March 10, 2024 — President Biden has signed into law the Compact of Free Association Act of 2023 on March 9, 2024, following passage by the U.S. Senate and the U.S. House of Representatives.
The new COFA agreements include an additional 20 years of funding for sector grants at significantly higher levels than the preceding 20 years adjusted by 2% yearly, and no decrements in assistance. The revised and repurposed Trust Fund Agreement is now based on the priorities established by our government and will include $700 million in new contributions over the next 4 years. The new Compact Agreements also include special funds on Climate Change and additional Health Care needs beyond the sector grants. The Compact will continue to be funded with mandatory appropriations for the next 20 years meaning that the RMI government will not need to go through the appropriation process again.
All elements that the RMI government agreed to remain in place following U.S. Congressional review and approval. The U.S. Compact Act itself restores eligibility for several important U.S. federal programs; continues eligibility for essential education programs; adds Veteran Affairs (VA) programs; and includes the provision of the Compact Impact Fairness Act to assist our citizens residing in the United States.
Actions taken this week by the United States Government are the result of a lot of hard work and collective efforts to see this process to its conclusion.
Now, Nitijela will need to approve the new Compact Agreements and provide implementation provisions to have the force and effect of the law. This will be followed by an agreement to establish an effective date.
President Heine said: “Today represents a very big step in our mutual and enduring efforts to strengthen and improve the Compact. I look forward to completing the approval process and working collaboratively with the U.S. Government on implementation of the new Compact agreements which is crucial to the well-being of our citizens and security of our region.”
