Known as the smallest man on earth Mr Dangi died in the LBJ's intensive care unit after being admitted with pneumonia nearly two weeks ago.
American Samoa Governor Lolo Moliga and the chief executive of the LBJ hospital, Taufetee John Faumuina Jr, agreed to the reduction.
Pulu says he was astounded when presented with the hospital bill for Mr Dangi of US$6,953.
He said it was insulting to get such an exorbitant bill and he could not believe the charges for the ICU are more than US$1,000 a day for foreigners.
Pulu says as a sponsor he takes responsibility for Mr Dangi's bill but he is happy to have this cut to US$3,000.
Mr Dangi's body is being transported to Samoa today and then will be taken to his home country, Nepal.