Compact of Free Association: Proposed Us Assistance to Palau for Fiscal Years 2016 to 2024
Gootnick, David (2016). Compact of Free Association: Proposed Us Assistance to Palau for Fiscal Years 2016 to 2024 (Report). Washington, DC: Government Accountability Office.
- Has attachment: File:7DDYF6RT.pdf
Abstract: If enacted, House Bill 4531 (H.R. 4531) would provide funding for, and make modifications to, the September 2010 agreement between the governments of the United States and Palau regarding their Compact of Free Association (the 2010 agreement). Congress has not, to date, approved legislation to implement the 2010 agreement, which scheduled approximately $216 million in U.S. assistance for fiscal years 2011 through 2024. Since 2011, the United States has provided $79 million in economic assistance to Palau through annual appropriations. However, this amount was less than anticipated under the agreement. If H.R. 4531 were enacted, Palau would receive approximately $30 million more in U.S. assistance through fiscal year 2024 than it would receive under the 2010 agreement. H.R. 4531 would also reschedule U.S. assistance, increasing the amount to be provided in fiscal year 2016 but reducing amounts in subsequent years. Finally, H.R. 4531 proposes that the United States pay for Palau's future audits of compact assistance required by the 2010 agreement, and certain specified commitments in the 2010 agreement would be backed by the full faith and credit of the U.S. government.
The provisions of H.R. 4531 would improve the long-term prospects of Palau's trust fund. GAO estimates that, including inflation adjustments, H.R. 4531 would provide approximately $32.85 million in contributions to the Palau trust fund from 2016 to 2023. If the trust fund contributions and withdrawal schedule proposed under H.R. 4531 are enacted, GAO estimates that the changes would improve the fund's prospects for sustaining payments beyond fiscal year 2044. Without the changes proposed by H.R. 4531, the trust fund would be sustained through fiscal year 2044 if it maintains its historical rate of return, but the account balance would be significantly lower.
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MAG: 2802810563 OpenAlex: W2802810563
