Assistant Secretary Cantor Announces $372 Million in Compact Funding for Marshall Islands

WASHINGTON, D.C. – The Department of the Interior’s Assistant Secretary for Insular and International Affairs Carmen G. Cantor this week announced $372 million in Compact of Free Association (Compact) funding for the Republic of the Marshall Islands (RMI). The funding includes direct Compact economic assistance to the RMI Government and a deposit into the Trust Fund for the People of the Marshall Islands as provided for under the Compact. The announcement came during a visit with RMI Ambassador Charles Paul at the RMI Embassy in Washington.

Assistant Secretary Cantor highlighted the U.S. Government’s implementation of provisions under Public Law 118-42, which enabled and provided funding for the recently negotiated agreement on amendments to the Compact of Free Association signed between the United States and the RMI on October 16, 2023.

“We are honored to deliver $372 million on behalf of the U.S. Government to support the Republic of the Marshall Islands as one of our first actions taken under the newly amended Compact agreements,” said Assistant Secretary Cantor. “This amount includes a contribution of $200 million to the Compact Trust Fund and is the first installment of United States contributions expected to total $700 million over a four-year period.”

Since the Compact of Free Association Amendments Act was signed into law by President Biden on March 9, the United States has provided funding support totaling $372 million as follows: 

• $200 million – The Compact Trust Fund for the People of the Marshall Islands provides the RMI with sources of revenue to help meet the needs of people in the RMI in accordance with terms of the Trust Fund Agreement between the United States and RMI.
• $132 million – The Kwajalein Development Plan Fund supports projects to facilitate resilience and healthy communities throughout Kwajalein Atoll as further described in the Kwajalein Development Plan that is currently being updated by the RMI.
• $20 million – The Climate Fund supports the RMI’s efforts to obtain additional assistance and better cope with challenges from climate impacts, including sea-level rise and other environmental challenges that could threaten the existence of the RMI.
• $20 million – The U.S. Supplemental Health Fund supports RMI efforts to improve health outcomes for the people of the RMI.

Under Public Law 118-42, there were also updates to the types of services that individuals from the Marshall Islands and the other freely associated states are eligible for while living in the United States. An initial list of program and policy updates from various agencies that reflect the amended Compact are available here and will be updated as needed.

Also called for under the Compact of Free Association agreement is an annual meeting of the Joint Economic Management Fiscal Accountability Committee (JEMFAC) which reviews and approves annual budgets for Compact funds. The JEMFAC, which is chaired by Assistant Secretary Cantor, is planning to hold its first meeting under the renewed Compact later this year.

The Assistant Secretary - Insular and International Affairs and the Office of Insular Affairs (OIA) carry out the Secretary of the Interior’s responsibilities for the U.S. territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. Additionally, OIA administers and oversees federal assistance under the Compacts of Free Association to the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau. The OIA also administers a discretionary Technical Assistance Program for all the Insular Areas. Find information about OIA and its work on www.doi.gov/oia, Facebook, X, and YouTube.

###