Compacts of Free Association

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Title Two of the Compacts of Free Association describes the financial assistance commitment by the United States to the Federated States of Micronesia (FSM) and the Republic of the Marshall Islands (RMI), with a first period of financial assistance from 1986 to 2003. An amended Compact, enacted as Public Law 108-188, followed with permanent financial assistance through 2023. The Compact of Free Association agreement with the Republic of Palau, enshrined in U.S. Public Law 99-658, was followed by a Compact Review Agreement signed between the U.S. and Palau in 2018, extending certain financial provisions through September 30, 2024. All aspects of the relationship that the United States has with each of these freely associated states, and Compact economic assistance administered by OIA are governed by the Compacts and related agreements.

Compact financial assistance is administered by the Office of Insular Affairs either through the Joint Economic Management Committee for the FSM, or the Joint Economic Management and Financial Accountability Committee with the RMI (see links to resolutions below). OIA administers funds directly to Palau as outlined in the Palau Compact and subsequent Compact Review Agreement. Read more about Compact grant assistance or Compact Trust Funds. 

 

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