WASHINGTON – In a move hailed as historic by U.S. officials, the enactment of the Compact of Free Association (COFA) Amendments Act of 2024 provides $7.1 billion in funding over 20 years to the Micronesian island nations of Palau, Micronesia, and the Marshall Islands.
“The enactment of this legislation is really a historic occasion and one worth celebrating,” said Taylor Ruggles, Senior Advisor for COFA Implementation. “The economic package contained in these agreements is going to play a vital role in building and maintaining a brighter, more prosperous future for the people of the Freely Associated States,” Ruggles added.
The funding will be used to support essential public services, infrastructure development, and strengthen the Compact Trust Funds, which provide financial assistance to the FAS nations. The agreements also include the Compact Impact Fairness Act (CIFA), which restores eligibility for certain federal programs to FAS citizens residing lawfully in the United States.
“The $6.5 billion of assistance is critical for economic stability and quality of life for people in the FAS,” said Keone Nakoa, Deputy Assistant Secretary for Insular and International Affairs. Nakoa further emphasized the strategic importance of the agreements, stating, “The new amendments deepen our relationships with the FAS over the coming decades and serve as a clear signal of the United States commitment to achieving and maintaining a free and secure Indo-Pacific region.”
CIFA aims to address the financial burdens placed on U.S. state and territorial governments due to the presence of FAS communities. However, Nakoa clarified, “CIFA will not provide eligibility to FAS communities living in Guam or anywhere else where the local residents do not also include those benefits.”
The agreements require approval by the legislatures of the Marshall Islands and Palau before taking full effect.