**Compact of Free Association Amendments Act 2003**

**Public Law 108-188**

**Republic of the Marshall Islands**

**Sections 216 and 217**

Quote:

Section 216 - Trust Fund

\(a\) The United States shall contribute annually for twenty years from
the effective date of the Compact, as amended, in the amounts set forth
in section 217 into a trust fund established in accordance with the
Agreement Between the Government of the United States of America and the
Government of the Republic of the Marshall Islands Implementing Section
216 and Section 217 of the Compact, as Amended, Regarding a Trust Fund
(\`Trust Fund Agreement\'), which shall come into effect simultaneously
with this Compact, as amended. Upon termination of the annual grant
assistance under section 211 (a), (d) and (e), the earnings of the fund
shall thereafter be used for the purposes described in section 211 or as
otherwise mutually agreed.

\(b\) The United States contribution into the Trust Fund described in
subsection (a) of this section is conditioned on the Government of the
Republic of the Marshall Islands contributing to the Trust Fund at least
\$25,000,000, on the effective date of the Trust Fund Agreement or on
October 1, 2003, whichever is later, \$2,500,000 prior to October 1,
2004, and \$2,500,000 prior to October 1, 2005. Any funds received by
the Republic of the Marshall Islands under section 111(d) of Public Law
99-239 (January 14, 1986), or successor provisions, would be contributed
to the Trust Fund as a Republic of the Marshall Islands\' contribution.

\(c\) The terms regarding the investment and management of funds and use
of the income of the Trust Fund shall be governed by the Trust Fund
Agreement. Funds derived from United States investment shall not be
subject to Federal or state taxes in the United States or any taxes in
the Republic of the Marshall Islands. The Trust Fund Agreement shall
also provide for annual reports to the Government of the United States
and to the Government of the Republic of the Marshall Islands. The Trust
Fund Agreement shall provide for appropriate distributions of trust fund
proceeds to the Republic of the Marshall Islands and for appropriate
remedies for the failure of the Republic of the Marshall Islands to use
income of the Trust Fund for the annual grant purposes set forth in
section 211. These remedies may include the return to the United States
of the present market value of its contributions to the Trust Fund and
the present market value of any undistributed income on the
contributions of the United States. If this Compact, as amended, is
terminated, the provisions of sections 451-453 of the Compact, as
amended, and the Trust Fund Agreement shall govern treatment of any U.S.
contributions to the Trust Fund or accrued income thereon.

Section 217 - Annual Grant Funding and Trust Fund Contributions

The funds described in sections 211, 212, 213(b), and 216 shall be made
available as follows:

\[In millions of dollars\]

Fiscal year Annual Grants Audit Grant Trust Fund Kwajalein Total

Annual Section 211 Section 213(b) Section 216 Impact

Grants Section 212

2004 35.2 .5 7 15.0 57.7

2005 34.7 .5 7.5 15.0 57.7

2006 34.2 .5 8 15.0 57.7

2007 33.7 .5 8.5 15.0 57.7

2008 33.2 .5 9 15.05 57.7

2009 32.7 .5 9.5 15.0 57.7

2010 32.2 .5 10 15.0 57.7

2011 31.7 .5 10.5 15.0 57.7

2012 31.2 .5 11 15.0 57.7

2013 30.7 .5 11.5 15.0 57.7

2014 32.2 .5 12 18.0 62.7

2015 31.7 .5 12.5 18.0 62.7

2016 31.2 .5 13 18.0 62.7

2017 30.7 .5 13.5 18.0 62.7

2018 30.2 .5 14 18.0 62.7

2019 29.7 .5 14.5 18.0 62.7

2020 29.2 .5 15 18.0 62.7

2021 28.7 .5 15.5 18.0 62.7

2022 28.2 .5 16 18.0 62.7

2023 27.7 .5 16.5 18.0 62.7

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