OIA Announces $20 Million in Compact of Free Association Funding for Palau

WASHINGTON, D.C. - The Department of the Interior’s Assistant Secretary for Insular and International Affairs Carmen G. Cantor today announced $20 million in direct economic assistance from the United States Government to Palau for health and education sectors in the island nation. These fiscal year 2024 funds represent year one of economic assistance to Palau under the recently negotiated Compact of Free Association (Compact) Section 432 Review, Public Law 118-42, which was signed between the United States and Palau on May 22, 2023.

Today’s announcement represents funding assistance for fiscal year 2024 as follows:

• $10 million – Health Sector – to support operations of the Government of Palau’s health sector as submitted in Palau’s Fiscal Year 2024 Annual Implementation Plan.
• $10 million – Education Sector – to support operations of the Government of Palau’s education sector as submitted in Palau’s Fiscal Year 2024 Annual Implementation Plan.

“Interior is proud to partner with the Department of State and other federal partners as we begin to implement financial provisions of the Compact of Free Association relationship that the United States has with Palau,” said Assistant Secretary Cantor. “We are excited for Palau’s continued growth and economic success as a democracy and free market economy in the Pacific.”

Since the Compact of Free Association Amendments Act was signed into law by President Biden on March 9 of this year, the Interior Department has transferred $66 million to the Palau Government for the Palau Compact Trust Fund, the Palau Consolidation Fiscal Fund and for the Infrastructure Maintenance Fund.

For more information about the Compact funding schedule for Palau, visit the Office of Insular Affairs budget at https://www.doi.gov/oia/budget.

The Assistant Secretary for 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. 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.
 

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