    [House Document 118-88]
    [From the U.S. Government Publishing Office]

    118th Congress, 1st Session - - - - - - - - - - House Document 118-88

    THE 2023 FPA AND THE 2023 FPSA WITH THE FEDERATED STATES OF MICRONESIA

                                   __________

                                 COMMUNICATION

                                      from

                         THE PRESIDENT OF THE UNITED STATES

                                  transmitting

     AGREEMENTS CONCERNING PROCEDURES FOR THE IMPLEMENTATION OF THE UNITED
    STATES ECONOMIC ASSISTANCE PROVIDED IN THE 2023 AMENDED COMPACT BETWEEN
     THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF
      THE FEDERATED STATES OF MICRONESIA, PURSUANT TO 48 U.S.C. 1921(f);
               PUBLIC LAW 108-188, SEC. 101(f); (117 STAT. 2725)

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       December 6, 2023.--Referred jointly to the Committees on Natural
            Resources and Foreign Affairs, and ordered to be printed

                                 _________

                     U.S. GOVERNMENT PUBLISHING OFFICE

    49-011                   WASHINGTON : 2023

                                               The White House,
                                          Washington, December 5, 2023.
    Hon. Mike Johnson,
    Speaker of the House of Representatives,
    Washington, DC.
        Dear Mr. Speaker: Consistent with section 101(f) of title I
    of the Compact of Free Association Amendments Act of 2003
    (Public Law 108-188), I transmit herewith the Agreement
    Concerning Procedures for the Implementation of United States
    Economic Assistance Provided in the 2023 Amended Compact
    Between the Government of the United States of America and the
    Government of the Federated States of Micronesia, signed at
    Palikir on May 23, 2023 (2023 FPA), and the 2023 Federal
    Programs and Services Agreement between the Government of the
    United States of America and the Government of the Federated
    States of Micronesia with Annexes, signed at Washington, D.C.,
    on September 28, 2023 (2023 FPSA).
        The 2023 FPA and the 2023 FPSA (Agreements) with the
    Federated States of Micronesia (FSM) serve the important
    purpose of assisting in the FSM's development and maintaining
    our close relationship. The 2023 FPA would maintain oversight
    and accountability for United States taxpayer funds provided to
    support essential government services by preserving an
    oversight role for the Joint Economic Management Committee
    (JEMCO) and United States Government control of the same, while
    giving the FSM a greater voice on the JEMCO. The 2023 FPA would
    streamline but generally maintain the FSM's reporting and audit
    requirements, while giving the FSM more autonomy in setting
    budget priorities within mutually decided upon sectors.
        Under the 2023 FPSA, most of the programs and services
    would continue as they have over the last 20 years, with some
    technical updates. The 2023 FPSA includes more substantive
    modifications to the provision of postal services, disaster
    assistance, and Federal Deposit Insurance Corporation (FDIC)
    insurance. Significant changes to postal services include
    giving the United States Postal Service more flexibility to
    reduce the minimum level of service it is required to provide
    for certain categories of service, including commercial mail
    services. Significant changes to disaster assistance include a
    revision to the process for declaring disasters and increased
    contributions to the Disaster Assistance Emergency Fund, as
    well as changes to promote disaster preparedness. The FDIC
    agreed to expand its insurance to other eligible banks in the
    FSM in addition to the already-insured Bank of the Federated
    States of Micronesia. The 2023 FPSA's general provisions that
    apply to all United States executive departments and agencies
    in the FSM--not just those providing programs and services
    under the 2023 FPSA--would last in perpetuity unless terminated
    by mutual agreement. This ensures that benefits for United
    States executive departments and agencies, personnel, and
    contractors--including certain privileges and immunities, tax
    exemptions, and claims and dispute settlement procedures--would
    continue beyond 20 years.
        Extending such assistance, including Federal programs and
    services, is a critical component of my Administration's Indo-
    Pacific, Pacific Partnership, and National Security Strategies.
    These Agreements demonstrate our long-term commitment to and
    strengthen our broader bilateral relationship with the FSM,
    fostering economic prosperity and stability that form the
    foundation of our strategic interests in the Indo-Pacific
    region.
        I transmit herewith the 2023 FPA and the 2023 FPSA for the
    implementation of these Agreements related to the Compact of
    Free Association Between the United States and the Federated
    States of Micronesia.
                Sincerely,
                                                   Joseph R. Biden, Jr.

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