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 fol-
lowing bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committees on Education and the Work-
force, 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 com-
mittee concerned 
A BILL 
To comprehensively address the challenges of providing pub-
lic services to citizens of the Freely Associated States 
in the United States, 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 Relief 
Act of 2016’’. 
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SEC. 2. FMAP ADJUSTMENT FOR AFFECTED JURISDIC-
TIONS EQUIVALENT TO COMPACT MIGRANT 
EXPENDITURES. 
(a) PAYMENT OF INCREASED FMAP.—For calendar 
quarters beginning on or after January 1 of the first year 
beginning after the date of the enactment of this Act, the 
Secretary of Health and Human Services shall increase 
the FMAP for each affected jurisdiction (without regard 
for any limitation otherwise specified in section 1905(b) 
of such Act (42 U.S.C. 1396d(b))) by the number of per-
centage points estimated under subsection (d). 
(b) ESTIMATION OF AMOUNT OF COMPACT MIGRANT 
EXPENDITURES.—For purposes of subsection (a), not 
later than 90 days before the beginning of the calendar 
quarter involved, the chief executive official of the affected 
jurisdiction shall submit to the Secretary of the Interior 
an estimation of the amount of compact migrant expendi-
tures that will be made by such jurisdiction for such quar-
ter. 
(c) REVIEW BY SECRETARY OF THE INTERIOR.—Not 
later than 60 days before the beginning of the calendar 
quarter involved, the Secretary of the Interior shall review 
the estimation submitted by the chief executive official 
under subsection (b), make any appropriate adjustments, 
and submit to the Secretary of Health and Human Serv-
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such payment is not made under a State plan under 
title XIX of the Social Security Act, and such pay-
ment is not made from any other source of Federal 
funds. 
(3) FMAP.—The term ‘‘FMAP’’ means the 
Federal medical assistance percentage, as defined in 
section 1905(b) of the Social Security Act (42 
U.S.C. 1396d(b)), as determined without regard to 
this section. 
(i) CONFORMING AMENDMENT.—Section 1905(b) of 
the Social Security Act (42 U.S.C. 1396d(b)) is amended 
by inserting ‘‘subject to section 2 of the Compact Impact 
Relief Act of 2016,’’ after ‘‘ 83 per centum, (2)’’. 
SEC. 3. PAYMENTS RELATING TO ELEMENTARY AND SEC-
ONDARY EDUCATION OF CITIZENS OF FREE-
LY ASSOCIATED STATES. 
(a) PURPOSE.—Section 8001 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7701) is 
amended— 
(1) in paragraph (4), by striking ‘‘or’’; 
(2) in paragraph (5), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
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‘‘(6) educate alien children admitted to the 
United States as citizens of one of the Freely Asso-
ciated States.’’. 
(b) PAYMENTS
FOR ELIGIBLE FEDERALLY CON-
NECTED CHILDREN.—Section 8003(a) of such Act (20 
U.S.C. 7703(a)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (F), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (G), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(H) resided in the United States pursu-
ant to an admission into the United States as 
a citizen of the Republic of the Marshall Is-
lands, the Federated States of Micronesia, or 
the Republic of Palau.’’; and 
(2) in paragraph (2), by adding at the end the 
following: 
‘‘(G) Multiply the number of children de-
scribed in paragraph (1)(H) by a factor of 
1.25.’’. 
(c) AUTHORIZATION
OF ADDITIONAL FUNDS
FOR 
ELIGIBLE FEDERALLY CONNECTED CHILDREN.—Section 
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8014 of such Act (20 U.S.C. 7714) is amended by adding 
at the end the following: 
‘‘(h) ADDITIONAL FUNDING FOR ELIGIBLE FEDER-
ALLY CONNECTED CHILDREN.—For the purpose of mak-
ing additional payments for federally connected children 
described in section 8003(a)(1) under this title, there are 
authorized to be appropriated $10,000,000 for fiscal year 
2017 and for each succeeding fiscal year.’’. 
SEC. 4. PREFERENCE FOR UNITED STATES CITIZENS OR 
NATIONALS FOR CERTAIN HOUSING FINAN-
CIAL ASSISTANCE. 
Section 214(a)(7) of the Housing and Community 
Development Act of 1980 (42 U.S.C. 1436a(a)(7)) is 
amended by striking ‘‘within Guam’’ and all that follows 
through the period at the end and inserting ‘‘within Guam 
and the Commonwealth of the Northern Mariana Islands, 
any citizen or national of the United States shall be enti-
tled to a preference or priority in receiving financial assist-
ance before any such alien who is otherwise eligible for 
assistance.’’. 
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SEC. 5. INDEPENDENT ASSESSMENT OF STRATEGIC IMPOR-
TANCE OF RELATIONSHIP BETWEEN THE 
UNITED STATES AND THE MARSHALL IS-
LANDS, THE FEDERATED STATES OF MICRO-
NESIA, AND PALAU. 
(a) IN GENERAL.—The Secretary of State shall seek 
to enter into an agreement with an eligible organization 
to conduct an independent assessment of the strategic im-
portance of the relationship between the United States 
and the Republic of the Marshall Islands, the Federated 
States of Micronesia, and the Republic of Palau. 
(b) MATTERS TO BE INCLUDED.—The assessment 
required under subsection (a) shall include— 
(1) an assessment of the relationships between 
the United States and the Republic of the Marshall 
Islands, the Federated States of Micronesia, and the 
Republic of Palau as a component of the Asia-Pa-
cific re-balance and for the security and stability of 
the Asia-Pacific region; 
(2) an assessment of the capabilities, expertise, 
and shortfalls of United States Government agencies 
in effectively administering the Compact of Free As-
sociation between the United States and the Repub-
lic of the Marshall Islands, the Compact of Free As-
sociation between the United States and the Fed-
erated States of Micronesia, and United States fi-
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nancial support provided to the Republic of Palau, 
including recommendations on improvements to such 
capabilities, as required, and changes to processes or 
organizations that may be necessary; 
(3) recommendations regarding renewal and fu-
ture administration of such Compacts and financial 
support; and 
(4) any other matters the eligible organization 
that enters into an agreement under this section de-
termines to be appropriate. 
(c) REPORT REQUIRED.— 
(1) IN
GENERAL.—Not later than one year 
after the date of the enactment of this Act, the eligi-
ble organization that enters into an agreement under 
this section shall submit to the Secretary of State a 
report that shall include— 
(A) the assessment required under sub-
section (a); 
(B) the matters to be included required 
under subsection (b); and 
(C) any other matters the Secretary deter-
mines to be appropriate. 
(2) FORM.—The report required under para-
graph (1) shall be submitted in unclassified form, 
but may contain a classified annex if necessary. 
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(d) OBTAINING OFFICIAL DATA.—The eligible orga-
nization that enters into an agreement under this section 
may secure directly from any department or agency of the 
United States information necessary to enable it to carry 
out this section. Upon request of such eligible organiza-
tion, the head of that department or agency shall furnish 
that information to the eligible organization. 
Æ 
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