Fiscal Impact, Compact of Free Association Amendments Act of 2023

Swagel, Phillip L. (2023-06-12). Fiscal Impact, Compact of Free Association Amendments Act of 2023 (Report). Washington, DC: Congressional Budget Office. p. 4.

• Has attachment: File:N5F2WIL7.pdf

Abstract: CBO produces cost estimates for select bills and resolutions. Bills for which the Library has received CBO Cost Estimate data link to the CBO Cost Estimates.

J. Res 96, which became Compact of Free Association Amendments Act of 2024, Public Law 118-42, amended each Compact of Free Association (COFA) and the subsidiary agreements between the United States and the Federated States of Micronesia, Republic of the Marshall Islands, and Republic of Palau, often called freely associated states (FAS). It further provided funds for the FAS over the 2024-2043 period.

"...Direct Spending CBO estimates that enacting H.J. Res. 96 would increase direct spending by about $2.4 billion over the 2024-2033 period, relative to CBO’s baseline projections. In keeping with section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985, the cost of extending current spending under those COFAs between the Federated States of Micronesia and the Republic of the Marshall Islands (about $2.3 billion through 2033) are included in CBO’s baseline and therefore are not included in the costs attributable to this legislation. Federated States of Micronesia. Over the 2024-2033 period, H.J. Res. 96 would provide $550 million in additional grants and trust fund contributions and would increase spending by the same amount. Republic of the Marshall Islands. Over the 2024-2033 period, H.J. Res. 96 would provide an additional $653 million in funds available for grants, trust fund contributions, development in the Kwajalein Atoll, and establishment of a museum and would increase spending by the same amount. Republic of Palau. Over the 2024-2033 period, H.J. Res. 96 would provide $488 million in grant funds and would increase spending by the same amount..."