The Freely Associated States and Issues for Congress
Tupuola, Jared G. (2024-10-12). The Freely Associated States and Issues for Congress (Report). Washington, DC: Congressional Research Service.
- Has attachment: File:4TWRU24P.pdf
Abstract: This report provides background information and issues for Congress on the Freely Associated States (FAS)—the Republic of the Marshall Islands (RMI), Federated States of Micronesia (FSM), and Republic of Palau—and on the Compacts of Free Association that govern their relationships with the United States. The FAS are sovereign states that through bilateral Compacts of Free Association with the United States receive U.S. economic assistance and grant the United States the prerogatives to operate military bases on their soil and make decisions that affect mutual security.
The FAS and their citizens contribute to U.S. military efforts and help advance U.S. diplomatic and security interests globally and in the Pacific Islands region. Located roughly 2,500 miles southwest of Hawaii, the FAS play a role in supporting the U.S. security presence in the Pacific Islands region at a time of increasing strategic competition between the United States and its allies, on the one hand, and China, on the other. The U.S. military operates the Ronald Reagan Ballistic Missile Test Site on Kwajalein Atoll in the Marshall Islands. The United States is building a high-frequency radar system in Palau, and plans military investments and engagement in Micronesia. The Compacts allow FAS citizens to serve in the U.S. Armed Forces and to live, work, and study in the United States as lawful non-immigrants or without the status of Lawful Permanent Residents or U.S. citizens. Many have served in the U.S. military and/or migrated to U.S. states and territories.
Compact economic assistance is term-limited, while most provisions related to defense, security, migration, and other areas are indefinite. In 2023, after over two years of negotiations, the United States signed agreements with the FAS on extending economic assistance for 20 years. The agreements include grant assistance and trust fund contributions for the RMI, FSM, and Palau that total approximately $2.3 billion, $3.3 billion, and $0.9 billion, respectively, for FY2024-FY2043. In addition, the agreements include $634 million to continue U.S. Postal Service operations in the FAS. Congress approved the 2023 Compact agreements via the Compact of Free Association Amendments Act of 2024 (Division G, Title II, of the Consolidated Appropriations Act, 2024 (P.L. 118-42)). The FAS cover a maritime area larger than the continental United States, govern over 1,000 islands and atolls, and have a combined population of approximately 200,000. The FAS economies face structural challenges similar to many of those facing other Pacific Island countries, including lack of economies of scale, small land areas, limited natural and human resources, remote locations, poor infrastructure, and vulnerability to climate change.
Congressional considerations may include U.S. policies and responses to the following issues related to the Freely Associated States: the efficiency of Compact implementation and use of assistance funds; the level of FAS integration into the U.S. security posture in the Pacific; China’s influence in the FAS; the impact or effectiveness of Compact assistance on economic development in the FAS; ongoing needs related to the impact of U.S. nuclear weapons testing during the 1940s and 1950s over the Marshall Islands; other concerns for which the FAS seek greater attention from the United States; and the impact of FAS migration on U.S. states and territories.
