[Pacific Islands Report] U.S. Releases $21.8 Million In Compact Funds For FSM
U.S. Department of the Interior
October, 23, 2015
The U.S. Department of the Interior’s Office of Insular Affairs this month released grant payments under the Compact of Free Association totaling $21.8 million to the Government of the Federated States of Micronesia Department of Finance.
These payments, for the last quarter of fiscal year 2015, were for Compact Sector Grants, Carry-Over Sector Grants, and Supplementary Education Grants. The breakdown of these payments by sector follows:
- Education, $7,954,088
- Health, $5,208,629
- Supplementary Education Grant, $2,207,847
- Infrastructure, $4,096,028
- Private Sector Development, $593,955
- Public Sector Capacity Building, $571,964
- FSM Single Audit, $443,239
- Environment, $389,032
- Enhanced Reporting and Accountability, $314,842
- Total Amount: $21,779,624
The breakdown by FSM State recipient of this final quarter of 2015 funding is broken out as follows:
- Chuuk, $10,376,494
- National Department of Education and College of Micronesia, $1,426,139
- Kosrae, $2,145,547
- Pohnpei, $4,777,579
- Yap, $3,053,865
Compact grants provided by the United States to the Federated States of Micronesia are pre-determined through the bilateral Joint Economic Management Committee meetings between the United States Government and the Federated States of Micronesia national government as established under the Compact of Free Association.
The Compact provides approximately 90 percent of the FSM’s annual budget for health, education, and infrastructure development and maintenance. The close relationship between the U.S. government and the Federated States of Micronesia is enshrined in the Compact of Free Association, under which the United States also provides guaranteed financial assistance over a 20-year period in exchange for full international defense authority and responsibilities. Annual Compact grants expire in 2023.