US funds Compact agreements and provisions for FAS citizens

Long-standing challenges for citizens of Freely Associated States living in the U.S. states and territories were addressed in U.S. Public Law 118-42, according to U.S. officials.

President Joseph R. Biden Jr. signed over the weekend the minibus budget bill that funds several U.S. agencies, but also included more than $7 billion for Compact Review Agreements. The agreements were signed last year with the Federated States of Micronesia, Palau and the Marshall Islands.

President Joe Biden addresses the leaders of Pacific islands who were invited to a forum at the White House September 2023. Courtesy Facebook

The economic assistance packages to these nations are part of agreements that give the U.S. strategic military access to their regions of the Pacific Ocean. The economic packages include grants for education, health, safety and, for the first time, climate change. In addition, citizens of these Freely Associated States, are allowed travel to the U.S. without a visa.

Hosting FAS citizens has become a contentious issue for states and territories, including Guam. Guam governors have long argued that Compact impact aid provided to them falls grievously short of the cost of providing services to FAS citizens. There have been efforts in Guam to get more funding to help cover the cost, particularly in health. While many migrants and their children work, pay taxes and have healthcare insurance, there are those who require assistance. And because, up to this point, GovGuam has provided that assistance through locally funded program.

According to a Department of Interior press release, Congress addressed long-standing challenges in the bill for FAS citizens who choose to reside lawfully in the United States.

These include:

• Restoring eligibility for key federal public benefit programs for FAS individuals while they are lawfully present in the United States – an important long-term solution to the financial impacts that some FAS communities may have on U.S. state and territorial governments.
Restoring access to federal public benefits will address gaps in needed social services for families and have a significant impact on the communities where they reside.

• The law also ensures that the federal government provides, without significant additional administrative costs, a significant portion of the financial burden currently being borne by state and territorial governments. Benefits and compensation from the federal government will be available to FAS individuals in whichever state or territory within the United States that they reside.

The economic packages will provide economic assistance of $3.3 billion to the FSM, $2.3 billion to the RMI, and $889 million to Palau over the span of 20 years through 2043. The funding will provide support for basic public service delivery, such as health and education, improve infrastructure, and bolster the health of the Compact trust funds previously established for each of the FAS. Congress also included $634 million over the next 20 years to ensure the continued provision of U.S. postal service to the FAS.  mbj

US funds Compact agreements and provisions for FAS citizens