[Senate Hearing 114-426]
[From the U.S. Government Publishing Office]
S. Hrg. 114-426
ISSUES FACING U.S.-AFFILIATED ISLANDS AS REPORTED BY THE U.S.
GOVERNMENT ACCOUNTABILITY OFFICE AND CONSIDERATION OF TWO MEASURES
RELATED TO U.S.-AFFILIATED ISLANDS: S. 2360, THE OMNIBUS TERRITORIES
ACT OF 2015, AND S. 2610, A BILL TO APPROVE AN AGREEMENT BETWEEN THE
UNITED STATES AND THE REPUBLIC OF PALAU
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HEARING
BEFORE THE
COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
ONE HUNDRED FOURTEENTH CONGRESS
SECOND SESSION
__________
APRIL 5, 2016
__________
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Printed for the use of the
Committee on Energy and Natural Resources
Available via the World Wide Web: http://fdsys.gov
______
U.S. GOVERNMENT PUBLISHING OFFICE
21-971 WASHINGTON : 2017
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COMMITTEE ON ENERGY AND NATURAL RESOURCES
LISA MURKOWSKI, Alaska, Chairman
JOHN BARRASSO, Wyoming MARIA CANTWELL, Washington
JAMES E. RISCH, Idaho RON WYDEN, Oregon
MIKE LEE, Utah BERNARD SANDERS, Vermont
JEFF FLAKE, Arizona DEBBIE STABENOW, Michigan
STEVE DAINES, Montana AL FRANKEN, Minnesota
BILL CASSIDY, Louisiana JOE MANCHIN III, West Virginia
CORY GARDNER, Colorado MARTIN HEINRICH, New Mexico
ROB PORTMAN, Ohio MAZIE K. HIRONO, Hawaii
JOHN HOEVEN, North Dakota ANGUS S. KING, JR., Maine
LAMAR ALEXANDER, Tennessee ELIZABETH WARREN, Massachusetts
SHELLEY MOORE CAPITO, West Virginia
COLIN HAYES, Staff Director
PATRICK J. McCORMICK III, Chief Counsel
ISAAC EDWARDS, Senior Counsel
ANGELA BECKER-DIPPMANN, Democratic Staff Director
SAM E. FOWLER, Democratic Chief Counsel
ALLEN STAYMAN, Democratic Senior Professional Staff Member
C O N T E N T S
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OPENING STATEMENTS
Page
Gardner, Hon. Cory, a U.S. Senator from Colorado................. 1
Cantwell, Hon. Maria, Ranking Member, and a U.S. Senator from
Washington..................................................... 2
WITNESSES
Kia'aina, Hon. Esther, Assistant Secretary for Insular Areas,
U.S. Department of the Interior................................ 4
Gootnick, David, Director, International Affairs and Trade, U.S.
Government Accountability Office............................... 15
ALPHABETICAL LISTING AND APPENDIX MATERIAL SUBMITTED
Bordallo, Hon. Madeleine:
Statement for the Record..................................... 95
Cantwell, Hon. Maria:
Opening Statement............................................ 2
Gardner, Hon. Cory:
Opening Statement............................................ 1
Gootnick, David:
Opening Statement............................................ 15
Written Testimony............................................ 17
Response to Questions for the Record......................... 84
Kia'aina, Hon. Esther:
Opening Statement............................................ 4
Written Testimony............................................ 6
Responses to Questions for the Record........................ 79
Kyota, Hon. Hersey:
Letter for the Record........................................ 100
People of Bikini:
Statement for the Record..................................... 111
Plaskett, Hon. Stacey:
Statement for the Record..................................... 98
S. 2360, the Omnibus Territories Act of 2015..................... 65
S. 2610, a bill to approve an agreement between the United States
and the Republic of Palau...................................... 68
Sablan, Hon. Gregorio Kilili Camacho:
Letter for the Record........................................ 103
Silk, Hon. John:
Statement for the Record..................................... 105
ISSUES FACING U.S.-AFFILIATED ISLANDS AS REPORTED BY THE U.S.
GOVERNMENT ACCOUNTABILITY OFFICE AND CONSIDERATION OF TWO MEASURES
RELATED TO U.S.-AFFILIATED ISLANDS: S. 2360, THE OMNIBUS TERRITORIES
ACT OF 2015, AND S. 2610, A BILL TO APPROVE AN AGREEMENT BETWEEN THE
UNITED STATES AND THE REPUBLIC OF PALAU
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TUESDAY, APRIL 5, 2016
U.S. Senate,
Committee on Energy and Natural Resources,
Washington, DC.
The Committee met, pursuant to notice, at 10:04 a.m. in
Room SD-366, Dirksen Senate Office Building, Hon. Cory Gardner,
presiding.
OPENING STATEMENT OF HON. CORY GARDNER, U.S. SENATOR FROM
COLORADO
Senator Gardner. Good morning and welcome to the Senate
Energy and Natural Resources Committee's hearing on issues
relating to the U.S. territories and the Freely Associated
States.
I call this Committee hearing to order.
Specifically, we will be looking this morning at two bills:
S. 2360, the Omnibus Territories Act of 2015, and S. 2610, a
bill to approve the 2010 agreement between the United States
and Palau.
We will also review reports by the U.S. Government
Accountability Office (GAO) relating to the agreement with
Palau as well as a review of the compacts of free association
with the Marshall Islands and Micronesia and the impact of
compact migrants in our states and territories.
Let me begin my remarks first on the legislation to approve
the 2010 agreement.
Palau has been one of the United States' most steadfast
allies. They vote with the U.S. in the United Nations more than
any other nation except for Israel. Out of a total population
of around 21,000 approximately 500 of their men and women serve
in the United States Armed Forces. We should be mindful of and
grateful for their support.
This Committee has held two hearings on this agreement in
prior Congresses. To the best of my knowledge I am unaware of
any policy objections to the agreement's plan of continued
financial assistance through Fiscal Year 2024. The difficulty
has always been finding an acceptable and viable offset to pay
for that financial assistance.
I would note that since the 2010 agreement was signed by
this Administration, Congress has annually provided over $13
million in discretionary funding for just over $90 million
total so far, bringing the cost of the agreement to $150
million over ten years, down from $240 million.
Unfortunately however, the Administration has not been able
to identify a politically viable option to cover the remaining
amount. I am hopeful that the Administration's witness today
will be able to provide an update on where things stand with
finding that offset.
The other piece of legislation that we will consider has
three different parts to it relating to the people of Bikini
Atoll's ability to resettle in a location outside of the
Marshall Islands, the authority to permit a foreign carrier to
operate between the American Samoa Islands of Tutuila and
Manu'a without the need for an emergency service designation,
and an amendment to the REAL ID Act so that the citizens of the
Freely Associated States (FAS) would be eligible for driver's
licenses or personal identification cards.
The first two issues were introduced at the request of the
Administration while the latter issue has previously been
reported out of this Committee and passed by the Senate last
Congress.
With regard to GAO's report we certainly appreciate the
expertise and institutional knowledge and memory that GAO's
experts provide on topics like the Territories and Freely
Associated States. With fewer and fewer Members of Congress in
office who served in the Pacific theater of World War II and
experienced how that period in history shaped the United States
engagement with the Pacific Islands and particularly our
relationship with the U.S.-affiliated islands, retaining that
knowledge is very important for us to be able to put some of
these legislative proposals into the proper context.
Certainly the topic of compact impact is important to
Hawaii and Guam and a growing importance to states like
Arkansas, Missouri and Oregon, as citizens of the Freely
Associated States migrate further into the United States.
I look forward to hearing from our witnesses this morning
on these topics, and I will turn to Senator Cantwell for any
comments she may wish to provide.
STATEMENT OF HON. MARIA CANTWELL, U.S. SENATOR FROM WASHINGTON
Senator Cantwell. Thank you, Chairman Gardner. [Laughter.]
For chairing the hearing and for this important subject this
morning.
As many of my colleagues know, this Committee was once
named the Committee on Interior and Insular Affairs which has
jurisdiction over numerous U.S.-affiliated islands including
Hawaii and the Philippines. Today the scope of the hearing
jurisdiction is narrower but still includes the five
territories of Puerto Rico, the U.S. Virgin Islands, American
Samoa, Guam, the Northern Mariana Islands and the U.S.
assistance to Freely Associated States of Palau, Micronesia and
the Marshall Islands.
Each of these island governments has a separate and unique
relationship with the United States that requires our oversight
and from time to time changes in Federal law. Today the
Committee will consider two bills and three GAO reports
regarding the insular issues.
But before I get to that, I would like to say a word about
another territorial topic that is not on today's agenda, and
that is Puerto Rico. For several months, bills have been
introduced and hearings have been held on the financial crisis
in our largest territory, a financial crisis that is quickly
becoming a humanitarian crisis for 3.5 million U.S. citizens.
The Senate has just gotten back from a two-week recess, but we
have to get serious about passing legislation giving Puerto
Rico the tools they need to restructure their debt and begin to
rebuild their economy.
Turning back to today's agenda, the first bill, S. 2360,
the Omnibus Territories Acts of 2015, would make three changes
to Federal law requested by the island governments. First, it
would allow the use of the Bikini Resettlement Trust Fund for
the people of Bikini to resettle outside the Marshall Islands.
Second, it would allow foreign air carriers to provide service
to American Samoa between the islands of Tutuila and Manua.
Third, it would make a technical correction to the REAL ID bill
by replacing the reference to the Trust Territory of the
Pacific Islands with the names of three successor states. This
would allow citizens who legally reside in the U.S. to get
state identity documents.
The second bill would approve the 2010 agreement between
the U.S. and the Republic of Palau to update and extend
provisions of the compact free association that governs
relations between our nations.
This bill is a national security priority because Palau is
strategically located in the Western Pacific, a region of
growing international tension. In its letter of transmittal of
the legislation, the Administration concludes, ``Approving this
agreement is important to the national security of the United
States', stability in the Western Pacific region, our bilateral
relationship with Palau and to the United States' broader
strategic interest in the Asia-Pacific region.''
Palau is arguably among the United States' closest allies,
as my colleague was mentioning. Nonetheless, despite this
national security imperative and broad bipartisan support, the
Committee has been unable to move the bill forward for five
years because of a failure to find a viable offset for the
mandatory spending cost of $149 million over eight years. I
hope that this is the year that we will do better here.
I am looking forward to hearing about these bills from the
Assistant Secretary of Insular Affairs, Esther Kia'aina, and
hope that people remember her from her work with Senator Akaka,
who is remembered as a champion of these island policies.
I also want to welcome Dr. Gootnick, Director of
International Affairs and Trade at the Government
Accountability Office. I would like to thank him for his work
over these many years in evaluating these Federal programs.
Financial assistance under the three compacts of free
association totals nearly $200 million a year and is vital to
providing services to these Free Associated States. In
addition, there is $30 million a year provided to Guam and
Hawaii and the Commonwealth of the Northern Mariana Islands to
help mitigate the impact of compact migrants on these
communities and for services where they have settled.
So as part of the Committee's oversight responsibilities
for these GAO programs, we have the GAO presenting their
reports which we will hear about this morning.
So again, Mr. Chairman, I so appreciate having this
hearing. I look forward to hearing about these issues and from
the Administration. This will further assist in making sure we
get these legislative issues resolved this year.
Thank you.
Senator Gardner. Thank you, Senator Cantwell.
We are hearing this morning from two witnesses, David
Gootnick from GAO as well as Esther Kia'aina, the Assistant
Secretary for Insular Areas at Department of the Interior.
Ms. Kia'aina, we will begin with your testimony.
Thank you.
STATEMENT OF HON. ESTHER KIA'AINA, ASSISTANT SECRETARY FOR
INSULAR AREAS, U.S. DEPARTMENT OF THE INTERIOR
Ms. Kia'aina. Thank you, Mr. Chairman and members of the
Committee. I appreciate the opportunity to testify on S. 2360
and 2610. Most of the provisions in both bills were requested
by the Administration, and we are appreciative of Chair
Murkowski's leadership to introduce the bills which we support.
The Administration supports S. 2360, the Omnibus
Territories Act of 2015, with its provisions for broadening
Bikini resettlement options, promoting reliable air
transportation services within American Samoa and amending the
REAL ID Act to improve the availability of drivers licenses and
personal identification cards for the citizens of the three
Freely Associated States and Micronesia.
The Administration also supports S. 2610 which would
approve the 15-year review agreement with the Republic of Palau
between the United States which called for a U.S. appropriation
of $229 million through 2024. Instead, because the agreement
has not yet been brought into force the United States, through
the U.S. Department of the Interior, has made annual payments
beginning with Fiscal Year 2010 of approximately $13.1 million
a year for a total of $92 million in discretionary funds thus
far. This bill would fund the remaining amount of $149 million
which includes remaining moneys from the U.S. Postal Service.
As was mentioned by Senator Cantwell, approving the
agreement with Palau is important to the national security of
the United States, our bilateral relationship with Palau and
stability in the Western Pacific region.
Besides the two bills today, I wanted to raise a few issues
that are important to the insular areas.
The first is the growing number of migrants under the
compacts of free association in U.S. jurisdictions,
particularly Guam and Hawaii, and its financial impacts on
these jurisdictions. The Department believes the concerns of
these jurisdictions deserve attention. The Department concurs
that the current allocation of mandatory and discretionary
funds of $33 million are insufficient to defray the costs and
welcomes revisiting the exclusion of FAS citizens from Federal
public benefits with Congress and other Federal departments.
The second issue is the elimination of the Commonwealth of
the Northern Mariana Islands (CNMI) only transitional worker
visa classification in 2019, the recovery of the CNMI economy
and efforts to train the CNMI work force continues to be an
issue of utmost importance.
Lastly, last fall the Administration forwarded a road map
to the Congress to deal with the economic and fiscal crisis in
Puerto Rico. The Department believes the other territories
should be considered for inclusion in the health and tax
provisions that may be extended to Puerto Rico, namely the
Earned Income Tax Credit and the Medicaid provisions. This
would equalize treatment among all of the territories and the
states as well as take steps to prevent a crisis in the other
smaller territories based on unequal treatment from development
in these islands.
Again, I appreciate the opportunity to testify and urge
expeditious approval of S. 2360 and 2610.
Thank you, Mr. Chairman.
[The prepared statement of Ms. Kia'aina follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Senator Gardner. Thank you for your testimony.
David Gootnick, the Director of International Affairs and
Trade, thank you very much. I look forward to hearing your
testimony.
STATEMENT OF DAVID GOOTNICK, DIRECTOR, INTERNATIONAL AFFAIRS
AND TRADE, U.S. GOVERNMENT ACCOUNTABILITY OFFICE
Mr. Gootnick. Thank you, Mr. Chairman.
Mr. Chairman and members of the Committee, thank you for
asking GAO to participate in this hearing. My statement today
will touch on three key issues associated with the compacts of
free association. First, an analysis of S. 2610. Second, key
challenges under the amended compacts with Micronesia and the
Marshall Islands. And third, compact migration and its effects
on U.S. areas.
First on Palau. As has been stated, S. 2610 would approve,
fund and make modifications to the 2010 agreement. Over the
past five years, in the absence of implementing legislation,
the U.S. has provided $67 million less than the agreement had
anticipated. S. 2610, in essence, establishes a new schedule of
economic assistance that would erase this gap.
In addition to the allocation funds to government
operations, infrastructure, debt relief and Palau's trust fund,
the agreement places some conditions on the economic package.
I'll mention four. First, funding to government operations
would be directed to specific purposes such as health and
education. Second, an advisory group would be charged with
overseeing the implementation of reforms such as those
recommended by the IMF and the Asian Development Bank. Third,
infrastructure funds would get additional scrutiny prior to
funding. And fourth, infrastructure maintenance would
prioritize the compact road and Palau's principle airport.
The agreement would also markedly improve the outlook for
Palau's trust fund. In fact, under the agreed upon schedule and
at its historic rate of return, the fund would continue to grow
through 2044.
Importantly, the agreement extends authority to continue
discretionary U.S. Federal programs such as Head Start,
Community Health Centers, special education and PELL Grants.
These programs have represented roughly one-third of all U.S.
support since 1994 and projections of Palau's fiscal balance
assume their continued presence.
Next, regarding the compacts with Micronesia and the
Marshall Islands. Now roughly two-thirds of the way through the
amended compact period both economies remain largely dependent
on compact grants and U.S. program support. Compact grants are
decreasing and will end in 2023. Both country's plans for this
decrement are on increasing tax revenue, distributions from
their trust funds, reduced government spending and a growing
private sector. However, neither country has made significant
progress on tax reform. Private sector investment is limited.
And both trust funds face obstacles. Private sector growth, in
particular, faces significant constraints, specifically the
Islands' geographic isolation and their lack of infrastructure.
Both countries have had persistent problems with
accountability for U.S. funds. In particular, their single
audits show ongoing problems with procurement, cash management
and managing government inventories, amongst other things.
Now last, regarding compact migration. As you know FAS
citizens can enter and reside in the U.S. and its territories.
The 2011 census estimated that over 56,000 compact migrants,
nearly one quarter of all FAS citizens were living in the U.S.
with more than half residing in Hawaii and Guam.
Under the amended compacts Hawaii, Guam and the Mariana
Islands have received over $400 million in Federal support
toward the cost of health, education and social services
attributed to compact migrants. Yet, over this period these
affected jurisdictions have estimated more than $2 billion in
increased outlays for these services.
Finally, as you mentioned, FAS citizens may serve in the
military. They also often contribute by taking hard to fail,
low-skill jobs. At the same time, many compact migrants
struggle with language barriers, their kids face special
challenges at school and many need access to health care not
available to them back home.
Since 1996 compact migrants have not had access to most
Medicaid benefits and they are not eligible for many other
Federal programs, Federal benefits.
In sum, compact migration, a cornerstone of these three
compacts, has emerged as a significant and growing challenge
moving forward.
Mr. Chairman, this completes my remarks and I'm happy to
answer your questions.
[The prepared statement of Mr. Gootnick follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Senator Gardner. Thank you, Mr. Gootnick.
Thank you both, again, for the time before this Committee
this morning and your testimony.
Ms. Kia'aina, I would just start with you in terms of the
questions this morning.
Former White House Advisor, Senior Advisor John Podesta,
visited Palau in 2014 for the Pacific Islands Forum. After his
trip, we were told that finding an offset for the Palau
agreement was a priority for the Administration, yet it does
not appear that there has been movement on the matter. I would
just ask you what the current situation within the
Administration for finding that offset is today?
Ms. Kia'aina. Thank you, Mr. Chairman.
That is correct. Mr. Podesta endeavored to find alternative
mechanisms to fund the Palau compact agreement last year which
have failed, and we continue to work with senior leadership of
the Office of Management and Budget and the Department of State
and the Department of Defense, given the urgency of the matter
and the need to, once and for all, collectively find a viable
offset. We admit that for the offsets provided by the
Department we continue to work with the Committee, but we
believe that it would have to take a collective approach by all
three agencies, in concert with the Office of Management and
Budget, to take care of the remaining $149 million.
When Palau signed the compact agreement, they signed it
with the United States of America, not the U.S. Department of
the Interior or any individual agency.
Senator Gardner. You mentioned the three other agencies or
the three agencies working together, Defense, State, and
Interior, is that correct, the three?
Ms. Kia'aina. That's correct.
Senator Gardner. The offset burden, it does not lie solely
with Interior then. It lies with all three. Are they actively
engaged in finding or is this simply----
Ms. Kia'aina. That has been the challenge. At the moment
the President's budget solely has it residing in the Department
of the Interior. We have already provided $92 million in
discretionary funds out of the Office of Insular Affairs, and
we believe that given the magnitude of the amount of money and
the continuing challenge for all offsets that we are working
with the Office of Management and Budget and the other two
Departments who clearly have a vested interest.
Palau is an independent nation. The Department of Defense
has control of helping to safeguard the national security, not
only of the United States, but the Republic of Palau. And
again, we believe that given the amount that it would be a
prudent approach for the Office of Management and Budget to
work with the Department of the Interior and the other two
Departments to find viable offsets that would be satisfactory
to the U.S. Congress.
Senator Gardner. What is the reasoning behind the
Administration submitting a budget that leaves it solely within
Interior without reaching into the other Departments?
Ms. Kia'aina. Mr. Chairman, historically during the first
compact when Palau was a U.S. trust territory under the purview
of the Department of Interior, we had funded the underlying
compact agreement. And during the negotiations, I guess, of
this recent review agreement, I just came on board in 2014, but
that was the approach that was undertaken. And we are
respectfully asking for reconsideration of the approach.
Senator Gardner. Thank you.
Have the people of Bikini Atoll identified any locations
outside of the Marshall Islands where they would like to use
their resettlement/relocation funds?
Ms. Kia'aina. That's a good question, Mr. Chairman.
I know that the previous mayor publicly has stated certain,
has mentioned certain states, including Hawaii and Arkansas,
where there are significant Marshallese populations including
Bikinians. But to my knowledge, collectively, the Bikinian
Council has not determined in concert with the people where
they intend to reside.
Senator Gardner. Thank you, and a final question.
The 2010 agreement with Palau requires meaningful reforms
by Palau in financial accountability and efficiency. What steps
has your office taken to have an effective plan and process in
place to review those reforms taken by Palau toward that end
should this agreement be signed into law?
Ms. Kia'aina. I'm going to have to get back to you on that,
Mr. Chairman.
I do know that out of all of the three Freely Associated
States, Palau has been the model nation in the region for
accountability.
Senator Gardner. Well, if you could get back to us on that
question, that would be fantastic for the record.
Ms. Kia'aina. Thank you.
[The information referred to was not provided as of the
date of printing.]
Senator Gardner. Thank you.
Senator Cantwell?
Senator Cantwell. Thank you, Mr. Chairman.
Again I thank the witnesses for being here and covering
these important responsibilities that are before our Committee.
I am going to defer to Senator Hirono to ask questions.
Senator Hirono. Thank you very much, Mr. Chairman, for this
hearing.
Hawaii is very well aware of the challenges facing our
compact citizens and so clearly one topic of this hearing is
where we need to meet our obligations to the Palauans. I met
with their Ambassador and he is clearly frustrated with the
fact that our country, having entered into this Agreement, has
not lived up to its Agreement.
I would like to follow up on the Chairman's questioning
with regard to these agreements and with Palau because the
State Department and DOD are very much involved and should be
involved in coming up with a way that we can meet our
obligations with regard to Palau, in particular.
So, I would really like this Committee, Mr. Chairman, to
focus very clearly on the obligations of these other
Departments and not just Interior.
With regard to the impact of the compact citizens on Guam
and Hawaii, I have visited with the Governor of Guam and of
course, I stay in touch with the Governor of Hawaii. In spite
of the fact that there is $30 million appropriated annually for
the compact impact, that is woefully short. I think it would be
very helpful if there was a concerted effort to enable our
compact citizens to be eligible, and this is also a question
for the person from GAO, for Medicaid, for TANF, for SNAP. That
would be helpful to our states and to Guam, would it not?
Either one of you can respond. Perhaps Mr. Gootnick from GAO
because I think you mentioned it?
Mr. Gootnick. Well certainly there have been numerous
proposals from the Governors and legislation introduced on that
subject. It's important to recognize that the $30 million that
you mentioned, the authorization for the $30 million a year, as
well as the authorization for other funds, will expire in 2023.
So, while compact migration is likely to continue to grow, that
source of funding will also go away.
Senator Hirono. That is why it is even more important that
after the 1997 welfare reform law when suddenly our compact
citizens no longer qualified for Medicaid, that that be
restored. Those kinds of institutional changes need to occur
because in 2023 when the impact funds end, that will leave
places like Guam, Hawaii, and other states now, basically
having to bear the full burden.
Mr. Gootnick. Right. And you know, in addition to the
fiscal issues I'm in close touch with some of the public health
officials in Hawaii who have briefed me on the process of
enrolling compact migrants.
Senator Hirono. Yes.
Mr. Gootnick. And now the Affordable Care Act.
Senator Hirono. Yes.
Mr. Gootnick. And there are, there's a significant
administrative burden, as well as many compact migrants who are
falling through the cracks who need health care attention. And
that, I think the same could be said in the other sectors,
education, social services.
Senator Hirono. I think that we really need to push
forward, not only, you know, I would love to see an increase in
the $30 million but that all ends soon.
So as I said, I would like to see a much more concerted
effort on the part of the Administration to support efforts to
enable the compact citizens to qualify for these Federal
programs because granted, many of them do come for health care.
They have huge educational needs. I am very familiar with the
gap in enrolling our compact citizens into our Affordable Care
Plan. In Hawaii there are language issues, all kinds of things.
In fact, I had to step in and ask for an extension of time
to enable our, especially our Marshall Island citizens in
Hawaii, to be able to enroll for health care. So this is going
to be an ongoing effort.
But first and foremost regarding Palau, it just really
bothers me that the State Department and the Defense Department
are not stepping forward to help fulfill our country's
obligations.
Now the Governor of Hawaii, Madam Secretary, mentioned that
maybe some of the money that goes directly to these Freely
Associated States could be used by them to contract for various
programs. What do you think of that idea?
Ms. Kia'aina. Sure. Well thank you, Senator Hirono.
Maybe, let me just step back here and give you an update on
the Administration's approach on the overall issue of compact
impact which will address your issue.
The issue, clearly, is complicated. It deals with our
nation's obligations to hold accountable the use of compact
funds to the Freely Associated States. And to that end last
year there was about $150 million backlog in infrastructure
funds that were not spent by the Marshall Islands or to the
Federated States of Micronesia. This impacts quality of life
issues for health and education because a lot of the
infrastructure funds were for that purpose. And the citizens
migrate.
So we worked feverishly with both governments, and I am
pleased to report that we have set up mechanisms which would
satisfy our concerns and have released all $150 million last
year.
Second, we believe that Federal authorities, current
Federal authorities, should be exercised. Last year we
established ``one-stop'' Micronesian service centers in both
Guam and Hawaii. And in fact, the service center in Hawaii
helped to enroll FAS citizens in health care.
We've set up a Federal interagency approach to look at all
of the statutory authorities including your proposal on
Medicaid re-eligibility to determine what statutory changes
would be needed. And also we, now that the infrastructure
challenge is over, we intend at the next joint financial
meetings, to agendize compact impact aid before the Marshall
Islands and the Federated States of Micronesia to ensure that
they know that this is a serious problem.
We will consult with our attorneys but they provide
scholarships to students who leave. At the moment we do not see
anything that would preclude them of providing some of their
funds to help their citizens in Guam and Hawaii.
Senator Hirono. If I may, Mr. Chairman, the funding for the
one stop center is only for one year, I believe. And I am glad
that Interior stepped up and provided some of that funding. And
this is a one stop center. I have worked very closely with
those folks from the Marshall Islands, in particular.
But as we go forward I think that we need to restore some
of the eligibility of our compact citizens for particularly
three programs, Medicare, TANF and SNAP. So that is where we
are going, and it is not as though we do not have the language
because the language to restore Medicaid eligibility was put
into the immigration bill two years ago in the Senate.
Ms. Kia'aina. Senator, if you don't mind I wanted to follow
up.
During the last year we have found that Federal agencies,
including FEMA, are broadly interpreting the Welfare Reform
Act. So in fact, it's not narrowly tailored to just those four
programs. It is a broader approach.
So the easiest fix would be to modify the Welfare Reform
Act to make re-eligible FAS citizens for the term of public
benefit----
Senator Hirono. Yes.
Ms. Kia'aina. Under the act.
Senator Hirono. And quite possibly, looking at the existing
legislation, there may be a way to more broadly interpret the
existing legislation so that we do not have to pass another
bill. I would like to have further discussions with you all on
that.
Ms. Kia'aina. Thank you.
Senator Hirono. Thank you very much, Mr. Chairman.
Senator Gardner. Thank you, Senator Hirono.
Senator Warren?
Senator Warren. Thank you, Mr. Chairman.
So the five populated U.S. territories, Guam, Puerto Rico,
the U.S. Virgin Islands, American Samoa and the Northern
Mariana Islands, are part of America. And the 4,000,000 people
who live on those islands are Americans. They are subject to
Federal law. More than 150,000 people from these islands have
served our country in the Armed Forces. Many have died in the
service.
It is a central principle of our American democracy that
Americans, through their votes, can have a say in their own
governments, and yet these 4,000,000 Americans have almost no
say in Federal decision-making, even when it directly affects
the islands they live on. They cannot vote in Presidential
elections, they have no Senators, and each territory gets only
one, non-voting representative in the House of Representatives.
Assistant Secretary Kia'aina, your agency coordinates
Federal policy for most of the territories so maybe you can
help me understand exactly how this works. If a U.S. citizen is
born in Guam, she can't vote for President as long as she lives
on the island. Is that right?
Ms. Kia'aina. That's correct.
Senator Warren. But if she moves to a U.S. state, say
California, can she vote there?
Ms. Kia'aina. If she, her residence requirements and voter
registration was in California and her permanent record was not
in Guam, the answer is yes.
Senator Warren. Okay, so she can register and vote in
California, as long as she moves her paperwork.
Ms. Kia'aina. And meets the requirements of the State of
California.
Senator Warren. Of whatever California has.
Let's say she moves from California to a foreign country.
For example, she goes from California to Italy. Can she vote
for President from Italy?
Ms. Kia'aina. It depends on her record of residency.
Senator Warren. But if she moves from California?
Ms. Kia'aina. Yes.
Senator Warren. If she is registered to vote in California?
Ms. Kia'aina. That's correct.
Senator Warren. So this U.S. citizen from Guam can vote in
California or can vote in Italy but if she moves from Italy
back to Guam, she still cannot vote there. Is that right?
Ms. Kia'aina. It depends on where her record of residency
is. If it's still in California because it was, if it was
California when she was in Italy and she still determined----
Senator Warren. Well but that is my point. If she moves
back. If her residency is now in Guam she loses her ability to
vote.
Ms. Kia'aina. That's correct.
Senator Warren. You know, I just have to say this is
absurd. Four million Americans live on American soil and can
fully participate in our democracy, but only if they leave
home. At their homes, on U.S. soil, all of their
representational rights disappear.
This kind of second class status is not how our government
is supposed to work and it has real implications. Right now
Puerto Rico is a $72 billion hole. Much of its debt is held by
Wall Street vulture funds that have intimidated local
government into slashing funding for schools, for hospitals,
for first responders. There is broad agreement that the current
situation is unsustainable, and there have been several
congressional proposals to create an orderly process for Puerto
Rico to restructure its debt. But powerful financial interests
would prefer we do nothing, and so far Congress still has not
acted. Congress should approve a plan to help Puerto Rico
immediately. And that would be much more likely if the millions
of Americans who live in Puerto Rico were allowed to
participate fully in our democracy.
The 4,000,000 people who live in the territories are not
the subjects of a King. They are Americans. They live in
America but their interests will never be fully represented
within our government until they have full voting rights, just
like every other American.
Thank you, Mr. Chairman.
Senator Flake. [presiding]: Thank you.
Let me follow up with a couple of questions with regard to
the first bill, finding authorization for use of established
trust fund to resettle former residents of the Bikini Atoll
outside of the Marshall Islands.
Tell me, give examples of how this might be used, what
problems are they facing now and how this would remedy it?
Ms. Kia'aina. Well, thank you, Mr. Chairman.
Under current Federal law the funds for the Bikini
resettlement trust fund is limited to resettlement in the
Marshall Islands, more specifically on the Islands of Kili and
Ejit. We face dire circumstances at the moment on the Island of
Kili where when the King Tides come in now it inundates almost
half of the Island. The people, that number between 800 to
1,000 people there, literally running for their lives to the
other side of the Island. As a result their public safety is at
risk and they have requested that they be given the opportunity
to use their resettlement funds to resettle outside of the
Marshall Islands, if that could be in the United States or
anywhere else in the world.
Senator Flake. How many, do we believe, would take
advantage of this new provision to utilize those resources?
Ms. Kia'aina. I don't have an answer to that question.
There are over, I understand, over 5,000 Bikinians, both
collectively in the Marshall Islands as well as in the United
States.
It's a very difficult issue for a lot of the elders who,
many who don't want to leave. A lot are actually leaving for
health purposes now to be with their families who live in
Arkansas and other states.
Senator Flake. Thank you.
I have a bit of a soft spot for the Marshalls. I spent some
time there, and I want to make sure that they can utilize these
funds and we can address these problems that have festered for
not just years, but decades and decades, as we know.
Ms. Kia'aina. Sure.
Senator Flake. With regard to the REAL ID Act, the
government of the Marshall Islands has contacted our office
with these issues. Will this provide the remedy, simply going
back to the REAL ID Act and taking out the reference?
Ms. Kia'aina. Yes.
Senator Flake. To the trust territory of the Pacific? Do we
think that will then?
Ms. Kia'aina. Yeah.
Senator Flake. Will that take care of it?
Ms. Kia'aina. My understanding from the Department of
Homeland Security is this would be a helpful fix because while
they have provided guidance to the states, it has been very
challenging. And so this would provide clarity across the
nation to ensure the, or improve the availability of licenses
and other official IDs for a longer period of time. At the
moment it's being restricted to one year.
Senator Flake. Okay.
Ms. Kia'aina. Because of the REAL ID Act.
So this would be a statutory fix to allow FAS citizens,
regardless of where they live, to be able to get a license or
other ID for a longer duration of time.
Senator Flake. Alright.
Well, thank you.
Senator Wyden?
Senator Wyden. Thank you very much, Mr. Chairman.
I want to welcome our guests. I can tell you, those of us
who have had the honor of chairing this Committee over the last
few years have been wrestling with these issues for years and
years. It is time, in my view, to actually get some resolution.
These relationships are extraordinarily important.
On the Omnibus Territories bill I want to note my support.
This bill contains a number of common sense solutions, as I
said, to issues that have gone on for, this feels like the
longest running battle since the Trojan War. It just goes on
and on and on.
And there are problems from allowing compact migrants to
get driver licenses in states like Oregon, give flexibility in
terms of how resettlement funds are used.
And so, I want to ask a question of the Assistant Secretary
here in a moment.
It is hard to place a dollar value on an unsinkable
aircraft carrier in the Pacific, unchallenged, with the ability
to defend a huge swath of ocean and a steadfast ally. But we do
know the cost. The cost is $149 million, about the cost of one
F35 fighter jet. So it is hard to overstate the value and the
strategic necessity of approving the agreement.
Obviously China has been interested in expanding its sphere
of influence throughout that region, so a failure to get an
agreement with Palau, to approve it, would give China, in my
view, an opening in the Pacific and send a very bad signal to
the allies in the region. So our country has made an agreement
with the people of Palau, and the bill allows us to keep our
word.
I want to ask the Assistant Secretary, of the $92 million
in stop gap funding already paid to Palau, how much has come
from the Department of State or Defense?
Ms. Kia'aina. Thank you, Senator.
Those funds have come from the Department of the Interior.
Senator Wyden. Okay.
I would like the Administration to give to the Committee,
the Chair and the Ranking Minority Member, I am just a member
of the Committee, not Chair or the Ranking Minority Member, but
I have been very involved in this issue. Chairman Bingaman
tried to resolve it. I tried to resolve it. It has gone on and
on, literally Democratic Chairs and Republican Chairs.
So I would like the Administration to send the Committee
what they would consider viable offsets for the Palau
agreement. In other words, offsets that would be agreeable to
the Administration so that we can actually get this done. I
would like that within two weeks. Is that acceptable to you?
Ms. Kia'aina. Yes, Senator. We've, in concert with the
Assistant Secretary for Policy Management and Budget we've
already put in a request with Senior Management at OMB to have
a collective meeting with the Departments of State and Defense
to talk about this matter.
Senator Wyden. I think that is great. I think collective
meetings are wonderful. We have lots of them in Washington. I
wish I had a nickel for every time I went to a collective
meeting.
I would like you to say whether it is acceptable to you
that we will get an answer to the question within two weeks.
What would be offsets acceptable to the Administration within
two weeks? Is that acceptable to you?
Ms. Kia'aina. Senator, I can only speak for the Department
of the Interior. I can't speak for OMB or the other
Departments. So in the President's budget we do have offsets
identified from the Department of Interior which clearly has
not been viable. And so, again, I can only speak for our
Department but I will work with the OMB and the other
Departments to send you other viable offsets.
Senator Wyden. I appreciate that.
[The information referred to was not provided as of the
date of printing.]
Senator Wyden. I think this has been part of the problem.
Everybody points at everybody else. In other words, Interior
and State and Defense, and when we are done with all the
pointing we are no further along in getting this resolved.
So in effect what I am asking is that because your
expertise is well known and you are well regarded by me and
others, that you be the point person because you are in front
of us and you are the person that we have. Can we ask you to
take on that assignment? It is, sort of, status in lieu of
salary, I guess. But we need somebody to be the point person to
drive this.
Ms. Kia'aina. I will try my best, Senator.
Senator Wyden. I can't ask for more.
Thank you very much. I look forward to following up.
Mr. Chairman, the point of this is, I do not want us to be
back here in another five, eight, ten years asking yet another
dedicated public servant exactly the same question because we
have been doing that year after year after year, and we
obviously want to do this in a bipartisan way. Senator Flake
and I work on forestry, all kinds of things, in a bipartisan
way.
I appreciate you are trying to step in and seeing if you
can coordinate this. You are here with us today, you are well
respected, and I appreciate your willingness to approach it
that way.
Thank you, Mr. Chairman.
Senator Flake. Thank you, Senator Wyden.
Let me just follow up with regard to the REAL ID issue with
regard to Palau. Provisions in S. 2610 would require Palau to
issue different passports for U.S. citizens in order for them
to qualify for REAL ID. Instead of stipulating how Palau issues
its own IDs, would it be sufficient to just require Palau
citizens to have a qualifying passport to work or to travel/
reside, the one that complies? Is there another way, an easier
way, to go about this then simply strike the reference to the
trust territories?
Ms. Kia'aina. Mr. Chairman, I'm going to try to answer that
question. I don't know if I have--I'm going to get this right.
But I don't think the burden is on that part. The burden is on
the part of the states, the various states, to issue IDs for a
longer duration of time and it's become very challenging.
The issue is that some states are only, because of the REAL
ID Act, are only issuing it for one year. And it makes it very
hard for FAS citizens, who are working in the United States, to
have valid licenses.
So I don't know if it is more an issue of what the FAS
states provide to the states, it's rather that the states,
because of the REAL ID Act, are not allowing, even if the
Department of Homeland Security has directed them, to issue
licenses to up to eight years. Maybe David has an answer as
well?
Mr. Gootnick. We've not actually looked at it, so I don't
have anything to add.
Senator Flake. Okay.
Well I guess the concern that I think the states have, or
some people have, is that allowing the residents of the Freely
Associated States simply to prove legal status there by
demonstrating citizenship that that potentially causes some
national security concerns that we need to go beyond that.
I know that it is an issue that is of great concern. I hope
that we can come to some resolution that won't place an
unnecessary burden on those traveling or working or residing
here.
I look forward to working with your offices on something
that will work, not just for the short term, but for the longer
term as well.
Alright, well thank you for your testimony.
This hearing is adjourned.
[Whereupon, at 10:50 a.m. the hearing was adjourned.]
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