October 29, 1998

FOR IMMEDIATE RELEASE

WASHINGTON, D.C. ---- FALEOMAVAEGA CLARIFIES RESTRICTION ON FEDERAL FUNDING FOR HOSPITAL

Congressman Faleomavaega announced the following clarification in response to an article which appeared in the October 29, 1998 edition of the Samoa News. The article concerned the U.S. Senate Appropriations Committee action to withhold $2 million in CIP funding until debts owed to Hawaii hospitals are repaid.

The Congressman said, "The Senate Appropriations bill withheld $2 million of medical CIPs pending payment of debts owed to Hawaii hospitals by American Samoa, and authorized the Interior Department to use that money to pay down these debts if they were not paid by next year. The conference committee supported withholding the $2 million, but did not support the use of Samoa's CIP funds to pay the debts."

The Congressman continued, "The net effect of this action is that the $2 million of FY99 hospital CIPs cannot be used until a repayment plan is in place and a system to manage the off-island medical referrals is in place. This was a slight change from the action previously taken by the Senate Appropriations Committee."