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Freely Associated States’ Affairs to pro-
vide policy guidance and recommenda-
tions on implementation of the U.S.-FSM 
Compact and the U.S.-RMI Compact to 
Federal departments and agencies. 
(B) It is the sense of Congress that 
the Secretary of State, the Secretary of 
Interior, and the Secretary of the Treas-
ury should be represented on the Inter-
agency Group. 
(7)(A)(i) The three United States ap-
pointees (United States chair plus two 
members) to the Joint Economic Manage-
ment Committee provided for in section 
213 of the U.S.-FSM Compact and Article 
III of the U.S.-FSM Fiscal Procedures 
Agreement referred to in section 462(b)(4) 
of the U.S.-FSM Compact shall be United 
States Government officers or employees. 
(ii) It is the sense of Congress that 
the appointees should be designated from 
the Department of State, the Department 
of the Interior, and the Department of 
the Treasury.
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(iii) Section 213 of the U.S.-FSM Com-
pact shall be construed to read as though 
the phrase, ‘‘and on the implementation 
of economic policy reforms designed to 
encourage private sector investment,’’ 
were inserted after ‘‘with particular focus 
on those parts of the plan dealing with 
the sectors identified in subsection (a) of 
section 211’’. 
(B)(i) The three United States ap-
pointees (United States chair plus 
two members) to the Joint Economic 
Management and Financial Account-
ability Committee provided for in sec-
tion 214 of the U.S.-RMI Compact and 
Article III of the U.S.-RMI Fiscal Pro-
cedures Agreement referred to in sec-
tion 462(b)(4) of the U.S.-RMI Com-
pact shall be United States Govern-
ment officers or employees. 
(ii) It is the sense of Congress 
that the appointees should be des-
ignated 
from 
the 
Department 
of 
State, the Department of the Interior, 
and the Department of the Treasury.
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(iii) Section 214 of the U.S.-RMI 
Compact shall be construed to read 
as though the phrase, ‘‘and on the im-
plementation of economic policy re-
forms designed to encourage private 
sector 
investment,’’ 
were 
inserted 
after ‘‘with particular focus on those 
parts of the framework dealing with 
the sectors and areas identified in 
subsection (a) of section 211’’. 
(8) It is the sense of Congress that the 
Secretary of State and the Secretary of 
the Interior shall assure that there are 
personnel resources committed in the ap-
propriate numbers and locations to en-
sure effective oversight of United States 
financial and program assistance. 
(9) The United States voting members 
(United States chair plus two or more 
members) of the Trust Fund Committee 
appointed by the Government of the 
United States pursuant to Article 7 of the 
Trust Fund Agreement implementing sec-
tion 215 of the U.S.-FSM Compact and re-
ferred to in section 462(b)(5) of the U.S.-
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FSM Compact and any alternates des-
ignated by the Government of the United 
States shall be United States Government 
officers or employees. The United States 
voting members (United States chair plus 
two or more members) of the Trust Fund 
Committee appointed by the Government 
of the United States pursuant to Article 7 
of the Trust Fund Agreement imple-
menting section 216 of the U.S.-RMI Com-
pact and referred to in section 462(b)(5) 
of the U.S.-RMI Compact and any alter-
nates designated by the Government of 
the United States shall be United States 
Government officers or employees. It is 
the sense of Congress that the appointees 
should be designated from the Depart-
ment of State, the Department of the In-
terior, and the Department of the Treas-
ury. 
(10) The Trust Fund Committee pro-
vided for in Article 7 of the U.S.-FSM 
Trust Fund Agreement implementing sec-
tion 215 of the U.S.-FSM Compact shall be 
a non-profit corporation incorporated
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under the laws of the District of Colum-
bia. To the extent that any law, rule, reg-
ulation or ordinance of the District of Co-
lumbia, or of any State or political sub-
division thereof in which the Trust Fund 
Committee is incorporated or doing busi-
ness, impedes or otherwise interferes 
with the performance of the functions of 
the Trust Fund Committee pursuant to 
this joint resolution, such law, rule, regu-
lation, or ordinance shall be deemed to 
be preempted by this joint resolution. 
The Trust Fund Committee provided for 
in Article 7 of the U.S.-RMI Trust Fund 
Agreement implementing section 216 of 
the U.S.-RMI Compact shall be a non-
profit corporation incorporated under 
the laws of the District of Columbia. To 
the extent that any law, rule, regulation 
or ordinance of the District of Columbia, 
or of any State or political subdivision 
thereof in which the Trust Fund Com-
mittee is incorporated or doing business, 
impedes or otherwise interferes with the 
performance of the functions of the Trust
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Fund Committee pursuant to this joint 
resolution, such law, rule, regulation, or 
ordinance shall be deemed to be pre-
empted by this joint resolution. 
(c) JUDICIAL TRAINING.—(1) In addition to 
amounts provided under section 211(a)(4) of 
the U.S.-FSM Compact and the U.S.-RMI Com-
pact, the President shall annually provide 
$250,000 to the Government of the Federated 
States of Micronesia and $50,000 to the Gov-
ernment of the Republic of the Marshall Is-
lands to provide training for judges and offi-
cials of the judiciary. 
(2) There is hereby authorized and appro-
priated to the Secretary of the Interior, out of 
any funds in the Treasury not otherwise ap-
propriated, to remain available until ex-
pended, for each fiscal year from 2004 
through 2023, $300,000, as adjusted for infla-
tion under section 217 of the U.S.-FSM Com-
pact and section 218 of the U.S.-RMI Compact, 
to carry out the purposes of this section. 
(d) CONTINUING TRUST TERRITORY AUTHOR-
IZATION.—The authorization provided by the 
Act of June 30, 1954, as amended (68 Stat. 330)
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shall remain available after the effective date 
of the Compact with respect to the Federated 
States of Micronesia and the Republic of the 
Marshall Islands for the following purposes: 
(1) Prior to October 1, 1986, for any 
purpose authorized by the Compact or 
the joint resolution of January 14, 1986 
(Public Law 99–239). 
(2) Transition purposes, including but 
not limited to, completion of projects and 
fulfillment of commitments or obliga-
tions; termination of the Trust Territory 
Government and termination of the High 
Court; health and education as a result of 
exceptional circumstances; ex gratia con-
tributions for the populations of Bikini, 
Enewetak, Rongelap, and Utrik; and tech-
nical assistance and training in financial 
management, 
program 
administration, 
and maintenance of infrastructure, ex-
cept that, for purposes of an orderly re-
duction of United States programs and 
services in the Federated States of Micro-
nesia, the Marshall Islands, and the Re-
public of Palau, United States programs
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or services not specifically authorized by 
the Compact of Free Association or by 
other provisions of law may continue but, 
unless reimbursed by the respective free-
ly associated state, not in excess of the 
following amounts: 
(A) 
For 
fiscal 
year 
1987, 
an 
amount not to exceed 75 per centum 
of the total amount appropriated for 
such programs for fiscal year 1986. 
(B) 
For 
fiscal 
year 
1988, 
an 
amount not to exceed 50 per centum 
of the total amount appropriated for 
such programs for fiscal year 1986. 
(C) 
For 
fiscal 
year 
1989, 
an 
amount not to exceed 25 per centum 
of the total amount appropriated for 
such programs for fiscal year 1986. 
(e) SURVIVABILITY.—In furtherance of the 
provisions of Title Four, Article V, sections 
452 and 453 of the U.S.-FSM Compact and the 
U.S.-RMI Compact, any provisions of the U.S.-
FSM Compact or the U.S.-RMI Compact which 
remain effective after the termination of the 
U.S.-FSM Compact or U.S.-RMI Compact by
341
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the act of any party thereto and which are af-
fected in any manner by provisions of this 
title shall remain subject to such provisions.
(f) NONCOMPLIANCE SANCTIONS; ACTIONS IN-
COMPATIBLE WITH UNITED STATES AUTHORITY.—
The Congress expresses its understanding 
that the Governments of the Federated States 
of Micronesia and the Republic of the Mar-
shall Islands will not act in a manner incom-
patible with the authority and responsibility 
of the United States for security and defense 
matters in or related to the Federated States 
of Micronesia or the Republic of the Marshall 
Islands pursuant to the U.S.-FSM Compact or 
the U.S.-RMI Compact, including the agree-
ments referred to in sections 462(a)(2) of the 
U.S.-FSM Compact and 462(a)(5) of the U.S.-
RMI Compact. The Congress further ex-
presses its intention that any such act on the 
part of either such Government will be 
viewed by the United States as a material 
breach of the U.S.-FSM Compact or U.S.-RMI 
Compact. The Government of the United 
States reserves the right in the event of such 
a material breach of the U.S.-FSM Compact by
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the Government of the Federated States of Mi-
cronesia or the U.S.-RMI Compact by the Gov-
ernment of the Republic of the Marshall Is-
lands to take action, including (but not lim-
ited to) the suspension in whole or in part of 
the obligations of the Government of the 
United States to that Government. 
(g) 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 Com-
pact, the programs and services of the 
following agencies shall be made avail-
able to the Federated States of Micro-
nesia and to the Republic of the Marshall 
Islands: 
(A) The Government of the United 
States shall continue to make avail-
able to eligible institutions in the 
Federated States of Micronesia and 
the Republic of the Marshall Islands, 
and to students enrolled in such eligi-
ble institutions and in institutions in
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the United States and its territories, 
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.) on the 
same basis that such grants continue 
to be available to institutions and stu-
dents in the United States. 
(B) Except as provided in clause 
(i), for fiscal years 2004 through 2023, 
the Governments of the Federated 
States of Micronesia and the Republic 
of the Marshall Islands shall not re-
ceive grants under any formula-grant 
program administered by the Sec-
retary of Education. In place of such 
grants, the Government of the Fed-
erated States of Micronesia shall re-
ceive, as a supplement to the edu-
cation sector grant under section 
211(a)(1), $20,018,514 annually and 
the Government of the Republic of 
the Marshall Islands shall receive, as 
a supplement to the education sector 
grant 
under 
section 
211(a)(1),
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$9,405,335 annually. Both of these 
supplemental amounts shall be ad-
justed for inflation under section 217 
of the U.S.-FSM Compact and section 
218 of the U.S.-RMI Compact. 
(C) The Governments of the Fed-
erated States of Micronesia and the 
Republic of the Marshall Islands shall 
continue to be eligible for competi-
tive grants administered by the Sec-
retary of Education to the extent that 
such grants continue to be available 
to State and local governments in the 
United States. 
(D) The Federal Emergency Man-
agement Agency, in the following 
manner: Paragraph (6) of section 
221(a) of the U.S.-FSM Compact and 
paragraph (5) of section 221(a) of the 
U.S.-RMI Compact shall each be con-
strued and applied as if each provi-
sion reads as follows: ‘‘The Depart-
ment of Homeland Security, Federal 
Emergency Management Agency dis-
aster assistance programs and public
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assistance programs for public and 
private non-profit infrastructure and 
programs provided by the United 
States Agency for International De-
velopment, Office of Foreign Disaster 
Assistance, at levels equivalent to 
those available on the day preceding 
the effective date of the Compacts, to 
remain available until the later of—
(i) the 10-year period begin-
ning on the date of enactment of 
the Compacts; or 
(ii) the date on which the Dis-
aster Assistance Emergency Fund 
referred to in section 211(d) of the 
U.S.-FSM Compact and section 
211(e) of the U.S.-RMI Compact 
attains a balance of $4,000,000. 
(E) The Legal Services Corpora-
tion. 
(F) The Public Health Service. 
(G) The Rural Housing Service 
(formerly, the Farmers Home Admin-
istration) in the Marshall Islands and 
each of the four States of the Fed-
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erated States of Micronesia. 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 Serv-
ice applicable to the Federated States 
of Micronesia and provide such tech-
nical assistance in management of the 
portfolio as may be requested by the 
Federated States of Micronesia. 
(2) TORT
CLAIMS.—The provisions of 
section 178 of the U.S.-FSM Compact and 
the U.S.-RMI Compact regarding settle-
ment and payment of tort claims shall 
apply to employees of any Federal agency 
of the Government of the United States 
(and to any other person employed on be-
half of any Federal agency of the Govern-
ment of the United States on the basis of 
a contractual, cooperative, or similar 
agreement) which provides any service 
or carries out any other function pursu-
ant to or in furtherance of any provisions
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of the U.S.-FSM Compact or the U.S.-RMI 
Compact or this joint resolution, except 
for provisions of Title Three of the Com-
pact and of the subsidiary agreements re-
lated 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 ex-
tent applicable, as appropriate, and in ac-
cordance with applicable law, be con-
strued to be made available to such is-
lands. 
(h) COLLEGE OF MICRONESIA.—Until other-
wise provided by Act of Congress, or until ter-
mination 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 pro-
grams available to such land-grant institu-
tions. 
(i) TRUST TERRITORY DEBTS TO U.S. FED-
ERAL AGENCIES.—Neither the Government of 
the Federated States of Micronesia nor the 
Government of the Marshall Islands shall be
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required to pay to any department, agency, 
independent agency, office, or instrumen-
tality of the United States any amounts owed 
to such department, agency, independent 
agency, office, or instrumentality by the Gov-
ernment of the Trust Territory of the Pacific 
Islands as of the effective date of the Com-
pact. There is authorized to be appropriated 
such sums as may be necessary to carry out 
the purposes of this subsection. 
(j) TECHNICAL ASSISTANCE.—Technical as-
sistance 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 govern-
ment. Such assistance by the Forest Service, 
the Natural Resources Conservation Service, 
(acting through the Resource Convservation 
and Development Program) the USDA Re-
source Conservation and Development Pro-
gram, the Fish and Wildlife Service, the Na-
tional Marine Fisheries Service, the United 
States Coast Guard, and the Advisory Council
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on Historic Preservation, the Department of 
the Interior, and other agencies providing as-
sistance under the National Historic Preser-
vation 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 pro-
grams under the National Historic Preserva-
tion Act shall continue to apply to the Fed-
erated States of Micronesia and the Republic 
of the Marshall Islands in the same manner 
and to the same extent as prior to the ap-
proval of the Compact. Any funds provided 
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), 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.—
Notwithstanding any other provision of law,
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persons who on January 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 Pa-
cific Islands prior to July 1, 1968, shall con-
tinue to receive such payments on and after 
the effective date of the Compact. 
(l) INDEFINITE LAND USE PAYMENTS.—There 
are authorized 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 PRO-
GRAM.—There are authorized to be appro-
priated for grants to the Government of the 
Federated States of Micronesia and the Gov-
ernment of the Republic of the Marshall Is-
lands, such sums as may be necessary for pur-
poses of establishing or continuing programs 
for the control and prevention of commu-
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nicable diseases, including (but not limited 
to) cholera and Hansen’s Disease. The Sec-
retary of the Interior shall assist the Govern-
ment of the Federated States of Micronesia 
and the Government of the Republic of the 
Marshall Islands in designing and imple-
menting such a program. 
(n) USER FEES.—Any person in the Fed-
erated States of Micronesia or the Republic of 
the Marshall Islands shall be liable for user 
fees, if any, for services provided in the Fed-
erated States of Micronesia or the Republic of 
the Marshall 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 Is-
lands, or the Republic of Palau, against the 
United States, its departments and agencies,
352
•HJ 63 RH 
or officials of the United States or any other 
individuals acting on behalf of the United 
States within the scope of their official duty, 
shall be honored by the United States, or be 
subject to recognition or enforcement in a 
court in the United States, unless the judg-
ment 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 inter-
national agreement, due regard shall be given 
to assurances made by the Executive Branch 
to the Congress of the United States regard-
ing the proper interpretation of the inter-
national agreement. 
(p) INFLATION ADJUSTMENT.—As of Fiscal 
Year 2015, if United States Gross Domestic 
Product Implicit Price Deflator average for 
Fiscal Years 2009 through 2014 is greater than 
the United States Gross Domestic Product Im-
plicit Price Deflator average for Fiscal Years 
2004 through 2008 (as reported in the Survey 
of Current Business or subsequent publica-
tion and compiled by the Department of Inte-
rior), then section 217 of the U.S.–FSM Com-
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pact and paragraph 5 of Article II of the U.S.–
FSM Fiscal Procedures Agreement and sec-
tion 218 of the U.S.–RMI Compact and para-
graph 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. 
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 sector 
firms which may be awarded contracts for 
construction or major repair of capital infra-
structure within the Federated States of Mi-
cronesia or the Republic of the Marshall Is-
lands, the United States shall consult with the 
Governments of the Federated States of Mi-
cronesia and the Republic of the Marshall Is-
lands with respect to any such contracts, and 
the United States shall enter into agreements 
with such firms whereby such firms will, con-
sistent with applicable requirements of such 
Governments—
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(1) to the maximum extent possible, 
employ citizens of the Federated States of 
Micronesia and the Republic of the Mar-
shall Islands; 
(2) to the extent that necessary skills 
are not possessed by citizens of the Fed-
erated States of Micronesia and the Re-
public of the Marshall Islands, provide on 
the job training, with particular empha-
sis on the development of skills relating 
to operation of machinery and routine 
and preventative maintenance of machin-
ery and other facilities; and 
(3) provide specific training or other 
assistance in order to enable the Govern-
ment to engage in long-term maintenance 
of infrastructure. 
Assistance by such firms pursuant to this sec-
tion may not exceed 20 percent of the amount 
of the contract and shall be made available 
only to such firms which meet the definition 
of United States firm under the nationality 
rule for suppliers of services of the Agency for 
International Development (hereafter in this 
section referred to as ‘‘United States firms’’).
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There are authorized to be appropriated such 
sums as may be necessary for the purposes of 
this subsection. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—
There are authorized to be appropriated such 
sums as may be necessary to cover any addi-
tional costs incurred by the Government of 
the Federated States of Micronesia or the Re-
public of the Marshall Islands if such Govern-
ments, 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. 
SEC. 107. PROHIBITION. 
The provisions of chapter 11 of title 18, 
United States Code, shall apply in full to any 
individual who has served as the United 
States negotiator of amendments to the Com-
pact or its subsidiary agreements or of related 
agreements or who is or was an officer or em-
ployee of the Office in the Department of 
State responsible for negotiating amendments
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to the Compact or its subsidiary agreements 
or who is or was assigned or detailed to that 
Office or who served on the interagency 
group coordinating United States policy on 
the Compact negotiations.
SEC. 108. COMPENSATORY ADJUSTMENTS. 
(a) ADDITIONAL PROGRAMS AND SERVICES.—
In addition 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 following United States agencies shall 
be made available to the Federated States of 
Micronesia and the Republic of the Marshall 
Islands: the Small Business Administration, 
Economic Development Administration, and 
the Rural Utilities Services (formerly Rural 
Electrification Administration); the programs 
and services of the Department of Labor 
under the Workforce Investment Act of 1998; 
the programs and services of the Department 
of Commerce relating to tourism and to ma-
rine resource development; and the Federal 
Deposit 
Insurance 
Corporation, 
provided
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however, that eligibility to qualify for serv-
ices and programs of the Federal Deposit In-
surance Corporation, shall cease to apply on 
September 30, 2005. Any institution qualified 
for Federal Deposit Insurance Corporation 
services and programs on or before Sep-
tember 30, 2005, shall remain eligible for such 
programs and services for the term and pur-
suant to such conditions as set forth in the 
Federal Program and Services Agreement de-
scribed in Section 231 of the U.S.–RMI Com-
pact and U.S.–FSM Compact. 
(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 Marshall Islands 
may submit to Congress reports con-
cerning the overall financial and eco-
nomic impacts on such areas resulting 
from the effect of Title IV of that joint 
resolution upon Title Two of the Com-
pact. There were authorized to be appro-
priated for fiscal years beginning after 
September 30, 1990, such amounts as nec-
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essary, but not to exceed $40 million for 
the Federated States of Micronesia and 
$20 million for the Marshall Islands, as 
provided in appropriation acts, to further 
compensate the governments of such is-
lands (in addition to the compensation 
provided in subsections (a) and (b) of sec-
tion 111 of the joint resolution of January 
14, 1986 (Public Law 99–239) for adverse 
impacts, if any, on the finances and 
economies of such areas resulting from 
the effect of Title IV of that joint resolu-
tion upon Title Two of the Compact. The 
joint resolution of January 14, 1986 (Pub-
lic Law 99–239) further provided that at 
the end of the initial fifteen-year term of 
the Compact, should any portion of the 
total amount of funds authorized in sub-
section 111 of that resolution not have 
been appropriated, such amount not yet 
appropriated may be appropriated, with-
out regard to divisions between amounts 
authorized in subsection 111 for the Fed-
erated States of Micronesia and for the 
Marshall Islands, based on either or both
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such government’s showing of such ad-
verse impact, if any, as provided in that 
subsection. 
(2) The governments of the Federated 
States of Micronesia and the Republic of 
the Marshall Islands may each submit no 
more than one report or request for fur-
ther compensation under section 111 of 
the joint resolution of January 14, 1986 
(Public Law 99–239) and any such report 
or request must be submitted by Sep-
tember 30, 2009. Only adverse economic 
effect occurring during the initial fifteen-
year term of the Compact may be consid-
ered for compensation under section 111 
of the joint resolution of January 14, 1986 
(Public Law 99–239). 
SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIA-
TION. 
(a) There are authorized and appro-
priated to the Department of the Interior, out 
of any money in the Treasury not otherwise 
appropriated, to remain available until ex-
pended, such sums as are necessary to carry 
out the purposes of sections 211, 212(b), 215,
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and 217 of the U.S.-FSM Compact and sections 
211, 212, 213(b), 216, and 218 of the U.S.-RMI 
Compact, in this and subsequent years. 
(b) There are authorized to be appro-
priated to the Departments, agencies, and in-
strumentalities named in paragraphs (1) and 
(3) through (6) of section 221(a) of the U.S.-
FSM Compact and paragraphs (1) and (3) 
through (5) of section 221(a) of the U.S.-RMI 
Compact, such sums as are necessary to carry 
out the purposes of sections 221(a) of the U.S.-
FSM Compact and the U.S.-RMI Compact, to 
remain available until expended. 
SEC. 110. PAYMENT OF CITIZENS OF THE FEDERATED 
STATES OF MICRONESIA, THE REPUBLIC OF 
THE MARSHALL ISLANDS, AND THE REPUB-
LIC OF PALAU EMPLOYED BY THE GOVERN-
MENT OF THE UNITED STATES IN THE CONTI-
NENTAL UNITED STATES. 
Section 605 of Public Law 107–67 (the 
Treasury and General Government Appro-
priations Act, 2002; 5 U.S.C. 3101 note) is 
amended by striking ‘‘or the Republic of the 
Philippines,’’ in the last sentence and insert-
ing the following: ‘‘the Republic of the Phil-
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ippines, the Federated States of Micronesia, 
the Republic of the Marshall Islands, or the 
Republic of Palau,’’.
TITLE II—COMPACTS OF FREE 
ASSOCIATION WITH THE FED-
ERATED STATES OF MICRO-
NESIA 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 GOV-
ERNMENT OF THE FEDERATED STATES OF 
MICRONESIA AND BETWEEN THE GOVERN-
MENT 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 GOVERN-
MENT
OF
THE FEDERATED STATES
OF MICRO-
NESIA.—
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PREAMBLE 
THE 
GOVERNMENT 
OF 
THE 
UNITED 
STATES OF AMERICA AND THE GOV-
ERNMENT 
OF 
THE 
FEDERATED 
STATES OF MICRONESIA 
Affirming that their Governments and 
their relationship as Governments are found-
ed upon respect for human rights and funda-
mental freedoms for all, and that the people 
of the Federated States of Micronesia have 
the right to enjoy self-government; and 
Affirming the common interests of the 
United States of America and the Federated 
States of Micronesia in creating and main-
taining their close and mutually beneficial re-
lationship through the free and voluntary as-
sociation of their respective Governments; 
and 
Affirming the interest of the Government 
of the United States in promoting the eco-
nomic advancement and budgetary self-reli-
ance of the Federated States of Micronesia; 
and 
Recognizing that their relationship until 
the entry into force on November 3, 1986 of
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the Compact was based upon the Inter-
national Trusteeship System of the United Na-
tions Charter, and in particular Article 76 of 
the Charter; and that pursuant to Article 76 
of the Charter, the people of the Federated 
States of Micronesia have progressively devel-
oped their institutions of self-government, 
and that in the exercise of their sovereign 
right to self-determination they, through 
their freely-expressed wishes, have adopted a 
Constitution appropriate to their particular 
circumstances; and 
Recognizing that the Compact reflected 
their common desire to terminate the Trust-
eeship and establish a government-to-govern-
ment relationship which was in accordance 
with the new political status based on the 
freely expressed wishes of the people of the 
Federated States of Micronesia and appro-
priate to their particular circumstances; and 
Recognizing that the people of the Fed-
erated States of Micronesia have and retain 
their sovereignty and their sovereign right to 
self-determination and the inherent right to 
adopt and amend their own Constitution and
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form of government and that the approval of 
the entry of the Government of the Federated 
States of Micronesia into the Compact by the 
people of the Federated States of Micronesia 
constituted an exercise of their sovereign 
right to self-determination; and 
Recognizing the common desire of the 
people of the United States and the people of 
the Federated States of Micronesia to main-
tain their close government-to-government 
relationship, the United States and the Fed-
erated States of Micronesia: 
NOW, THEREFORE, MUTUALLY AGREE 
to continue and strengthen their relationship 
of free association by amending the Compact, 
which continues to provide a full measure of 
self-government for the people of the Fed-
erated States of Micronesia; and 
FURTHER AGREE that the relationship 
of free association derives from and is as set 
forth in this Compact, as amended, by the 
Governments of the United States and the 
Federated States of Micronesia; and that, dur-
ing such relationship of free association, the 
respective rights and responsibilities of the
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Government of the United States and the Gov-
ernment of the Federated States of Micro-
nesia in regard to this relationship of free as-
sociation derive from and are as set forth in 
this Compact, as amended. 
TITLE ONE 
GOVERNMENTAL RELATIONS 
Article I 
Self-Government 
Section 111
The people of the Federated States of Mi-
cronesia, acting through the Government es-
tablished under their Constitution, are self-
governing. 
Article II 
Foreign Affairs 
Section 121
(a) The Government of the Federated 
States of Micronesia has the capacity to con-
duct foreign affairs and shall do so in its own 
name and right, except as otherwise provided 
in this Compact, as amended. 
(b) The foreign affairs capacity of the Gov-
ernment of the Federated States of Micro-
nesia includes:
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(1) the conduct of foreign affairs re-
lating to law of the sea and marine re-
sources 
matters, 
including 
the 
har-
vesting, conservation, exploration or ex-
ploitation of living and non-living re-
sources from the sea, seabed or subsoil to 
the full extent recognized under inter-
national law; 
(2) the conduct of its commercial, dip-
lomatic, consular, economic, trade, bank-
ing, postal, civil aviation, communica-
tions, and cultural relations, including 
negotiations for the receipt of develop-
mental loans and grants and the conclu-
sion of arrangements with other govern-
ments and international and intergovern-
mental organizations, including any mat-
ters specially benefiting its individual 
citizens. 
(c) The Government of the United States 
recognizes that the Government of the Fed-
erated States of Micronesia has the capacity 
to enter into, in its own name and right, trea-
ties and other international agreements with
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governments and regional and international 
organizations. 
(d) In the conduct of its foreign affairs, 
the Government of the Federated States of Mi-
cronesia confirms that it shall act in accord-
ance with principles of international law and 
shall settle its international disputes by 
peaceful means. 
Section 122
The Government of the United States 
shall support applications by the Government 
of the Federated States of Micronesia for 
membership or other participation in re-
gional or international organizations as may 
be mutually agreed. 
Section 123
(a) In recognition of the authority and re-
sponsibility of the Government of the United 
States under Title Three, the Government of 
the Federated States of Micronesia shall con-
sult, in the conduct of its foreign affairs, with 
the Government of the United States. 
(b) In recognition of the foreign affairs ca-
pacity of the Government of the Federated 
States of Micronesia, the Government of the
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United States, in the conduct of its foreign af-
fairs, shall consult with the Government of 
the Federated States of Micronesia on matters 
that the Government of the United States re-
gards as relating to or affecting the Govern-
ment of the Federated States of Micronesia. 
Section 124
The Government of the United States may 
assist or act on behalf of the Government of 
the Federated States of Micronesia in the area 
of foreign affairs as may be requested and mu-
tually agreed from time to time.The Govern-
ment of the United States shall not be respon-
sible to third parties for the actions of the 
Government of the Federated States of Micro-
nesia undertaken with the assistance or 
through the agency of the Government of the 
United States pursuant to this section unless 
expressly agreed. 
Section 125
The Government of the United States 
shall not be responsible for nor obligated by 
any actions taken by the Government of the 
Federated States of Micronesia in the area of
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foreign affairs, except as may from time to 
time be expressly agreed. 
Section 126
At the request of the Government of the 
Federated States of Micronesia and subject to 
the consent of the receiving state, the Govern-
ment of the United States shall extend con-
sular assistance on the same basis as for citi-
zens of the United States to citizens of the 
Federated States of Micronesia for travel out-
side the Federated States of Micronesia, the 
United States and its territories and posses-
sions. 
Section 127
Except as otherwise provided in this Com-
pact, as amended, or its related agreements, 
all obligations, responsibilities, rights and 
benefits of the Government of the United 
States as Administering Authority which re-
sulted from the application pursuant to the 
Trusteeship Agreement of any treaty or other 
international agreement to the Trust Terri-
tory of the Pacific Islands on November 2, 
1986, are, as of that date, no longer assumed
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and enjoyed by the Government of the United 
States. 
Article III 
Communications 
Section 131
(a) The Government of the Federated 
States of Micronesia has full authority and re-
sponsibility to regulate its domestic and for-
eign communications, and the Government of 
the United States shall provide communica-
tions assistance as mutually agreed. 
(b) On May 24, 1993, the Government of 
the Federated States of Micronesia elected to 
undertake all functions previously performed 
by the Government of the United States with 
respect to domestic and foreign communica-
tions, except for those functions set forth in 
a separate agreement entered into pursuant 
to this section of the Compact, as amended. 
Section 132
The Government of the Federated States 
of Micronesia shall permit the Government of 
the United States to operate telecommuni-
cations services in the Federated States of Mi-
cronesia to the extent necessary to fulfill the
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obligations of the Government of the United 
States under this Compact, as amended, in ac-
cordance with the terms of separate agree-
ments entered into pursuant to this section of 
the Compact, as amended. 
Article IV 
Immigration 
Section 141
(a) In furtherance of the special and 
unique relationship that exists between the 
United States and the Federated States of Mi-
cronesia, under the Compact, as amended, 
any person in the following categories may be 
admitted to lawfully engage in occupations, 
and establish residence as a nonimmigrant in 
the United States and its territories and pos-
sessions (the ‘‘United States’’) without regard 
to paragraph (5) or (7)(B)(i)(II) of section 
212(a) of the Immigration and Nationality Act, 
as amended, 8 U.S.C. 1182(a)(5) or (7)(B)(i)(II): 
(1) a person who, on November 2, 
1986, was a citizen of the Trust Territory 
of the Pacific Islands, as defined in Title 
53 of the Trust Territory Code in force on 
January 1, 1979, and has become and re-
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mains a citizen of the Federated States of 
Micronesia; 
(2) a person who acquires the citizen-
ship of the Federated States of Micro-
nesia at birth, on or after the effective 
date of the Constitution of the Federated 
States of Micronesia; 
(3) an immediate relative of a person 
referred to in paragraphs (1) or (2) of this 
section, provided that such immediate 
relative is a naturalized citizen of the 
Federated States of Micronesia who has 
been an actual resident there for not less 
than five years after attaining such natu-
ralization and who holds a certificate of 
actual residence, and further provided, 
that, in the case of a spouse, such spouse 
has been married to the person referred 
to in paragraph (1) or (2) of this section 
for at least five years, and further pro-
vided, that the Government of the United 
States is satisfied that such naturalized 
citizen meets the requirement of sub-
section (b) of section 104 of Public Law 
99–239 as it was in effect on the day prior
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to the effective date of this Compact, as 
amended; 
(4) a naturalized citizen of the Fed-
erated States of Micronesia who was an 
actual resident there for not less than 
five years after attaining such naturaliza-
tion and who satisfied these require-
ments as of April 30, 2003, who continues 
to be an actual resident and holds a cer-
tificate of actual residence, and whose 
name is included in a list furnished by 
the Government of the Federated States 
of Micronesia to the Government of the 
United States no later than the effective 
date of the Compact, as amended, in form 
and content acceptable to the Govern-
ment of the United States, provided, that 
the Government of the United States is 
satisfied that such naturalized citizen 
meets the requirement of subsection (b) 
of section 104 of Public Law 99–239 as it 
was in effect on the day prior to the ef-
fective date of this Compact, as amended; 
or
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(5) an immediate relative of a citizen 
of the Federated States of Micronesia, re-
gardless of the immediate relative’s coun-
try of citizenship or period of residence 
in the Federated States of Micronesia, if 
the citizen of the Federated States of Mi-
cronesia is serving on active duty in any 
branch of the United States Armed 
Forces, or in the active reserves. 
(b) Notwithstanding subsection (a) of this 
section, a person who is coming to the United 
States pursuant to an adoption outside the 
United States, or for the purpose of adoption 
in the United States, is ineligible for admis-
sion under the Compact and the Compact, as 
amended. This subsection shall apply to any 
person who is or was an applicant for admis-
sion to the United States on or after March 1, 
2003, including any applicant for admission in 
removal proceedings (including appellate 
proceedings) on or after March 1, 2003, re-
gardless of the date such proceedings were 
commenced. This subsection shall have no ef-
fect on the ability of the Government of the 
United States or any United States State or
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local government to commence or otherwise 
take any action against any person or entity 
who has violated any law relating to the adop-
tion of any person. 
(c) Notwithstanding subsection (a) of this 
section, no person who has been or is granted 
citizenship in the Federated States of Micro-
nesia, or has been or is issued a Federated 
States of Micronesia passport pursuant to any 
investment, passport sale, or similar program 
has been or shall be eligible for admission to 
the United States under the Compact or the 
Compact, as amended. 
(d) A person admitted to the United States 
under the Compact, or the Compact, as 
amended, shall be considered to have the per-
mission of the Government of the United 
States to accept employment in the United 
States. An unexpired Federated States of Mi-
cronesia passport with unexpired documenta-
tion issued by the Government of the United 
States evidencing admission under the Com-
pact or the Compact, as amended, shall be 
considered to be documentation establishing 
identity and employment authorization under
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section 274A(b)(1)(B) of the Immigration and 
Nationality 
Act, 
as 
amended, 
U.S.C. 
1324a(b)(1)(B). The Government of the United 
States will take reasonable and appropriate 
steps to implement and publicize this provi-
sion, and the Government of the Federated 
States of Micronesia will also take reasonable 
and appropriate steps to publicize this provi-
sion. 
(e) For purposes of the Compact and the 
Compact, as amended: 
(1) the term ‘‘residence’’ with respect 
to a person means the person’s principal, 
actual dwelling place in fact, without re-
gard to intent, as provided in section 
101(a)(33) of the Immigration and Nation-
ality 
Act, 
as 
amended, 
U.S.C. 
1101(a)(33), and variations of the term 
‘‘residence,’’ including ‘‘resident’’ and ‘‘re-
side,’’ shall be similarly construed; 
(2) the term ‘‘actual residence’’ means 
physical presence in the Federated States 
of Micronesia during eighty-five percent 
of the five-year period of residency re-
quired by section 141(a)(3) and (4);
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(3) the term ‘‘certificate of actual resi-
dence’’ means a certificate issued to a 
naturalized citizen by the Government of 
the Federated States of Micronesia stat-
ing that the citizen has complied with the 
actual residence requirement of section 
141(a)(3) or (4); 
(4) the term ‘‘nonimmigrant’’ means 
an alien who is not an ‘‘immigrant’’ as de-
fined in section 101(a)(15) of such Act, 8 
U.S.C. 1101(a)(15); and 
(5) the term ‘‘immediate relative’’ 
means a spouse, or unmarried son or un-
married daughter less than 21 years of 
age. 
(f) The Immigration and Nationality Act, 
as amended, shall apply to any person admit-
ted or seeking admission to the United States 
(other than a United States possession or ter-
ritory where such Act does not apply) under 
the Compact or the Compact, as amended, 
and nothing in the Compact or the Compact, 
as amended, shall be construed to limit, pre-
clude, or modify the applicability of, with re-
spect to such person:
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(1) any ground of inadmissibility or 
deportability under such Act (except sec-
tions 212(a)(5) and 212(a)(7)(B)(i)(II) of 
such Act, as provided in subsection (a) of 
this section), and any defense thereto, 
provided that, section 237(a)(5) of such 
Act shall be construed and applied as if it 
reads as follows: ‘‘any alien who has been 
admitted under the Compact, or the Com-
pact, as amended, who cannot show that 
he or she has sufficient means of support 
in the United States, is deportable’’; 
(2) the authority of the Government 
of 
the 
United 
States 
under 
section 
214(a)(1) of such Act to provide that ad-
mission as a nonimmigrant shall be for 
such time and under such conditions as 
the Government of the United States may 
by regulations prescribe; 
(3) Except for the treatment of cer-
tain documentation for purposes of sec-
tion 274A(b)(1)(B) of such Act as provided 
by subsection (d) of this section of the 
Compact, as amended, any requirement
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under section 274A, including but not 
limited to section 274A(b)(1)(E); 
(4) Section 643 of the Illegal Immigra-
tion Reform and Immigrant Responsi-
bility Act of 1996, Public Law 104–208, 
and actions taken pursuant to section 
643; and 
(5) the authority of the Government 
of the United States otherwise to admin-
ister and enforce the Immigration and 
Nationality Act, as amended, or other 
United States law. 
(g) Any authority possessed by the Gov-
ernment of the United States under this sec-
tion of the Compact or the Compact, as 
amended, may also be exercised by the Gov-
ernment of a territory or possession of the 
United States where the Immigration and Na-
tionality Act, as amended, does not apply, to 
the extent such exercise of authority is lawful 
under a statute or regulation of such territory 
or possession that is authorized by the laws 
of the United States. 
(h) Subsection (a) of this section does not 
confer on a citizen of the Federated States of
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Micronesia the right to establish the resi-
dence necessary for naturalization under the 
Immigration and Nationality Act, as amended, 
or to petition for benefits for alien relatives 
under that Act. Subsection (a) of this section, 
however, shall not prevent a citizen of the 
Federated States of Micronesia from other-
wise acquiring such rights or lawful perma-
nent resident alien status in the United 
States. 
Section 142
(a) Any citizen or national of the United 
States may be admitted, to lawfully engage in 
occupations, and reside in the Federated 
States of Micronesia, subject to the rights of 
the Government of the Federated States of Mi-
cronesia to deny entry to or deport any such 
citizen or national as an undesirable alien. 
Any determination of inadmissibility or de-
portability shall be based on reasonable statu-
tory grounds and shall be subject to appro-
priate administrative and judicial review 
within the Federated States of Micronesia. If 
a citizen or national of the United States is a 
spouse of a citizen of the Federated States of
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Micronesia, the Government of the Federated 
States of Micronesia shall allow the United 
States citizen spouse to establish residence. 
Should the Federated States of Micronesia cit-
izen spouse predecease the United States cit-
izen spouse during the marriage, the Govern-
ment of the Federated States of Micronesia 
shall allow the United States citizen spouse to 
continue to reside in the Federated States of 
Micronesia. 
(b) In enacting any laws or imposing any 
requirements with respect to citizens and na-
tionals of the United States entering the Fed-
erated States of Micronesia under subsection 
(a) of this section, including any grounds of 
inadmissibility or deportability, the Govern-
ment of the Federated States of Micronesia 
shall accord to such citizens and nationals of 
the United States treatment no less favorable 
than that accorded to citizens of other coun-
tries. 
(c) Consistent with subsection (a) of this 
section, with respect to citizens and nationals 
of the United States seeking to engage in em-
ployment or invest in the Federated States of
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Micronesia, the Government of the Federated 
States of Micronesia shall adopt immigration-
related procedures no less favorable than 
those adopted by the Government of the 
United States with respect to citizens of the 
Federated States of Micronesia seeking em-
ployment in the United States. 
Section 143
Any person who relinquishes, or other-
wise loses, his United States nationality or 
citizenship, or his Federated States of Micro-
nesia citizenship, shall be ineligible to receive 
the privileges set forth in sections 141 and 
142. Any such person may apply for admission 
to the United States or the Federated States 
of Micronesia, as the case may be, in accord-
ance with any other applicable laws of the 
United States or the Federated States of Mi-
cronesia relating to immigration of aliens 
from other countries. The laws of the Fed-
erated States of Micronesia or the United 
States, as the case may be, shall dictate the 
terms and conditions of any such person’s 
stay.
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Article V 
Representation 
Section 151
Relations between the Government of the 
United States and the Government of the Fed-
erated States of Micronesia shall be con-
ducted in accordance with the Vienna Con-
vention on Diplomatic Relations. In addition 
to diplomatic missions and representation, 
the Governments may establish and maintain 
other offices and designate other representa-
tives on terms and in locations as may be mu-
tually agreed. 
Section 152
(a) Any citizen or national of the United 
States who, without authority of the United 
States, acts as the agent of the Government of 
the Federated States of Micronesia with re-
gard to matters specified in the provisions of 
the Foreign Agents Registration Act of 1938, 
as amended (22 U.S.C. 611 et seq.), that apply 
with respect to an agent of a foreign principal 
shall be subject to the requirements of such 
Act. Failure to comply with such require-
ments shall subject such citizen or national to
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agreements as if the Federated States of 
Micronesia were the United States; 
(3) shall comply also, in the conduct 
of any activity requiring the preparation 
of an Environmental Impact Statement 
under section 161(a)(2), with standards 
substantively similar to those required by 
the following laws of the United States, 
taking into account the particular envi-
ronment of the Federated States of Mi-
cronesia: the Endangered Species Act of 
1973, as amended, 87 Stat. 884, 16 U.S.C. 
1531 et seq.; the Clean Air Act, as amend-
ed, 77 Stat. 392, 42 U.S.C. Supp. 7401 et 
seq.; the Clean Water Act (Federal Water 
Pollution Control Act), as amended, 86 
Stat. 896, 33 U.S.C. 1251 et seq.; Title I of 
the Marine Protection, Research and 
Sanctuaries 
Act 
of 
1972 
(the 
Ocean 
Dumping Act), 33 U.S.C. 1411 et seq.; the 
Toxic Substances Control Act, as amend-
ed, 15 U.S.C. 2601 et seq.; the Solid Waste 
Disposal Act, as amended, 42 U.S.C. 6901 
et seq.; and such other environmental 
protection laws of the United States and
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of the Federated States of Micronesia, as 
may be mutually agreed from time to 
time with the Government of the Fed-
erated States of Micronesia; and 
(4) shall develop, prior to conducting 
any activity requiring the preparation of 
an 
Environmental 
Impact 
Statement 
under section 161(a)(2), written standards 
and procedures, as agreed with the Gov-
ernment of the Federated States of Micro-
nesia, to implement the substantive pro-
visions of the laws made applicable to 
U.S. Government activities in the Fed-
erated States of Micronesia, pursuant to 
section 161(a)(3). 
(b) The Government of the Federated 
States of Micronesia shall continue to develop 
and implement standards and procedures to 
protect its environment. As a reciprocal obli-
gation to the undertakings of the Government 
of the United States under this Article, the 
Federated States of Micronesia, taking into 
account its particular environment, shall con-
tinue to develop and implement standards for 
environmental protection substantively simi-
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lar to those required of the Government of the 
United States by section 161(a)(3) prior to its 
conducting activities in the Federated States 
of Micronesia, substantively equivalent to ac-
tivities conducted there by the Government of 
the United States and, as a further reciprocal 
obligation, shall enforce those standards. 
(c) Section 161(a), including any standard 
or procedure applicable thereunder, and sec-
tion 161(b) may be modified or superseded in 
whole or in part by agreement of the Govern-
ment of the United States and the Govern-
ment of the Federated States of Micronesia. 
(d) In the event that an Environmental 
Impact Statement is no longer required under 
the laws of the United States for major Fed-
eral actions significantly affecting the quality 
of the human environment, the regulatory re-
gime established under sections 161(a)(3) and 
161(a)(4) shall continue to apply to such ac-
tivities of the Government of the United 
States until amended by mutual agreement. 
(e) The President of the United States may 
exempt any of the activities of the Govern-
ment of the United States under this Com-
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pact, as amended, and its related agreements 
from any environmental standard or proce-
dure which may be applicable under sections 
161(a)(3) and 161(a)(4) if the President deter-
mines it to be in the paramount interest of the 
Government of the United States to do so, 
consistent with Title Three of this Compact, 
as amended, and the obligations of the Gov-
ernment of the United States under inter-
national law. Prior to any decision pursuant 
to this subsection, the views of the Govern-
ment of the Federated States of Micronesia 
shall be sought and considered to the extent 
practicable. If the President grants such an 
exemption, to the extent practicable, a report 
with his reasons for granting such exemption 
shall be given promptly to the Government of 
the Federated States of Micronesia. 
(f) The laws of the United States referred 
to in section 161(a)(3) shall apply to the activi-
ties of the Government of the United States 
under this Compact, as amended, and its re-
lated agreements only to the extent provided 
for in this section. 
Section 162
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The Government of the Federated States 
of Micronesia may bring an action for judicial 
review of any administrative agency action or 
any activity of the Government of the United 
States pursuant to section 161(a) for enforce-
ment of the obligations of the Government of 
the United States arising thereunder. The 
United States District Court for the District of 
Hawaii and the United States District Court 
for the District of Columbia shall have juris-
diction over such action or activity, and over 
actions brought under section 172(b) which 
relate to the activities of the Government of 
the United States and its officers and employ-
ees, governed by section 161, provided that: 
(a) Such actions may only be civil ac-
tions for any appropriate civil relief 
other than punitive damages against the 
Government of the United States or, 
where required by law, its officers in 
their official capacity; no criminal ac-
tions may arise under this section. 
(b) Actions brought pursuant to this 
section may be initiated only by the Gov-
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ernment of the Federated States of Micro-
nesia. 
(c) 
Administrative 
agency 
actions 
arising under section 161 shall be re-
viewed pursuant to the standard of judi-
cial review set forth in 5 U.S.C. 706. 
(d) The United States District Court 
for the District of Hawaii and the United 
States District Court for the District of 
Columbia shall have jurisdiction to issue 
all necessary processes, and the Govern-
ment of the United States agrees to sub-
mit itself to the jurisdiction of the court; 
decisions of the United States District 
Court shall be reviewable in the United 
States Court of Appeals for the Ninth Cir-
cuit or the United States Court of Ap-
peals for the District of Columbia, respec-
tively, or in the United States Supreme 
Court as provided by the laws of the 
United States. 
(e) The judicial remedy provided for 
in this section shall be the exclusive rem-
edy for the judicial review or enforce-
ment of the obligations of the Govern-
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ment of the United States under this Arti-
cle and actions brought under section 
172(b) which relate to the activities of the 
Government of the United States and its 
officers and employees governed by sec-
tion 161. 
(f) In actions pursuant to this section, 
the Government of the Federated States 
of Micronesia shall be treated as if it 
were a United States citizen. 
Section 163
(a) For the purpose of gathering data nec-
essary to study the environmental effects of 
activities of the Government of the United 
States subject to the requirements of this Ar-
ticle, the Government of the Federated States 
of Micronesia shall be granted access to facili-
ties operated by the Government of the 
United States in the Federated States of Mi-
cronesia, to the extent necessary for this pur-
pose, except to the extent such access would 
unreasonably interfere with the exercise of 
the authority and responsibility of the Gov-
ernment of the United States under Title 
Three.
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(b) The Government of the United States, 
in turn, shall be granted access to the Fed-
erated States of Micronesia for the purpose of 
gathering data necessary to discharge its obli-
gations under this Article, except to the ex-
tent such access would unreasonably inter-
fere with the exercise of the authority and re-
sponsibility of the Government of the Fed-
erated States of Micronesia under Title One, 
and to the extent necessary for this purpose 
shall be granted access to documents and 
other information to the same extent similar 
access is provided the Government of the Fed-
erated States of Micronesia under the Free-
dom of Information Act, 5 U.S.C. 552. 
(c) The Government of the Federated 
States of Micronesia shall not impede efforts 
by the Government of the United States to 
comply with applicable standards and proce-
dures. 
Article VII 
General Legal Provisions 
Section 171
Except as provided in this Compact, as 
amended, or its related agreements, the appli-
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cation of the laws of the United States to the 
Trust Territory of the Pacific Islands by vir-
tue of the Trusteeship Agreement ceased with 
respect to the Federated States of Micronesia 
on November 3, 1986, the date the Compact 
went into effect. 
Section 172
(a) Every citizen of the Federated States 
of Micronesia who is not a resident of the 
United States shall enjoy the rights and rem-
edies under the laws of the United States en-
joyed by any non-resident alien. 
(b) The Government of the Federated 
States of Micronesia and every citizen of the 
Federated States of Micronesia shall be con-
sidered to be a ‘‘person’’ within the meaning 
of the Freedom of Information Act, 5 U.S.C. 
552, and of the judicial review provisions of 
the Administrative Procedure Act, 5 U.S.C. 
701–706, except that only the Government of 
the Federated States of Micronesia may seek 
judicial review under the Administrative Pro-
cedure Act or judicial enforcement under the 
Freedom of Information Act when such judi-
cial review or enforcement relates to the ac-
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tivities of the Government of the United 
States governed by sections 161 and 162. 
Section 173
The Governments of the United States 
and the Federated States of Micronesia agree 
to adopt and enforce such measures, con-
sistent with this Compact, as amended, and 
its related agreements, as may be necessary to 
protect the personnel, property, installations, 
services, programs and official archives and 
documents maintained by the Government of 
the United States in the Federated States of 
Micronesia pursuant to this Compact, as 
amended, and its related agreements and by 
the Government of the Federated States of Mi-
cronesia in the United States pursuant to this 
Compact, as amended, and its related agree-
ments. 
Section 174
Except as otherwise provided in this Com-
pact, 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 juris-
diction of the court of the United States,
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and the Government of the United States, 
and its agencies and officials, shall be im-
mune from the jurisdiction of the courts 
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 ac-
tion 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; 
(2) any claim settled by the claim-
ant and the Government of the Trust 
Territory of the Pacific Islands but 
not paid as of the November 3, 1986; 
and 
(3) settlement of any administra-
tive claim or of any action before a 
court of the Trust Territory of the Pa-
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cific Islands or the Government of the 
United States, 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. 
(c) Any claim not referred to in sec-
tion 174(b) and arising from an act or 
omission of the Government of the Trust 
Territory of the Pacific Islands or the 
Government of the United States prior to 
the effective date of the Compact shall be 
adjudicated in the same manner as a 
claim adjudicated according to section 
174(d). In any claim against the Govern-
ment of the Trust Territory of the Pacific 
Islands, the Government of the United 
States shall stand in the place of the Gov-
ernment of the Trust Territory of the Pa-
cific Islands. A judgment on any claim re-
ferred to in section 174(b) or this sub-
section, not otherwise satisfied by the 
Government of the United States, may be 
presented for certification to the United 
States Court of Appeals for the Federal
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Circuit, or its successor courts, which 
shall have jurisdiction therefore, notwith-
standing the provisions of 28 U.S.C. 1502, 
and which court’s decisions shall be re-
viewable as provided by the laws of the 
United States. The United States Court of 
Appeals for the Federal Circuit shall cer-
tify such judgment, and order payment 
thereof, unless it finds, after a hearing, 
that such judgment is manifestly erro-
neous as to law or fact, or manifestly ex-
cessive. In either of such cases the United 
States Court of Appeals for the Federal 
Circuit shall have jurisdiction to modify 
such judgment. 
(d) The Government of the Federated 
States of Micronesia shall not be immune 
from the jurisdiction of the courts of the 
United States, and the Government of the 
United States shall not be immune from 
the jurisdiction of the courts of the Fed-
erated States of Micronesia in any civil 
case in which an exception to foreign 
state immunity is set forth in the Foreign
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Sovereign Immunities Act (28 U.S.C. 1602 
et seq.) or its successor statutes. 
Section 175
(a) A separate agreement, which shall 
come into effect simultaneously with this 
Compact, as amended, and shall have the 
force of law, shall govern mutual assistance 
and cooperation in law enforcement matters, 
including the pursuit, capture, imprisonment 
and extradition of fugitives from justice and 
the transfer of prisoners, as well as other law 
enforcement matters. In the United States, 
the laws of the United States governing inter-
national extradition, including 18 U.S.C. 3184, 
3186 and 3188–95, shall be applicable to the 
extradition of fugitives under the separate 
agreement, and the laws of the United States 
governing the transfer of prisoners, including 
18 U.S.C. 4100–15, shall be applicable to the 
transfer of prisoners under the separate 
agreement; and 
(b) A separate agreement, which shall 
come into effect simultaneously with this 
Compact, as amended, and shall have the 
force of law, shall govern requirements relat-
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ing to labor recruitment practices, including 
registration, reporting, suspension or revoca-
tion of authorization to recruit persons for 
employment in the United States, and en-
forcement for violations of such require-
ments. 
Section 176
The Government of the Federated States 
of Micronesia confirms that final judgments 
in civil cases rendered by any court of the 
Trust Territory of the Pacific Islands shall 
continue in full force and effect, subject to the 
constitutional power of the courts of the Fed-
erated States of Micronesia to grant relief 
from judgments in appropriate cases. 
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 com-
pensation owing to citizens of the Mar-
shall Islands, or the Federated States of 
Micronesia, or Palau for loss or damage 
to property and person of the citizens of
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the Marshall Islands, or the Federated 
States of Micronesia, resulting from the 
nuclear testing program which the Gov-
ernment of the United States conducted 
in the Northern Marshall Islands between 
June 30, 1946, and August 18, 1958. 
‘‘(b) The Government of the United 
States and the Government of the Mar-
shall Islands shall set forth in a separate 
agreement provisions for the just and 
adequate settlement of all such claims 
which have arisen in regard to the Mar-
shall Islands and its citizens and which 
have not as yet been compensated or 
which in the future may arise, for the 
continued administration by the Govern-
ment of the United States of direct radi-
ation related medical surveillance and 
treatment 
programs 
and 
radiological 
monitoring activities and for such addi-
tional programs and activities as may be 
mutually agreed, and for the assumption 
by the Government of the Marshall Is-
lands of responsibility for enforcement of 
limitations on the utilization of affected
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areas developed in cooperation with the 
Government of the United States and for 
the assistance by the Government of the 
United States in the exercise of such re-
sponsibility as may be mutually agreed. 
This separate agreement shall come into 
effect simultaneously with this Compact 
and shall remain in effect in accordance 
with its own terms. 
‘‘(c) The Government of the United 
States shall provide to the Government of 
the Marshall Islands, on a grant basis, the 
amount of $150 million to be paid and 
distributed in accordance with the sepa-
rate agreement referred to in this Sec-
tion, and shall provide the services and 
programs set forth in this separate agree-
ment, the language of which is incor-
porated into this Compact.’’
The Compact, as amended, makes no 
changes to, and has no effect upon, Section 
177 of the Compact, nor does the Compact, as 
amended, change or affect the separate agree-
ment referred to in Section 177 of the Com-
pact including Articles IX and X of that sepa-
403
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rate agreement, and measures taken by the 
parties thereunder. 
Section 178
(a) The Federal agencies of the Govern-
ment of the United States that provide the 
services and related programs in the Fed-
erated States of Micronesia pursuant to Title 
Two are authorized to settle and pay tort 
claims arising in the Federated States of Mi-
cronesia from the activities of such agencies 
or from the acts or omissions of the employees 
of such agencies. Except as provided in sec-
tion 178(b), the provisions of 28 U.S.C. 2672 
and 31 U.S.C. 1304 shall apply exclusively to 
such administrative settlements and pay-
ments. 
(b) Claims under section 178(a) that can-
not be settled under section 178(a) shall be 
disposed of exclusively in accordance with Ar-
ticle II of Title Four. Arbitration awards ren-
dered pursuant to this subsection shall be 
paid out of funds under 31 U.S.C. 1304. 
(c) The Government of the United States 
and the Government of the Federated States
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of Micronesia shall, in the separate agreement 
referred to in section 231, provide for: 
(1) the administrative settlement of 
claims referred to in section 178(a), in-
cluding designation of local agents in 
each State of the Federated States of Mi-
cronesia; such agents to be empowered to 
accept, investigate and settle such claims, 
in a timely manner, as provided in such 
separate agreements; and 
(2) arbitration, referred to in section 
178(b), in a timely manner, at a site con-
venient to the claimant, in the event a 
claim is not otherwise settled pursuant to 
section 178(a). 
(d) The provisions of section 174(d) shall 
not apply to claims covered by this section. 
(e) Except as otherwise explicitly pro-
vided by law of the United States, neither the 
Government of the United States, its instru-
mentalities, nor any person acting on behalf 
of the Government of the United States, shall 
be named a party in any action based on, or 
arising out of, the activity or activities of a re-
cipient of any grant or other assistance pro-
405
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vided by the Government of the United States 
(or the activity or activities of the recipient’s 
agency or any other person or entity acting 
on behalf of the recipient). 
Section 179
(a) The courts of the Federated States of 
Micronesia shall not exercise criminal juris-
diction over the Government of the United 
States, or its instrumentalities. 
(b) The courts of the Federated States of 
Micronesia shall not exercise criminal juris-
diction over any person if the Government of 
the United States provides notification to the 
Government of the Federated States of Micro-
nesia 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 amended Compact, or any other 
provision of law authorizing financial, pro-
gram, or service assistance to the Federated 
States of Micronesia.
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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 ef-
forts 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 assist-
ance in the sectors of education, health care, 
private sector development, the environment, 
public sector capacity building, and public in-
frastructure, 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 pro-
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posed 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 Micronesia and shall be 
subject to the concurrence of the Government 
of the United States. In such case, the Govern-
ment 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 Implementa-
tion of United States Economic Assistance 
Provided in the Compact, as Amended, of Free 
Association 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 Trust Fund Agreement, or any other sub-
sidiary agreement to the Compact, as amend-
ed, shall constitute ‘‘a particular distribution 
. . . required by the terms or special nature
408
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of the assistance’’ for purposes of Article XII, 
section 1(b) of the Constitution of the Fed-
erated States of Micronesia.
(1) EDUCATION.—United States grant 
assistance shall be made available in ac-
cordance with the plan described in sub-
section (c) of this section to support and 
improve the educational system of the 
Federated States of Micronesia and de-
velop the human, financial, and material 
resources necessary for the Government 
of the Federated States of Micronesia to 
perform these services. Emphasis should 
be placed on advancing a quality basic 
education system. 
(2) HEALTH.—United States grant as-
sistance shall be made available in ac-
cordance with the plan described in sub-
section (c) of this section to support and 
improve the delivery of preventive, cura-
tive and environmental care and develop 
the human, financial, and material re-
sources necessary for the Government of 
the Federated States of Micronesia to 
perform these services.
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(3) PRIVATE
SECTOR
DEVELOPMENT.—
United States grant assistance shall be 
made available in accordance with the 
plan described in subsection (c) of this 
section to support the efforts of the Gov-
ernment of the Federated States of Micro-
nesia to attract foreign investment and 
increase indigenous business activity by 
vitalizing the commercial environment, 
ensuring fair and equitable application of 
the law, promoting adherence to core 
labor 
standards, 
and 
maintaining 
progress toward privatization of state-
owned and partially state-owned enter-
prises, and engaging in other reforms. 
(4) CAPACITY BUILDING IN THE PUBLIC 
SECTOR.—United States grant assistance 
shall be made available in accordance 
with the plan described in subsection (c) 
of this section to support the efforts of 
the Government of the Federated States 
of Micronesia to build effective, account-
able and transparent national, state, and 
local government and other public sector 
institutions and systems.
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(5) 
ENVIRONMENT.—United 
States 
grant assistance shall be made available 
in accordance with the plan described in 
subsection (c) of this section to increase 
environmental protection; conserve and 
achieve sustainable use of natural re-
sources; and engage in environmental in-
frastructure planning, design construc-
tion and operation. 
(6) PUBLIC INFRASTRUCTURE.—
(i) U.S. annual grant assistance 
shall be made available in accordance 
with a list of specific projects in-
cluded in the plan described in sub-
section (c) of this section to assist the 
Government of the Federated States 
of Micronesia in its efforts to provide 
adequate public infrastructure. 
(ii) INFRASTRUCTURE
AND
MAINTE-
NANCE FUND.—Five percent of the an-
nual 
public 
infrastructure 
grant 
made available under paragraph (i) of 
this subsection shall be set aside, 
with an equal contribution from the 
Government of the Federated States
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of Micronesia, as a contribution to an 
Infrastructure 
Maintenance 
Fund 
(IMF). Administration of the Infra-
structure Maintenance Fund shall be 
governed by the Fiscal Procedures 
Agreement. 
(b) HUMANITARIAN ASSISTANCE.—Federated 
States of Micronesia Program. In recognition 
of the special development needs of the Fed-
erated States of Micronesia, the Government 
of the United States shall make available to 
the Government of the Federated States of Mi-
cronesia, 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 con-
ditions 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 Fed-
erated States of Micronesia Concluded Pursu-
ant to Sections 321 and 323 of the Compact of
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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 de-
velopment 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 Govern-
ment of the Federated States of Micronesia, as 
a contribution to a ‘‘Disaster Assistance Emer-
gency Fund (DAEF).’’ Any funds from the 
DAEF may be used only for assistance and re-
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habilitation resulting from disasters and 
emergencies. The funds will be accessed upon 
declaration by the Government of the Fed-
erated States of Micronesia, with the concur-
rence of the United States Chief of Mission to 
the Federated States of Micronesia. The Ad-
ministration of the DAEF shall be governed 
by the Fiscal Procedures Agreement. 
Section 212 - Accountability. 
(a) Regulations and policies normally ap-
plicable to United States financial assistance 
to its state and local governments, as re-
flected in the Fiscal Procedures Agreement, 
shall apply to each sector grant described in 
section 211, and to grants administered under 
section 221 below, except as modified in the 
separate agreements referred to in section 
231 of this Compact, as amended, or by United 
States law. The Government of the United 
States, after annual consultations with the 
Federated States of Micronesia, may attach 
reasonable terms and conditions, including 
annual performance indicators that are nec-
essary to ensure effective use of United States 
assistance and reasonable progress toward
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achieving program objectives. The Govern-
ment of the United States may seek appro-
priate remedies for noncompliance with the 
terms and conditions attached to the assist-
ance, or for failure to comply with section 234, 
including withholding assistance. 
(b) The Government of the United States 
shall, for each fiscal year of the twenty years 
during which assistance is to be provided on 
a sector grant basis under section 211, grant 
the Government of the Federated States of Mi-
cronesia an amount equal to the lesser of (i) 
one half of the reasonable, properly docu-
mented cost incurred during each fiscal year 
to conduct the annual audit required under 
Article VIII (2) of the Fiscal Procedures 
Agreement or (ii) $500,000. Such amount will 
not be adjusted for inflation under section 217 
or otherwise. 
Section 213 - Joint Economic Management 
Committee 
The Governments of the United States 
and the Federated States of Micronesia shall 
establish a Joint Economic Management Com-
mittee, composed of a U.S. chair, two other
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members from the Government of the United 
States and two members from the Govern-
ment of the Federated States of Micronesia. 
The Joint Economic Management Committee 
shall meet at least once each year to review 
the audits and reports required under this 
Title, evaluate the progress made by the Fed-
erated States of Micronesia in meeting the ob-
jectives identified in its plan described in sub-
section (c) of section 211, with particular 
focus on those parts of the plan dealing with 
the sectors identified in subsection (a) of sec-
tion 211, identify problems encountered, and 
recommend ways to increase the effectiveness 
of U.S. assistance made available under this 
Title. The establishment and operations of the 
Joint Economic Management Committee shall 
be governed by the Fiscal Procedures Agree-
ment. 
Section 214 - Annual Report 
The Government of the Federated States 
of Micronesia shall report annually to the 
President of the United States on the use of 
United States sector grant assistance and 
other assistance and progress in meeting mu-
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tually agreed program and economic goals. 
The Joint Economic Management Committee 
shall review and comment on the report and 
make appropriate recommendations based 
thereon. 
Section 215 - Trust Fund 
(a) The United States shall contribute an-
nually 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 Imple-
menting Section 215 and Section 216 of the 
Compact, as Amended, Regarding a Trust 
Fund (‘‘Trust Fund Agreement’’). Upon termi-
nation of the annual financial assistance 
under section 211, the proceeds of the fund 
shall thereafter be used for the purposes de-
scribed in section 211 or as otherwise mutu-
ally agreed. 
(b) The United States contribution into 
the Trust Fund described in subsection(a) of 
this section is conditioned on the Government
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of the Federated States of Micronesia contrib-
uting to the Trust Fund at least $30 million, 
prior to September 30, 2004. Any funds re-
ceived 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. 
(c) The terms regarding the investment 
and management of funds and use of the in-
come of the Trust Fund shall be set forth in 
the separate Trust Fund Agreement described 
in subsection (a) of this section. Funds de-
rived from United States investment shall not 
be subject to Federal or state taxes in the 
United States or the Federated States of Mi-
cronesia. The Trust Fund Agreement shall 
also provide for annual reports to the Govern-
ment of the United States and to the Govern-
ment of the Federated States of Micronesia. 
The Trust Fund Agreement shall provide for 
appropriate distributions of trust fund pro-
ceeds to the Federated States of Micronesia 
and for appropriate remedies for the failure 
of the Federated States of Micronesia to use
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income of the Trust Fund for the annual grant 
purposes set forth in section 211. These rem-
edies may include the return to the United 
States of the present market value of its con-
tributions to the Trust Fund and the present 
market value of any undistributed income on 
the contributions of the United States. If this 
Compact, as amended, is terminated, the pro-
visions of sections 451 through 453 of this 
Compact, as amended, shall govern treatment 
of any U.S. contributions to the Trust Fund or 
accrued interest thereon. 
Section 216 - Sector Grant Funding and Trust 
Fund Contributions 
The funds described in sections 211, 
212(b) and 215 shall be made available as fol-
lows:
[In millions of dollars] 
Fiscal year 
Annual Grants 
Section 211
Audit Grant
Section 212(b) 
(amount up to) 
Trust Fund
Section 215
Total 
2004 .................................
76.2 
.5 
92.7
2005 .................................
76.2 
.5 
92.7
2006 .................................
76.2 
.5 
92.7
2007 .................................
75.4 
.5 
16.8 
92.7
2008 .................................
74.6 
.5 
17.6 
92.7
2009 .................................
73.8 
.5 
18.4 
92.7
2010 .................................
.5 
19.2 
92.7
2011 .................................
72.2 
.5 
92.7
2012 .................................
71.4 
.5 
20.8 
92.7
2013 .................................
70.6 
.5 
21.6 
92.7
2014 .................................
69.8 
.5 
22.4 
92.7
2015 .................................
.5 
23.2 
92.7
2016 .................................
68.2 
.5 
92.7
2017 .................................
67.4 
.5 
24.8 
92.7
2018 .................................
66.6 
.5 
25.6 
92.7
2019 .................................
65.8 
.5 
26.4 
92.7
2020 .................................
.5 
27.2 
92.7
2021 .................................
64.2 
.5 
92.7
2022 .................................
63.4 
.5 
28.8 
92.7
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[In millions of dollars] 
Fiscal year 
Annual Grants 
Section 211
Audit Grant
Section 212(b) 
(amount up to) 
Trust Fund
Section 215
Total 
2023 .................................
62.6 
.5 
29.6 
92.7
Section 217 - Inflation Adjustment 
Except for the amounts provided for au-
dits under section 212(b), the amounts stated 
in this Title shall be adjusted for each United 
States Fiscal Year by the percent that equals 
two-thirds of the percent change in the 
United States Gross Domestic Product Im-
plicit Price Deflator, or 5 percent, whichever 
is less in any one year, using the beginning of 
Fiscal Year 2004 as a base. 
Section 218 - Carry-Over of Unused Funds 
If in any year the funds made available by 
the Government of the United States for that 
year pursuant to this Article are not com-
pletely obligated by the Government of the 
Federated States of Micronesia, the unobli-
gated balances shall remain available in addi-
tion to the funds to be provided in subsequent 
years. 
Article II 
Services and Program Assistance 
Section 221
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(a) SERVICES.—The Government of the 
United States shall make available to the Fed-
erated 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 pro-
grams 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 Micro-
nesia), and 
(6) the Department of Homeland Se-
curity, and the United States Agency for 
International Development, Office of For-
eign 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
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shall have the authority to implement the rel-
evant 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 United States provides otherwise, 
the Government of the United States 
shall make available to the Federated 
States of Micronesia the services and pro-
grams that were available to the Fed-
erated States of Micronesia on the effec-
tive date of this Compact, as amended, to 
the extent that such services and pro-
grams continue to be available to State 
and local governments of the United 
States. As set forth in the Fiscal Proce-
dures Agreement, funds provided under 
subsection (a) of section 211 will be con-
sidered to be local revenues of the Gov-
ernment of the Federated States of Micro-
nesia when used as the local share re-
quired to obtain Federal programs and 
services.
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(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 Serv-
ices 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 agreements 
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 Serv-
ices Agreement referred to in amended sec-
tion 231 shall also set forth the extent to 
which services and programs shall be pro-
vided 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 op-
erating in the Federated States of Micronesia
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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 Associ-
ated States in the laws of the United States. 
Section 222
The Government of the United States and 
the Government of the Federated States of Mi-
cronesia may agree from time to time to ex-
tend to the Federated States of Micronesia ad-
ditional United States grant assistance, serv-
ices and programs, as provided under the 
laws of the United States. Unless inconsistent 
with such laws, or otherwise specifically pre-
cluded by the Government of the United 
States at the time such additional grant as-
sistance, services, or programs are extended, 
the Federal Programs and Services Agree-
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ment referred to section 231 shall apply to 
any such assistance, services or programs. 
Section 223
The Government of the Federated States 
of Micronesia shall make available to the Gov-
ernment of the United States at no cost such 
land as may be necessary for the operations 
of the services and programs provided pursu-
ant to this Article, and such facilities as are 
provided by the Government of the Federated 
States of Micronesia at no cost to the Govern-
ment of the United States as of the effective 
date of this Compact, as amended, or as may 
be mutually agreed thereafter. 
Section 224
The Government of the Federated States 
of Micronesia may request, from time to time, 
technical assistance from the Federal agen-
cies and institutions of the Government of the 
United States, which are authorized to grant 
such technical assistance in accordance with 
its laws. If technical assistance is granted pur-
suant to such a request, the Government of 
the United States shall provide the technical 
assistance in a manner which gives priority
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consideration to the Federated States of Mi-
cronesia over other recipients not a part of 
the United States, its territories or posses-
sions, and equivalent consideration to the 
Federated States of Micronesia with respect 
to other states in Free Association with the 
United States. Such assistance shall be made 
available on a reimbursable or non-reimburs-
able basis to the extent provided by United 
States law. 
Article III 
Administrative Provisions 
Section 231
The specific nature, extent and contrac-
tual arrangements of the services and pro-
grams provided for in section 221 of this Com-
pact, as amended, as well as the legal status 
of agencies of the Government of the United 
States, their civilian employees and contrac-
tors, and the dependents of such personnel 
while present in the Federated States of Mi-
cronesia, and other arrangements in connec-
tion with the assistance, services, or pro-
grams furnished by the Government of the 
United States, are set forth in a Federal Pro-
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grams and Services Agreement which shall 
come into effect simultaneously with this 
Compact, as amended. 
Section 232
The Government of the United States, in 
consultation with the Government of the Fed-
erated States of Micronesia, 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 pro-
vided under Article II of this Title. Further, 
in accordance with the Fiscal Procedures 
Agreement described in subsection (a) of sec-
tion 211, the Comptroller General of the 
United States shall have such powers and au-
thorities as described in sections 102 (c) and 
110 (c) of Public Law 99–239, 99 Stat. 1777–78, 
and 99 Stat. 1799 (January 14, 1986). 
Section 233
Approval of this Compact, as amended, by 
the Government of the United States, in ac-
cordance with its constitutional processes, 
shall constitute a pledge by the United States 
that the sums and amounts specified as sector
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grants in section 211 of this Compact, as 
amended, shall be appropriated and paid to 
the Federated States of Micronesia for such 
period as those provisions of this Compact, as 
amended, remain in force, subject to the 
terms and conditions of this Title and related 
subsidiary agreements. 
Section 234
The Government of the Federated States 
of Micronesia pledges to cooperate with, per-
mit, and assist if reasonably requested, des-
ignated and authorized representatives of the 
Government of the United States charged 
with investigating whether Compact funds, or 
any other assistance authorized under this 
Compact, as amended, have, or are being, 
used for purposes other than those set forth 
in this Compact, as amended, or its subsidiary 
agreements. In carrying out this investigative 
authority, such United States Government 
representatives may request that the Govern-
ment of the Federated States of Micronesia 
subpoena documents and records and compel 
testimony in accordance with the laws and 
Constitution of the Federated States of Micro-
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nesia. Such assistance by the Government of 
the Federated States of Micronesia to the 
Government of the United States shall not be 
unreasonably withheld. The obligation of the 
Government of the Federated States of Micro-
nesia to fulfill its pledge herein is a condition 
to its receiving payment of such funds or 
other assistance authorized under this Com-
pact, as amended. The Government of the 
United States shall pay any reasonable costs 
for extraordinary services executed by the 
Government of the Federated States of Micro-
nesia in carrying out the provisions of this 
section. 
Article IV 
Trade 
Section 241
The Federated States of Micronesia is not 
included in the customs territory of the 
United States. 
Section 242
The President shall proclaim the fol-
lowing tariff treatment for articles imported 
from the Federated States of Micronesia
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which shall apply during the period of effec-
tiveness of this title: 
(a) Unless otherwise excluded, arti-
cles imported from the Federated States 
of Micronesia, subject to the limitations 
imposed under section 503(b) of title V of 
the Trade Act of 1974 (19 U.S.C. 2463(b)), 
shall be exempt from duty. 
(b) Only tuna in airtight containers 
provided for in heading 1604.14.22 of the 
Harmonized 
Tariff 
Schedule 
of 
the 
United States that is imported from the 
Federated States of Micronesia and the 
Republic of the Marshall Islands during 
any calendar year not to exceed 10 per-
cent of apparent United States consump-
tion of tuna in airtight containers during 
the immediately preceding calendar year, 
as reported by the National Marine Fish-
eries Service, shall be exempt from duty; 
but the quantity of tuna given duty-free 
treatment under this paragraph for any 
calendar year shall be counted against 
the aggregated quantity of tuna in air-
tight containers that is dutiable under
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rate column numbered 1 of such heading 
1604.14.22 for that calendar year. 
(c) The duty-free treatment provided 
under subsection (a) shall not apply to—
(1) watches, clocks, and timing 
apparatus provided for in Chapter 91, 
excluding heading 9113, of the Har-
monized 
Tariff 
Schedule 
of 
the 
United States; 
(2) buttons (whether finished or 
not finished) provided for in items 
9606.21.40 and 9606.29.20 of such 
Schedule; 
(3) textile and apparel articles 
which are subject to textile agree-
ments; and 
(4) footwear, handbags, luggage, 
flat goods, work gloves, and leather 
wearing apparel which were not eligi-
ble articles for purposes of title V of 
the Trade Act of 1974 (19 U.S.C. 2461, 
et seq.) on April 1, 1984. 
(d) If the cost or value of materials 
produced in the customs territory of the 
United States is included with respect to
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an eligible article which is a product of 
the Federated States of Micronesia, an 
amount not to exceed 15 percent of the 
appraised value of the article at the time 
it is entered that is attributable to such 
United States cost or value may be ap-
plied for duty assessment purposes to-
ward determining the percentage re-
ferred to in section 503(a)(2) of title V of 
the Trade Act of 1974. 
Section 243
Articles imported from the Federated 
States of Micronesia which are not exempt 
from duty under subsections (a), (b), (c), and 
(d) of section 242 shall be subject to the rates 
of duty set forth in column numbered 1-gen-
eral of the Harmonized Tariff Schedule of the 
United States (HTSUS). 
Section 244
(a) All products of the United States im-
ported into the Federated States of Micro-
nesia shall receive treatment no less favor-
able than that accorded like products of any 
foreign country with respect to customs du-
ties or charges of a similar nature and with
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respect to laws and regulations relating to im-
portation, exportation, taxation, sale, dis-
tribution, storage or use. 
(b) The provisions of subsection (a) shall 
not apply to advantages accorded by the Fed-
erated States of Micronesia by virtue of their 
full membership in the Pacific Island Coun-
tries Trade Agreement (PICTA), done on Au-
gust 18, 2001, to those governments listed in 
Article 26 of PICTA, as of the date the Com-
pact, as amended, is signed. 
(c) Prior to entering into consultations on, 
or concluding, a free trade agreement with 
governments not listed in Article 26 of PICTA, 
the Federated States of Micronesia shall con-
sult with the United States regarding whether 
or how subsection (a) of section 244 shall be 
applied. 
Article V 
Finance and Taxation 
Section 251
The currency of the United States is the 
official circulating legal tender of the Fed-
erated States of Micronesia. Should the Gov-
ernment of the Federated States of Micro-
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nesia act to institute another currency, the 
terms of an appropriate currency transitional 
period shall be as agreed with the Govern-
ment of the United States. 
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 prod-
ucts consumed therein, in such manner as the 
Government of the Federated States of Micro-
nesia deems appropriate. The determination 
of the source of any income, or the situs of 
any property, shall for purposes of this Com-
pact be made according to the United States 
Internal Revenue Code. 
Section 253
A citizen of the Federated States of Micro-
nesia, domiciled therein, shall be exempt from 
estate, gift, and generation-skipping transfer 
taxes imposed by the Government of the 
United States, provided that such citizen of
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the Federated States of Micronesia is neither 
a citizen nor a resident of the United States. 
Section 254
(a) In determining any income tax im-
posed by the Government of the Federated 
States of Micronesia, the Government of the 
Federated States of Micronesia shall have au-
thority to impose tax upon income derived by 
a resident of the Federated States of Micro-
nesia from sources without the Federated 
States of Micronesia, in the same manner and 
to the same extent as the Government of the 
Federated States of Micronesia imposes tax 
upon income derived from within its own ju-
risdiction. If the Government of the Fed-
erated States of Micronesia exercises such au-
thority as provided in this subsection, any in-
dividual resident of the Federated States of 
Micronesia who is subject to tax by the Gov-
ernment of the United States on income 
which is also taxed by the Government of the 
Federated States of Micronesia shall be re-
lieved of liability to the Government of the 
United States for the tax which, but for this 
subsection, would otherwise be imposed by
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the Government of the United States on such 
income. However, the relief from liability to 
the United States Government referred to in 
the preceding sentence means only relief in 
the form of the foreign tax credit (or deduc-
tion in lieu thereof) available with respect to 
the income taxes of a possession of the United 
States, and relief in the form of the exclusion 
under section 911 of the Internal Revenue 
Code of 1986. For purposes of this section, the 
term ‘‘resident of the Federated States of Mi-
cronesia’’ shall be deemed to include any per-
son who was physically present in the Fed-
erated States of Micronesia for a period of 183 
or more days during any taxable year. 
(b) If the Government of the Federated 
States of Micronesia subjects income to tax-
ation substantially similar to that imposed by 
the Trust Territory Code in effect on January 
1, 1980, such Government shall be deemed to 
have exercised the authority described in sec-
tion 254(a). 
Section 255
For purposes of section 274(h)(3)(A) of the 
United States Internal Revenue Code of 1986,
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the term ‘‘North American Area’’ shall include 
the Federated States of Micronesia. 
TITLE THREE 
SECURITY AND DEFENSE RELATIONS 
Article I 
Authority and Responsibility 
Section 311
(a) The Government of the United States 
has full authority and responsibility for secu-
rity and defense matters in or relating to the 
Federated States of Micronesia. 
(b) This authority and responsibility in-
cludes: 
(1) the obligation to defend the Fed-
erated States of Micronesia and its peo-
ple from attack or threats thereof as the 
United States and its citizens are de-
fended; 
(2) the option to foreclose access to or 
use of the Federated States of Micronesia 
by military personnel or for the military 
purposes of any third country; and 
(3) the option to establish and use 
military areas and facilities in the Fed-
erated States of Micronesia, subject to
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the terms of the separate agreements re-
ferred to in sections 321 and 323. 
(c) The Government of the United States 
confirms that it shall act in accordance with 
the principles of international law and the 
Charter of the United Nations in the exercise 
of this authority and responsibility. 
Section 312
Subject to the terms of any agreements 
negotiated in accordance with sections 321 
and 323, the Government of the United States 
may conduct within the lands, waters and air-
space of the Federated States of Micronesia 
the activities and operations necessary for 
the exercise of its authority and responsi-
bility under this Title. 
Section 313
(a) The Government of the Federated 
States of Micronesia shall refrain from ac-
tions that the Government of the United 
States determines, after appropriate consulta-
tion with that Government, to be incompat-
ible with its authority and responsibility for 
security and defense matters in or relating to 
the Federated States of Micronesia.
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(b) The consultations referred to in this 
section shall be conducted expeditiously at 
senior levels of the two Governments, and the 
subsequent determination by the Government 
of the United States referred to in this section 
shall be made only at senior interagency lev-
els of the Government of the United States. 
(c) The Government of the Federated 
States of Micronesia shall be afforded, on an 
expeditious basis, an opportunity to raise its 
concerns with the United States Secretary of 
State personally and the United States Sec-
retary of Defense personally regarding any 
determination made in accordance with this 
section. 
Section 314
(a) Unless otherwise agreed, the Govern-
ment of the United States shall not, in the 
Federated States of Micronesia:
(1) test by detonation or dispose of 
any nuclear weapon, nor test, dispose of, 
or discharge any toxic chemical or bio-
logical weapon; or 
(2) test, dispose of, or discharge any 
other radioactive, toxic chemical or bio-
439
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logical materials in an amount or manner 
which would be hazardous to public 
health or safety. 
(b) Unless otherwise agreed, other than 
for transit or overflight purposes or during 
time of a national emergency declared by the 
President of the United States, a state of war 
declared by the Congress of the United States 
or as necessary to defend against an actual or 
impending armed attack on the United States, 
the Federated States of Micronesia or the Re-
public of the Marshall Islands, the Govern-
ment of the United States shall not store in 
the Federated States of Micronesia or the Re-
public of the Marshall Islands any toxic chem-
ical weapon, nor any radioactive materials 
nor any toxic chemical materials intended for 
weapons use. 
(c) Radioactive, toxic chemical, or biologi-
cal materials not intended for weapons use 
shall not be affected by section 314(b). 
(d) No material or substance referred to in 
this section shall be stored in the Federated 
States of Micronesia except in an amount and 
manner which would not be hazardous to
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public health or safety. In determining what 
shall be an amount or manner which would 
be hazardous to public health or safety under 
this section, the Government of the United 
States shall comply with any applicable mu-
tual agreement, international guidelines ac-
cepted by the Government of the United 
States, and the laws of the United States and 
their implementing regulations. 
(e) Any exercise of the exemption author-
ity set forth in section 161(e) shall have no ef-
fect on the obligations of the Government of 
the United States under this section or on the 
application of this subsection. 
(f) The provisions of this section shall 
apply in the areas in which the Government 
of the Federated States of Micronesia exer-
cises jurisdiction over the living resources of 
the seabed, subsoil or water column adjacent 
to its coasts. 
Section 315
The Government of the United States may 
invite members of the armed forces of other 
countries to use military areas and facilities 
in the Federated States of Micronesia, in con-
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junction with and under the control of United 
States Armed Forces. Use by units of the 
armed forces of other countries of such mili-
tary areas and facilities, other than for transit 
and overflight purposes, shall be subject to 
consultation with and, in the case of major 
units, approval of the Government of the Fed-
erated States of Micronesia. 
Section 316
The authority and responsibility of the 
Government of the United States under this 
Title may not be transferred or otherwise as-
signed. 
Article II 
Defense Facilities and Operating Rights 
Section 321
(a) Specific arrangements for the estab-
lishment and use by the Government of the 
United States of military areas and facilities 
in the Federated States of Micronesia are set 
forth in separate agreements, which shall re-
main in effect in accordance with the terms 
of such agreements. 
(b) If, in the exercise of its authority and 
responsibility under this Title, the Govern-
442
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ment of the United States requires the use of 
areas within the Federated States of Micro-
nesia in addition to those for which specific 
arrangements are concluded pursuant to sec-
tion 321(a), it may request the Government of 
the Federated States of Micronesia to satisfy 
those requirements through leases or other 
arrangements. The Government of the Fed-
erated States of Micronesia shall sympa-
thetically consider any such request and shall 
establish suitable procedures to discuss it 
with and provide a prompt response to the 
Government of the United States. 
(c) The Government of the United States 
recognizes and respects the scarcity and spe-
cial importance of land in the Federated 
States of Micronesia. In making any requests 
pursuant to section 321(b), the Government of 
the United States shall follow the policy of re-
questing the minimum area necessary to ac-
complish the required security and defense 
purpose, of requesting only the minimum in-
terest in real property necessary to support 
such purpose, and of requesting first to sat-
isfy its requirement through public real prop-
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erty, where available, rather than through 
private real property. 
Section 322
The Government of the United States 
shall provide and maintain fixed and floating 
aids to navigation in the Federated States of 
Micronesia at least to the extent necessary for 
the exercise of its authority and responsi-
bility under this Title. 
Section 323
The military operating rights of the Gov-
ernment of the United States and the legal 
status and contractual arrangements of the 
United States Armed Forces, their members, 
and associated civilians, while present in the 
Federated States of Micronesia are set forth 
in separate agreements, which shall remain in 
effect in accordance with the terms of such 
agreements. 
Article III 
Defense Treaties and International Security 
Agreements 
Section 331
Subject to the terms of this Compact, as 
amended, and its related agreements, the
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Government of the United States, exclusively, 
has assumed and enjoys, as to the Federated 
States of Micronesia, all obligations, respon-
sibilities, rights and benefits of: 
(a) Any defense treaty or other inter-
national security agreement applied by the 
Government of the United States as Admin-
istering Authority of the Trust Territory of 
the Pacific Islands as of November 2, 1986. 
(b) Any defense treaty or other inter-
national security agreement to which the 
Government of the United States is or may be-
come a party which it determines to be appli-
cable in the Federated States of Micronesia. 
Such a determination by the Government of 
the United States shall be preceded by appro-
priate consultation with the Government of 
the Federated States of Micronesia. 
Article IV 
Service in Armed Forces of the United States 
Section 341
Any person entitled to the privileges set 
forth in Section 141 (with the exception of any 
person described in section 141(a)(5) who is 
not a citizen of the Federated States of Micro-
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nesia) 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, pro-
vided that no time shall count towards this 
one year while a person admitted to the 
United States under the Compact, or the Com-
pact, as amended, is engaged in full-time 
study in the United States. Any person de-
scribed in section 141(a)(5) who is not a cit-
izen 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 Mi-
cronesia, in each of: 
(a) The United States Coast Guard Acad-
emy pursuant to 14 U.S.C. 195.
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(b) The United States Merchant Marine 
Academy pursuant to 46 U.S.C. 1295(b)(6), pro-
vided 
that 
the 
provisions 
of 
U.S.C. 
1295b(b)(6)(C) shall not apply to the enroll-
ment of students pursuant to section 342(b) of 
this Compact, as amended. 
Article V 
General Provisions 
Section 351
(a) The Government of the United States 
and the Government of the Federated States 
of Micronesia shall continue to maintain a 
Joint Committee empowered to consider dis-
putes arising under the implementation of 
this Title and its related agreements. 
(b) The membership of the Joint Com-
mittee shall comprise selected senior officials 
of the two Governments. The senior United 
States military commander in the Pacific area 
shall be the senior United States member of 
the Joint Committee. For the meetings of the 
Joint Committee, each of the two Govern-
ments may designate additional or alternate 
representatives as appropriate for the subject 
matter under consideration.
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ment of the Federated States of Micronesia, 
which arise out of armed conflict subsequent 
to November 3, 1986, and which are: 
(1) petitions to the Government of the 
United States for redress; or 
(2) claims in any manner against the 
government, citizens, nationals or enti-
ties of any third country. 
(c) Petitions under section 353(b)(1) shall 
be treated as if they were made by citizens of 
the United States. 
Section 354
(a) The Government of the United States 
and the Government of the Federated States 
of Micronesia are jointly committed to con-
tinue their security and defense relations, as 
set forth in this Title. Accordingly, it is the in-
tention of the two countries that the provi-
sions of this Title shall remain binding as long 
as this Compact, as amended, remains in ef-
fect, and thereafter as mutually agreed, un-
less 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 Gov-
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ernment of the Federated States of Micro-
nesia, acting unilaterally, terminates this 
Title, such unilateral termination shall be 
considered to be termination of the entire 
Compact, in which case the provisions of sec-
tion 442 and 452 (in the case of termination 
by the Government of the United States) or 
sections 443 and 453 (in the case of termi-
nation 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. 
(b) The Government of the United States 
recognizes, in view of the special relationship 
between the Government of the United States 
and the Government of the Federated States 
of Micronesia, and in view of the existence of 
the separate agreement regarding mutual se-
curity concluded with the Government of the 
Federated States of Micronesia pursuant to 
sections 321 and 323, that, even if this Title 
should terminate, any attack on the Fed-
erated States of Micronesia during the period 
in which such separate agreement is in effect,
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would constitute a threat to the peace and se-
curity of the entire region and a danger to the 
United States. In the event of such an attack, 
the Government of the United States would 
take action to meet the danger to the United 
States and to the Federated States of Micro-
nesia in accordance with its constitutional 
processes. 
(c) As reflected in Article 21(1)(b) of the 
Trust Fund Agreement, the Government of 
the United States and the Government of the 
Federated States of Micronesia further recog-
nize, in view of the special relationship be-
tween their countries, that even if this Title 
should terminate, the Government of the Fed-
erated States of Micronesia shall refrain from 
actions which the Government of the United 
States determines, after appropriate consulta-
tion with that Government, to be incompat-
ible with its authority and responsibility for 
security and defense matters in or relating to 
the Federated States of Micronesia or the Re-
public of the Marshall Islands.
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TITLE FOUR 
GENERAL PROVISIONS 
Article I 
Approval and Effective Date 
Section 411
Pursuant to section 432 of the Compact 
and subject to subsection (e) of section 461 of 
the Compact, as amended, the Compact, as 
amended, shall come into effect upon mutual 
agreement between the Government of the 
United States and the Government of the Fed-
erated States of Micronesia subsequent to 
completion of the following: 
(a) Approval by the Government of 
the Federated States of Micronesia in ac-
cordance with its constitutional proc-
esses. 
(b) Approval by the Government of 
the United States in accordance with its 
constitutional processes. 
Article II 
Conference and Dispute Resolution 
Section 421
The Government of the United States 
shall confer promptly at the request of the
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Government of the Federated States of Micro-
nesia and that Government shall confer 
promptly at the request of the Government of 
the United States on matters relating to the 
provisions of this Compact, as amended, or of 
its related agreements. 
Section 422
In the event the Government of the 
United States or the Government of the Fed-
erated States of Micronesia, after conferring 
pursuant to section 421, determines that there 
is a dispute and gives written notice thereof, 
the two Governments shall make a good faith 
effort to resolve the dispute between them-
selves. 
Section 423
If a dispute between the Government of 
the United States and the Government of the 
Federated States of Micronesia cannot be re-
solved within 90 days of written notification 
in the manner provided in section 422, either 
party to the dispute may refer it to arbitra-
tion in accordance with section 424. 
Section 424
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Should a dispute be referred to arbitra-
tion as provided for in section 423, an Arbitra-
tion Board shall be established for the pur-
pose of hearing the dispute and rendering a 
decision which shall be binding upon the two 
parties to the dispute unless the two parties 
mutually agree that the decision shall be advi-
sory. Arbitration shall occur according to the 
following terms: 
(a) An Arbitration Board shall consist 
of a Chairman and two other members, 
each of whom shall be a citizen of a party 
to the dispute. Each of the two Govern-
ments which is a party to the dispute 
shall appoint one member to the Arbitra-
tion Board. If either party to the dispute 
does not fulfill the appointment require-
ments of this section within 30 days of re-
ferral of the dispute to arbitration pursu-
ant to section 423, its member on the Ar-
bitration Board shall be selected from its 
own standing list by the other party to 
the 
dispute. 
Each 
Government 
shall 
maintain a standing list of 10 candidates. 
The parties to the dispute shall jointly
455
•HJ 63 RH 
appoint a Chairman within 15 days after 
selection of the other members of the Ar-
bitration Board. Failing agreement on a 
Chairman, the Chairman shall be chosen 
by lot from the standing lists of the par-
ties to the dispute within 5 days after 
such failure. 
(b) Unless otherwise provided in this 
Compact, as amended, or its related 
agreements, the Arbitration Board shall 
have jurisdiction to hear and render its 
final determination on all disputes aris-
ing exclusively under Articles I, II, III, IV 
and V of Title One, Title Two, Title Four, 
and their related agreements. 
(c) Each member of the Arbitration 
Board shall have one vote. Each decision 
of the Arbitration Board shall be reached 
by majority vote. 
(d) In determining any legal issue, the 
Arbitration Board may have reference to 
international law and, in such reference, 
shall apply as guidelines the provisions 
set forth in Article 38 of the Statute of 
the International Court of Justice.
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(e) The Arbitration Board shall adopt 
such rules for its proceedings as it may 
deem appropriate and necessary, but 
such rules shall not contravene the provi-
sions of this Compact, as amended. Un-
less the parties provide otherwise by mu-
tual agreement, the Arbitration Board 
shall endeavor to render its decision 
within 30 days after the conclusion of ar-
guments. The Arbitration Board shall 
make findings of fact and conclusions of 
law and its members may issue dis-
senting or individual opinions. Except as 
may be otherwise decided by the Arbitra-
tion Board, one-half of all costs of the ar-
bitration shall be borne by the Govern-
ment of the United States and the re-
mainder shall be borne by the Govern-
ment of the Federated States of Micro-
nesia. 
Article III 
Amendment 
Section 431
The provisions of this Compact, as amend-
ed, may be further amended by mutual agree-
457
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ment of the Government of the United States 
and the Government of the Federated States 
of Micronesia, in accordance with their re-
spective constitutional processes. 
Article IV 
Termination 
Section 441
This Compact, as amended, may be termi-
nated by mutual agreement of the Govern-
ment of the Federated States of Micronesia 
and the Government of the United States, in 
accordance with their respective constitu-
tional processes. Such mutual termination of 
this Compact, as amended, shall be without 
prejudice to the continued application of sec-
tion 451 of this Compact, as amended, and the 
provisions of the Compact, as amended, set 
forth therein. 
Section 442
Subject to section 452, this Compact, as 
amended, may be terminated by the Govern-
ment of the United States in accordance with 
its constitutional processes. Such termination 
shall be effective on the date specified in the 
notice of termination by the Government of
458
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the United States but not earlier than six 
months following delivery of such notice. The 
time specified in the notice of termination 
may be extended. Such termination of this 
Compact, as amended, shall be without preju-
dice to the continued application of section 
452 of this Compact, as amended, and the pro-
visions of the Compact, as amended, set forth 
therein. 
Section 443
This Compact, as amended, shall be termi-
nated by the Government of the Federated 
States of Micronesia, pursuant to its constitu-
tional processes, subject to section 453 if the 
people represented by that Government vote 
in a plebiscite to terminate the Compact, as 
amended, or by another process permitted by 
the FSM constitution and mutually agreed be-
tween the Governments of the United States 
and the Federated States of Micronesia. The 
Government of the Federated States of Micro-
nesia shall notify the Government of the 
United States of its intention to call such a 
plebiscite, or to pursue another mutually 
agreed and constitutional process, which
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•HJ 63 RH 
plebiscite or process shall take place not ear-
lier than three months after delivery of such 
notice. The plebiscite or other process shall 
be administered by the Government of the 
Federated States of Micronesia in accordance 
with its constitutional and legislative proc-
esses. If a majority of the valid ballots cast in 
the plebiscite or other process favors termi-
nation, the Government of the Federated 
States of Micronesia shall, upon certification 
of the results of the plebiscite or other proc-
ess, give notice of termination to the Govern-
ment of the United States, such termination to 
be effective on the date specified in such no-
tice but not earlier than three months fol-
lowing the date of delivery of such notice. The 
time specified in the notice of termination 
may be extended. 
Article V 
Survivability 
Section 451
(a) Should termination occur pursuant to 
section 441, economic and other assistance by 
the Government of the United States shall 
continue only if and as mutually agreed by
460
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the Governments of the United States and the 
Federated States of Micronesia, and in ac-
cordance with the parties’ respective con-
stitutional processes. 
(b) In view of the special relationship of 
the United States and the Federated States of 
Micronesia, as reflected in subsections (b) and 
(c) of section 354 of this Compact, as amended, 
and the separate agreement entered into con-
sistent with those subsections, if termination 
occurs pursuant to section 441 prior to the 
twentieth anniversary of the effective date of 
this Compact, as amended, the United States 
shall continue to make contributions to the 
Trust Fund described in section 215 of this 
Compact, as amended. 
(c) In view of the special relationship of 
the United States and the Federated States of 
Micronesia described in subsection (b) of this 
section, if termination occurs pursuant to sec-
tion 441 following the twentieth anniversary 
of the effective date of this Compact, as 
amended, the Federated States of Micronesia 
shall be entitled to receive proceeds from the 
Trust Fund described in section 215 of this
461
•HJ 63 RH 
Compact, as amended, in the manner de-
scribed in those provisions and the Trust 
Fund Agreement governing the distribution 
of such proceeds. 
Section 452
(a) Should termination occur pursuant to 
section 442 prior to the twentieth anniversary 
of the effective date of this Compact, as 
amended, the following provisions of this 
Compact, as amended, shall remain in full 
force and effect until the twentieth anniver-
sary of the effective date of this Compact, as 
amended, and thereafter as mutually agreed: 
(1) Article VI and sections 172, 173, 
176 and 177 of Title One; 
(2) Sections 232 and 234 of Title Two; 
(3) Title Three; and 
(4) Articles II, III, V and VI of Title 
Four. 
(b) Should termination occur pursuant to 
section 442 before the twentieth anniversary 
of the effective date of the Compact, as 
amended: 
(1) Except as provided in paragraph 
(2) of this subsection and subsection (c)
462
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of this section, economic and other assist-
ance by the United States shall continue 
only if and as mutually agreed by the 
Governments of the United States and 
the Federated States of Micronesia. 
(2) In view of the special relationship 
of the United States and the Federated 
States of Micronesia, as reflected in sub-
sections (b) and (c) of section 354 of this 
Compact, as amended, and the separate 
agreement regarding mutual security, 
and the Trust Fund Agreement, the 
United States shall continue to make con-
tributions to the Trust Fund described in 
section 215 of this Compact, as amended, 
in the manner described in the Trust 
Fund Agreement. 
(c) In view of the special relationship of 
the United States and the Federated States of 
Micronesia, as reflected in subsections 354(b) 
and (c) of this Compact, as amended, and the 
separate agreement regarding mutual secu-
rity, and the Trust Fund Agreement, if termi-
nation occurs pursuant to section 442 fol-
lowing the twentieth anniversary of the effec-
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•HJ 63 RH 
tive date of this Compact, as amended, the 
Federated States of Micronesia shall continue 
to be eligible to receive proceeds from the 
Trust Fund described in section 215 of this 
Compact, as amended, in the manner de-
scribed in those provisions and the Trust 
Fund Agreement. 
Section 453
(a) Should termination occur pursuant to 
section 443 prior to the twentieth anniversary 
of the effective date of this Compact, as 
amended, the following provisions of this 
Compact, as amended, shall remain in full 
force and effect until the twentieth anniver-
sary of the effective date of this Compact, as 
amended, and thereafter as mutually agreed: 
(1) Article VI and sections 172, 173, 
176 and 177 of Title One; 
(2) Sections 232 and 234 of Title Two; 
(3) Title Three; and 
(4) Articles II, III, V and VI of Title 
Four. 
(b) Upon receipt of notice of termination 
pursuant to section 443, the Government of 
the United States and the Government of the
464
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Federated States of Micronesia shall promptly 
consult with regard to their future relation-
ship. Except as provided in subsection (c) and 
(d) of this section, these consultations shall 
determine the level of economic and other as-
sistance, if any, which the Government of the 
United States shall provide to the Govern-
ment of the Federated States of Micronesia 
for the period ending on the twentieth anni-
versary of the effective date of this Compact, 
as amended, and for any period thereafter, if 
mutually agreed. 
(c) In view of the special relationship of 
the United States and the Federated States of 
Micronesia, as reflected in subsections 354(b) 
and (c) of this Compact, as amended, and the 
separate agreement regarding mutual secu-
rity, and the Trust Fund Agreement, if termi-
nation occurs pursuant to section 443 prior to 
the twentieth anniversary of the effective 
date of this Compact, as amended, the United 
States shall continue to make contributions to 
the Trust Fund described in section 215 of 
this Compact, as amended, in the manner de-
scribed in the Trust Fund Agreement.
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(d) In view of the special relationship of 
the United States and the Federated States of 
Micronesia, as reflected in subsections 354(b) 
and (c) of this Compact, as amended, and the 
separate agreement regarding mutual secu-
rity, and the Trust Fund Agreement, if termi-
nation occurs pursuant to section 443 fol-
lowing the twentieth anniversary of the effec-
tive date of this Compact, as amended, the 
Federated States of Micronesia shall continue 
to be eligible to receive proceeds from the 
Trust Fund described in section 215 of this 
Compact, as amended, in the manner de-
scribed in those provisions and the Trust 
Fund Agreement. 
Section 454
Notwithstanding any other provision of 
this Compact, as amended: 
(a) The Government of the United 
States reaffirms its continuing interest in 
promoting the economic advancement 
and budgetary self-reliance of the people 
of the Federated States of Micronesia.
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(b) The separate agreements referred 
to in Article II of Title Three shall remain 
in effect in accordance with their terms. 
Article VI 
Definition of Terms 
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 inter-
national law, the following terms shall have 
the following meanings: 
(a) ‘‘Trust Territory of the Pacific Is-
lands’’ 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 Ter-
ritory Code, section 1, in force on Janu-
ary 1, 1979. This term does not include 
the area of Palau or the Northern Mar-
iana Islands.
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(b) ‘‘Trusteeship Agreement’’ means 
the agreement setting forth the terms of 
trusteeship for the Trust Territory of the 
Pacific Islands, approved by the Security 
Council of the United Nations April 2, 
1947, and by the United States July 18, 
1947, entered into force July 18, 1947, 61 
Stat. 3301, T.I.A.S. 1665, 8 U.N.T.S. 189. 
(c) ‘‘The Federated States of Micro-
nesia’’ and ‘‘the Republic of the Marshall 
Islands’’ are used in a geographic sense 
and include the land and water areas to 
the outer limits of the territorial sea and 
the air space above such areas as now or 
hereafter recognized by the Government 
of the United States. 
(d) ‘‘Compact’’ means the Compact of 
Free Association Between the United 
States and the Federated States of Micro-
nesia and the Marshall Islands, that was 
approved by the United States Congress 
in section 201 of Public Law 99–239 (Jan. 
14, 1986) and went into effect with re-
spect to the Federated States of Micro-
nesia on November 3, 1986.
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•HJ 63 RH 
(e) ‘‘Compact, as amended’’ means the 
Compact of Free Association Between the 
United States and the Federated States of 
Micronesia, as amended. The effective 
date of the Compact, as amended, shall 
be on a date to be determined by the 
President of the United States, and 
agreed to by the Government of the Fed-
erated States of Micronesia, following for-
mal approval of the Compact, as amend-
ed, in accordance with section 411 of this 
Compact, as amended. 
(f) ‘‘Government of the Federated 
States of Micronesia’’ means the Govern-
ment established and organized by the 
Constitution of the Federated States of 
Micronesia including all the political sub-
divisions and entities comprising that 
Government. 
(g) ‘‘Government of the Republic of 
the Marshall Islands’’ means the Govern-
ment established and organized by the 
Constitution of the Republic of the Mar-
shall Islands including all the political
469
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subdivisions and entities comprising that 
Government. 
(h) The following terms shall be de-
fined consistent with the 1998 Edition of 
the Radio Regulations of the Inter-
national Telecommunications Union as 
follows: 
(1) ‘‘Radiocommunication’’ means 
telecommunication by means of radio 
waves. 
(2) ‘‘Station’’ means one or more 
transmitters or receivers or a com-
bination of transmitters and receiv-
ers, including the accessory equip-
ment, necessary at one location for 
carrying on a radiocommunication 
service, or the radio astronomy serv-
ice. 
(3) ‘‘Broadcasting Service’’ means 
a 
radiocommunication 
service 
in 
which the transmissions are intended 
for direct reception by the general 
public. 
This 
service 
may 
include 
sound transmissions, television trans-
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missions or other types of trans-
mission. 
(4) ‘‘Broadcasting Station’’ means 
a station in the broadcasting service. 
(5) ‘‘Assignment (of a radio fre-
quency or radio frequency channel)’’ 
means an authorization given by an 
administration for a radio station to 
use a radio frequency or radio fre-
quency channel under specified con-
ditions. 
(6) ‘‘Telecommunication’’ means 
any transmission, emission or recep-
tion of signs, signals, writings, images 
and sounds or intelligence of any na-
ture by wire, radio, optical or other 
electromagnetic systems. 
(i) ‘‘Military Areas and Facilities’’ 
means those areas and facilities in the 
Federated States of Micronesia reserved 
or acquired by the Government of the 
Federated States of Micronesia for use by 
the Government of the United States, as 
set forth in the separate agreements re-
ferred to in section 321.
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(j) ‘‘Tariff Schedules of the United 
States’’ means the Tariff Schedules of the 
United States as amended from time to 
time and as promulgated pursuant to 
United States law and includes the Tariff 
Schedules of the United States Annotated 
(TSUSA), as amended. 
(k) ‘‘Vienna Convention on Diplo-
matic Relations’’ means the Vienna Con-
vention on Diplomatic Relations, done 
April 18, 1961, 23 U.S.T. 3227, T.I.A.S. 
7502, 500 U.N.T.S. 95. 
Section 462
(a) The Government of the United States 
and the Government of the Federated States 
of Micronesia previously have concluded 
agreements pursuant to the Compact, which 
shall remain in effect and shall survive in ac-
cordance with their terms, as follows: 
(1) Agreement Concluded Pursuant to 
Section 234 of the Compact; 
(2) Agreement Between the Govern-
ment of the United States and the Gov-
ernment of the Federated States of Micro-
nesia Regarding Friendship, Cooperation
472
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and Mutual Security Concluded Pursuant 
to Sections 321 and 323 of the Compact of 
Free Association; and 
(3) Agreement between the Govern-
ment of the United States of America and 
the Federated States of Micronesia Re-
garding Aspects of the Marine Sov-
ereignty and Jurisdiction of the Fed-
erated States of Micronesia. 
(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 fol-
lowing related agreements which shall come 
into effect on the effective date of this Com-
pact, as amended, and shall survive in accord-
ance with their terms, as follows: 
(1) Federal Programs and Services 
Agreement Between the Government of 
the United States of America and the 
Government of the Federated States of 
Micronesia Concluded Pursuant to Arti-
cle III of Title One, Article II of Title Two 
(including Section 222), and Section 231
473
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of the Compact of Free Association, as 
amended which includes: 
(i) Postal Services and Related 
Programs; 
(ii) Weather Services and Related 
Programs; 
(iii) Civil Aviation Safety Service 
and Related Programs; 
(iv) Civil Aviation Economic Serv-
ices and Related Programs; 
(v) United States Disaster Pre-
paredness and Response Services and 
Related Programs; 
(vi) Federal Deposit Insurance 
Corporation Services and Related 
Programs; and 
(vii) Telecommunications Services 
and Related Programs. 
(2) Agreement Between the Govern-
ment of the United States of America and 
the Government of the Federated States 
of Micronesia on Extradition, Mutual As-
sistance in Law Enforcement Matters and 
Penal Sanctions Concluded Pursuant to
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Section 175(a) of the Compact of Free As-
sociation, as amended; 
(3) Agreement Between the Govern-
ment of the United States of America and 
the Government of the Federated States 
of Micronesia on Labor Recruitment Con-
cluded Pursuant to Section 175(b) of the 
Compact of Free Association, as amend-
ed; 
(4) 
Agreement 
Concerning 
Proce-
dures for the Implementation of United 
States Economic Assistance Provided in 
the Compact of Free Association, as 
Amended, of Free Association Between 
the Government of the United States of 
America and Government of the Fed-
erated States of Micronesia; 
(5) Agreement Between the Govern-
ment 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; 
(6) Agreement Regarding the Military 
Use and Operating Rights of the Govern-
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ment of the United States in the Fed-
erated States of Micronesia Concluded 
Pursuant to Sections 211(b), 321 and 323 
of the Compact of Free Association, as 
Amended; and the 
(7) Status of Forces Agreement Be-
tween the Government of the United 
States of America and the Government of 
the Federated States of Micronesia Con-
cluded Pursuant to Section 323 of the 
Compact of Free Association, as Amend-
ed. 
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 amend-
ed. 
(b) Any reference in Articles IV and Arti-
cle VI of Title One and Sections 174, 175, 178 
and 342 to a provision of the United States
476
•HJ 63 RH 
Code or the Statutes at Large of the United 
States or to the Privacy Act, the Freedom of 
Information Act, the Administrative Proce-
dure Act or the Immigration and Nationality 
Act constitutes the incorporation of the lan-
guage of such provision into this Compact, as 
amended, as such provision was in force on 
the effective date of this Compact, as amend-
ed, or as it may be amended thereafter on a 
non-discriminatory basis according to the 
constitutional processes of the United States. 
Article VII 
Concluding Provisions 
Section 471
Both the Government of the United States 
and the Government of the Federated States 
of Micronesia shall take all necessary steps, of 
a general or particular character, to ensure, 
no later than the entry into force date of this 
Compact, as amended, the conformity of its 
laws, regulations and administrative proce-
dures with the provisions of this Compact, as 
amended, or in the case of subsection (d) of 
section 141, as soon as reasonably possible 
thereafter.
477
•HJ 63 RH 
Section 472
This Compact, as amended, may be ac-
cepted, by signature or otherwise, by the Gov-
ernment of the United States and the Govern-
ment of the Federated States of Micronesia. 
IN WITNESS WHEREOF, the undersigned, 
duly authorized, have signed this Compact of 
Free Association, as amended, which shall 
enter into force upon the exchange of diplo-
matic notes by which the Government of the 
United States of America and the Government 
of the Federated States of Micronesia inform 
each other about the fulfillment of their re-
spective requirements for entry into force. 
DONE at Pohnpei, Federated States of Mi-
cronesia, in duplicate, this fourteenth (14) day 
of May, 2003, each text being equally authen-
tic.
Signed (May 14, 2003) 
Signed (May 14, 2003) 
For the Government of the 
For the Government of the 
United States of America: 
Federated States of 
Micronesia:
(b) COMPACT
OF
FREE
ASSOCIATION, AS 
AMENDED, BETWEEN THE GOVERNMENT OF THE 
UNITED STATES OF AMERICA AND THE GOVERN-
MENT OF THE REPUBLIC OF THE MARSHALL IS-
LANDS
478
•HJ 63 RH 
PREAMBLE 
THE 
GOVERNMENT 
OF 
THE 
UNITED 
STATES OF AMERICA AND THE GOV-
ERNMENT OF THE REPUBLIC OF THE 
MARSHALL ISLANDS 
Affirming that their Governments and 
their relationship as Governments are found-
ed upon respect for human rights and funda-
mental freedoms for all, and that the people 
of the Republic of the Marshall Islands have 
the right to enjoy self-government; and 
Affirming the common interests of the 
United States of America and the Republic of 
the Marshall Islands in creating and main-
taining their close and mutually beneficial re-
lationship through the free and voluntary as-
sociation of their respective Governments; 
and 
Affirming the interest of the Government 
of the United States in promoting the eco-
nomic advancement and budgetary self-reli-
ance of the Republic of the Marshall Islands; 
and 
Recognizing that their relationship until 
the entry into force on October 21, 1986 of the
479
•HJ 63 RH 
Compact was based upon the International 
Trusteeship System of the United Nations 
Charter, and in particular Article 76 of the 
Charter; and that pursuant to Article 76 of the 
Charter, the people of the Republic of the 
Marshall Islands have progressively devel-
oped their institutions of self-government, 
and that in the exercise of their sovereign 
right to self-determination they, through 
their freely-expressed wishes, have adopted a 
Constitution appropriate to their particular 
circumstances; and 
Recognizing that the Compact reflected 
their common desire to terminate the Trust-
eeship and establish a government-to-govern-
ment relationship which was in accordance 
with the new political status based on the 
freely expressed wishes of the people of the 
Republic of the Marshall Islands and appro-
priate to their particular circumstances; and 
Recognizing that the people of the Repub-
lic of the Marshall Islands have and retain 
their sovereignty and their sovereign right to 
self-determination and the inherent right to 
adopt and amend their own Constitution and
480
•HJ 63 RH 
form of government and that the approval of 
the entry of the Government of the Republic 
of the Marshall Islands into the Compact by 
the people of the Republic of the Marshall Is-
lands constituted an exercise of their sov-
ereign right to self-determination; and 
Recognizing the common desire of the 
people of the United States and the people of 
the Republic of the Marshall Islands to main-
tain their close government-to-government 
relationship, the United States and the Re-
public of the Marshall Islands:
NOW, THEREFORE, MUTUALLY AGREE 
to continue and strengthen their relationship 
of free association by amending the Compact, 
which continues to provide a full measure of 
self-government for the people of the Repub-
lic of the Marshall Islands; and 
FURTHER AGREE that the relationship 
of free association derives from and is as set 
forth in this Compact, as amended, by the 
Governments of the United States and the Re-
public of the Marshall Islands; and that, dur-
ing such relationship of free association, the 
respective rights and responsibilities of the
481
•HJ 63 RH 
Government of the United States and the Gov-
ernment of the Republic of the Marshall Is-
lands in regard to this relationship of free as-
sociation derive from and are as set forth in 
this Compact, as amended. 
TITLE ONE 
GOVERNMENTAL RELATIONS 
Article I 
Self-Government 
Section 111
The people of the Republic of the Marshall 
Islands, acting through the Government es-
tablished under their Constitution, are self-
governing. 
Article II 
Foreign Affairs 
Section 121
(a) The Government of the Republic of the 
Marshall Islands has the capacity to conduct 
foreign affairs and shall do so in its own name 
and right, except as otherwise provided in 
this Compact, as amended. 
(b) The foreign affairs capacity of the Gov-
ernment of the Republic of the Marshall Is-
lands includes:
482
•HJ 63 RH 
(1) the conduct of foreign affairs re-
lating to law of the sea and marine re-
sources 
matters, 
including 
the 
har-
vesting, conservation, exploration or ex-
ploitation of living and non-living re-
sources from the sea, seabed or subsoil to 
the full extent recognized under inter-
national law; 
(2) the conduct of its commercial, dip-
lomatic, consular, economic, trade, bank-
ing, postal, civil aviation, communica-
tions, and cultural relations, including 
negotiations for the receipt of develop-
mental loans and grants and the conclu-
sion of arrangements with other govern-
ments and international and intergovern-
mental organizations, including any mat-
ters specially benefiting its individual 
citizens. 
(c) The Government of the United States 
recognizes that the Government of the Repub-
lic of the Marshall Islands has the capacity to 
enter into, in its own name and right, treaties 
and other international agreements with gov-
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ernments and regional and international or-
ganizations. 
(d) In the conduct of its foreign affairs, 
the Government of the Republic of the Mar-
shall Islands confirms that it shall act in ac-
cordance with principles of international law 
and shall settle its international disputes by 
peaceful means. 
Section 122
The Government of the United States 
shall support applications by the Government 
of the Republic of the Marshall Islands for 
membership or other participation in re-
gional or international organizations as may 
be mutually agreed. 
Section 123
(a) In recognition of the authority and re-
sponsibility of the Government of the United 
States under Title Three, the Government of 
the Republic of the Marshall Islands shall 
consult, in the conduct of its foreign affairs, 
with the Government of the United States. 
(b) In recognition of the foreign affairs ca-
pacity of the Government of the Republic of 
the Marshall Islands, the Government of the
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United States, in the conduct of its foreign af-
fairs, shall consult with the Government of 
the Republic of the Marshall Islands on mat-
ters that the Government of the United States 
regards as relating to or affecting the Govern-
ment of the Republic of the Marshall Islands. 
Section 124
The Government of the United States may 
assist or act on behalf of the Government of 
the Republic of the Marshall Islands in the 
area of foreign affairs as may be requested 
and mutually agreed from time to time. The 
Government of the United States shall not be 
responsible to third parties for the actions of 
the Government of the Republic of the Mar-
shall Islands undertaken with the assistance 
or through the agency of the Government of 
the United States pursuant to this section un-
less expressly agreed. 
Section 125
The Government of the United States 
shall not be responsible for nor obligated by 
any actions taken by the Government of the 
Republic of the Marshall Islands in the area
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of foreign affairs, except as may from time to 
time be expressly agreed. 
Section 126
At the request of the Government of the 
Republic of the Marshall Islands and subject 
to the consent of the receiving state, the Gov-
ernment of the United States shall extend 
consular assistance on the same basis as for 
citizens of the United States to citizens of the 
Republic of the Marshall Islands for travel 
outside the Republic of the Marshall Islands, 
the United States and its territories and pos-
sessions. 
Section 127
Except as otherwise provided in this Com-
pact, as amended, or its related agreements, 
all obligations, responsibilities, rights and 
benefits of the Government of the United 
States as Administering Authority which re-
sulted from the application pursuant to the 
Trusteeship Agreement of any treaty or other 
international agreement to the Trust Terri-
tory of the Pacific Islands on October 20, 1986, 
are, as of that date, no longer assumed and en-
joyed by the Government of the United States.
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Immigration and Nationality Act, as amended, 
or to petition for benefits for alien relatives 
under that Act. Subsection (a) of this section, 
however, shall not prevent a citizen of the Re-
public of the Marshall Islands from otherwise 
acquiring such rights or lawful permanent 
resident alien status in the United States. 
Section 142
(a) Any citizen or national of the United 
States may be admitted to lawfully engage in 
occupations, and reside in the Republic of the 
Marshall Islands, subject to the rights of the 
Government of the Republic of the Marshall 
Islands to deny entry to or deport any such 
citizen or national as an undesirable alien. 
Any determination of inadmissibility or de-
portability shall be based on reasonable statu-
tory grounds and shall be subject to appro-
priate administrative and judicial review 
within the Republic of the Marshall Islands. 
If a citizen or national of the United States is 
a spouse of a citizen of the Republic of the 
Marshall Islands, the Government of the Re-
public of the Marshall Islands shall allow the 
United States citizen spouse to establish resi-
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Financial 
Accountability 
Committee 
de-
scribed in section 214. The Government of the 
United States shall disburse the grant assist-
ance and monitor the use of such grant assist-
ance in accordance with the provisions of this 
Article and an Agreement Concerning Proce-
dures for the Implementation of United States 
Economic Assistance Provided in the Com-
pact, as Amended, of Free Association Be-
tween 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 si-
multaneously with this Compact, as amended. 
(1) EDUCATION.—United States grant 
assistance shall be made available in ac-
cordance with the strategic framework 
described in subsection (f) of this section 
to support and improve the educational 
system of the Republic of the Marshall Is-
lands and develop the human, financial, 
and material resources necessary for the 
Republic of the Marshall Islands to per-
form these services. Emphasis should be