I 
113TH CONGRESS 
1ST SESSION H. R. 1222 
To amend the Compact of Free Association of 1985 to provide for adequate 
Compact-impact aid to affected States and territories, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 15, 2013 
Ms. HANABUSA (for herself, Ms. BORDALLO, Mr. FALEOMAVAEGA, and Ms. 
GABBARD) introduced the following bill; which was referred to the Com-
mittee on Natural Resources, and in addition to the Committee on En-
ergy and Commerce, 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 amend the Compact of Free Association of 1985 to pro-
vide for adequate Compact-impact aid to affected States 
and territories, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Compact-Impact Aid 
Act of 2013’’. 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
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(1) In approving the Compact of Free Associa-
tion it was not the intent of Congress to cause ad-
verse consequences for States, territories, and other 
jurisdictions of the United States. 
(2) Congress declared that if any adverse con-
sequences to States, territories, and other jurisdic-
tions of the United States resulted from implementa-
tion of the Compact of Free Association, Congress 
would act sympathetically and expeditiously to re-
dress those adverse consequences. 
(3) The Government Accountability Office has 
reported that migration from the Freely Associated 
States has had a significant impact on Guam, the 
Commonwealth of the Northern Mariana Islands, 
and the State of Hawaii and some areas of the con-
tinental United States. 
(4) By placing demands on local governments 
for health, educational, and other social services, mi-
gration under the Compact has adversely affected 
the budgetary resources of several States and terri-
tories. 
(5) Insufficient sums have been appropriated to 
cover the costs incurred by Guam, the Common-
wealth of the Northern Mariana Islands, and the 
State of Hawaii, resulting from increased demands 
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placed on health, educational, and other social serv-
ices by individuals from the Federated States of Mi-
cronesia, the Republic of the Marshall Islands, and 
the Republic of Palau. 
(b) PURPOSE.—It is the purpose of this Act to ad-
dress the unfunded mandate and adverse financial con-
sequences resulting from the Compact by meeting the obli-
gations set forth in the Compact. 
SEC. 3. ENSURING MANDATORY APPROPRIATIONS AND 
HEALTH 
SERVICES 
REIMBURSEMENT 
AS 
PART OF COMPACT-IMPACT AID. 
(a) IN GENERAL.—Section 104(e)(6) of the Compact 
of Free Association Act of 1985 (48 U.S.C. 1904(e)(6)) 
is amended to read as follows: 
‘‘(6) IMPACT COSTS.— 
‘‘(A) AUTHORIZATION
AND
CONTINUING 
APPROPRIATIONS.— 
‘‘(i) IN
GENERAL.—There is hereby 
authorized and appropriated to the Sec-
retary of the Interior, for fiscal year 2013, 
$185,000,000 with subsequent increases as 
needed to address significant increases in 
migration for grants to any local govern-
ment of the United States that dem-
onstrates financial strain due to demands 
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on public services by significant immigra-
tion of individuals from the Federated 
States of Micronesia, the Republic of the 
Marshall Islands, and the Republic of 
Palau, and to aid in defraying costs in-
curred by their governments as a result of 
increased demands placed on health, edu-
cational, social, or public safety services, or 
infrastructure related to such services due 
to 
the 
residence 
of 
qualified 
non-
immigrants. 
‘‘(ii) AWARDING.—The grants under 
clause (i) shall be— 
‘‘(I) awarded and administered 
by the Department of the Interior, Of-
fice of Insular Affairs, or any suc-
cessor thereto, in accordance with reg-
ulations, policies and procedures ap-
plicable to grants so awarded and ad-
ministered; and 
‘‘(II) used only for health, edu-
cational, social, or public safety serv-
ices, or infrastructure related to such 
services, specially affected by qualified 
nonimmigrants. 
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‘‘(iii) ENUMERATION.—For purposes 
of carrying out this subparagraph, the Sec-
retary of the Interior shall provide for peri-
odic 
enumerations 
of 
qualified 
non-
immigrants in the States and territories of 
the United States. The enumerations— 
‘‘(I) shall be conducted at such 
intervals as the Secretary of the Inte-
rior shall determine; and 
‘‘(II) shall be supervised by the 
United States Bureau of the Census 
or any other organization that the 
Secretary of the Interior selects. 
‘‘(iv) ALLOCATION.—The Secretary of 
the Interior shall allocate to each of the 
governments of qualified affected areas, 
grants under clause (i) for a fiscal year on 
the basis of the ratio of the number of 
qualified immigrants (as most recently 
enumerated under clause (iii)) in the re-
spective jurisdiction to the total of such 
numbers for all the jurisdictions. 
‘‘(B) TREATMENT
OF
CERTAIN
HEALTH 
CARE
IMPACT
COSTS.—Notwithstanding any 
other provision of law, for purposes of providing 
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medical assistance for qualified nonimmigrants 
under title XIX of the Social Security Act in 
the case of a State or territory referred to in 
subparagraph (A)(i)— 
‘‘(i) such individuals shall be treated 
in the same manner as an individual de-
scribed in section 402(a)(2)(G) of Public 
Law 104–193, as amended; 
‘‘(ii) the Federal medical assistance 
percentage shall be the same percentage as 
is applied to medical assistance for services 
which are received through an Indian 
Health Service Facility; and 
‘‘(iii) payments under such title for 
medical assistance for such individuals 
shall not be taken into account in applying 
any limitations under section 1108 of the 
Social Security Act. 
‘‘(C) 
QUALIFIED
NONIMMIGRANT
DE-
FINED.—In this paragraph, term ‘qualified non-
immigrant’ means a person admitted to the 
United States pursuant to— 
‘‘(i) section 141 of the Compact of 
Free Association set forth in title II; or 
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‘‘(ii) section 141 of the Compact of 
Free Association between the United 
States and the Government of Palau.’’. 
(b) EFFECTIVE DATE.—Section 104(e)(6)(B) of the 
Compact of Free Association Act of 1985, as amended by 
subsection (a), shall apply to medical assistance for items 
and services furnished during or after fiscal year 2013. 
Æ 
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