Compact Impact Relief Act of 2016

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Compact Impact Relief Act of 2016''.

SEC. 2. FMAP ADJUSTMENT FOR AFFECTED JURISDICTIONS EQUIVALENT TO 
              COMPACT MIGRANT EXPENDITURES.

    (a) Payment of Increased FMAP.--For calendar quarters beginning on 
or after January 1 of the first year beginning after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
increase the FMAP for each affected jurisdiction (without regard for 
any limitation otherwise specified in section 1905(b) of such Act (42 
U.S.C. 1396d(b))) by the number of percentage points estimated under 
subsection (d).
    (b) Estimation of Amount of Compact Migrant Expenditures.--For 
purposes of subsection (a), not later than 90 days before the beginning 
of the calendar quarter involved, the chief executive official of the 
affected jurisdiction shall submit to the Secretary of the Interior an 
estimation of the amount of compact migrant expenditures that will be 
made by such jurisdiction for such quarter.
    (c) Review by Secretary of the Interior.--Not later than 60 days 
before the beginning of the calendar quarter involved, the Secretary of 
the Interior shall review the estimation submitted by the chief 
executive official under subsection (b), make any appropriate 
adjustments, and submit to the Secretary of Health and Human Services a 
final estimated amount of compact migrant expenditures for such 
quarter.
    (d) Estimation and Notification by Secretary of HHS.--
            (1) In general.--The Secretary of Health and Human Services 
        shall estimate the number of percentage points that the FMAP 
        for each affected jurisdiction would need to be increased for a 
        calendar quarter to result in an increase in the amount of 
        total Federal payments to the affected jurisdiction under title 
        XIX of the Social Security Act for such quarter that is 
        equivalent to the final estimated amount of compact migrant 
        expenditures submitted under subsection (c) for such quarter.
            (2) Continued application of limitation.--In no case may 
        the increase in the FMAP estimated by the Secretary of Health 
        and Human Services under paragraph (1) result in the payments 
        to an affected jurisdiction under title XIX of the Social 
        Security Act that exceed the limitations under subsections (f) 
        and (g) of section 1108 of such Act (42 U.S.C. 1308).
            (3) Notification.--Not later than 30 days before the 
        beginning of the calendar quarter involved, the Secretary of 
        Health and Human Services shall notify each such chief 
        executive official of the increase in the FMAP estimated by the 
        Secretary under this subsection for the affected jurisdiction 
        involved.
    (e) Reconciling and Payment Adjustments.--
            (1) Report by affected jurisdictions.--For each calendar 
        quarter in which an increase in the FMAP is made for an 
        affected jurisdiction under subsection (d), the chief executive 
        official for the jurisdiction shall submit to the Secretary of 
        the Interior an accounting of the total amount of compact 
        migrant expenditures made by such jurisdiction for such 
        quarter. Such accounting shall be submitted in such form and 
        manner as the Secretary, in consultation with the Secretary of 
        Health and Human Services, shall specify.
            (2) Review by the interior.--The Secretary of the Interior 
        shall review each accounting submitted under paragraph (1) for 
        accuracy, make any appropriate adjustments, and submit a final 
        accounting of the amount of compact migrant expenditures for 
        such quarter for each affected jurisdiction involved to the 
        Secretary of Health and Human Services.
            (3) Adjustment by hhs.--The Secretary of Health and Human 
        Services shall--
                    (A) review whether the increase in the FMAP for 
                each affected jurisdiction under subsection (a) for a 
                calendar quarter involved resulted in an increase in 
                Federal payments to the affected jurisdiction under 
                title XIX of the Social Security Act for such quarter 
                in an amount that is equivalent to the final accounting 
                of the amount of compact migrant expenditures submitted 
                under paragraph (2) for such jurisdiction; and
                    (B) subject to the limitations under subsection (f) 
                and (g) of section 1108 of such Act (42 U.S.C. 1308), 
                shall make appropriate adjustments to the FMAP for the 
                affected jurisdiction for future quarters to account 
                for any overpayment or underpayment occurring as a 
                result of the increase in such FMAP under this section 
                for the quarter involved for that jurisdiction.
    (f) Limitation of FMAP to 100 Percent.--In no case shall an 
increase in the FMAP applicable to an affected jurisdiction under this 
section result in an FMAP for that jurisdiction that exceeds 100 
percent.
    (g) Rule of Construction.--This section shall not be construed as 
treating compact migrant expenditures as medical assistance under title 
XIX of the Social Security Act.
    (h) Definitions.--In this section:
            (1) Affected jurisdiction.--The term ``affected 
        jurisdiction'' has the meaning given such term in section 
        104(e)(2) of the Compact of Free Association Amendments Act of 
        2003 (48 U.S.C. 1921c(e)(2)).
            (2) Compact migrant expenditures.--(A) The term ``compact 
        migrant expenditures'' means, for a calendar quarter with 
        respect to an affected jurisdiction, the amount of non-Federal 
        funds expended by such jurisdiction for items and services 
        described in section 1905(a) of the Social Security Act (42 
        U.S.C. 1396d(a)) for qualified nonimmigrants (as defined in 
        section 104(e)(2) of the Compact of Free Association Amendments 
        Act of 2003 (48 U.S.C. 1921c(e)(2))) and related administrative 
        costs.
            (B) Such term includes payments made by an affected 
        jurisdiction to health care providers for health care items and 
        services provided to qualified nonimmigrants described in 
        subparagraph (A), if such payment is not made under a State 
        plan under title XIX of the Social Security Act, and such 
        payment is not made from any other source of Federal funds.
            (3) FMAP.--The term ``FMAP'' means the Federal medical 
        assistance percentage, as defined in section 1905(b) of the 
        Social Security Act (42 U.S.C. 1396d(b)), as determined without 
        regard to this section.
    (i) Conforming Amendment.--Section 1905(b) of the Social Security 
Act (42 U.S.C. 1396d(b)) is amended by inserting ``subject to section 2 
of the Compact Impact Relief Act of 2016,'' after `` 83 per centum, 
(2)''.

SEC. 3. PAYMENTS RELATING TO ELEMENTARY AND SECONDARY EDUCATION OF 
              CITIZENS OF FREELY ASSOCIATED STATES.

    (a) Purpose.--Section 8001 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7701) is amended--
            (1) in paragraph (4), by striking ``or'';
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(6) educate alien children admitted to the United States 
        as citizens of one of the Freely Associated States.''.
    (b) Payments for Eligible Federally Connected Children.--Section 
8003(a) of such Act (20 U.S.C. 7703(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (F), by striking ``or'' at the 
                end;
                    (B) in subparagraph (G), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(H) resided in the United States pursuant to an 
                admission into the United States as a citizen of the 
                Republic of the Marshall Islands, the Federated States 
                of Micronesia, or the Republic of Palau.''; and
            (2) in paragraph (2), by adding at the end the following:
                    ``(G) Multiply the number of children described in 
                paragraph (1)(H) by a factor of 1.25.''.
    (c) Authorization of Additional Funds for Eligible Federally 
Connected Children.--Section 8014 of such Act (20 U.S.C. 7714) is 
amended by adding at the end the following:
    ``(h) Additional Funding for Eligible Federally Connected 
Children.--For the purpose of making additional payments for federally 
connected children described in section 8003(a)(1) under this title, 
there are authorized to be appropriated $10,000,000 for fiscal year 
2017 and for each succeeding fiscal year.''.

SEC. 4. PREFERENCE FOR UNITED STATES CITIZENS OR NATIONALS FOR CERTAIN 
              HOUSING FINANCIAL ASSISTANCE.

    Section 214(a)(7) of the Housing and Community Development Act of 
1980 (42 U.S.C. 1436a(a)(7)) is amended by striking ``within Guam'' and 
all that follows through the period at the end and inserting ``within 
Guam and the Commonwealth of the Northern Mariana Islands, any citizen 
or national of the United States shall be entitled to a preference or 
priority in receiving financial assistance before any such alien who is 
otherwise eligible for assistance.''.

SEC. 5. INDEPENDENT ASSESSMENT OF STRATEGIC IMPORTANCE OF RELATIONSHIP 
              BETWEEN THE UNITED STATES AND THE MARSHALL ISLANDS, THE 
              FEDERATED STATES OF MICRONESIA, AND PALAU.

    (a) In General.--The Secretary of State shall seek to enter into an 
agreement with an eligible organization to conduct an independent 
assessment of the strategic importance of the relationship between the 
United States and the Republic of the Marshall Islands, the Federated 
States of Micronesia, and the Republic of Palau.
    (b) Matters To Be Included.--The assessment required under 
subsection (a) shall include--
            (1) an assessment of the relationships between the United 
        States and the Republic of the Marshall Islands, the Federated 
        States of Micronesia, and the Republic of Palau as a component 
        of the Asia-Pacific re-balance and for the security and 
        stability of the Asia-Pacific region;
            (2) an assessment of the capabilities, expertise, and 
        shortfalls of United States Government agencies in effectively 
        administering the Compact of Free Association between the 
        United States and the Republic of the Marshall Islands, the 
        Compact of Free Association between the United States and the 
        Federated States of Micronesia, and United States financial 
        support provided to the Republic of Palau, including 
        recommendations on improvements to such capabilities, as 
        required, and changes to processes or organizations that may be 
        necessary;
            (3) recommendations regarding renewal and future 
        administration of such Compacts and financial support; and
            (4) any other matters the eligible organization that enters 
        into an agreement under this section determines to be 
        appropriate.
    (c) Report Required.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the eligible organization that 
        enters into an agreement under this section shall submit to the 
        Secretary of State a report that shall include--
                    (A) the assessment required under subsection (a);
                    (B) the matters to be included required under 
                subsection (b); and
                    (C) any other matters the Secretary determines to 
                be appropriate.
            (2) Form.--The report required under paragraph (1) shall be 
        submitted in unclassified form, but may contain a classified 
        annex if necessary.
    (d) Obtaining Official Data.--The eligible organization that enters 
into an agreement under this section may secure directly from any 
department or agency of the United States information necessary to 
enable it to carry out this section. Upon request of such eligible 
organization, the head of that department or agency shall furnish that 
information to the eligible organization.

Summary: Compact Impact Relief Act of 2016 This bill requires the Department of Health and Human Services to make quarterly increases in the federal medical assistance percentage, under title XIX (Medicaid) of the Social Security Act, to cover expenditures for medical assistance provided to qualified nonimmigrants under the Compact of Free Association by American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, or the State of Hawaii. The bill amends the Elementary and Secondary Education Act of 1965 to make local educational agencies eligible for impact aid (aid to jurisdictions that lose property tax revenue due to federal activities or location within tax-exempt federal areas) for educating alien children admitted to the United States as citizens of one of the Freely Associated States. The bill amends the Housing and Community Development Act of 1980 to grant a preference to citizens and nationals of the United States within Guam or the Commonwealth of the Northern Mariana Islands in the receipt of housing assistance over any non-resident alien.  The bill directs the Department of State to contract with an eligible organization to conduct an independent assessment of the strategic importance of the relationship between the United States and the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.