OIA Announces $233 Million Contribution to FSM Compact Trust Fund

WASHINGTON, D.C. – The Department of the Interior’s Assistant Secretary for Insular and International Affairs Carmen G. Cantor today announced $232,732,731 to the Trust Fund for the People of the Federated States of Micronesia, bringing the total United States contributions to the Trust Fund for fiscal year 2024 to $250 million.

The announcement was made during a visit with Federated States of Micronesia (FSM) Ambassador Jackson Soram at the FSM Embassy in Washington. Assistant Secretary Cantor highlighted the Biden-Harris administrations 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 (Compact) signed between the United States and the FSM on May 23, 2023.

“Interior is honored to provide nearly $233 million in support of the Federated States of Micronesia as provided for under the newly amended Compact agreements,” said Assistant Secretary Cantor. “This contribution significantly bolsters the Compact Trust Fund for the People of the FSM and represents the first installment of United States contributions to the Trust Fund that will total $500 million over a two-year period.

The Compact of Free Association Amendments Act was signed by President Biden on March 9. These funds will contribute to the economic advancement and long-term budgetary self-reliance of the FSM and will be used in accordance with the terms of the Trust Fund Agreement between the United States and the FSM.

Under Public Law 118-42, updates have also been made to the list of services that individuals from the Federated States of Micronesia and the two 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 agreement is an annual meeting of the Joint Economic Management Committee (JEMCO) which reviews and approves annual budgets for Compact funds. The JEMCO, which is chaired by Assistant Secretary Cantor, is planning to meet later this year.

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. 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..

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