United States Transmits $31.5 Million in Compact Funding to the Republic of the Marshall Islands for FY 2017

WASHINGTON, D.C. (January 25, 2017) – The U.S. Department of the Interior's Office of Insular Affairs has released to the Government of the Republic of the Marshall Islands' (RMI) Ministry of Finance Compact of Free Association (Compact) payments totaling $31,503,897 for the period October 1, 2016 to December 31, 2016.  These payments include the RMI Trust Fund Payment for FY 2017, 1st Quarter Kwajalein Landowners payments, Compact Sector grants, a 2016 Supplemental Education Grant, the Kwajalein Environmental Impact grant, and the Enewetak Food & Agriculture Program grant as follows:

"The U.S. and the Marshall Islands have a unique relationship that has been mutually beneficial for our respective people," said Acting Assistant Secretary Nik Pula. "As we in the U.S. transition to a new administration, we will look forward to continuing our work and making improvements as needed."

Compact grants provided by the United States to the Republic of the Marshall Islands are allocated by the bilateral Joint Economic Management Finance and Accountability Committee (JEMFAC) composed of members from both the United States and the Marshall Islands governments as established under the Compact of Free Association, as amended.  The JEMFAC promotes the effective use of funding under the Compact, and provides the opportunity for RMI and U.S. officials to discuss priorities as pertains to this funding and how best to achieve them.

At the August 2016 annual meeting in Honolulu, the JEMFAC members:

• Reaffirmed a mutual commitment to peace, prosperity, and shared democratic values. 
• Recognized the importance of the enduring relationship between our two countries, welcomed the 30th Anniversary of the Compact relationship, and highlighted areas for continued cooperation to advance shared goals.
• Reaffirmed that the goal of funding provided under the Compact, as amended, is for the benefit of the people of the RMI. 
• Recognized the challenges faced by the RMI Government in developing the capacity of the Finance Ministry, the need to resolve questioned costs, and proposed coordination with other donors to address these issues.
• Reaffirmed the importance of sustainable and inclusive economic development through improved education standards and access to primary healthcare.
• Recognized the need to continue to develop clear, simple, measurable and verifiable performance indicators in health and education.
• Recognized the importance of climate change adaptation and resilience to continued economic advancement in the RMI. 
• Endorsed the RMI's continued commitment to budgetary self-reliance through voluntary contributions to the Trust Fund for the People of the Republic of the Marshall Islands. 
• Welcomed a representative from the U.S. Government Accountability Office who emphasized the critical need for reliable data to verify effectiveness of funds spent, measure progress, and target areas for improvement.
• Welcomed presentations from We Are Oceania Micronesian One Stop Shop in Honolulu and the Guam Micronesian Resource Center One Stop Shop on efforts to assist citizens of the Freely Associated States in Hawaii and Guam.

The special and unique relationship between the U.S. and the RMI is enshrined in the Compact, under which the United States also provides guaranteed financial assistance over a 20-year period in exchange for full international defense authority and responsibilities. Funding under the Compact provides approximately 60% of the RMI's annual budget for health, education, and infrastructure development and maintenance.  

 The Office of Insular Affairs carries out the administrative responsibilities of the Secretary of the Interior in coordinating federal policy for the territories of American Samoa, Guam, the U.S. Virgin Islands and the Commonwealth of the Northern Mariana Islands, and administering and overseeing U.S. federal assistance to the Freely Associated States of the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau under the Compacts of Free Association.

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