59–010 

Calendar No. 42 

110TH CONGRESS REPORT " ! SENATE 1st Session 110–17 

COMPACTS OF FREE ASSOCIATION AMENDMENTS ACT OF 

2007 

FEBRUARY 15, 2007.—Ordered to be printed 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 283] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 283) to amend the Compact of Free Association 

Amendments Act of 2003, and for other purposes, having considered the same, reports favorably thereon without amendment and 

recommends that the bill do pass. 

PURPOSE OF THE MEASURE

The purpose of S. 283 is to approve subsidiary agreements to the 

Compact of Free Association, as amended, between the Government of the United States of America and the Government of the 

Federated States of Micronesia, and to the Compact of Free Association, as amended, between the Government of the United States 

of America and the Government of the Republic of the Marshall Islands, and to make other conforming, clarifying, and technical 

amendments to the Compact of Free Association Amendments Act 

of 2003 (CFAAA), (Public Law 108–188). 

SUMMARY OF MAJOR PROVISIONS

S. 283 consists of nine sections. Section 1 provides a short title. 

Sections 2 and 3 approves agreements negotiated between the 

United States and the Federated States of Micronesia (FSM), and 

between the United States and the Republic of the Marshall Islands (RMI) regarding disaster assistance and makes conforming 

amendments to the CFAAA. Section 4 clarifies the eligibility of students from the FSM and RMI for certain education programs, and 

the eligibility of the Government, institutions, and people of the 

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Republic of Palau for certain programs, under the CFAAA. Section 

5 clarifies that citizens of the FSM and RMI who legally reside in 

the United States are eligible for the programs and services of 

Legal Services Corporation. Section 6 makes numerous grammatical and technical edits to the CFAAA. Section 7 restores the authorization for FSM, Palau and the RMI to transmit videotaped 

programming. Section 8 allows Palau to deposit a payment, otherwise due the United States in connection with a Compact road 

project, into a trust fund for road maintenance. Section 9 clarifies 

the tax-free status of the trust funds established for the FSM and 

RMI under their respective Compacts. 

BACKGROUND AND NEED

In 1947, the United States became Administrator of the United 

Nation’s Trust Territory of the Pacific Islands, composed of the 

Marshall, Caroline, Palau and Mariana (except Guam) islands. All 

of these islands were captured from Japan in World War II and include those that now comprise the FSM and the RMI. U.S. obligations under the Trusteeship included promoting self-government or 

independence of the inhabitants. In the case of the FSM and RMI, 

negotiations on political status culminated with the signing of the 

Compact of Free Association, which was approved by Congress, 

under Public Law 99–239, in 1986. The new relationship of free association allowed for termination of the U.N. Trusteeship, international recognition of the FSM and RMI as sovereign nations, but 

also for the continuation of the special political, economic, and security relationship between the United States and these new nations. 

In 2003, Congress enacted the CFAAA, which separated the 

Compact into two separate agreements, and approved amendments 

to extend and restructure the financial and program assistance provisions. One area that remained unresolved in the new law, however, was how disaster assistance would be handled. The Federal 

Emergency Management Agency (FEMA) objected to continuing to 

provide disaster assistance under the Compacts because, in its experience, the FSM and RMI governments lacked the capacity to 

properly meet their administrative and support responsibilities. 

Simply terminating FEMA’s role was unacceptable to Congress because there would likely be disasters in the future, and a program 

would be needed to fund and coordinate disaster assistance to meet 

the needs of the population and to reconstruct essential infrastructure. 

Accordingly, section 105(f)(1)(A) of the CFAAA directed the Secretary of State, in consultation with FEMA, to negotiate specific 

disaster assistance agreements with the FSM and RMI and report 

to Congress on the outcome of those negotiations, including recommendations on any changes to law. 

On August 19, 2004, the State Department transmitted to Congress new agreements and the legislative language needed to bring 

them into effect. Generally, the agreements provide that FEMA 

and the Office of Foreign Disaster Assistance (OFDA) will jointly 

consult on any disaster damage assessments and on disaster declaration recommendations. FEMA will provide the funding to meet 

FEMA reconstruction and response requirements and other necessary expenses, and OFDA will be responsible for administering 

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disaster assistance and coordinating the U.S. response to declared 

disasters. 

Prior to introduction of the legislative language as transmitted to 

the Congress, the sponsors agreed to use the bill as a vehicle to 

make other conforming, clarifying, and technical amendments to 

the CFAAA. 

LEGISLATIVE HISTORY

S. 283 was introduced by Senator Bingaman (for himself and 

Senator Domenici) on January 12, 2007. 

During the 109th Congress, the Committee considered similar 

legislation, S. 1830, introduced by Senator Domenici (for himself 

and Senators Bingaman and Akaka), at the request of the Administration. The Committee on Energy and Natural Resources held a 

hearing on S. 1830 on October 25, 2005 (S. Hrg. 109–291), and ordered the bill favorably reported, with amendments, on March 15, 

2006. S. Rept. 109–237. The Senate passed the bill by unanimous 

consent, with amendments, on September 29, 2006. No further action occurred prior to the sine die adjournment of the 109th Congress. 

At its business meeting on January 31, 2007, the Committee ordered S. 283 to be favorably reported. 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in open business session on January 31, 2007, by a voice vote of a quorum 

present, recommends that the Senate pass S. 283. 

SECTION-BY-SECTION ANALYSIS

Section 1 provides that this Act may be cited as the ‘‘Compacts 

of Free Association Amendments Act of 2007’’. Section 2 amends section 101 of the Compact of Free Association 

Amendments Act of 2003 (CFAAA) (Public Law 108–188) to approve the two disaster assistance agreements negotiated pursuant 

to section 105(f)(1)(A) of that Act and transmitted to the Congress 

on August 19, 2004. 

Section 3 deletes the interim disaster assistance provisions and 

negotiating instructions set forth in section 105(f)(1)(A) of the 

CFAAA, which will be rendered moot upon approval of the new 

agreements. The Administration more recently sent additional language contained in clause (ii) to clarify that funding to implement 

these agreements will be ‘‘transferred’’ from FEMA to OFDA. 

Section 4 makes three clarifying amendments to section 

105(f)(1)(B) of the CFAAA regarding the availability of certain U.S. 

education programs. The first two paragraphs clarify that students 

from the FSM and the RMI who are attending colleges in the 

United States or its territories—and also in Palau, which had been 

inadvertently omitted—shall continue to be eligible to receive benefits through the end of their current course of studies, up to four 

years, for programs that are otherwise terminated by the CFAAA. 

The third paragraph clarifies that the ‘‘government, institutions, 

and people’’ of Palau shall continue to be eligible, until the end of 

fiscal year 2009, for those education programs for which they were 

eligible in fiscal year 2003. The existing language had generally 

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stated that the ‘‘Republic of Palau’’ would remain eligible, instead 

of specifying that the ‘‘students, institutions, and government of 

Palau’’ would remain eligible. 

Section 5 clarifies that section 105(f)(1)(C) of the CFAAA is intended to continue eligibility for the programs and services of the 

Legal Services Corporation for FSM and RMI migrants who legally 

reside in the United States. Legal Services Corporation eligibility 

was extended by the first Compact Act in 1986 (Public Law 99– 239), but in 1996, without any further action by Congress, the 

Legal Services Corporation, by rule, terminated the eligibility of 

FSM and RMI migrants. Section 104(e) of the original Compact 

Act, and of the CFAAA, states that it is ‘‘not the intent of Congress 

to cause any adverse consequences for an affected area,’’ which are 

defined as Hawaii, Guam, the CNMI, and American Samoa. The 

Legal Services Corporation is one of those programs which had assisted local communities, in both the ‘‘affected areas’’ and in the 

mainland United States, in responding to the impacts and needs of 

FSM and RMI citizens who were residing in U.S. communities. 

This section would restore eligibility as it existed from 1986 to 

1996. 

Section 6 makes technical corrections to the CFAAA. 

Section 7 authorizes the FSM, Palau, and the RMI to transmit 

videotaped programming. In remote and isolated communities of 

the United States, such as isolated communities in Alaska, Hawaii, 

and the Territories, Congress has provided an exception from the 

copyright laws to allow for the videotaping of television programming for rebroadcast in outlying areas. Section 7 would restore this 

exception for videotaping and rebroadcast of television programming for the freely associated states, which enjoyed the privilege 

during the Trust Territory period. 

Section 8 allows the Government of Palau to deposit the payment, otherwise payable to the United States under section 111 of 

Public Law 101–219, into a trust fund if the earnings of the trust 

fund are expended solely for maintenance of the road system constructed pursuant to section 212 of the Palau Compact, and if this 

trust fund is established and operated pursuant to an agreement 

entered into between the United States and Palau. 

Section 9 would clarify the tax-free status of the trust funds established for the FSM and RMI under their respective Compacts. 

Because these trust funds are to be incorporated in the District of 

Columbia and it is not a State, the intended tax-free status could 

otherwise be questioned. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of the cost of this measure has been provided by the Congressional Budget Office: 

S. 283—Compacts of Free Association Amendments Act of 2007 

S. 283 would amend the Compact of Free Association Amendments Act of 2003. The bill would make several amendments to the 

compact and would cancel a $3 million payment Palau owes to the 

federal government if Palau deposits $3 million into a trust fund 

controlled by the Republic of Palau. The earnings from the trust 

fund would be used for maintenance of the road system in Palau. 

Based on information from the Department of the Interior, CBO esmstockstill on PROD1PC66 with HEARING

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timates that this provision would result in a loss of offsetting receipts (a credit against direct spending) of $3 million in fiscal year 

2007. Enacting the legislation would not affect revenues. 

S. 283 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Matthew Pickford. The 

estimate was approved by Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 283. The bill is not a regulatory measure in the sense of imposing Government-established standards or significant economic responsibilities on private individuals and businesses. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would result from the enactment of S. 283, as ordered reported. 

EXECUTIVE COMMUNICATIONS

Because S. 283 is similar to legislation considered by the Senate 

in the 109th Congress, the Committee did not request Executive 

Agency views on S. 283. 

Following is a copy of the August 19, 2004, letter from the U.S. 

Department of State to the Chairman of the Committee transmitting the text of legislation that was included as section 2 of S. 283, 

as introduced. Copies of the two agreements to be approved by this 

language are retained in the Committee files. 

UNITED STATES DEPARTMENT OF STATE, 

Washington, DC, August 19, 2004. 

Hon. JEFF BINGAMAN, 

Committee on Energy and Natural Resources, 

U.S. Senate. 

DEAR SENATOR BINGAMAN: In accordance with section 

105(f)(1)(A)(iii) of the Compact of Free Association Amendments 

Act of 2003 (P.L. 108–188), the Department of State has completed 

negotiations and signed subsidiary agreements to the amended 

Compacts of Free Association with the Republic of the Marshall Islands (RMI) and the Federated States of Micronesia (FSM) with regard to future United States provision of disaster assistance. 

Specifically, we have reached agreement with the RMI and FSM 

on amendments to the Federal Programs and Services Agreements 

necessary to address the continued extension of disaster assistance 

and response services by the U.S. Agency for International Development (USAID), Office of Foreign Disaster Assistance (OFDA), 

and continued support from the Department of Homeland Security’s Federal Emergency Management Agency (FEMA). Accordingly, I am pleased to transmit to the Congress for consideration 

and enactment under section 105(f)(1)(A)(iii) of P.L. 108–188, the 

enclosed draft legislation to grant the consent of Congress to: 

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(1) the Agreement to Amend Article X of the Federal Programs and Services Agreement Between the Government of the 

United States and the Government of the Republic of the Marshall Islands Concluded Pursuant to Article III of Title One, 

Article II of Title Two, (including Section 222), and Section 231 

of the Compact of Free Association, as Amended; and 

(2) the Agreement to Amend Article X of the Federal Programs and Services Agreement Between the Government of the 

United States and the Government of the Federated States of 

Micronesia Concluded Pursuant to Article III of Title One, Article II of Title Two, (including Section 222), and Section 231 

of the Compact of Free Association, as Amended. 

The text of the signed Agreements is also enclosed, 

The Department of State appreciates Congress’ expeditious passage of the Compact of Free Association Amendments Act of 2003. 

The amended Compacts have entered into force with both nations, 

and the Department is working with the Department of the Interior, other executive branch agencies, and the respective governments to ensure their successful implementation. 

The Office of Management and Budget advises that there is no 

objection to the submission of this legislation from the standpoint 

of the Administration’s program. 

Sincerely, 

PAUL V. KELLY, 

Assistant Secretary, Legislative Affairs. 

Enclosures. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill S. 

1830, as ordered reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is 

printed in italic, existing law in which no change is proposed is 

shown in roman): 

PUBLIC LAW 108–188 [H.J. RES. 63]—DEC. 17, 2003 

COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 

2003 

108 P.L. 188; 117 Stat. 2720; 2003 Enacted H.J. Res. 63; 108 Enacted H.J. Res. 63 

JOINT RESOLUTION

To approve the Compact of Free Association, as amended, between the Government of the United States of America and the 

Government of the Federated States of Micronesia, and the Compact of Free Association, as amended, between the Government of 

the United States of America and the Government of the Republic 

of the Marshall Islands, and to appropriate funds to carry out the 

amended Compacts. 

* * * * * * * 

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TITLE I—APPROVAL OF U.S.-FSM COMPACT AND U.S. 

RMI COMPACT; INTERPRETATION OF, AND U.S. POLICIES REGARDING, U.S.-FSM COMPACT AND U.S.-RMI 

COMPACT; SUPPLEMENTAL PROVISIONS 

SEC. 101. APPROVAL OF U.S.-FSM COMPACT OF FREE ASSOCIATION 

AND THE U.S.-RMI COMPACT OF FREE ASSOCIATION; REFERENCES TO SUBSIDIARY AGREEMENTS OR SEPARATE 

AGREEMENTS. 

(a) FEDERATED STATES OF MICRONESIA.—The Compact of Free 

Association, as amended with respect to the Federated States of 

Micronesia and signed by the United States and the Government 

of the Federated States of Micronesia and set forth in Title II (section 201(a)) of this joint resolution, is hereby approved, and Congress hereby consents to the subsidiary agreements and amended 

subsidiary agreements listed in section 462 of the U.S.-FSM Compact, including Article X of the Federal Programs and Services 

Agreement Between the Government of the United States and the 

Government of the Federated States of Micronesia, as amended 

under the Agreement to Amend Article X that was signed by those 

2 Governments on June 30, 2004, which shall serve as the authority 

to implement the provisions thereof. Subject to the provisions of this 

joint resolution, the President is authorized to agree, in accordance 

with section 411 of the U.S.-FSM Compact, to an effective date for 

and thereafter to implement such U.S.-FSM Compact. 

(b) REPUBLIC OF THE MARSHALL ISLANDS.—The Compact of Free 

Association, as amended with respect to the Republic of the Marshall Islands and signed by the United States and the Government 

of the Republic of the Marshall Islands and set forth in Title II 

(section 201(b)) of this joint resolution, is hereby approved, and 

Congress hereby consents to the subsidiary agreements and 

amended subsidiary agreements listed in section 462 of the U.S. 

RMI Compact, including Article X of the Federal Programs and 

Services Agreement Between the Government of the United States 

and the Government of the Republic of the Marshall Islands, as 

amended under the Agreement to Amend Article X that was signed 

by those 2 Governments on June 18, 2004, which shall serve as the 

authority to implement the provisions thereof. Subject to the provisions of this joint resolution, the President is authorized to agree, 

in accordance with section 411 of the U.S.-RMI Compact, to an effective date for and thereafter to implement such U.S.-RMI Compact. 

* * * * * * * 

SEC. 103. AGREEMENTS WITH AND OTHER PROVISIONS RELATED TO 

THE REPUBLIC OF THE MARSHALL ISLANDS. 

* * * * * * * 

(c) SECTION 177 AGREEMENT.—

(1) In the joint resolution of January 14, 1986 (Public Law 

99–239) Congress provided that in furtherance of the purposes 

of Article I of the Subsidiary Agreement for Implementation of 

Section 177 of the Compact, the payment of the amount specified therein shall be made by the United States under Article 

I of the Agreement between the Government of the United 

States and the Government of the Marshall Islands for the Implementation of øsection 177¿ Section 177 of the Compact 

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(hereafter in this subsection referred to as the ‘‘Section 177 

Agreement’’) only after the Government of the Marshall Islands has notified the President of the United States as to 

which investment management firm has been selected by such 

Government to act as Fund Manager under Article I of the 

Section 177 Agreement. 

* * * * * * * 

SEC. 104. INTERPRETATION OF AND UNITED STATES POLICY REGARDING U.S.-FSM COMPACT AND U.S.-RMI COMPACT. 

* * * * * * * 

(b) IMMIGRATION AND PASSPORT SECURITY.— (1) NATURALIZED CITIZENS.—The rights of a bona fide naturalized citizen of the Federated States of Micronesia or the Republic of the Marshall Islands to enter the United States, to 

lawfully engage therein in occupations, and to establish residence therein as a nonimmigrant, to the extent such rights are 

provided under section 141 of the U.S.-FSM Compact and the 

U.S.-RMI Compact, shall not be deemed to extend to any such 

naturalized citizen with respect to whom circumstances associated with the acquisition of the status of a naturalized citizen 

are such as to allow a reasonable inference, on the part of appropriate officials of the United States and subject to United 

States procedural requirements, that such naturalized status 

was acquired primarily in order to obtain such rights. 

* * * * * * * 

(e) IMPACT OF THE U.S.-FSM COMPACT AND THE U.S.-RMI COM- PACT ON THE STATE OF HAWAII, GUAM, THE COMMONWEALTH OF

THE NORTHERN MARIANA ISLANDS AND AMERICAN SAMOA; RELATED

AUTHORIZATION AND CONTINUING APPROPRIATION. (1) STATEMENT OF CONGRESSIONAL INTENT.—In Reauthorizing the U.S.-FSM Compact and the U.S.-RMI Compact, it is 

not the intent of Congress to cause any adverse consequences 

for an affected jurisdiction. 

* * * * * * * 

(8) REPORTING REQUIREMENT.—Not later than one year after 

the date of enactment of this joint resolution, and at one year 

intervals thereafter, the Governors of Guam, the State of Hawaii, the Commonwealth of the Northern Mariana Islands, and 

American Samoa may provide to the Secretary of the Interior 

by February 1 of each year their comments with respect to the 

impacts of the Compacts on their respective jurisdiction. The 

Secretary of the Interior, upon receipt of any such comments, 

shall report to the Congress not later than May 1 of each year 

øto include¿ and include the following: 

(A) The Governor’s comments on the impacts of the 

Compacts as well as the Administration’s analysis of such 

impact. 

(B) The Administration views on any recommendations 

for corrective action to eliminate those consequences as 

proposed by such Governors. 

(C) With regard to immigration, statistics concerning the 

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scribed in section 141(a) of the Compact during the year 

covered by each report. 

(D) With regard to trade, an analysis of the impact on 

the economy of American Samoa resulting from imports of 

canned tuna into the United States from the Federated 

States of Micronesia and the Republic of the Marshall Islands. 

(9) RECONCILIATION OF UNREIMBURSED IMPACT EXPENSES.— (A) IN GENERAL.—Notwithstanding any other provision 

of law, the President, to address previously accrued and 

unreimbursed impact expenses, may, at the request of the 

Governor of Guam or the Governor of the Commonwealth 

of the Northern Mariana Islands, reduce, release, or waive 

all or part of any amounts owed by the Government of 

Guam or the Government of the Commonwealth of the 

Northern Mariana Islands (or either government’s autonomous agencies or instrumentalities), respectively, to any 

department, agency, independent agency, office, or instrumentality of the United States. 

(B) TERMS AND CONDITIONS.—

(i) SUBSTANTIATION OF IMPACT COSTS.—Not later 

than 120 days after the date of the enactment of this 

resolution, the Governor of Guam and the Governor of 

the Commonwealth of the Northern Mariana Islands 

shall each submit to the Secretary of the Interior a report, prepared in consultation with an independent accounting firm, substantiating unreimbursed impact expenses claimed for the period from January 14, 1986, 

through September 30, 2003. Upon request of the Secretary of the Interior, the Governor of Guam and the 

Governor of the Commonwealth of the Northern Mariana Islands shall submit to the Secretary of the Interior copies of all documents upon which the report 

submitted by that Governor under this clause was 

based. 

(ii) CONGRESSIONAL NOTIFICATION.—The President 

shall notify Congress of his intent to exercise the authority granted in subparagraph (A). 

(iii) CONGRESSIONAL REVIEW AND COMMENT.—Any 

reduction, release, or waiver under this Act shall not 

take effect until 60 days after the President notifies 

Congress of his intent to approve a request of the Governor of Guam or the Governor of the Commonwealth 

of the Northern Mariana Islands. In exercising his authority under this section and in determining whether 

to give final approval to a request, the President shall 

take into consideration comments he may receive after 

Congressional review. 

(iv) EXPIRATION.—The authority granted in subparagraph (A) shall expire on February 28, 2005. 

(10) AUTHORIZATION OF APPROPRIATIONS FOR GRANTS.—There 

are hereby authorized to the Secretary of the Interior for each 

of fiscal years 2004 through 2023 such sums as may be necessary for grants to the governments of Guam, the State of Hawaii, the Commonwealth of the Northern Mariana Islands, and 

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American Samoa, as a result of increased demands placed on 

educational, social, or public safety services or infrastructure 

ørelated to service¿ related to such services due to the presence 

in Guam, Hawaii, the Commonwealth of the Northern Mariana 

Islands, and American Samoa of qualified nonimmigrants from 

the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau. 

(j) INFLATION ADJUSTMENT.—As of Fiscal Year 2015, if the 

United States Gross Domestic Product Implicit Price Deflator average for Fiscal Years 2009 through 2013 is greater than United 

States Gross Domestic Product Implicit Price Deflator average for 

Fiscal Years 2004 through 2008 (as reported in the Survey of Current Business or subsequent publication and compiled by the Department of the Interior), then section 217 of the U.S.-FSM Compact, paragraph 5 of Article II of the U.S.-FSM Fiscal Procedures 

Agreement, section 218 of the U.S.-RMI Compact, and paragraph 

5 of Article II of the U.S.-RMI Fiscal Procedures Agreement shall 

be construed as if ‘‘the full’’ appeared in place of ‘‘two-thirds of the’’ each place those words appear. If an inflation adjustment is made 

under this subsection, the base year for calculating the inflation 

adjustment shall be fiscal year 2014. 

* * * * * * * 

SEC. 105. SUPPLEMENTAL PROVISIONS. 

(a) DOMESTIC PROGRAM REQUIREMENTS.—Except as may otherwise be provided in this joint resolution, all United States Federal 

programs and services extended to or operated in the Federated 

States of Micronesia or the Republic of the Marshall Islands are 

and shall remain subject to all applicable criteria, standards, reporting requirements, auditing procedures, and other rules and 

regulations applicable to such programs when operating in the 

United States (including its territories and commonwealths). 

(b) RELATIONS WITH THE FEDERATED STATES OF MICRONESIA AND

THE REPUBLIC OF THE MARSHALL ISLANDS.— (1) Appropriations made pursuant to Article I of Title Two 

and subsection (a)(2) of section 221 of article II of Title Two of 

the U.S.-FSM Compact and the U.S.-RMI Compact shall be 

made to the Secretary of the Interior, who shall have the authority necessary to fulfill his responsibilities for monitoring 

and managing the funds so appropriated consistent with the 

U.S.-FSM Compact and the U.S.-RMI Compact, including the 

agreements referred to in section 462(b)(4) of the U.S.-FSM 

Compact and U.S.-RMI Compact (relating to Fiscal Procedures) 

and the agreements referred to in section 462(b)(5) of the 

U.S.FSM Compact and the U.S.-RMI Compact (regarding the 

øTrust Fund¿ Trust Funds). 

* * * * * * * 

(f) CONTINUING PROGRAMS AND LAWS.—

(1) FEDERATED STATES OF MICRONESIA AND REPUBLIC OF THE

MARSHALL ISLANDS.—In addition to the programs and services 

set forth in section 221 of the Compact, and pursuant to section 222 of the Compact, the programs and services of the following agencies shall be made available to the Federated 

States of Micronesia and to the Republic of the Marshall Islands: 

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ø(A) CONTINUATION OF THE PROGRAMS AND SERVICES OF

THE FEDERAL EMERGENCY MANAGEMENT AGENCY.—Except 

as provided in clauses (ii) and (iii), the programs and services of the Department of Homeland Security, Federal 

Emergency Management Agency shall continue to be available to the Federated States of Micronesia and the Republic of the Marshall Islands to the same extent as such programs and services available in fiscal year 2003. 

ø(i) Paragraph (a)(6) of section 221 of the U.S.-FSM 

Compact and paragraph (a)(5) of the U.S.-RMI Compact shall each be construed as though the paragraph 

reads as follows: ‘‘the Department of Homeland Security, United States Federal Emergency Management 

Agency.’’. ø(ii) Subsection (d) of section 211 of the U.S.-FSM 

Compact and subsection (e) of section 211 of the U.S.- 

RMI Compact shall each be construed as though the 

subsection reads as follows: ‘‘Not more than $200,000 

(as adjusted for inflation pursuant to section 217 of 

the U.S.-FSM Compact and section 218 of the U.S.- 

RMI Compact) shall be made available by the Secretary of the Interior to the Department of Homeland 

Security, Federal Emergency Management Agency to 

facilitate the activities of the Federal Emergency Management Agency in accordance with and to the extent 

provided in the Federal Programs and Services Agreement.’’. ø(iii) The Secretary of State, in consultation with 

the Department of Homeland Security and the Federal 

Emergency Management Agency, shall immediately 

undertake negotiations with the Government of the 

Federated States of Micronesia and the Government of 

the Republic of the Marshall Islands regarding disaster assistance and shall report to the appropriate 

committees of Congress no later than June 30, 2004, 

on the outcome of such negotiations, including recommendations for changes to law regarding disaster 

assistance under the U.S.-FSM Compact and the U.S.- 

RMI Compact, and including subsidiary agreements as 

needed to implement such changes to law. If an agreement is not concluded, and legislation enacted which 

reflects such agreement, before the date which is five 

years after the date of enactment of this Joint Resolution, the following provisions shall apply: ‘‘Paragraph 

(a)(6) of section 221 of the U.S.-FSM Compact and 

paragraph (a)(5) of section 221 of the U.S.-RMI Compact shall each be construed and applied as if each 

provision reads as follows: ‘‘The U.S. Agency for International Development shall be responsible for the provision of emergency and disaster relief assistance in 

accordance with its statutory authorities, regulations 

and policies. The Republic of the Marshall Islands and 

the Federated States of Micronesia may additionally 

request that the President make an emergency or 

major disaster declaration. If the President declares 

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an emergency or major disaster, the Department of 

Homeland Security (DHS), the Federal Emergency 

Management Agency (FEMA) and the U.S. Agency for 

International Development shall jointly (a) assess the 

damage caused by the emergency or disaster and (b) 

prepare a reconstruction plan including an estimate of 

the total amount of Federal resources that are needed 

for reconstruction. Pursuant to an interagency agreement, FEMA shall transfer funds from the Disaster 

Relief Fund in the amount of the estimate, together 

with an amount to be determined for administrative 

expenses, to the U.S. Agency for International Development, which shall carry out reconstruction activities 

in the Republic of the Marshall Islands and the Federated States of Micronesia in accordance with the reconstruction plan. For purposes of Disaster Relief 

Fund appropriations, the funding of the activities to be 

carried out pursuant to this paragraph shall be 

deemed to be necessary expenses in carrying out the 

Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). ‘‘DHS may provide to the Republic of the Marshall Islands and the 

Federated States of Micronesia preparedness grants to 

the extent that such assistance is available to the 

States of the United States. Funding for this assistance may be made available from appropriations made 

to DHS for preparedness activities.’’.¿ 

(A) EMERGENCY AND DISASTER ASSISTANCE.— (i) IN GENERAL.—Subject to clause (ii), section 

221(a)(6) of the U.S.-FSM Compact and section 

221(a)(5) of the U.S.-RMI Compact shall each be construed and applied in accordance with the 2 Agreements to Amend Article X of the Federal Programs and 

Service Agreements signed on June 30, 2004, and on 

June 18, 2004, respectively. 

(ii) DEFINITION OF WILL PROVIDE FUNDING.—In the 

second sentence of paragraph 12 of each of the Agreements described in clause (i), the term ‘‘will provide 

funding’’ means will provide funding through a transfer of funds using Standards Form 1151 or a similar 

document or through an interagency, reimbursable 

agreement. 

(B) TREATMENT OF ADDITIONAL PROGRAMS.—

(i) CONSULTATION.—The United States appointees to 

the committees established pursuant to section 213 of 

the U.S.-FSM Compact and section 214 of the U.S.- 

RMI Compact shall consult with the Secretary of Education regarding the objectives, use, and monitoring of 

United States financial, program, and technical assistance made available for educational purposes. 

(ii) CONTINUING PROGRAMS.—The Government of the 

United States— (I) shall continue to make available to the Federated States of Micronesia and the Republic of 

the Marshall Islands for fiscal years 2004 through 

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2023, the services to individuals eligible for such 

services under the Individuals with Disabilities 

Education Act (20 U.S.C. 1400 et seq.) to the extent that such services continue to be available to 

individuals in the United States; and 

(II) shall continue to make available to eligible 

institutions in the Federated States of Micronesia 

and the Republic of the Marshall Islands, and to 

students enrolled in such institutions, and in institutions in the United States øand its territories¿, its territories, and the Republic of Palau 

for fiscal years 2004 through 2023, grants under 

subpart 1 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.) to the 

extent that such grants continue to be available to 

institutions and students in the United States. 

(iii) SUPPLEMENTAL EDUCATION GRANTS.—In lieu of 

eligibility for appropriations under part A of title I of 

the Elementary and Secondary Education Act of 1965 

(20 U.S.C. 6311 et seq.), title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.), other 

than subtitle C of that Act (29 U.S.C. 2881 et seq.) 

(Job Corps), title II of the Workforce Investment Act 

of 1998 (20 U.S.C. 9201 et seq.; commonly known as 

the Adult Education and Family Literacy Act), title I 

of the Carl D. Perkins Vocational and Technical Education Act of 1998 (20 U.S.C. 2321 et seq.), the Head 

Start Act (42 U.S.C. 9831 et seq.), and subpart 3 of 

part A, and part C, of title IV of the Higher Education 

Act of 1965 (20 U.S.C. 1070b et seq., 42 U.S.C. 2751 

et seq.), there are authorized to be appropriated to the 

Secretary of Education to supplement the education 

grants under section 211(a)(1) of the U.S.-FMS Compact and section 211(a)(1) of the U.S.-RMI Compact, 

respectively, the following amounts: (I) $12,230,000 for the Federated States of Micronesia for fiscal year 2005 and an equivalent 

amount, as adjusted for inflation under section 

217 of the U.S.-FSM Compact, for each of fiscal 

years 2005 through 2023; and (II) $6,100,000 for the Republic of the Marshall 

Islands for fiscal year 2005 and an equivalent 

amount, as adjusted for inflation under section 

218 of the U.S.-RMI Compact, for each of fiscal 

years 2005 through 2023, except that citizens of 

the Federated States of Micronesia and the Republic of the Marshall Islands who attend an institution of higher education in the United States 

or its territories, the Federated States of Micronesia, øor the Republic of the Marshall Islands¿ 

the Republic of the Marshall Islands, or the Republic of Palau on the date of enactment of this 

joint resolution may continue to receive assistance 

under such subpart 3 of part A or part C, for not 

more than 4 academic years after such date to enmstockstill on PROD1PC66 with HEARING

14 

able such citizens to complete their program of 

study. 

(iv) FISCAL PROCEDURES.—Appropriations made pursuant to clause (iii) shall be used and monitored in accordance with an agreement between the Secretary of 

Education, the Secretary of Labor, the Secretary of 

Health and Human Services, and the Secretary of the 

Interior, and in accordance with the respective Fiscal 

Procedures Agreements referred to in section 462(b)(4) 

of the U.S.-FSM Compact and section 462(b)(4) of the 

U.S.-RMI Compact. The agreement between the Secretary of Education, the Secretary of Labor, the Secretary of Health and Human Services, and the Secretary of the Interior shall provide for the transfer, not 

later than 60 days after the appropriations made pursuant to clause (iii) become available to the Secretary 

of Education, the Secretary of Labor, and the Secretary of Health and Human Services, from the Secretary of Education, the Secretary of Labor, and the 

Secretary of Health and Human Services, to the Secretary of the Interior for disbursement. 

(v) FORMULA EDUCATION GRANTS.—For fiscal years 

2005 through 2023, except as provided in clause (ii) 

and the exception provided under clause (iii), the Governments of the Federated States of Micronesia and 

the Republic of the Marshall Islands shall not receive 

any grant under any formula-grant program administered by the Secretary of Education or the Secretary 

of Labor, nor any grant provided through the Head 

Start Act (42 U.S.C. 9831 et seq.) administered by the 

Secretary of Health and Human Services. 

(vi) TRANSITION.—For fiscal year 2004, the Governments of the Federated States of Micronesia and the 

Republic of the Marshall Islands shall continue to be 

eligible for appropriations and to receive grants under 

the provisions of law specified in clauses (ii) and (iii). 

(vii) TECHNICAL ASSISTANCE.—The Federated States 

of Micronesia and the Republic of the Marshall Islands 

may request technical assistance from the Secretary of 

Education, the Secretary of Health and Human Services, or the Secretary of Labor the terms of which, including reimbursement, shall be negotiated with the 

participation of the appropriate cabinet officer for inclusion in the Federal Programs and Services Agreement. 

(viii) CONTINUED ELIGIBILITY FOR COMPETITIVE

GRANTS.—The Governments of the Federated States of 

Micronesia and the Republic of the Marshall Islands 

shall continue to be eligible for competitive grants administered by the Secretary of Education, the Secretary of Health and Human Services, and the Secretary of Labor to the extent that such grants continue 

to be available to State and local governments in the 

United States. 

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(ix) APPLICABILITY.—The øRepublic¿ government, institutions, and people of Palau shall remain eligible for 

appropriations and to receive grants under the provisions of law specified in clauses (ii) and (iii) until the 

end of fiscal year ø2007¿ 2009, to the extent the øRepublic¿ government, institutions, and people of Palau 

øwas¿ were so eligible under such provisions in fiscal 

year 2003. 

(C) The Legal Services Corporation, which shall also 

continue to be available to the citizens of the Federated 

States of Micronesia, the Republic of Palau, and the Republic of the Marshall Islands who legally reside in the United 

States (including territories and possessions). 

* * * * * * * 

TITLE II—COMPACTS OF FREE ASSOCIATION WITH THE 

FEDERATED STATES OF MICRONESIA AND THE REPUBLIC OF THE MARSHALL ISLANDS 

SEC. 201. COMPACTS OF FREE ASSOCIATION, AS AMENDED BETWEEN 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA 

AND THE GOVERNMENT OF THE FEDERATED STATES OF 

MICRONESIA AND BETWEEN THE GOVERNMENT OF THE 

UNITED STATES OF AMERICA AND THE GOVERNMENT OF 

THE REPUBLIC OF THE MARSHALL ISLANDS. 

(a) COMPACT OF FREE ASSOCIATION, AS AMENDED, BETWEEN THE

GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOV- ERNMENT OF THE FEDERATED STATES OF MICRONESIA.—The Compact of Free Association, as amended, between the Government of 

the United States of America and the Government of the Federated 

States of Micronesia is as follows: 

PREAMBLE 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA 

AND THE GOVERNMENT OF THE FEDERATED STATES OF 

MICRONESIA 

* * * * * * * 

Section 174 

Except as otherwise provided in this Compact, as amended, and 

its related agreements: 

(a) The Government of the Federated States of Micronesia, and 

its agencies and officials, shall be immune from the jurisdiction of 

the court of the United States, and the Government of the United 

States, and its agencies and officials, shall be immune from the jurisdiction of the øcourts¿ court of the Federated States of Micronesia. 

(b) The Government of the United States accepts responsibility 

for and shall pay: 

(1) any unpaid money judgment rendered by the High Court 

of the Trust Territory of the Pacific Islands against the Government of the United States with regard to any cause of action arising as a result of acts or omissions of the Government 

of the Trust Territory of the Pacific Islands or the Government 

of the United States prior to November 3, 1986; 

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(2) any claim settled by the claimant and the Government of 

the Trust Territory of the Pacific Islands but not paid as of 

øthe¿ November 3, 1986; and 

* * * * * * * 

Section 177 

Section 177 of the Compact entered into force with respect to the 

Federated States of Micronesia on November 3, 1986 as follows: ‘‘(a) The Government of the United States accepts the responsibility for compensation owing to citizens of the Marshall Islands, 

or the Federated States of Micronesiaø, or Palau¿ (or Palau) for 

loss or damage to property and person of the citizens of the Marshall Islands, or the Federated States of Micronesia, resulting from 

the nuclear testing program which the Government of the United 

States conducted in the Northern Marshall Islands between June 

30, 1946, and August 18, 1958. 

* * * * * * * 

Section 179 

(a) The courts of the Federated States of Micronesia shall not exercise criminal jurisdiction over the Government of the United 

States, or its instrumentalities. 

(b) The courts of the Federated States of Micronesia shall not exercise criminal jurisdiction over any person if the Government of 

the United States provides notification to the Government of the 

Federated States of Micronesia that such person was acting on behalf of the Government of the United States, for actions taken in 

furtherance of section 221 or 224 of this øamended Compact¿ Compact, as amended, or any other provision of law authorizing financial, program, or service assistance to the Federated States of Micronesia. 

TITLE TWO—ECONOMIC RELATIONS 

ARTICLE I 

GRANT ASSISTANCE

Section 211—Sector Grants 

(a) In order to assist the Government of the Federated States of 

Micronesia in its efforts to promote the economic advancement, 

budgetary self-reliance, and economic self-sufficiency of its people, 

and in recognition of the special relationship that exists between 

the Federated States of Micronesia and the United States, the Government of the United States shall provide assistance on a sector 

grant basis for a period of twenty years in the amounts set forth 

in section 216, commencing on the effective date of this Compact, 

as amended. Such grants shall be used for assistance in the sectors 

of education, health care, private sector development, the environment, public sector capacity building, and public infrastructure, or 

for other sectors as mutually agreed, with priorities in the education and health care sectors. For each year such sector grant assistance is made available, the proposed division of this amount 

among these sectors shall be certified to the Government of the 

United States by the Government of the Federated States of Micromstockstill on PROD1PC66 with HEARING

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nesia and shall be subject to the concurrence of the Government of 

the United States. In such case, the Government of the United 

States shall disburse the agreed upon amounts and monitor the use 

of such sector grants in accordance with the provisions of this Article and the Agreement Concerning Procedures for the Implementation of United States Economic Assistance Provided in the øCompact, as Amended, of Free Association¿ Compact of Free Association, as amended, Between the Government of the United States of 

America and the Government of the Federated States of Micronesia 

(‘‘Fiscal Procedures Agreement’’) which shall come into effect simultaneously with this Compact, as amended. The provision of any 

United States assistance under the Compact, as amended, the Fiscal Procedures Agreement, the øTrust Fund Agreement¿ Agreement 

Between the Government of the United States of America and the 

Government of the Federated States of Micronesia Implementing 

Section 215 and Section 216 of the Compact, as Amended, Regarding a Trust Fund (Trust Fund Agreement), or any other subsidiary 

agreement to the Compact, as amended, shall constitute ‘‘a particular distribution . . . required by the terms or special nature of 

the assistance’’ for purposes of Article XII, section l(b) of the Constitution of the Federated States of Micronesia. 

* * * * * * * 

(b) HUMANITARIAN ASSISTANCE.—Federated States of Micronesia 

Program. In recognition of the special development needs of the 

Federated States of Micronesia, the Government of the United 

States shall make available to the øGovernment of the¿ Federated 

States of Micronesia, on its request and to be deducted from the 

grant amount made available under subsection (a) of this section, 

a Humanitarian Assistance—Federated States of Micronesia 

(‘‘HAFSM’’) Program with emphasis on health, education, and infrastructure (including transportation), projects. The terms and 

conditions of the HAFSM shall be set forth in the Agreement Regarding the Military Use and Operating Rights of the Government 

of the United States in the Government of the Federated States of 

Micronesia Concluded Pursuant to øSections 321 and 323 of the 

Compact of Free Association, as Amended¿ Sections 211(b), 321, 

and 323 of the Compact of Free Association, as amended which 

shall come into effect simultaneously with the amendments to this 

Compact. 

(c) DEVELOPMENT PLAN.—The Government of the Federated 

States of Micronesia shall prepare and maintain an official overall 

development plan. The plan shall be strategic in nature, shall be 

continuously reviewed and updated through the annual budget 

process, and shall make projections on a multi-year rolling basis. 

Each of the sectors named in subsection (a) of this section, or other 

sectors as mutually agreed, shall be accorded specific treatment in 

the plan. Insofar as grants funds are involved, the plan shall be 

subject to the concurrence of the Government of the United States. 

(d) DISASTER ASSISTANCE EMERGENCY FUND.—An amount of two 

hundred thousand dollars ($200,000) shall be provided annually, 

with an equal contribution from the Government of the Federated 

States of Micronesia, as a contribution to a ‘‘Disaster Assistance 

Emergency Fund (DAEF).’’ Any funds from the DAEF may be used 

only for assistance and rehabilitation resulting from disasters and 

emergencies. The funds will be accessed upon declaration by the 

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Government of the Federated States of Micronesia, with the concurrence of the United States Chief of Mission to the Federated 

States of Micronesia. The Administration of the DAEF shall be governed by the Fiscal Procedures Agreement and the Federal Programs and Services Agreement referred to in section 231. 

* * * * * * * 

Section 215—Trust Fund 

(a) The United States shall contribute annually for twenty years 

from the effective date of this Compact, as amended, in the 

amounts set forth in section 216 into a Trust Fund established in 

accordance with the Agreement Between the Government of the 

United States of America and the Government of the Federated 

States of Micronesia Implementing Section 215 and Section 216 of 

the Compact, as Amended, Regarding a Trust Fund (‘‘Trust Fund 

Agreement’’). Upon termination of the annual financial assistance 

under section 211, the proceeds of the fund shall thereafter be used 

for the purpose described in section 211 or as otherwise mutually 

agreed. 

(b) The United States contribution into the Trust Fund described 

in øsubsection (a)¿ subsection (a) of this section is conditioned on 

the Government of the Federated States of Micronesia contributing 

to the Trust Fund at least $30 million, prior to September 30, 2004. 

Any funds received by the Federated States of Micronesia under 

section 111(d) of Public Law 99–239 (January 14, 1986), or successor provisions, would be contributed to the Trust Fund as a Federated States of Micronesia contribution. 

* * * * * * * 

Section 221 

(a) SECTION.—The Government of the United States shall make 

available to the Federated States of Micronesia, in accordance with 

and to the extent provided in the Federal Programs and Services 

Agreement referred to in section 231, the services and related programs of: 

(1) the United States Weather Service; 

(2) the United States Postal Service; 

(3) the United States Federal Aviation Administration; 

(4) the United States Department of Transportation; 

(5) the Federal Deposit Insurance Corporation (for the benefit only of the Bank of the Federated States of Micronesia); 

and 

(6) the Department of Homeland Security (Federal Emergency Management Agency), and the United States Agency for 

International Development, Office of Foreign Disaster Assistance. 

Upon the effective date of this Compact, as amended, the United 

States Departments and Agencies named or having responsibility 

to provide these services and related programs shall have the authority to implement the relevant provisions of the Federal Programs and Services Agreement referred to in section 231. 

(b) PROGRAMS.—

(1) With the exception of the services and programs covered 

by subsection (a) of this section, and unless the Congress of the 

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United States provides otherwise, the Government of the 

United States shall make available to the Federated States of 

Micronesia the services and programs that were available to 

the Federated States of Micronesia on the effective date of this 

Compact, as amended, to the extent that such services and programs continue to be available to State and local governments 

of the United States. As set forth in the Fiscal Procedures 

Agreement, funds provided under subsection (a) of section 211 

will be considered to be local revenues of the Government of 

the Federated States of Micronesia when used as the local 

share required to obtain Federal programs and services. 

(2) Unless provided otherwise by U.S. law, the services and 

programs described in paragraph (1) of this subsection shall be 

extended in accordance with the terms of the Federal Programs and Services Agreement referred to in section 231. 

(c) The Government of the United States shall have and exercise 

such authority as is necessary to carry out its responsibilities 

under this Title and the separate øagreements¿ agreement referred 

to in amended section 231, including the authority to monitor and 

administer all service and program assistance provided by the 

United States to the Federated States of Micronesia. The Federal 

Programs and Services Agreement referred to in amended section 

231 shall also set forth the extent to which services and programs 

shall be provided to the Federated States of Micronesia. 

(d) Except as provided elsewhere in this Compact, as amended, 

under any separate agreement entered into under this Compact, as 

amended, or otherwise under U.S. law, all Federal domestic programs extended to or operating in the Federated States of Micronesia shall be subject to all applicable criteria, standards, reporting 

requirements, auditing procedures, and other rules and regulations 

applicable to such programs and services when operating in the 

United States. 

(e) The Government of the United States shall make available to 

the Federated States of Micronesia alternate energy development 

projects, studies, and conservation measures to the extent provided 

for the Freely Associated States in the laws of the United States. 

Section 222 

The Government of the United States and the Government of the 

Federated States of Micronesia may agree from time to time to extend to the Federated States of Micronesia additional United 

States grant assistance, services and programs, as provided under 

the laws of the United States. Unless inconsistent with such laws, 

or otherwise specifically precluded by the Government of the 

United States at the time such additional grant assistance, services, or programs are extended, the Federal Programs and Services 

Agreement referred to in section 231 shall apply to any such assistance, services or programs. 

* * * * * * * 

Section 232 

The Government of the United States, in consultation with the 

Government of the Federated States of Micronesia, shall determine 

and implement procedures for the periodic audit of all grants and 

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other assistance made under Article I of this Title and of all funds 

expended for the services and programs provided under Article II 

of this Title. Further, in accordance with the Fiscal Procedures 

Agreement described in subsection (a) of section 211, the Comptroller General of the United States shall have such powers and authorities as described in øsections 102(c) and 110(c) of Public Law 

99–239, 99 Stat. 1777–78, and 99 Stat. 1799 (January 14, 1986)¿ 

section 102(b) of Public Law 108–188, 117 Stat. 2726, December 17, 

2003. 

* * * * * * * 

Section 252 

The Government of the Federated States of Micronesia may, with 

respect to United States persons, tax income derived from sources 

within its respective jurisdiction, property situated therein, including transfers of such property by gift or at death, and products consumed therein, in such manner as the Government of the Federated States of Micronesia deems appropriate. The determination 

of the source of any income, or the situs of any property, shall for 

purposes of this Compact, as amended, be made according to the 

United States Internal Revenue Code. 

* * * * * * * 

Section 341 

Any person entitled to the privileges set forth in øSection 141¿ 

section 141 (with the exception of any person described in section 

141(a)(5) who is not a citizen of the Federated States of Micronesia) 

shall be eligible to volunteer for service in the Armed Forces of the 

United States, but shall not be subject to involuntary induction 

into military service of the United States as long as such person 

has resided in the United States for a period of less than one year, 

provided that no time shall count towards this one year while a 

person admitted to the United States under the Compact, or the 

Compact, as amended, is engaged in full-time study in the United 

States. Any person described in section 141(a)(5) who is not a citizen of the Federated States of Micronesia shall be subject to 

United States laws relating to selective service. 

Section 342 

The Government of the United States shall have enrolled, at any 

one time, at least one qualified student from the Federated States 

of Micronesia, as may be nominated by the Government of the Federated States of Micronesia, in each of: 

(a) The United States Coast Guard Academy pursuant to ø14 

U.S.C. 195¿ section 195 of Title 14, United States Code. (b) The United States Merchant Marine Academy pursuant to 

ø46 U.S.C. 1295(b)(6)¿ section 1303(b)(6) of the Merchant Marine 

Act, 1936 (46 U.S.C. 1295b(b)(6)), provided that the provisions of 

ø46 U.S.C. 1295b(b)(6)(C)¿ section 1303(b)(6)(C) of that Act shall 

not apply to the enrollment of students pursuant to section 342(b) 

of this Compact, as amended. 

* * * * * * * 

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Section 354 

(a) The Government of the United States and the Government of 

the Federated States of Micronesia are jointly committed to continue their security and defense relations, as set forth in this Title. 

Accordingly, it is the intention of the two countries that the provisions of this Title shall remain binding as long as this Compact, 

as amended, remains in effect, and thereafter as mutually agreed, 

unless earlier terminated by mutual agreement pursuant to section 

441, or amended pursuant to Article III of Title Four. If at any 

time the Government of the United States, or the Government of 

the Federated States of Micronesia, acting unilaterally, terminates 

this Title, such unilateral termination shall be considered to be termination of the entire Compact, in which case the provisions of 

øsection 442 and 452¿ sections 442 and 452 (in the case of termination by the Government of the United States) or sections 443 and 

453 (in the case of termination by the Government of the Federated 

States of Micronesia), with the exception of paragraph (3) of subsection (a) of section 452 or paragraph (3) of subsection (a) of section 453, as the case may be, shall apply. 

* * * * * * * 

Section 461 

For the purpose of this Compact, as amended, only, and without 

prejudice to the views of the Government of the United States or 

the Government of the Federated States of Micronesia as to the nature and extent of the jurisdiction of either of them under international law, the following terms shall have the following meanings: 

(a) ‘‘Trust Territory of the Pacific Islands’’ means the area established in the Trusteeship Agreement consisting of the former administrative districts of Kosrae, Yap, Ponape, the Marshall Islands 

and Truk as described in Title One, Trust Territory Code, section 

1, in force on January 1, 1979. This term does not include the area 

of Palau or the Northern Mariana Islands. 

* * * * * * * 

(h) The following terms shall be defined consistent with the 1998 

Edition of the Radio Regulations of the International øTelecommunications¿ Telecommunication Union as follows: 

* * * * * * * 

Section 462 

(b) The Government of the United States and the Government of 

the Federated States of Micronesia shall conclude prior to the date 

of submission of this Compact, as amended, to the legislatures of 

the two countries, the following related agreements which shall 

come into effect on the effective date of this Compact, as amended, 

and shall survive in accordance with their terms, as follows: 

* * * * * * * 

(4) Agreement concerning Procedures for the Implementation 

of United States Economic Assistance Provided in the Compact 

of Free Association, as Amended, øof Free Association¿ Bemstockstill on PROD1PC66 with HEARING

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tween the Government of the United States of America and the 

Government of the Federated States of Micronesia; 

* * * * * * * 

Section 463 

(a) Except as set forth in subsection (b) of this section, any reference in this Compact, as amended, to a provision of the United 

States Code or the Statutes at Large of the United States constitutes the incorporation of the language of such provision into 

this Compact, as amended, as such provision was in force on the 

effective date of this Compact, as amended. 

(b) Any reference in øArticles IV¿ Article IV and Article VI of 

Title One and Sections 174, 175, 178 and 342 to a provision of the 

United States Code or the Statutes at Large of the United States 

or to the Privacy Act, the Freedom of Information Act, the Administrative Procedure Act or the Immigration and Nationality Act 

constitutes the incorporation of the language of such provision into 

this Compact, as amended, as such provision was in force on the 

effective date of this Compact, as amended, or as it may be amended thereafter on a non-discriminatory basis according to the constitutional processes of the United States. 

* * * * * * * 

(b) COMPACT OF FREE ASSOCIATION, AS AMENDED, BETWEEN THE

GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF THE MARSHALL ISLANDS.—The Compact of Free Association, as amended, between the Government of 

the United States of America and the Government of the Republic 

of the Marshall Islands is as follows: 

PREAMBLE 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE

GOVERNMENT OF THE REPUBLIC OF THE MARSHALL ISLANDS

* * * * * * * 

Section 174 

Except as otherwise provided in this Compact, as amended, and 

its related agreements: 

(a) The Government of the Republic of the Marshall Islands, and 

its agencies and officials, shall be immune from the jurisdiction of 

the øcourt¿ courts of the United States, and the Government of the 

United States, and its agencies and officials, shall be immune from 

the jurisdiction of the courts of the Republic of the Marshall Islands. 

* * * * * * * 

Section 177 

Section 177 of the Compact entered into force with respect to the 

Marshall Islands on October 21, 1986 as follows: ‘‘(a) The Government of the United States accepts the responsibility for compensation owing to citizens of the Marshall Islands, or the Federated 

States of Mirconesiaø,¿ (or Palau) for loss or damage to property 

and person of the citizens of the Marshall Islands, or the Federated 

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States of Micronesia, resulting from the nuclear testing program 

which the Government of the United States conducted in the 

Northern Marshall Islands between June 30, 1946, and August 18, 

1958. 

* * * * * * * 

Section 179 

(a) The courts of the Republic of the Marshall Islands shall not 

exercise criminal jurisdiction over the Government of the United 

States, or its instrumentalities. 

(b) The courts of the Republic of the Marshall Islands shall not 

exercise criminal jurisdiction over any person if the Government of 

the United States provides notification to the Government of the 

Republic of the Marshall Islands that such person was acting on 

behalf of the Government of the United States, for actions taken 

in furtherance of section 221 or 224 of this øamended Compact,¿ 

Compact, as amended, or any other provision of law authorizing financial, program, or service assistance to the Republic of the Marshall Islands. 

TITLE TWO—ECONOMIC RELATIONS 

ARTICLE I 

GRANT ASSISTANCE

Section 211—Annual Grant Assistance 

(a) In order to assist the Government of the Republic of the Marshall Islands in its efforts to promote the economic advancement 

and budgetary self-reliance of its people, and in recognition of the 

special relationship that exists between the Republic of the Marshall Islands and the United States, the Government of the United 

States shall provide assistance on a grant basis for a period of 

twenty years in the amounts set forth in section 217, commencing 

on the effective date of this Compact, as amended. Such grants 

shall be used for assistance in education, health care, the environment, public sector capacity building, and private sector development, or for other areas as mutually agreed, with priorities in the 

education and health care sectors. Consistent with the mediumterm budget and investment framework described in subsection (f) 

of this section, the proposed division of this amount among the 

identified areas shall require the concurrence of both the Government of the United States and the Government of the Republic of 

the Marshall Islands, through the Joint Economic Management 

and Financial Accountability Committee described in section 214. 

The Government of the United States shall disburse the grant assistance and monitor the use of such grant assistance in accordance 

with the provisions of this Article and an Agreement Concerning 

Procedures for the Implementation of United States Economic Assistance Provided in the øCompact, as Amended, of Free Association¿ Compact of Free Association, as amended, Between the Government of the United States of America and the Government of 

the Republic of the Marshall Islands (‘‘Fiscal Procedures Agreement’’) which shall come into effect simultaneously with this, Compact, as amended. 

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(b) KWAJALEIN ATOLL.— (1) Of the total grant assistance made available under subsection (a) of this section, the amount specified herein shall be 

allocated annually from fiscal year 2004 through fiscal year 

2023 (and thereafter in accordance with the øAgreement Between the Government of the United States and the Government of the Republic of the Marshall Islands Regarding Military Use and Operating Rights¿ Agreement Regarding the Military Use and Operating Rights of the Government of the United 

States in the Republic of the Marshall Islands concluded Pursuant to Sections 321 and 323 of the Compact of Free Association, as Amended (Agreement Between the Government of the 

United States and the Government of the Republic of the Marshall Islands Regarding Military Use and Operating Rights) to 

advance the objectives and specific priorities set forth in subsections (a) and (d) of this section and the Fiscal Procedures 

Agreement, to address the special needs of the community at 

Ebeye, Kwajalein Atoll and other Marshallese communities 

within Kwajalein Atoll. This United States grant assistance 

shall be made available, in accordance with the medium-term 

budget and investment framework described in subsection (f) of 

this section, to support and improve the infrastructure and delivery of services and develop the human and material resources necessary for the Republic of the Marshall Islands to 

carry out its responsibility to maintain such infrastructure and 

deliver such services. The amount of this assistance shall be 

$3,100,000, with an inflation adjustment as provided in section 

218, from fiscal year 2004 through fiscal year 2013 and the fiscal year 2013 level of funding, with an inflation adjustment as 

provided in section 218, will be increased by $2 million for fiscal year 2014. The fiscal year 2014 level of funding, with an 

inflation adjustment as provided in section 218, will be made 

available from fiscal year 2015 through fiscal year 2023 (and 

thereafter as noted above). 

* * * * * * * 

(e) DISASTER ASSISTANCE EMERGENCY FUND.—Of the total grant 

assistance made available under subsection (a) of this section, an 

amount of two hundred thousand dollars ($200,000) shall be provided annually, with an equal contribution from the Government of 

the Republic of the Marshall Islands, as a contribution to a Disaster Assistance Emergency Fund (‘‘DAEF’’). Any funds from the 

DAEF may be used only for assistance and rehabilitation resulting 

from disasters and emergencies. The funds will be accessed upon 

declaration of a State of Emergency by the Government of the Republic of the Marshall Islands, with the concurrence of the United 

States Chief of Mission to the Republic of the Marshall Islands. Administration of the DAEF shall be governed by the Fiscal Procedures Agreement and the Federal Programs and Services Agreement referred to in section 231. 

* * * * * * * 

Section 221 

(a) SERVICES.—The Government of the United States shall make 

available to the Republic of the Marshall Islands, in accordance 

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with and to the extent provided in the Federal Programs and Services Agreement referred to in øSection 231¿ section 231, the services and related programs of: 

(1) The United States Weather Service; 

(2) The United States Postal Service; 

(3) The United States Federal Aviation Administration; 

(4) The United States Department of Transportation; and 

(5) The Department of Homeland Security (Federal Emergency Management Agency), and the United States Agency for 

International Development, Office of Foreign Disaster Assistance. 

Upon the effective date of this Compact, as amended, the United 

States Departments and Agencies named or having responsibility 

to provide these services and related programs shall have the authority to implement the relevant provisions of the Federal Programs and Services Agreement referred to in section 231. 

* * * * * * * 

Section 232 

The Government of the United States, in consultation with the 

Government of the Republic of the Marshall Islands, shall determine and implement procedures for the periodic audit of all grants 

and other assistance made under Article I of this Title and of all 

funds expended for the services and programs provided under Article II of this Title. Further, in accordance with the Fiscal Procedures Agreement described in subsection (a) of section 211, the 

Comptroller General of the United States shall have such powers 

and authorities as described in øsections 103(m) and 110(c) of Public Law 99–239, 99 State. 1777–78, and 99 Stat. 1799 (January 14, 

1986)¿ section 103(k) of Public Law 108–188, 117 Stat. 2734, December 17, 2003. 

* * * * * * * 

Section 341 

Any person entitled to the privileges set forth in øSection 141¿ 

section 141 (with the exception of any person described in section 

141(a)(5) who is not a citizen of the Republic of the Marshall Islands) shall be eligible to volunteer for service in the Armed Forces 

of the United States, but shall not be subject to involuntary induction into military service of the United States as long as such person has resided in the United States for a period of less than one 

year, provided that no time shall count towards this one year while 

a person admitted to the United States under the Compact, or the 

Compact, as amended, is engaged in full-time study in the United 

States. Any person described in section 141(a)(5) who is not a citizen of the Republic of the Marshall Islands shall be subject to 

United States laws relating to selective service. 

Section 342 

The Government of the United States shall have enrolled, at any 

one time, at least one qualified student from the Republic of the 

Marshall Islands, as may be nominated by the Government of the 

Republic of the Marshall Islands, in each of: 

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(a) The United States Coast Guard Academy pursuant to ø14 

U.S.C. 195¿ section 195 of title 14, United States Code. 

(b) The United States Merchant Marine Academy pursuant to 

ø46 U.S.C. 1295(b)(6)¿ section 1303(b)(6) of the Merchant Marine 

Act of 1936 (46 U.S.C. 1295b(b)(6)), provided that the provisions of 

ø46 U.S.C. 1295b(b)(6)(C)¿ section 1303(b)(6)(C) of that Act shall 

not apply to the enrollment of students pursuant to section 342(b) 

of this Compact, as amended. 

* * * * * * * 

Section 354 

(a) The Government of the United States and the Government of 

the Republic of the Marshall Islands are jointly committed to continue their security and defense relations, as set forth in this Title. 

Accordingly, it is the intention of the two countries that the provisions of this Title shall remain binding as long as this Compact, 

as amended, remains in effect, and thereafter as mutually agreed, 

unless earlier terminated by mutual agreement pursuant to section 

441, or amended pursuant to Article III of Title Four. If at any 

time the Government of the United States, or the Government of 

the Republic of the Marshall Islands, acting unilaterally, terminates this Title, such unilateral termination shall be considered to 

be termination of the entire Compact, as amended, in which case 

the provisions of øsection 442 and 452¿ sections 442 and 452 (in 

the case of termination by the Government of the United States) 

or sections 443 and 453 (in the case of termination by the Government of the Republic of the Marshall Islands), with the exception 

of paragraph (3) of subsection (a) of section 452 or paragraph (3) 

of subsection (a) of section 453, as the case may be, shall apply. 

* * * * * * * 

Section 443 

This Compact, as amended, shall be terminated by the Government of the Republic of the Marshall Islands, pursuant to its constitutional processes, subject to section 453 if the people represented by that Government vote in a plebiscite to terminate the 

Compact, as amended. The Government of the Republic of the Marshall Islands shall notify the Government of the United States of 

its intention to call such a plebiscite, which shall take place not 

earlier than three months after delivery of such notice. The plebiscite shall be administered by the Government of the Republic of 

the Marshall Islands in accordance with its constitutional and legislative processes, but the Government of the United States may 

send its own observers and invite observers from a mutually agreed 

party. If a majority of the valid ballots cast in the plebiscite favors 

termination, the Government of the Republic of the Marshall Islands shall, upon certification of the results of the plebiscite, give 

notice of termination to the Government of the United States, such 

termination to be effective on the date specified in such notice but 

not earlier than three months øfollowing the date of delivery of 

such notice. The time specified in the notice of termination may be 

extended. 

* * * * * * * 

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Section 461 

For the purpose of this Compact, as amended, only, and without 

prejudice to the views of the Government of the United States or 

the Government of the Republic of the Marshall Islands as to the 

nature and extent of the jurisdiction of either of them under international law, the following terms shall have the following meanings: 

* * * * * * * 

(h) The following terms shall be defined consistent with the 

ø1978¿ 1998 Edition of the Radio Regulations of the International 

øTelecommunications¿ Telecommunication Union as follows: 

* * * * * * * 

Section 463 

(a) Except as set forth in subsection (b) of this section, any reference in this Compact, as amended, to a provision of the United 

States Code or the Statutes at Large of the United States constitutes the incorporation of the language of such provision into 

this Compact, as amended, as such provision was in force on the 

effective date of this Compact, as amended. 

(b) Any reference in øArticle¿ Articles IV and VI of Title One, 

and Sections 174, 175, 178 and 342 to a provision of the United 

States Code or the Statutes at Large of the United States or to the 

Privacy Act, the Freedom of Information Act, the Administrative 

Procedure Act or the Immigration and Nationality Act constitutes 

the incorporation of the language of such provision into this Compact, as amended, as such provision was in force on the effective 

date of this Compact, as amended, or as it may be amended thereafter on a non-discriminatory basis according to the constitutional 

processes of the United States. 

* * * * * * * 

Æ 

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