Yeah, American University does provide scholarships based on merit. Here are some of them:

Frederick Douglass Distinguished Scholars Program
Total Worth: full tuition, mandatory fees, books, U-Pass, room, and board
Eligibility: full tuition, mandatory fees, books, U-Pass, room, and board
Minimum Criteria: 3.8 GPA (unweighted) or 4.0 GPA (weighted)
Requirement for maintenance: minimum cumulative 3.2 GPA
Separate application needed: Yes

Tuition Exchange Scholarship
Total Worth: $37,000 per year
Eligibility: $37,000 per year
Minimum Criteria: based on high school academics
Requirement for maintenance: Maintain eligibility at their home institution and submit the recertification application by January 15th of each academic year.Take at least 12 credits every semester.Complete a total of 30 credits within the academic year (fall and spring semesters).Maintains a 3.2 cumulative GPA or higher.

American University provides aids at an average of 38374 per student meeting 91% of students need. 98% of students with need receive financial aid at an average of 32002 need-based grant. They also provide other scholarships including Athletic Scholarships and United Methodist Scholarship.