[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  
        
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                 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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