds provided by the American Recovery and Reinvestment Act, the American Samoa Telecommunications Agency (ASTCA) was able to put forward a competitive grant application and was just awarded over $80 million from the federal government for a fiber optics network making it possible "to provide broadband services to every household, business and critical institution in the region" which will lead to increased educational and economic opportunities. ASTCA will also receive an additional $10 million loan and will use about $4.4 million in private funds for the project.
U.S. DOL National Emergency Grants (NEGS)
In May of 2009, I also met with U.S. Department of Labor (DOL) officials regarding national emergency grants (NEGS) in response to Chicken of the Sea’s announced closure. I then forwarded this info rmation to Governor Togiola in a letter dated May 7, 2009, providing the Governor with the contact info rmation necessary to request national emergency grants and info rming the Governor and the public that any request put forward must originate with the Governor. I am enclosing this letter for you.
Since this time, DOL and ASG have been working together on national emergency grants that could be helpful to our people. While the national emergency grant for our displaced cannery workers at Samoa Packing has not yet been finalized between ASG and the DOL, the DOL info rmed my office that its regional office in San Francisco preemptively and immediately reached out to ASG when the tsunami struck and info rmed the Governor’s office that ASG could also apply for a disaster national emergency grant.
The DOL then assisted ASG in preparing and processing a disaster national emergency grant application and, on October 20, 2009, DOL awarded American Samoa over $24 million to assist with clean-up and recovery following the tsunami that struck our islands on September 29, 2009. In a recent meeting held in my office last week, DOL info rmed me that about $8 million has already been released to ASG and that about $5 million has been expended so far. These funds are being used to create temporary jobs to assist in the recovery efforts, and discussions are ongoing about how this grant might be expanded to more fully include our cannery workers.
Essential Air Service (EAS)
Regarding your question about Essential Air Services for Manu'a, I am enclosing copies of all official correspondence regarding this matter which included letters I previously sent to you, the Fono, District Governor Misaalefua, Chairman Avegalio Aigamaua of the Senate Committee on Transportation, Chairman Vaito'a Langkilde of the House Committee on Transportation, and the U.S. Department of Transportation. As you will note, I explained the process of submitting a bid and also informed our local government officials that the USDOT needs further info rmation including:
To date, I have not heard back from any of our local officials and, to my knowledge, neither has the U.S. Department of Transportation. Therefore, EAS Service for Manu'a is on hold until such time as our local government officials and Inter-Island Airways provide the USDOT with the info rmation it needs.
Health Care Legislation & ASG's Challenges
In early 2003, the U.S. Department of Health and Human Services (DHHS) awarded ASG $1.2 million, including a grant of $868,841, to commission a Task Force to make recommendations about how American Samoa could develop a financially viable health plan for our Territory. The award was received under the State Planning Grant and, from September 2004 to August 2007, the Task Force worked on this project and, on September 29, 2007, the Task Force issued its Coverage for All in American Samoa (CAAS) report.
As you may be aware, ASG did not share a copy of the CAAS report with my office. However, on June 22, 2009, I wrote to you and requested your review of American Samoa's health care system in light of current developments in the U.S. Congress and in reference to the CAAS report. Although I copied my letters to every member of the Fono, I did not receive a reply from the Fono or your offices but, for your info rmation, I am enclosing the letters again.
As I noted in my letters of June 22, 2009, the 2007 CAAS report disclosed several findings critical to the assessment of the existing health care system in American Samoa . The report drew from info rmation provided by AcademyHealth, one of the nation’s leading health policy resource centers in research analysis, facilitation, education and training, strategic planning, and program management. Moreover, the report drew from the experience of developing countries in Sub-Saharan Africa, Latin America, and Asia relating to user fees and self-insurance as health care financing tools.
It is my understanding that the CAAS report made 7 policy recommendations. These recommendations are as follows:
Based on these recommendations and after discussions with some of our local leaders, LBJ officials and other health care professionals, I respectfully suggested that the Fono should thoroughly review the recommendations in the CAAS report and hold hearings about how to reform the health care system in American Samoa. For purposes of a hearing, I suggested that you might want to reach out to our local experts and to those with the experience and understanding of health care issues in our Territory.
I also mentioned that in my meetings with Ms. Patricia Tindall, who was at the time Executive Director of LBJ, she indicated that our whole health care system is “fragmented” and I totally agree with her assessment. As suggested in the CAAS report, the problem is threefold. First, the user fees charged by the American Samoa Medical Center Authority (ASMCA) are no longer affordable. Second, the quality of services at LBJ is perceived by many to be substandard. Three, certain needed specialized services are not available locally.
I remain hopeful that the Fono may still consider acting on the recommendations of the CAAS report.
Regarding the status of health care legislation in the 111th Congress, the Congressional Delegates have worked jointly together to make sure that the needs of the Territories are addressed in any comprehensive healthcare reform legislation which may be put forward. We were able to secure private meetings with Chairman Henry Waxman of the House Committee on Energy and Commerce, and Chairman Charles Rangel of the House Committee on Ways and Means. At these meetings, we presented our case for the inclusion of the Territories in the House Health Care Reform legislation, and Chairman Rangel and Chairman Waxman pledged their support to work with us to bring the Territories to parity with the States.
In follow-up discussions, we further refined certain provisions and, on November 7, 2009, the House passed the historic Health Care Reform legislation by a vote of 220 to 215. If signed into law, American Samoa would receive the following:
1. Increase of $239.5 Million in Medicaid Funding
ASG will receive an increase of $239.5 million over the next 9 years for Medicaid. The following chart shows an approximation of what ASG would receive on a yearly basis. Please note that the amounts will be even higher when adjusted for inflation.
| Year | ASG's Base Medicaid Funding | Additional Funds ASG will receive from H.R.3962 | Total Amount ASG will receive if H.R. 3962 is passed (Base +Additional funds) |
| 2011 | $8,600,000 | $22,000,000 | $30,600,000 |
| 2012 | $8,600,000 | $23,687,500 | $32,287,500 |
| 2013 | $8,600,000 | $24,687,500 | $33,287,500 |
| 2014 | $8,600,000 | $25,687,500 | $34,287,500 |
| 2015 | $8,600,000 | $26,687,500 | $35,287,500 |
| 2016 | $8,600,000 | $27,687,500 | $36,287,500 |
| 2017 | $8,600,000 | $28,687,500 | $37,287,500 |
| 2018 | $8,600,000 | $29,687,500 | $38,287,500 |
| 2019 | $8,600,000 | $30,687,500 | $39,287,500 |
| Grand Total | $77,400,000 | $239,500,000 | $316,900,000 |
2. Increase from 50% to 75% in Federal Matching Assistance Percentage (FMAP)
The Federal Matching Assistance Percentage (FMAP) is used to determine the Federal government's share in providing for certain medical services provided by a State or Territory. Currently, the FMAP for all Territories is set by statute at 50%. If H.R. 3962 is signed into law, the federal government match for Medicaid would increase from 50% to 75% meaning that the federal government would be required to pay a greater portion of our costs.
3. Additional $75 Million for Health Care Exchange or Medicaid Supplement
In our discussions with the House, we asked for the Territories to be allowed the option to participate in the Health Care Exchange. The Exchange would not be an insurer but it would provide eligible individuals and small businesses with access to insurers' plans in a comparable way. The Exchange would consist of a selection of private plans in which individuals choosing not to purchase health insurance through an employer or a grandfathered non-group plan could obtain such coverage through the Exchange.
If ASG chooses to participate, ASG can receive about $75 million to run the Exchange and would be treated as State with according privileges and responsibilities. This amount would help provide cover over for credit used by individuals to purchase health insurance through the Exchange program. If ASG chooses not to participate, ASG can use this $75 million to supplement its Medicaid funding. Under the Health Exchange provision, the total funding for the Territories is $4 billion. Based on population, Puerto Rico will receive the largest allocation of $3.7 billion while $300 million is divided among USVI, Guam, CNMI and American Samoa.
4. Transition Plan for Medicaid Parity with the States
In addition to the above benefits, no later than October 1, 2013, the Secretary of the Department of Human and Health Services (HHS) will work closely with each Territory to submit to Congress a report that details a plan for the transition of each Territory to full parity in Medicaid with the 50 States and the District of Columbia in fiscal year 2020 by modifying their existing Medicaid programs and outlining actions the Secretary and governments of each Territory must take by fiscal year 2020 to ensure parity in financing.
5. Other Provisions
The House bill also includes other general consumer protection measures that are also applicable to insurers in the Territories including American Samoa . For example insurers are:
Despite efforts by the Congressional Delegates, the Senate Health Care Reform bill did not include Territorial-specific language that was in the House-passed legislation.
For Medicaid, the Senate proposal provides that all Territories will retain the 30% increase in the American Recovery and Reinvestment Act (ARRA) over the 9 year period.
FMAP rates for Territories will be increased from 50% to 55%.
Regarding the Healthcare Exchange Program, the Territories are not included.
On January 14, 2010, the Congressional Delegates wrote a letter to Speaker Pelosi asking that House-passed language be inserted in the final Health Care Reform legislation. At this point, there is no clear indication from the Democratic Leadership on how to reconcile the differences between the House and Senate health care bills, especially in light of the current political environment
Current discussion suggests that the Health Care Reform bill will be put through the reconciliation process, which will only require a simple majority in the Senate for passage. If this is the case, the House will have to pass the Senate bill as it is. For the Territories, we have a commitment from the House leadership and Senator Dodd that they will put back our provisions in the final bill. But the reconciliation process only applies to "mandatory spending" and "federal tax revenues," not programmatic language, which means that we do not know for sure what we can and cannot add to the Territorial provisions.
Faleomavaega concluded his letter by stating, "If you have any further questions concerning the above issues, do not hesitate to let me know."
