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technical assistance from the Secretary of
Education, the Secretary of Health and
Human Services, or the Secretary of Labor
the terms of which, including reimburse-
ment, shall be negotiated with the partici-
pation 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 con-
tinue to be eligible for competitive grants
administered by the Secretary of Education,
the Secretary of Health and Human Serv-
ices, and the Secretary of Labor to the ex-
tent that such grants continue to be avail-
able to State and local governments in the
United States.
(ix) APPLICABILITY.—The Republic of
Palau shall remain eligible for appropria-
tions and to receive grants under the provi-
sions of law specified in clauses (ii) and
(iii) until the end of fiscal year 2007, to the
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extent the Republic of Palau was so eligible
under such provisions in fiscal year 2003.
(C) The Legal Services Corporation.
(D) The Public Health Service.
(E) The Rural Housing Service (formerly,
the Farmers Home Administration) in the Mar-
shall Islands and each of the four States of the
Federated States of Micronesia: Provided, That
in lieu of continuation of the program in the
Federated States of Micronesia, the President
may agree to transfer to the Government of the
Federated States of Micronesia without cost, the
portfolio of the Rural Housing Service applicable
to the Federated States of Micronesia and pro-
vide such technical assistance in management of
the portfolio as may be requested by the Fed-
erated States of Micronesia).
(2) TORT CLAIMS.—The provisions of section 178
of the U.S.-FSM Compact and the U.S.-RMI Compact
regarding settlement and payment of tort claims shall
apply to employees of any Federal agency of the Gov-
ernment of the United States (and to any other per-
son employed on behalf of any Federal agency of the
Government of the United States on the basis of a
contractual, cooperative, or similar agreement) which
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provides any service or carries out any other function
pursuant to or in furtherance of any provisions of the
U.S.-FSM Compact or the U.S.-RMI Compact or this
joint resolution, except for provisions of Title Three of
the Compact and of the subsidiary agreements related
to such Title, in such area to which such Agreement
formerly applied.
(3) PCB CLEANUP.—The programs and services
of the Environmental Protection Agency regarding
PCBs shall, to the extent applicable, as appropriate,
and in accordance with applicable law, be construed
to be made available to such islands for the cleanup
of PCBs imported prior to 1987. The Secretary of the
Interior and the Secretary of Defense shall cooperate
and assist in any such cleanup activities.
(g) COLLEGE OF MICRONESIA.—Until otherwise pro-
vided by Act of Congress, or until termination of the U.S.-
FSM Compact and the U.S.-RMI Compact, the College of
Micronesia shall retain its status as a land-grant institu-
tion and its eligibility for all benefits and programs avail-
able to such land-grant institutions.
(h) TRUST TERRITORY DEBTS
TO U.S. FEDERAL
AGENCIES.—Neither the Government of the Federated
States of Micronesia nor the Government of the Marshall
Islands shall be required to pay to any department, agency,
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HJ 63 EAS
independent agency, office, or instrumentality of the United
States any amounts owed to such department, agency, inde-
pendent agency, office, or instrumentality by the Govern-
ment of the Trust Territory of the Pacific Islands as of the
effective date of the Compact. There is authorized to be ap-
propriated such sums as may be necessary to carry out the
purposes of this subsection.
(i) JUDICIAL TRAINING.—
(1) IN GENERAL.—In addition to amounts pro-
vided under section 211(a)(4) of the U.S.-FSM Com-
pact and the U.S.-RMI Compact, the Secretary of the
Interior shall annually provide $300,000 for the
training of judges and officials of the judiciary in the
Federated States of Micronesia and the Republic of
the Marshall Islands in cooperation with the Pacific
Islands Committee of the Ninth Circuit Judicial
Council and in accordance with and to the extent
provided in the Federal Programs and Services Agree-
ment and the Fiscal Procedure Agreement, as appro-
priate.
(2) AUTHORIZATION
AND
CONTINUING
APPRO-
PRIATION.—There is hereby authorized and appro-
priated to the Secretary of the Interior, out of any
funds in the Treasury not otherwise appropriated, to
remain available until expended, for each fiscal year
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from 2004 through 2023, $300,000, as adjusted for in-
flation under section 218 of the U.S.-FSM Compact
and the U.S.-RMI Compact, to carry out the purposes
of this section.
(j) TECHNICAL
ASSISTANCE.—Technical assistance
may be provided pursuant to section 224 of the U.S.-FSM
Compact or the U.S.-RMI Compact by Federal agencies and
institutions of the Government of the United States to the
extent such assistance may be provided to States, territories,
or units of local government. Such assistance by the Forest
Service, the Natural Resources Conservation Service, the
Fish and Wildlife Service, the National Marine Fisheries
Service, the United States Coast Guard, and the Advisory
Council on Historic Preservation, the Department of the In-
terior, and other agencies providing assistance under the
National Historic Preservation Act (80 Stat. 915; 16 U.S.C.
470–470t), shall be on a nonreimbursable basis. During the
period the U.S.-FSM Compact and the U.S.-RMI Compact
are in effect, the grant programs under the National His-
toric Preservation Act shall continue to apply to the Fed-
erated States of Micronesia and the Republic of the Mar-
shall Islands in the same manner and to the same extent
as prior to the approval of the Compact. Any funds pro-
vided pursuant to sections 102(a), 103(a), 103(b), 103(f),
103(g), 103(h), 103(j), 105(c), 105(g), 105(h), 105(i),
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HJ 63 EAS
105(j), 105(k), 105(l), and 105(m) of this joint resolution
shall be in addition to and not charged against any
amounts to be paid to either the Federated States of Micro-
nesia or the Republic of the Marshall Islands pursuant to
the U.S.-FSM Compact, the U.S.-RMI Compact, or their
related subsidiary agreements.
(k) PRIOR SERVICE BENEFITS PROGRAM.—Notwith-
standing any other provision of law, persons who on Janu-
ary 1, 1985, were eligible to receive payment under the
Prior Service Benefits Program established within the So-
cial Security System of the Trust Territory of the Pacific
Islands because of their services performed for the United
States Navy or the Government of the Trust Territory of
the Pacific Islands prior to July 1, 1968, shall continue
to receive such payments on and after the effective date of
the Compact.
(l) INDEFINITE LAND USE PAYMENTS.—There are au-
thorized to be appropriated such sums as may be necessary
to complete repayment by the United States of any debts
owed for the use of various lands in the Federated States
of Micronesia and the Marshall Islands prior to January
1, 1985.
(m) COMMUNICABLE DISEASE CONTROL PROGRAM.—
There are authorized to be appropriated for grants to the
Government of the Federated States of Micronesia, the Gov-
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ernment of the Republic of the Marshall Islands, and the
governments of the affected jurisdictions, such sums as may
be necessary for purposes of establishing or continuing pro-
grams for the control and prevention of communicable dis-
eases, including (but not limited to) cholera, tuberculosis,
and Hansen’s Disease. The Secretary of the Interior shall
assist the Government of the Federated States of Micronesia,
the Government of the Republic of the Marshall Islands and
the governments of the affected jurisdictions in designing
and implementing such a program.
(n) USER FEES.—Any person in the Federated States
of Micronesia or the Republic of the Marshall Islands shall
be liable for user fees, if any, for services provided in the
Federated States of Micronesia or the Republic of the Mar-
shall Islands by the Government of the United States to the
same extent as any person in the United States would be
liable for fees, if any, for such services in the United States.
(o) TREATMENT OF JUDGMENTS OF COURTS OF THE
FEDERATED STATES OF MICRONESIA, THE REPUBLIC OF
THE
MARSHALL
ISLANDS, 
AND
THE
REPUBLIC
OF
PALAU.—No judgment, whenever issued, of a court of the
Federated States of Micronesia, the Republic of the Marshall
Islands, or the Republic of Palau, against the United
States, its departments and agencies, or officials of the
United States or any other individuals acting on behalf of
†
HJ 63 EAS
the United States within the scope of their official duty,
shall be honored by the United States, or be subject to rec-
ognition or enforcement in a court in the United States,
unless the judgment is consistent with the interpretation by
the United States of international agreements relevant to
the judgment. In determining the consistency of a judgment
with an international agreement, due regard shall be given
to assurances made by the Executive Branch to Congress
of the United States regarding the proper interpretation of
the international agreement.
(p) ESTABLISHMENT OF TRUST FUNDS; EXPEDITION
OF PROCESS.—
(1) IN GENERAL.—The Trust Fund Agreement
executed pursuant to the U.S.-FSM Compact and the
Trust Fund Agreement executed pursuant to the U.S.-
RMI Compact each provides for the establishment of
a trust fund.
(2) METHOD
OF
ESTABLISHMENT.—The trust
fund may be established by—
(A) creating a new legal entity to constitute
the trust fund; or
(B) assuming control of an existing legal
entity including, without limitation, a trust
fund or other legal entity that was established by
or at the direction of the Government of the
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HJ 63 EAS
United States, the Government of the Federated
States of Micronesia, the Government of the Re-
public of the Marshall Islands, or otherwise for
the purpose of facilitating or expediting the es-
tablishment of the trust fund pursuant to the ap-
plicable Trust Fund Agreement.
(3) OBLIGATIONS.—For the purpose of expe-
diting the commencement of operations of a trust
fund under either Trust Fund Agreement, the trust
fund may, but shall not be obligated to, assume any
obligations of an existing legal entity and take assign-
ment of any contract or other agreement to which the
existing legal entity is party.
(4) ASSISTANCE.—Without limiting the author-
ity that the United States Government may otherwise
have under applicable law, the United States Govern-
ment may, but shall not be obligated to, provide fi-
nancial, technical, or other assistance directly or in-
directly to the Government of the Federated States of
Micronesia or the Government of the Republic of the
Marshall Islands for the purpose of establishing and
operating a trust fund or other legal entity that will
solicit bids from, and enter into contracts with, par-
ties willing to serve in such capacities as trustee, de-
positary, money manager, or investment advisor,
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HJ 63 EAS
with the intention that the contracts will ultimately
be assumed by and assigned to a trust fund estab-
lished pursuant to a Trust Fund Agreement.
SEC. 106. CONSTRUCTION CONTRACT ASSISTANCE.
(a) ASSISTANCE TO U.S. FIRMS.—In order to assist
the Governments of the Federated States of Micronesia and
of the Republic of the Marshall Islands through private sec-
tor firms which may be awarded contracts for construction
or major repair of capital infrastructure within the Fed-
erated States of Micronesia or the Republic of the Marshall
Islands, the United States shall consult with the Govern-
ments of the Federated States of Micronesia and the Repub-
lic of the Marshall Islands with respect to any such con-
tracts, and the United States shall enter into agreements
with such firms whereby such firms will, consistent with
applicable requirements of such Governments—
(1) to the maximum extent possible, employ citi-
zens of the Federated States of Micronesia and the Re-
public of the Marshall Islands;
(2) to the extent that necessary skills are not pos-
sessed by citizens of the Federated States of Micro-
nesia and the Republic of the Marshall Islands, pro-
vide on the job training, with particular emphasis on
the development of skills relating to operation of ma-
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chinery and routine and preventative maintenance of
machinery and other facilities; and
(3) provide specific training or other assistance
in order to enable the Government to engage in long-
term maintenance of infrastructure.
Assistance by such firms pursuant to this section may not
exceed 20 percent of the amount of the contract and shall
be made available only to such firms which meet the defini-
tion of United States firm under the nationality rule for
suppliers of services of the Agency for International Devel-
opment (hereafter in this section referred to as ‘‘United
States firms’’). There are authorized to be appropriated
such sums as may be necessary for the purposes of this sub-
section.
(b) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as may be nec-
essary to cover any additional costs incurred by the Govern-
ment of the Federated States of Micronesia or the Republic
of the Marshall Islands if such Governments, pursuant to
an agreement entered into with the United States, apply
a preference on the award of contracts to United States
firms, provided that the amount of such preference does not
exceed 10 percent of the amount of the lowest qualified bid
from a non-United States firm for such contract.
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HJ 63 EAS
SEC. 107. PROHIBITION.
All laws governing conflicts of interest and post-em-
ployment of Federal employees shall apply to the implemen-
tation of this Act.
SEC. 108. COMPENSATORY ADJUSTMENTS.
(a) ADDITIONAL PROGRAMS AND SERVICES.—In addi-
tion to the programs and services set forth in section 221
of the U.S.-FSM Compact and the U.S.-RMI Compact, and
pursuant to section 222 of the U.S.-FSM Compact and the
U.S.-RMI Compact, the services and programs of the fol-
lowing United States agencies shall be made available to
the Federated States of Micronesia and the Republic of the
Marshall Islands: the Small Business Administration, Eco-
nomic Development Administration, the Rural Utilities
Services (formerly Rural Electrification Administration);
the programs and services of the Department of Labor
under subtitle C of title I of the Workforce Investment Act
of 1998 (29 U.S.C. 2881 et seq.; relating to Job Corps); and
the programs and services of the Department of Commerce
relating to tourism and to marine resource development.
(b) FURTHER AMOUNTS.—
(1) The joint resolution of January 14, 1986
(Public Law 99–239) provided that the governments
of the Federated States of Micronesia and the Mar-
shall Islands may submit to Congress reports con-
cerning the overall financial and economic impacts
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on such areas resulting from the effect of title IV of
that joint resolution upon Title Two of the Compact.
There were authorized to be appropriated for fiscal
years beginning after September 30, 1990, such
amounts as necessary, but not to exceed $40,000,000
for 
the 
Federated 
States 
of 
Micronesia 
and
$20,000,000 for the Marshall Islands, as provided in
appropriation acts, to further compensate the govern-
ments of such islands (in addition to the compensa-
tion provided in subsections (a) and (b) of section 111
of the joint resolution of January 14, 1986 (Public
Law 99–239) for adverse impacts, if any, on the fi-
nances and economies of such areas resulting from the
effect of title IV of that joint resolution upon Title
Two of the Compact. The joint resolution of January
14, 1986 (Public Law 99–239) further provided that
at the end of the initial fifteen-year term of the Com-
pact, should any portion of the total amount of funds
authorized in section 111 of that resolution not have
been appropriated, such amount not yet appropriated
may be appropriated, without regard to divisions be-
tween amounts authorized in section 111 for the Fed-
erated States of Micronesia and for the Marshall Is-
lands, based on either or both such government’s