I 

114TH CONGRESS 

2D SESSION H. R. 4370 

To comprehensively address the challenges of providing public services to 

citizens of the Freely Associated States in the United States, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 12, 2016 

Ms. BORDALLO (for herself, Mr. TAKAI, and Mr. SABLAN) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Education and the Workforce, Financial Services, Foreign Affairs, and Natural Resources, for a 

period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To comprehensively address the challenges of providing public services to citizens of the Freely Associated States 

in the United States, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Compact Impact Relief 

5 Act of 2016’’. 


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1 SEC. 2. FMAP ADJUSTMENT FOR AFFECTED JURISDIC2 TIONS EQUIVALENT TO COMPACT MIGRANT 

3 EXPENDITURES. 

4 (a) PAYMENT OF INCREASED FMAP.—For calendar 

5 quarters beginning on or after January 1 of the first year 

6 beginning after the date of the enactment of this Act, the 

7 Secretary of Health and Human Services shall increase 

8 the FMAP for each affected jurisdiction (without regard 

9 for any limitation otherwise specified in section 1905(b) 

10 of such Act (42 U.S.C. 1396d(b))) by the number of per11 centage points estimated under subsection (d). 

12 (b) ESTIMATION OF AMOUNT OF COMPACT MIGRANT

13 EXPENDITURES.—For purposes of subsection (a), not 

14 later than 90 days before the beginning of the calendar 

15 quarter involved, the chief executive official of the affected 

16 jurisdiction shall submit to the Secretary of the Interior 

17 an estimation of the amount of compact migrant expendi18 tures that will be made by such jurisdiction for such quar19 ter. 

20 (c) REVIEW BY SECRETARY OF THE INTERIOR.—Not 

21 later than 60 days before the beginning of the calendar 

22 quarter involved, the Secretary of the Interior shall review 

23 the estimation submitted by the chief executive official 

24 under subsection (b), make any appropriate adjustments, 

25 and submit to the Secretary of Health and Human ServVerDate Sep 11 2014 02:45 Jan 13, 2016 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4370.IH H4370

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1 ices a final estimated amount of compact migrant expendi2 tures for such quarter. 

3 (d) ESTIMATION AND NOTIFICATION BY SECRETARY

4 OF HHS.— 

5 (1) IN GENERAL.—The Secretary of Health and 

6 Human Services shall estimate the number of per7 centage points that the FMAP for each affected ju8 risdiction would need to be increased for a calendar 

9 quarter to result in an increase in the amount of 

10 total Federal payments to the affected jurisdiction 

11 under title XIX of the Social Security Act for such 

12 quarter that is equivalent to the final estimated 

13 amount of compact migrant expenditures submitted 

14 under subsection (c) for such quarter. 

15 (2) CONTINUED APPLICATION OF LIMITA16 TION.—In no case may the increase in the FMAP 

17 estimated by the Secretary of Health and Human 

18 Services under paragraph (1) result in the payments 

19 to an affected jurisdiction under title XIX of the So20 cial Security Act that exceed the limitations under 

21 subsections (f) and (g) of section 1108 of such Act 

22 (42 U.S.C. 1308). 

23 (3) NOTIFICATION.—Not later than 30 days be24 fore the beginning of the calendar quarter involved, 

25 the Secretary of Health and Human Services shall 


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1 notify each such chief executive official of the in2 crease in the FMAP estimated by the Secretary 

3 under this subsection for the affected jurisdiction in4 volved. 

5 (e) RECONCILING AND PAYMENT ADJUSTMENTS.— 

6 (1) REPORT BY AFFECTED JURISDICTIONS.— 

7 For each calendar quarter in which an increase in 

8 the FMAP is made for an affected jurisdiction under 

9 subsection (d), the chief executive official for the ju10 risdiction shall submit to the Secretary of the Inte11 rior an accounting of the total amount of compact 

12 migrant expenditures made by such jurisdiction for 

13 such quarter. Such accounting shall be submitted in 

14 such form and manner as the Secretary, in consulta15 tion with the Secretary of Health and Human Serv16 ices, shall specify. 

17 (2) REVIEW BY THE INTERIOR.—The Secretary 

18 of the Interior shall review each accounting sub19 mitted under paragraph (1) for accuracy, make any 

20 appropriate adjustments, and submit a final ac21 counting of the amount of compact migrant expendi22 tures for such quarter for each affected jurisdiction 

23 involved to the Secretary of Health and Human 

24 Services. 


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1 (3) ADJUSTMENT BY HHS.—The Secretary of 

2 Health and Human Services shall— 

3 (A) review whether the increase in the 

4 FMAP for each affected jurisdiction under sub5 section (a) for a calendar quarter involved re6 sulted in an increase in Federal payments to 

7 the affected jurisdiction under title XIX of the 

8 Social Security Act for such quarter in an 

9 amount that is equivalent to the final account10 ing of the amount of compact migrant expendi11 tures submitted under paragraph (2) for such 

12 jurisdiction; and 

13 (B) subject to the limitations under sub14 section (f) and (g) of section 1108 of such Act 

15 (42 U.S.C. 1308), shall make appropriate ad16 justments to the FMAP for the affected juris17 diction for future quarters to account for any 

18 overpayment or underpayment occurring as a 

19 result of the increase in such FMAP under this 

20 section for the quarter involved for that juris21 diction. 

22 (f) LIMITATION OF FMAP TO 100 PERCENT.—In no 

23 case shall an increase in the FMAP applicable to an af24 fected jurisdiction under this section result in an FMAP 

25 for that jurisdiction that exceeds 100 percent. 


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1 (g) RULE OF CONSTRUCTION.—This section shall not 

2 be construed as treating compact migrant expenditures as 

3 medical assistance under title XIX of the Social Security 

4 Act. 

5 (h) DEFINITIONS.—In this section: 

6 (1) AFFECTED JURISDICTION.—The term ‘‘af7 fected jurisdiction’’ has the meaning given such term 

8 in section 104(e)(2) of the Compact of Free Associa9 tion Amendments Act of 2003 (48 U.S.C. 

10 1921c(e)(2)). 

11 (2) COMPACT MIGRANT EXPENDITURES.—(A) 

12 The term ‘‘compact migrant expenditures’’ means, 

13 for a calendar quarter with respect to an affected ju14 risdiction, the amount of non-Federal funds ex15 pended by such jurisdiction for items and services 

16 described in section 1905(a) of the Social Security 

17 Act (42 U.S.C. 1396d(a)) for qualified non18 immigrants (as defined in section 104(e)(2) of the 

19 Compact of Free Association Amendments Act of 

20 2003 (48 U.S.C. 1921c(e)(2))) and related adminis21 trative costs. 

22 (B) Such term includes payments made by an 

23 affected jurisdiction to health care providers for 

24 health care items and services provided to qualified 

25 nonimmigrants described in subparagraph (A), if 


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1 such payment is not made under a State plan under 

2 title XIX of the Social Security Act, and such pay3 ment is not made from any other source of Federal 

4 funds. 

5 (3) FMAP.—The term ‘‘FMAP’’ means the 

6 Federal medical assistance percentage, as defined in 

7 section 1905(b) of the Social Security Act (42 

8 U.S.C. 1396d(b)), as determined without regard to 

9 this section. 

10 (i) CONFORMING AMENDMENT.—Section 1905(b) of 

11 the Social Security Act (42 U.S.C. 1396d(b)) is amended 

12 by inserting ‘‘subject to section 2 of the Compact Impact 

13 Relief Act of 2016,’’ after ‘‘ 83 per centum, (2)’’. 

14 SEC. 3. PAYMENTS RELATING TO ELEMENTARY AND SEC15 ONDARY EDUCATION OF CITIZENS OF FREE16 LY ASSOCIATED STATES. 

17 (a) PURPOSE.—Section 8001 of the Elementary and 

18 Secondary Education Act of 1965 (20 U.S.C. 7701) is 

19 amended— 

20 (1) in paragraph (4), by striking ‘‘or’’; 

21 (2) in paragraph (5), by striking the period at 

22 the end and inserting ‘‘; or’’; and 

23 (3) by adding at the end the following: 


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1 ‘‘(6) educate alien children admitted to the 

2 United States as citizens of one of the Freely Asso3 ciated States.’’. 

4 (b) PAYMENTS FOR ELIGIBLE FEDERALLY CON5 NECTED CHILDREN.—Section 8003(a) of such Act (20 

6 U.S.C. 7703(a)) is amended— 

7 (1) in paragraph (1)— 

8 (A) in subparagraph (F), by striking ‘‘or’’ 

9 at the end; 

10 (B) in subparagraph (G), by striking the 

11 period at the end and inserting ‘‘; or’’; and 

12 (C) by adding at the end the following: 

13 ‘‘(H) resided in the United States pursu14 ant to an admission into the United States as 

15 a citizen of the Republic of the Marshall Is16 lands, the Federated States of Micronesia, or 

17 the Republic of Palau.’’; and 

18 (2) in paragraph (2), by adding at the end the 

19 following: 

20 ‘‘(G) Multiply the number of children de21 scribed in paragraph (1)(H) by a factor of 

22 1.25.’’. 

23 (c) AUTHORIZATION OF ADDITIONAL FUNDS FOR

24 ELIGIBLE FEDERALLY CONNECTED CHILDREN.—Section 


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1 8014 of such Act (20 U.S.C. 7714) is amended by adding 

2 at the end the following: 

3 ‘‘(h) ADDITIONAL FUNDING FOR ELIGIBLE FEDER4 ALLY CONNECTED CHILDREN.—For the purpose of mak5 ing additional payments for federally connected children 

6 described in section 8003(a)(1) under this title, there are 

7 authorized to be appropriated $10,000,000 for fiscal year 

8 2017 and for each succeeding fiscal year.’’. 

9 SEC. 4. PREFERENCE FOR UNITED STATES CITIZENS OR 

10 NATIONALS FOR CERTAIN HOUSING FINAN11 CIAL ASSISTANCE. 

12 Section 214(a)(7) of the Housing and Community 

13 Development Act of 1980 (42 U.S.C. 1436a(a)(7)) is 

14 amended by striking ‘‘within Guam’’ and all that follows 

15 through the period at the end and inserting ‘‘within Guam 

16 and the Commonwealth of the Northern Mariana Islands, 

17 any citizen or national of the United States shall be enti18 tled to a preference or priority in receiving financial assist19 ance before any such alien who is otherwise eligible for 

20 assistance.’’. 


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1 SEC. 5. INDEPENDENT ASSESSMENT OF STRATEGIC IMPOR2 TANCE OF RELATIONSHIP BETWEEN THE 

3 UNITED STATES AND THE MARSHALL IS4 LANDS, THE FEDERATED STATES OF MICRO5 NESIA, AND PALAU. 

6 (a) IN GENERAL.—The Secretary of State shall seek 

7 to enter into an agreement with an eligible organization 

8 to conduct an independent assessment of the strategic im9 portance of the relationship between the United States 

10 and the Republic of the Marshall Islands, the Federated 

11 States of Micronesia, and the Republic of Palau. 

12 (b) MATTERS TO BE INCLUDED.—The assessment 

13 required under subsection (a) shall include— 

14 (1) an assessment of the relationships between 

15 the United States and the Republic of the Marshall 

16 Islands, the Federated States of Micronesia, and the 

17 Republic of Palau as a component of the Asia-Pa18 cific re-balance and for the security and stability of 

19 the Asia-Pacific region; 

20 (2) an assessment of the capabilities, expertise, 

21 and shortfalls of United States Government agencies 

22 in effectively administering the Compact of Free As23 sociation between the United States and the Repub24 lic of the Marshall Islands, the Compact of Free As25 sociation between the United States and the Fed26 erated States of Micronesia, and United States fiVerDate Sep 11 2014 02:45 Jan 13, 2016 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4370.IH H4370

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1 nancial support provided to the Republic of Palau, 

2 including recommendations on improvements to such 

3 capabilities, as required, and changes to processes or 

4 organizations that may be necessary; 

5 (3) recommendations regarding renewal and fu6 ture administration of such Compacts and financial 

7 support; and 

8 (4) any other matters the eligible organization 

9 that enters into an agreement under this section de10 termines to be appropriate. 

11 (c) REPORT REQUIRED.— 

12 (1) IN GENERAL.—Not later than one year 

13 after the date of the enactment of this Act, the eligi14 ble organization that enters into an agreement under 

15 this section shall submit to the Secretary of State a 

16 report that shall include— 

17 (A) the assessment required under sub18 section (a); 

19 (B) the matters to be included required 

20 under subsection (b); and 

21 (C) any other matters the Secretary deter22 mines to be appropriate. 

23 (2) FORM.—The report required under para24 graph (1) shall be submitted in unclassified form, 

25 but may contain a classified annex if necessary. 


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1 (d) OBTAINING OFFICIAL DATA.—The eligible orga2 nization that enters into an agreement under this section 

3 may secure directly from any department or agency of the 

4 United States information necessary to enable it to carry 

5 out this section. Upon request of such eligible organiza6 tion, the head of that department or agency shall furnish 

7 that information to the eligible organization. 

Æ 


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