[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]
EXAMINING THE IMPLEMENTATION OF THE COMPACT OF FREE
ASSOCIATION AMENDMENTS
ACT OF 2024
=======================================================================
OVERSIGHT HEARING
before the
SUBCOMMITTEE ON INDIAN AND INSULAR AFFAIRS
of the
COMMITTEE ON NATURAL RESOURCES
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED EIGHTEENTH CONGRESS
SECOND SESSION
__________
Tuesday, September 10, 2024
__________
Serial No. 118-143
__________
Printed for the use of the Committee on Natural Resources
GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT
Available via the World Wide Web: http://www.govinfo.gov
or
Committee address: http://naturalresources.house.gov
_______
U.S. GOVERNMENT PUBLISHING OFFICE
56-758 PDF WASHINGTON : 2025
COMMITTEE ON NATURAL RESOURCES
BRUCE WESTERMAN, AR, Chairman
DOUG LAMBORN, CO, Vice Chairman
RAUL M. GRIJALVA, AZ, Ranking Member
Doug Lamborn, CO Grace F. Napolitano, CA
Robert J. Wittman, VA Gregorio Kilili Camacho Sablan,
Tom McClintock, CA CNMI
Paul Gosar, AZ Jared Huffman, CA
Garret Graves, LA Ruben Gallego, AZ
Aumua Amata C. Radewagen, AS Joe Neguse, CO
Doug LaMalfa, CA Mike Levin, CA
Daniel Webster, FL Katie Porter, CA
Jenniffer Gonzalez-Colon, PR Teresa Leger Fernandez, NM
Russ Fulcher, ID Melanie A. Stansbury, NM
Pete Stauber, MN Mary Sattler Peltola, AK
John R. Curtis, UT Alexandria Ocasio-Cortez, NY
Tom Tiffany, WI Kevin Mullin, CA
Jerry Carl, AL Val T. Hoyle, OR
Matt Rosendale, MT Sydney Kamlager-Dove, CA
Lauren Boebert CO Seth Magaziner, RI
Cliff Bentz, OR Nydia M. Velazquez, NY
Jen Kiggans, VA Ed Case, HI
Jim Moylan, GU Debbie Dingell, MI
Wesley P. Hunt, TX Susie Lee, NV
Mike Collins, GA
Anna Paulina Luna, FL
John Duarte, CA
Harriet M. Hageman, WY
Vivian Moeglein, Staff Director
Tom Connally, Chief Counsel
Lora Snyder, Democratic Staff Director
http://naturalresources.house.gov
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SUBCOMMITTEE ON INDIAN AND INSULAR AFFAIRS
HARRIET M. HAGEMAN, WY, Chair
JENNIFFER GONZALEZ-COLON, PR, Vice Chair
TERESA LEGER FERNANDEZ, NM, Ranking Member
Aumua Amata C. Radewagen, AS Gregorio Kilili Camacho Sablan,
Doug LaMalfa, CA CNMI
Jenniffer Gonzalez-Colon, PR Ruben Gallego, AZ
Jerry Carl, AL Nydia M. Velazquez, NY
Jim Moylan, GU Ed Case, HI
Bruce Westerman, AR, ex officio Raul M. Grijalva, AZ, ex officio
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CONTENTS
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Page
Hearing Memo..................................................... v
Hearing held on Tuesday, September 10, 2024...................... 1
Statement of Members:
Radewagen, Hon. Aumua Amata Coleman, a Delegate in Congress
from the Territory of American Samoa....................... 1
Leger Fernandez, Hon. Teresa, a Representative in Congress
from the State of New Mexico............................... 3
Westerman, Hon. Bruce, a Representative in Congress from the
State of Arkansas.......................................... 4
Statement of Witnesses:
Panel I:
Ruggles, Taylor, Senior Advisor for COFA Implementation, U.S.
Department of State, Washington, DC........................ 6
Prepared statement of.................................... 8
Questions submitted for the record....................... 9
Brewer, John, Director, Office of Insular and International
Affairs, U.S. Department of the Interior, Washington, DC... 11
Prepared statement of.................................... 12
Questions submitted for the record....................... 14
Lee, Anka, Deputy Assistant Secretary of Defense for East
Asia, U.S. Department of Defense, Washington, DC........... 15
Prepared statement of.................................... 16
Questions submitted for the record....................... 18
LaPuz, Miguel, Special Assistant to the Deputy Under
Secretary for Health, U.S. Department of Veterans Affairs,
Washington, DC............................................. 18
Prepared statement of.................................... 20
Questions submitted for the record....................... 21
Panel II:
Kyota, His Excellency Hersey, Ambassador to the United
States, Republic of Palau, Washington, DC.................. 29
Prepared statement of.................................... 30
Questions submitted for the record....................... 32
Soram, His Excellency Jackson, Ambassador to the United
States, Federated States of Micronesia, Washington, DC..... 32
Prepared statement of.................................... 33
Questions submitted for the record....................... 35
Paul, His Excellency Charles, Ambassador to the United
States, Republic of the Marshall Islands, Washington, DC... 35
Prepared statement of.................................... 39
Questions submitted for the record....................... 40
Additional Materials Submitted for the Record:
Submissions for the Record by His Excellency Charles Paul
Nitijela of the Republic of the Marshall Islands,
Resolution 15ND1....................................... 37
[GRAPHIC] [TIFF OMITTED] T9999.001
.epsTo: House Committee on Natural Resources Republican Members
From: Indian and Insular Affairs Subcommittee staff: Ken
Degenfelder (Ken. [email protected]) and Justin Rhee
(Justin.Rhee@mail. house.gov), x6-9725
Date: Tuesday, September 10, 2024
Subject: Oversight Hearing: ``Examining the Implementation of the
Compact of Free Association Amendments Act of 2024''
________________________________________________________________________
_______
The Subcommittee on Indian and Insular Affairs will hold an
oversight hearing titled ``Examining the Implementation of the Compact
of Free Association Amendments Act of 2024'' on Tuesday, September 10,
2024, at 10:15 a.m. in Room 1324 Longworth House Office Building.
Member offices are requested to notify Haig Kadian
(Haig.Kadian@mail. house.gov) by 4:30 p.m. on Monday, September 9,
2024, if their Member intends to participate in the hearing.
I. KEY MESSAGES
In March of this year, Congress successfully passed the
Compact of Free Association Amendments Act of 2024 (COFA
Amendments Act) and now the Committee on Natural Resources
must carry out its oversight responsibilities with great
diligence to ensure proper implementation and execution of
the renewed Compact of Free Association (COFA) agreements.
It is alarming that the Department of State has not
finalized negotiations with Palau and the RMI on their
respective Federal Program and Services Agreements (FPSA).
The delay in finalizing Palau's new FPSA is particularly
concerning as Palau's existing FPSA will expire on October
1, 2024.
The Biden-Harris administration has failed to implement
several key elements of the COFA Amendments Act in a timely
manner, particularly veterans' services in the Freely
Associated States (FAS). In addition, the administration
has yet to formally convene the Interagency Working Group
specifically designed by Congress to improve interagency
coordination and communication on COFA implementation.
Proper implementation of the COFA Amendments Act and
continuing federal programs and services to the FAS
reaffirms the United States' commitment to its allies and
reliability as a partner.
II. WITNESSES
Panel 1:
Mr. Taylor Ruggles, Senior Advisor for COFA
Implementation, U.S. Department of State, Washington, D.C.
Mr. John Brewer, Director, Office of Insular and
International Affairs, U.S. Department of the Interior,
Washington, D.C.
Mr. Anka Lee, Deputy Assistant Secretary of Defense for
East Asia, U.S. Department of Defense, Washington, D.C.
Dr. Miguel LaPuz, Special Assistant to the Deputy Under
Secretary for Health, U.S. Department of Veterans Affairs,
Washington, D.C.
Panel 2:
His Excellency Hersey Kyota, Ambassador to the United
States, Republic of Palau, Washington, D.C.
His Excellency Jackson Soram, Ambassador to the United
States, Federated States of Micronesia, Washington, D.C.
His Excellency Charles Paul, Ambassador to the United
States, Republic of the Marshall Islands, Washington, D.C.
III. BACKGROUND
Freely Associated States
In 1986, the FAS emerged from the U.S.-administered United Nations
(UN) Trust Territory of the Pacific Islands in Micronesia, which had
been established after World War II.\1\ The Marshall Island group
became the Republic of the Marshall Islands, and the Caroline Island
group became the Republic of Palau and the Federated States of
Micronesia.\2\ The FAS covers a maritime area comparable in size to the
continental United States, governs over 1,000 islands, and has a
combined population of approximately 100,000 people.\3\ The FAS
economies face structural challenges similar to many other Pacific
Island counties. These include a lack of economies of scale, small land
areas, limited natural and human resources, remote locations, and poor
infrastructure.\4\ Each Freely Associated State is an independent
nation with full UN and Pacific Islands Forum membership.\5\
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\1\ The Freely Associated States and Issues for Congress.''
Congressional Research Service. https://crsreports.congress.gov/
product/pdf/R/R46705.
\2\ ``Marshall Islands.'' Encyclopedia Britannica. https://
www.britannica.com/place/Marshall-Islands and ``Caroline Islands.''
Encyclopedia Britannica. Accessed. https://www.britannica.com/place/
Caroline-Islands
\3\ The Freely Associated States and Issues for Congress.''
Congressional Research Service and ``Freely Associated States 2023.''
World Population Review. https://worldpopulationreview.com/country-
rankings/freely-associated-states.
\4\ For more information on the FAS see ``The Freely Associated
States and Issues for Congress.'' Congressional Research Service.
https://crsreports.congress.gov/product/pdf/R/R46573/2.
\5\ The Pacific Islands Forum. https://www.forumsec.org/who-we-
arepacific-islands-forum/ and ``Member States.'' United Nations.
https://www.un.org/en/about-us/member-states#gotoF.
Federated States of Micronesia: The FSM consists of island chains
between the RMI and Palau. Its federal constitutional system comprises
the states of Pohnpei, Chuuk, Yap, and Kosrae.\6\ The capital is
located at Pohnpei.\7\ It derives revenues from licensed international
fishing in its vast territorial waters and hosts a small but thriving
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tourism sector.\8\
\6\ ``Micronesia.'' Encyclopedia Britannica. https://
www.britannica.com/place/Micronesia-republic-Pacific-Ocean.
\7\ Id.
\8\ Id.
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Republic of the Marshall Islands: The RMI consists of hundreds of
islands in two parallel chains of coral atolls--the Ratak, or Sunrise,
island chain to the east and the Ralik, or Sunset, island chain to the
west--in the central Pacific Ocean.\9\ The chains lie about 125 miles
(200 km) apart and extend some 800 miles from northwest to southeast.
The capital of the RMI is Majuro.\10\
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\9\ ``Marshall Islands.'' Encyclopedia Britannica. https://
www.britannica.com/place/Marshall-Islands.
\10\ Id.
Republic of Palau: Palau is the westernmost part of the FAS, with
its capital at Koror.\11\ Its internationally renowned ``Rock Islands''
are a strong tourist draw, driving a thriving tourism industry.\12\
Palau is also home to a growing U.S. military presence, which includes
highly advanced radar and surveillance capabilities vital to U.S.
regional strategic interests.\13\ Palau also derives revenues from
licensed international fishing and subsistence agriculture.\14\
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\11\ ``Palau.'' Encyclopedia Britannica https://www.britannica.com/
place/Palau.
\12\ ``Rock Islands Southern Lagoon.'' UNESCO World Heritage
Centre. https://whc.unesco.org/en/list/1386/.
\13\ Wright, Stephen. ``US Plans Over-the-Horizon Radar Facility in
Palau.'' Radio Free Asia. https://www.rfa.org/english/news/pacific/
palau-radar-01112023015016.html.
\14\ ``Department of State: 2014 Investment Climate Statement.''
U.S. Department of State. https://2009-2017.state.gov/documents/
organization/228600.pdf.
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Compact of Free Association
The FAS is diplomatically, militarily, and economically connected
to the U.S. through the COFA agreements. These mutually beneficial
agreements serve as the primary line of defense against the People's
Republic of China (PRC) influence operations in the Indo-Pacific region
in several ways. First, they remind the FAS that the U.S. is committed
and values the special relationship formed under free association.
Second, the Compacts enable the U.S. and the FAS to counter the PRC's
attempts to undermine democracy through economic coercion.\15\ U.S.
economic assistance to the FAS provides tools and stability for local
governments to prevent democratic erosion.
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\15\ Shullman, David, ed. ``Chinese Malign Influence and the
Corrosion of Democracy.'' International Republican Institute. https://
www.iri.org/wp-content/uploads/legacy/iri.org/china
_malign_influence_executive_summary_booklet.pdf.
Under the COFA, the U.S. secures unprecedented and unmatched
security and defense rights based in the FAS nations in exchange for
vital U.S. economic assistance and defense guarantees. These rights
allow the U.S. to establish military facilities in the FAS in
accordance with the COFA terms and to exercise the right of strategic
denial. The right of strategic denial allows the U.S. to deny any
foreign military, including the PRC, access to a FAS territory.\16\
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\16\ Hills, Howard. Free Association for Micronesia and the
Marshall Islands: A Transitional Political Status Model. University of
Hawaii Law Review, Vol. 27/1. Winter 2004.
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Within the RMI, the U.S. has an army garrison located in Kwajalein
Atoll, which features the Ronald Reagan Ballistic Missile Defense Test
Site (RTS).\17\ The RTS is a vital strategic asset supporting U.S.
missile and missile defense testing, space launch, and space
surveillance activities.\18\ The U.S. Department of Defense (DoD) seeks
to use Micronesia as a location for U.S. Air Force Agile Combat
Employment operations.\19\ Palau is also home to a growing U.S.
military presence, which includes highly advanced radar and
surveillance capabilities vital to U.S. regional strategic
interests.\20\
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\17\ Army Space and Missile Defense Command. https://
www.smdc.army.mil/Portals/38/Documents/Publications/Fact_Sheets/
RTS.pdf.
\18\ ``In Focus: The Compacts of Free Association.'' Congressional
Research Service, August 15, 2022. https://crsreports.congress.gov/
product/pdf/IF/IF12194/1.
\19\ Id.
\20\ Wright, Stephen. ``US Plans Over-the-Horizon Radar Facility in
Palau.'' Radio Free Asia, March 27, 2023. https://www.rfa.org/english/
news/pacific/palau-radar-01112023015016.html.
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Additionally, the U.S. Coast Guard (USCG) is active in the region
as its cutters and patrol boats tend to be better suited than U.S. Navy
vessels for the waterways surrounding the FAS.\21\ The USCG 14th
District regularly performs maritime safety and security missions,
prevents illegal unlicensed fishing, protects natural resources, and
responds to emergencies in the region.\22\
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\21\ Maritime challenges and opportunities--Daniel K. Inouye Asia-
Pacific . . . Accessed June 7, 2023. https://dkiapcss.edu/wp-content/
uploads/2022/09/Blue-Pacific-Security-11-Long-Turvold-McCann-
MaritimeChallenges-1.pdf.
\22\ ``United States Coast Guard Pacific Area: Strategic Intent.''
United States Coast Guard, January 2016. https://
www.pacificarea.uscg.mil/Portals/8/Documents/PACAREA%20Strategic%20
Intent%20-%202016%20-%20final%20for%20release.pdf.
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Barring termination of the COFA by the parties according to the
agreement's provisions, the security and defense provisions of the COFA
do not expire and continue indefinitely. However, the economic
provisions that also sustain the COFA require periodic
renewal.23,24
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\23\ P.L. 99-239, 48 U.S.C. 1681 note, 59 Stat. 1031, Section 211,
and H.J. Res. 626, Nov. 14, 1986, P.L. 99-658, 61 Stat. 3301, Section
432.
\24\ For further information on the legislative history of COFA
renewal, refer to Subcommittee on Indian and Insular Affairs
Legislative Hearing on October 19, 2023, titled ``Discussion Draft on
H.J. Res. (Rep. Westerman), ``Compact of Free Association Amendments
Act of 2023.''
Compact of Free Association Amendments Act of 2024
In the 118th Congress, the Committee on Natural Resources conducted
multiple hearings on the COFA agreements and formed a bipartisan Indo-
Pacific Task Force to oversee issues facing the U.S. territories and
the FAS in the Indo-Pacific.\25\ The goal was to address the expiring
2003 COFA agreements with the FSM and the RMI and the 2010 Compact
Review Agreement (CRA) with Palau, as the FSM and the RMI agreements
were due to expire at the end of Fiscal Year (FY) 2023 and the Palau
agreement is expiring in FY 2024.\26\
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\25\ Subcommittee oversight hearing on May 16, 2023, titled
``Preserving U.S. Interests in the Indo-Pacific: Examining How U.S.
Engagement Counters Chinese Influence in the Region.'' https://
naturalresources.house.gov/calendar/eventsingle.aspx?EventID=413428.
Indo-Pacific Task Force oversight hearings on June 14, 2023, titled
``How the Compacts of Free Association Support U.S. Interests and
Counter the PRC's Influence'' https://naturalresources.house.gov/
calendar/eventsingle.aspx?EventID=413428 and on July 18, 2023, titled
``The Biden's Administration's Proposed Compact of Free Association
Amendments Act of 2023'' https://naturalresources.house.gov/calendar/
eventsingle.aspx?EventID=414550. Full Committee oversight field hearing
on August 24, 2023, titled ``Peace Through Strength: The Strategic
Importance of the Pacific Islands to U.S.-led Global Security'' https:/
/naturalresources.house.gov/calendar/eventsingle.aspx?EventID=414736.
\26\ The economic provisions of Palau's COFA agreement requires
renewal through a CRA whereas the FSM and the RMI require a new COFA
agreement.
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These hearings raised the importance of the COFA and the U.S.
relationship with its FAS partners while investigating the ways that
the PRC is attempting to undermine U.S. efforts in the region.
Furthermore, House Natural Resources Committee Chairman Bruce
Westerman (R-Ark.) led a historic bipartisan CODEL to Palau, the RMI,
and the FSM in August 2023 to visit and meet with leaders from the
three FAS nations and discuss U.S. commitments and partnerships with
the FAS.\27\
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\27\ ``Westerman Returns from Historic CODEL Demonstrating U.S.
Strength in the Indo-Pacific and Countering CCP Influence.'' House
Committee on Natural Resources, September 5, 2023. https://
naturalresources.house.gov/news/documentsingle.aspx?DocumentID=414776.
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In June 2023, the Biden-Harris administration transmitted to
Congress a draft proposal for COFA renewal legislation to approve and
enter into force the COFA renewal agreements with all three FAS
partners.
On October 19, 2023, the Subcommittee held a legislative hearing on
the Discussion Draft on H.J. Res. 96 (Rep. Westerman), the Compact of
Free Association Amendments Act of 2023.\28\ The legislation was marked
up and favorably reported by the Committee on Natural Resources by
unanimous consent on November 8, 2023.\29\
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\28\ ``Discussion Draft on H.J. Res. ____ (Rep. Westerman),
``Compact of Free Association Amendments Act of 2023'' on October 19,
2023
\29\ House Committee on Natural Resources Full Committee Markup on
November 8, 2023
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These efforts laid the groundwork for ensuring the renewal of the
COFA agreements on March 9, 2024, when the Consolidated Appropriations
Act, 2024 (H.R. 4366) was signed into law.\30\ H.R. 4366 included
provisions for the Compact of Free Association Amendments Act of 2024,
a version of H.J. Res 96.\31\ This renewal received bipartisan and
bicameral support.
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\30\ P.L. 118-42
\31\ H.R. 4366 (Rep Carter), ``Consolidated Appropriations Act,
2024'', Division G, Title II
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More information on the hearings, including informational memos
prepared by Majority staff and video recordings of the hearings are
available on the Committee's website at https://
naturalresources.house.gov/issues/issue/?IssueID=5066.
Key Provisions of the Compact of Free Association Amendments Act of
2024
The COFA Amendments Act 2024 approved and incorporated by reference
agreements signed between the U.S. and the FAS for the new COFA period,
from FY 2024 through FY 2043. These agreements are as follows:
2023 Agreement to Amend the U.S.-FSM Compact: An agreement
between the U.S. and the FSM governments to amend the 2003
U.S.-FSM COFA by renewing economic provisions. The
agreement sets a new funding schedule from FY 2024 through
FY 2043 for the various funding categories, including the
FSM's trust fund, as agreed upon between the FSM and U.S.
governments. The agreement also sets biennial reporting
requirements for the FSM government to send reports on the
use of U.S. economic assistance and the FSM government's
progress in meeting program and economic goals.
2023 U.S.-FSM Fiscal Procedures Agreement: An agreement on
the procedures for implementing economic assistance
provided to the FSM government by the U.S. government. This
agreement sets guidelines, requirements, and conditions for
the U.S. government and the FSM government when
implementing the U.S.-FSM COFA economic provisions. The
agreement sets parameters for the various categories of
sector grants, which are funds dedicated for use for
projects within sectors that the U.S. and the FSM have
designated as priorities such as education, health, and
private sector development. This would ensure evaluation of
the FSM's progress in meeting economic and financial
objectives and provides recommendations for increasing
effectiveness of U.S. Compact assistance.
2023 U.S.-FSM Trust Fund Agreement: An agreement on the
rules and conditions of the trust fund established by the
U.S. for the FSM. The FSM's trust fund would receive a
total of $500 million for the period from FY 2024 through
FY 2043 under the U.S.-FSM COFA. This agreement sets legal
status, account structure, funding levels and conditions
for distribution, audit and reporting requirements, and
withdrawal conditions for the FSM's trust fund.
2023 U.S.-FSM Federal Programs and Services Agreement: An
agreement on what U.S. Federal programs and services would
be provided to the FSM and the conditions for those
services. These Federal programs and services will include
the National Oceanic and Atmospheric Administration's
(NOAA) National Weather Service, the Federal Aviation
Administration's (FAA) civil aviation services, the Federal
Emergency Management Agency (FEMA), the U.S. Postal Service
(USPS), and the Federal Deposit Insurance Corporation
(FDIC).
2023 Agreement to Amend the U.S.-RMI Compact: An agreement
between the U.S. and the RMI governments to amend the
current U.S.-RMI COFA by renewing economic provisions. This
agreement would set a new funding schedule from FY 2024
through FY 2043 for U.S. economic assistance to the RMI,
including the RMI's trust fund, which was agreed upon
between the two governments. The agreement would also set
reporting requirements for the RMI government to send
reports on the RMI government's progress in meeting program
and economic goals.
2023 U.S.-RMI Fiscal Procedures Agreement: An agreement on
the procedures for the implementation of economic
assistance provided to the RMI government by the U.S.
government. This agreement sets guidelines, requirements,
and conditions for the U.S. government and the RMI
government when implementing the U.S.-RMI COFA economic
provisions. This agreement also sets parameters for the
various categories of sector grants to ensure review of the
audits and reports required under the Compact.
2023 U.S.-RMI Trust Fund Agreement: An agreement on the
rules and conditions of the trust fund established by the
U.S. for the RMI. $700 million for the period of FY 2024
through FY 2043 under the U.S.-RMI COFA will be available
for the RMI trust fund. This agreement would set the legal
status, account structure, funding levels and conditions
for distribution, audit and reporting requirements, and
withdrawal conditions for the RMI's trust fund.
2023 U.S.-Palau Compact Review Agreement: An agreement
between the U.S. and Palau governments resulting from
Section 432 of the U.S.-Palau compact. The 2023 agreement
was the result of the thirtieth-anniversary review of the
Compact. The agreement sets a new funding schedule from FY
2024 through FY 2043 for the various funding categories,
including Palau's trust fund, agreed upon between the Palau
and U.S. governments. The agreement also sets the fiscal
procedures for implementing economic assistance provisions,
including setting annual reporting requirements for Palau.
Oversight and Accountability
The COFA Amendments Act strengthens oversight and accountability
measures for the U.S. implementation and management of the COFA
economic provisions. It builds upon existing measures within Public Law
108-188 and the 2010 Palau CRA but also creates additional requirements
for the Administration to report to Congress on COFA activities every
four years.
The COFA Amendments Act requires the U.S. members of the Economic
Management and Accountability Committees, the U.S.-FSM Joint Trust Fund
Committee, and the U.S.-RMI Joint Trust Fund Committee to have strong
experience in finance and accounting and set term limits for the
committee members. Furthermore, the COFA Amendments Act requires the
Secretary of the Interior to submit reports by these committees to
Congress detailing the committees' actions and their recommendations.
The COFA Amendments Act also requires the members of the Economic
Advisory Group appointed by the Secretary of the Interior to have
qualifications in private sector business development, economic
development, or national development.
The COFA Amendments Act also carries forward the authorities of the
Comptroller General to carry out its oversight responsibilities under
the COFA. The COFA Amendments Act places reporting requirements on the
Comptroller General to submit to Congress a report on the economic
performance of the FAS, the impact of U.S. economic assistance to the
FAS, and the effectiveness of U.S. administrative oversight over the
COFA. This expands the requirements set by Public Law 108-188 by
including reporting on Palau. The COFA Amendments Act also carries
forward the authorities of the Secretary of the Interior and the
Postmaster General to carry out oversight responsibilities.
The COFA Amendments Act requires the Secretary of the Interior to
submit to Congress a compilation of the COFA agreements with the FSM,
the RMI, and Palau to improve the readability of the COFA agreements.
Interagency Group on Freely Associated States
The COFA Amendments Act requires the U.S. president to establish an
Interagency Group on Freely Associated States that would serve as a
coordination mechanism for the U.S. government's implementation of the
COFAs with the three FAS countries. The Interagency Group consists of
the secretaries of State, the Interior, and Defense, as well as heads
of relevant federal agencies, departments, and instrumentalities
carrying out COFA obligations. The Secretary of State and Secretary of
the Interior would both serve as co-chairs and would be responsible for
facilitating and coordinating the work of the Interagency Group. The
Interagency Group would enhance U.S. government coordination on COFA
implementation and increase engagement from the Department of State on
issues relating to the COFAs.
The duties of the Interagency Group include advising the U.S.
president on establishing and implementing policies relating to the FAS
through a written report at least once a year and facilitating
coordination of relevant policies, programs, initiatives, and
activities of the FAS to avoid duplication between activities. Section
7(d)(6) sets reporting requirements for the U.S. president to submit to
the majority leader and minority leader of the Senate, the Speaker and
minority leader of the House of Representatives, and the appropriate
committees of Congress a report that describes the activities and
recommendations of the Interagency Group during the applicable year.
Compact Impact Fairness
The COFA Amendments Act also restores eligibility for FAS citizens
lawfully living in the U.S., and U.S. territories to receive the
Federal benefits available to other legal permanent residents. The COFA
Amendments Act contains substantially similar language to the
standalone House bill, H.R. 3570, and Compact Impact Fairness Act of
2023 (CIFA).\32\
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\32\ Text--H.R. 3570--117th Congress (2021-2022): Compact Impact
Fairness Act of 2021. (2021, July 7). https://www.congress.gov/bill/
117th-congress/house-bill/3570/text.
Under the first COFA, FAS citizens who legally work and reside in
the U.S. were eligible for Federal benefits available to legal
permanent residents but lost eligibility for most of these benefits
following the enactment of the 1996 Personal Responsibility and Work
Opportunity Reconciliation Act (PRWORA).\33\ In 2020, Congress restored
Medicaid eligibility for legal permanent residents from the FAS.\34\
However, U.S. states and territories have had to shoulder the financial
costs of hosting legal permanent residents from the FAS and meeting the
cost-sharing requirements of Medicaid. To address this, the previous
2003 COFA, under Public Law 108-188, provided Compact Impact Grants to
Hawaii, Guam, the Commonwealth of the Northern Mariana Islands, and
American Samoa.
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\33\ Paule, A. & Weiker, A (2023, June 26). What the Compact Impact
Fairness Act Means for Compact Host Governments and Migrants. East-West
Center. https://www.eastwestcenter.org/publications/what-compact-
impact-fairness-act-means-compact-host-governments-and-migrants.
\34\ Diamond, D. (2020, December 20). `A Shining Moment': Congress
Agrees to Restore Medicaid for Pacific Islanders. Politico. https://
www.eastwestcenter.org/publications/what-compact-impact-fairness-act-
means-compact-host-governments-and-migrants; 8 U.S.C. Sec. 1612 2023.
Instead of the Compact Impact Grants, the COFA Amendments Act
returns Federal benefits eligibility for FAS migrants to pre-PRWORA
---------------------------------------------------------------------------
levels and expand coverage to all U.S. states and territories.
Implementation Status of the COFA Amendments Act of 2024
The Committee on Natural Resources has identified issues and
concerns with the implementation and execution of the COFA Amendments
Act by the Biden-Harris administration.
The CIFA provisions of the COFA Amendments Act allowed for FAS
citizens residing in the U.S. to become eligible for certain programs
such as the Supplemental Nutrition Assistance Program (SNAP), Temporary
Assistance for Needy Families (TANF), and Supplemental Security Income
(SSI). As such, the agencies carrying out those programs would need to
issue guidance adhering to the law. While it appears that nearly every
agency impacted by CIFA have issued guidance, Social Security
Administration has not issued guidance for the SSI program.\35\
---------------------------------------------------------------------------
\35\ Information provided by the Congressional Research Service and
FAS officials upon request by House Natural Resources Republican Staff.
The COFA Amendments Act law includes the authority for the
Department of Veterans Affairs (VA) to carry programs and services in
the FAS. However, the VA has yet to carry out these services as they
have yet to begin negotiations with the FAS governments as required
under the COFA Amendments Act. The Secretary of Veterans Affairs is
required to negotiate with the FAS governments on terms and conditions
of VA services in the FAS. The delay in the negotiation process appears
to have resulted from a concern by the VA that the COFA Amendments Act
did not provide adequate funding for the department to carry out its
services. This concern has yet to be validated as the Congressional
Budget Office's cost estimate of the COFA legislation included the cost
of carrying out VA services.\36\ It is not confirmed if the VA still
has concerns regarding funding for these services, but it has been
confirmed by FAS officials that the department has not yet initiated
negotiations.
---------------------------------------------------------------------------
\36\ At a Glance: H.J. Res 96, Compact of Free Association
Amendments Act of 2023, Congressional Budget Office. https://
www.cbo.gov/system/files/2023-12/hjres96.pdf
---------------------------------------------------------------------------
Several of these issues could be resolved through the Interagency
Group that Congress mandated under the COFA Amendments Act. However, it
appears that the Interagency Group has only held a preliminary meeting
\37\ and has not yet formally convened.\38\ Upon discussion with
Committee staff, the Department of State stated that they do not
currently anticipate any interim report submission.\39\ Rather, they
will ``certainly work with the White House to ensure they meet the
legislated deadline.'' \40\ Currently, the Department of the Interior's
website on the Interagency Group does not have any documents,
calendars, or links.\41\ Furthermore, concerns have been raised
regarding a lack of staffing for the Interagency Group.\42\
---------------------------------------------------------------------------
\37\ Correspondence with The Department of State
\38\ U.S. Department of the Interior website section on
``Interagency Group for the Freely Associated States (FAS)''
\39\ Correspondence with CRS
\40\ Correspondence with CRS
\41\ U.S. Department of the Interior website section on
``Interagency Group for the Freely Associated States (FAS)''
\42\ Correspondence with The Department of State
The Department of State has also not yet stood up the Unit for the
Freely Associated States mandated under the COFA Amendments Act.\43\
This law mandates that this unit be established within the Department
of State's Bureau of East Asian and Pacific Affairs.
---------------------------------------------------------------------------
\43\ Information provided by the Department of State to Committee
staff.
---------------------------------------------------------------------------
Outstanding Subsidiary Agreement Negotiations
Although the COFA agreements have successfully been renewed,
several subsidiary agreements remain in negotiation. The outstanding
subsidiary agreements are the FPSAs with Palau and the RMI.
When submitting their COFA legislative proposal, the Biden-Harris
administration informed Congress they were still negotiating the FPSA
agreements with Palau and the RMI. However, it was determined that
Congress could move forward with COFA renewal legislation without the
final FPSA agreements. At that time, the administration determined the
existing law only required a 90-day Congressional review period before
the President has the authority to enter into force the FPSA
agreements. This was stated again when Committee staff contacted the
Department of State and the Department of the Interior for a technical
review of the COFA Amendments Act.
However, the Department of State recently informed Congress, in
July 2024, that the U.S.-Palau FPSA would require an Act of Congress to
enter into force. According to the Department of State, the original
U.S.-Palau COFA agreement in 1986 states that any FPSA agreement
between the U.S. and Palau requires an Act of Congress before it can be
entered into force. The Department of State has assessed that this
statute is still in effect and that the COFA Amendments Act does not
adequately allow for a new FPSA to enter into force.
Furthermore, the administration has raised concerns that it will
not be able to finalize negotiations on the U.S.-Palau FPSA before the
existing FPSA expires on October 1, 2024. The reason for this delay
appears to stem from the fact that negotiations did not start until
June 2024 and because of concerns surrounding disaster assistance and
postal services. The Department of State has expressed to Committee
staff that even if the disagreements were resolved, without
Congressional action to extend it, the current Palau FPSA would lapse
due to the 90-day Congressional review period and the requirement for
Congress to proactively approve the agreement.
While the FPSA agreement with the RMI is also undergoing
negotiations, the RMI does not face a potential lapse in services. In
the October 2023 Continuing Resolution (CR), Congress authorized an
extension for the current RMI FPSA until a new FPSA agreement is
entered into force.\44\ As such, the RMI is currently receiving U.S.
federal programs and services that it has received under the 2003 COFA
until a new FPSA is in effect. However, it is still alarming that the
agreement has yet to be finalized, as it has been nearly a year since
the current RMI FPSA was extended.
---------------------------------------------------------------------------
\44\ P.L. 118-22.
---------------------------------------------------------------------------
Critical Importance to U.S. National Security
The COFA agreements are essential to U.S. interests in and
relationships with the FAS, and ultimately the Indo-Pacific region.
Fully implementing the COFA Amendments Act and finalizing federal
programs and services agreements with the FAS reaffirms the United
States' commitment to its allies and reliability as a partner. This
commitment through the COFA agreements is essential to counter the
PRC's malign influence and to maintain the United States' capacity to
secure its interests.
The U.S. must carry out its commitments to our FAS allies by
ensuring proper implementation of COFA. Proper implementation will
require clear and swift action by the Biden-Harris administration and
consistent communication between Congress, U.S. agencies, and the FAS
governments.
---------------------------------------------------------------------------
\45\ Map provided by the Congressional Research Service at the
request of the House Committee on National Resources.
Figure A: Map of Pacific Region with China, Taiwan, and Countries with
Diplomatic Relations with Taiwan Highlighted 45
GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT
OVERSIGHT HEARING ON EXAMINING THE IMPLEMENTATION OF THE COMPACT
OF FREE ASSOCIATION AMENDMENTS
ACT OF 2024
----------
Tuesday, September 10, 2024
U.S. House of Representatives
Subcommittee on Indian and Insular Affairs
Committee on Natural Resources
Washington, DC
----------
The Subcommittee met, pursuant to notice, at 10:17 a.m. in
Room 1324, Longworth House Office Building, Hon. Aumua Amata
Coleman Radewagen [Member of the Subcommittee] presiding.
Present: Representatives Radewagen, LaMalfa, Gonzalez-
Colon, Westerman; Leger Fernandez, and Case.
Also present: Representative Stansbury.
Mrs. Radewagen. The Subcommittee on Indian and Insular
Affairs will come to order.
Without objection, the Chair is authorized to declare a
recess of the Subcommittee at any time.
The Subcommittee is meeting today to hear testimony on
examining the implementation of the Compact of Free Association
Amendments Act of 2024.
Under Committee Rule 4(f), any oral opening statements at
hearings are limited to the Chairman and the Ranking Minority
Member. I therefore ask unanimous consent that all other
Members' opening statements be made part of the hearing record
if they are submitted in accordance with Committee Rule 3(o).
Without objection, so ordered.
I will now recognize myself for an opening statement.
STATEMENT OF THE HON. AUMUA AMATA COLEMAN RADEWAGEN, A DELEGATE
IN CONGRESS FROM THE TERRITORY OF AMERICAN SAMOA
Mrs. Radewagen. Talofa lava and good morning. We are here
today to examine the implementation of the Compact of Free
Association Amendments Act of 2024, passed by Congress earlier
this year, in March.
The Compacts of Free Association, or COFA, are the
foundation for our special relationship with the Freely
Associated States, or FAS. The FAS comprise of three sovereign
Pacific island countries which are the Republic of Palau, the
Republic of the Marshall Islands, and the Federated States of
Micronesia.
The COFA agreements are mutually beneficial agreements that
grant the United States access to extraordinary security rights
in return for U.S. economic assistance and defense guarantees.
These security rights include the right to build U.S. bases and
military installations, and the authority to deny access to the
FAS by the military forces of any third nation, known as
Strategic Denial. The COFA agreements enable the United States
to better protect the U.S. homeland, while providing the FAS
with resources for improving economic and democratic
resiliency.
The 38-year history of the COFA agreements are a success
story of America's commitment to the Pacific allies and the
Indo-Pacific region. The story is enshrined in our mutual
values and shared interests. As democracies, the United States
and FAS partnership under COFA serves as a beacon for pushing
back against authoritarianism and malign influence.
These goals of strong democracy, rule of law, and economic
resiliency are also sustained by economic assistance grants and
trust fund contributions for health, education, and
infrastructure, among other essential public programs and
services. These programs represent our appreciation for the
great challenges, the accomplishments of the people of FAS in
partnership with the United States, and our continued
cooperation and mutual success on the world stage.
At a time of increasing aggression by the People's Republic
of China under the rule of the Chinese Communist Party, or CCP,
it is more important now than ever to preserve the U.S.-FAS
strategic partnership our other allies in the region also rely
on to preserve peace through strength. The CCP continues to
attempt to undermine this relationship through influence,
operations, and economic coercion.
Congress' timely passage of the COFA Amendments Act and
successful renewal of the COFA agreements speaks to the U.S.
commitment to preserving our special relationship with our FAS
allies, and to countering the malign activities of the CCP.
However, there is still more left to be done. The United States
must remain committed to following through on the obligations
promised under the COFA Amendments Act.
I am proud to have co-chaired the House Committee on
Natural Resources Indo-Pacific Task Force. I have worked
tirelessly with co-chair Gregorio Kilili Sablan and with my
colleagues who served as members of the task force to help pave
the way for the timely renewal of the COFA agreements. I am,
therefore, gravely concerned to see that there are several key
provisions of the COFA Amendments Act that have not been
implemented in a timely manner, consistent with the clearly
expressed intent of Congress and agreements signed by the
President.
We are joined today by witnesses from each of the FAS
governments so that we can hear from them, their concerns and
how the delays in implementation have impacted the FAS
governments and their citizens, and to confirm our readiness to
meet mutual obligations.
We have also invited witnesses from the relevant agencies
within the Administration to help us find answers to why these
provisions have not been implemented, and what they are doing
to address the delays.
I urge the Administration to continue to work with Congress
and provide what Congress needs for overseeing the
implementation process. Our Pacific allies deserve to see
promises fulfilled in a timely manner.
To be clear, examining these challenges to implementation
does downplay the importance of COFA. Oversight and
accountability will ensure that the COFA agreements continue to
serve as a pillar of our relationship with FAS for decades to
come. By ensuring COFA is implemented correctly and in a timely
manner, we are signaling to the region that the United States
remains a reliable and committed partner.
Thank you to our witnesses from the Administration and the
FAS for appearing before us today. I look forward to their
testimonies and finding a way to address the challenges raised
during this hearing.
The Chair now recognizes the Ranking Member for any
statement.
STATEMENT OF THE HON. TERESA LEGER FERNANDEZ, A REPRESENTATIVE
IN CONGRESS FROM THE STATE OF NEW MEXICO
Ms. Leger Fernandez. Thank you so very much, Madam Chair.
And I want to welcome all of our witnesses today, especially
our friends, the Ambassadors from the Freely Associated States
of the Marshall Islands, Micronesia, and Palau.
Last year, I had the privilege to visit the Blue Continent.
You generously shared stories, policy issues, concerns, and the
cultural knowledge from each of your beautiful nations. I saw
firsthand how the special relationship between your nations and
the United States benefits communities on both sides of the
Pacific. The Compacts of Free Association between the United
States and the Freely Associated States, or FAS, are at the
heart of that special relationship.
This March, when President Biden signed the 2024 Compacts
of Free Association Amendments Act into law, it was the
culmination of months, if not years, of negotiations between
the United States and the FAS, as well as hard work in both
chambers of the Congress.
I want to commend both of you, Representative Radewagen and
Representative Sablan, for your leadership in educating the
rest of us on the importance of these Compacts.
I especially want to extend my gratitude to Chairman
Westerman for taking me and our colleagues to the nations, and
for the efforts that you have led to make sure that we could
secure passage of these essential agreements.
The Compacts benefit both parties tremendously. We rely on
the Freely Associated States to help us regarding the People's
Republic of China's both economic threats and security threats.
I recall the video of the illegal Chinese overfishing of some
of the territorial waters and the response to this trespass. As
part of the Compacts, the Federal programs and service
agreements provide FAS citizens with essential services, such
as disaster assistance, weather forecasts, and postal services.
I am pleased that negotiations to implement the various
Federal programs and service agreements are complete, or soon
will be in the case of the Marshall Islands. However, Congress
must take one final action to bring the Palau agreement into
force. I look forward to working with you, Chairman Westerman
and our colleagues in both chambers, to address this final
detail and close the books legislatively on renewing the
Compacts of Free Association with our allies and friends in the
Marshall Islands, Micronesia, and Palau for another 20 years.
Now, we must make sure that the United States implements,
because the signed document isn't enough. We need to make sure
we implement the commitments we made in the renewed Compacts.
I want to first address Veteran Affairs services, which was
one of the key provisions added in the 2024 Compacts. We met
with many, many veterans during our trip, and they shared with
us their stories and their commitment to serving the United
States, but also what they needed to see in return. As I always
say, it is not enough to thank our veterans for their services;
we must provide them with the services they have earned.
So, while FAS citizens enlist and serve in the United
States military at higher rates than mainland U.S. residents,
they often do not receive the same benefits because of the
distance from VA facilities. They have had to travel to Hawaii
or Guam to receive those services. We owe those U.S. veterans
the same debt of services as veterans living on the U.S.
mainland. The new Compacts will address the service gap by
extending VA services directly to FSA veterans in their home
nations. But there is still work to do to make this a reality.
We need to make sure that those services are actually available
at the different nations and, in fact, the islands throughout
the Pacific.
I look forward to hearing from the Departments of Defense
and Veterans Affairs on their efforts to improve access to
medical services. Our partnerships with the FAS have formed a
bedrock of U.S.-Pacific cooperation for nearly four decades. As
we continue under the renewed Compacts, we must recognize that
the People's Republic of China, PRC, is not finished with its
efforts to undermine this critical partnership. All areas of
our government, not just the Department of Defense, should be
mindful of this threat and of the pressures the PRC continues
to exert on the FAS economies to increase its influence.
I look forward to hearing from the Departments of State and
Interior, where each of these efforts we have discussed today
stand.
With that, I will conclude my remarks and look forward to
hearing the testimony from our witnesses.
Thank you, Madam Chair.
Mrs. Radewagen. The Chair now recognizes Chairman Westerman
for 5 minutes for his opening statement.
STATEMENT OF THE HON. BRUCE WESTERMAN, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF ARKANSAS
Mr. Westerman. Thank you, Madam Chair, and thank you to the
witnesses for being here today.
As we all know, the United States holds a special
relationship with the Republic of Palau, the Republic of the
Marshall Islands, and the Federated States of Micronesia that
is collectively known as the FAS. This relationship with our
Pacific allies is forged through the Compact of Free
Association, or COFA, agreements that we have with each of
these countries.
The Compacts are the cornerstone of U.S. leadership in the
Pacific, and represent our capacity for promoting peace through
strength. Amid increasing aggression by the People's Republic
of China and attempts by the PRC to undermine U.S. leadership,
it is more important now than ever to preserve our special
relationship with the FAS. This hearing today recognizes the
importance of our FAS relationships and the critical times that
we are in.
I would like to take a moment to also recognize the great
bipartisan work done by this Committee on this issue. My
colleagues and I have worked tirelessly to ensure a timely
renewal of the COFA agreements. In the past year, we held four
oversight hearings on COFA and moved the Compact of Free
Association Amendments Act of 2024 through regular order. We
overcame challenges that came with turning the Administration's
legislative proposal into legislation that meets U.S. interests
in a fiscally responsible manner.
I am also proud to have led a historic, bipartisan
congressional delegation to the Pacific Islands in August 2023,
marking our continued commitment to our FAS partners. We saw
firsthand the strength of the U.S. and FAS partnerships, and we
witnessed the ways in which the PRC is attempting to spread its
oppressive and malign influence.
I also want to especially recognize the hard work done by
my colleagues, Representative Radewagen and Representative
Sablan, as co-chairs of the Indo-Pacific Task Force. The task
force was critical in ensuring that we could overcome any
obstacles with COFA renewal. When Congress passed the COFA
renewal legislation in March 2024, the Committee knew that the
job was not over. As important as it is to renew, it is equally
important to conduct oversight on the implementation of the
legislation. And I hope we are as rigorous and unified in our
oversight as we were in passing COFA.
Congress must continue to exercise its oversight
responsibilities to ensure that the COFA provisions are carried
out in the manner that Congress intended. It is alarming to see
that several key provisions of the COFA Amendments Act have yet
to be implemented by the Administration.
We have yet to see the Department of Veterans Affairs carry
out any of the services in the FAS that it was charged with
under COFA. I find this unacceptable, but somewhat not
surprising under this VA Administration that seems to have
forgotten that their job is to serve all of our veterans. The
COFA agreements provided FAS citizens with the opportunity to
serve in the U.S. Armed Forces, the citizens of the FAS enlist
at higher rates than U.S. states and with high distinction.
Congress included the authorization for Veterans Services in
the FAS to recognize the great contribution and sacrifice by
the people of the FAS in protecting the U.S. homeland. It is
therefore imperative that we ensure that these services are
carried out in a timely manner. We must take care of all of our
veterans.
Furthermore, it is concerning that the Administration has
yet to formally convene the interagency group as required under
the COFA Amendments Act. The interagency group is essential for
improving interagency coordination on COFA and addressing any
challenges in implementation. I hope the Administration
witnesses today can provide us information and an agenda with
timelines for the formal convening of the interagency group.
I am also deeply concerned that the Administration has yet
to transmit to Congress a signed Federal Program and Services
Agreement with Palau and the Marshall Islands. While it appears
that we can anticipate a formal signing of the FPSA with Palau
in the coming weeks, we are now at a point where congressional
action may be needed to prevent a lapse in services for Palau.
The Administration has requested for Congress to provide an
extension for the existing Palau FPSA, as they are unable to
complete the new agreement before the end of the Fiscal Year.
As Congress reviews the Administration's request, I hope the
Administration witnesses today will provide us with the
information needed to fully understand the request.
Again, thank you to our witnesses for being here today for
this important hearing. I look forward to hearing your
testimony and for our discussion.
I yield back.
Mrs. Radewagen. I will now introduce the witnesses for our
first panel: Mr. Taylor Ruggles, Senior Advisor, U.S.
Department of State; Mr. John Brewer, Director, Office of
Insular and International Affairs, U.S. Department of the
Interior; Mr. Anka Lee, Deputy Assistant Secretary, U.S.
Department of Defense; and Dr. Miguel LaPuz, Special Assistant,
U.S. Department of Veterans Affairs.
Let me remind the witnesses that under Committee Rules,
they must limit their oral statements to 5 minutes, but their
entire statement will appear in the hearing record.
To begin your testimony, press the ``talk'' button on the
microphone.
We use timing lights. When you begin, the light will turn
green. When you have 1 minute left, the light will turn yellow.
At the end of 5 minutes, the light will turn red, and I will
ask you to please complete your statement.
I will also allow all witnesses on the panel to testify
before Member questioning.
The Chair now recognizes Mr. Ruggles for 5 minutes.
STATEMENT OF TAYLOR RUGGLES, SENIOR ADVISOR FOR COFA
IMPLEMENTATION, U.S. DEPARTMENT OF STATE, WASHINGTON, DC
Mr. Ruggles. Talofa, Chairwoman Radewagen, Ranking Member
Leger Fernandez, Committee Chairman Westerman, Representative
Case, and other distinguished members of the House Natural
Resources Subcommittee on Indian and Insular Affairs. My name
is Taylor Ruggles. I am the State Department's Senior Advisor
for COFA implementation. I want to thank you for this
opportunity to testify before you today.
I am grateful for the bipartisan support of this
Subcommittee and, indeed, the Committee itself under Chairman
Westerman's leadership, regarding the Compacts of Free
Association with the Freely Associated States, or FAS; namely,
the Federated States of Micronesia, the Republic of the
Marshall Islands, and the Republic of Palau. And I am pleased
to see Congress' continued interest in the Freely Associated
States.
Without question, the passage of the Compact of Free
Association Amendments Act of 2024 and the entry into force of
the 2023 Compact-related agreements have materially
strengthened the relationships between the United States and
the Freely Associated States. U.S. economic assistance helps
the Freely Associated States to withstand political and
economic pressure in an era of strategic competition. And with
Ambassador Laura Stone's arrival in the Marshall Islands in
July, all three of the Freely Associated States have Senate-
confirmed Ambassadors in place.
Our relationships are also strengthened by the connections
between our people. Many people, many citizens of the Freely
Associated States, now live in America, where they are part of
communities in Hawaii, Oregon, California, Texas, Arkansas,
Guam, and many other states and territories. The high rates of
U.S. military service by citizens of the Freely Associated
States are points of pride and powerful symbols of our close
relationships. Our partners from the FAS have pointed to the
importance of postal services provided under the COFA-related
agreements as crucial to maintaining ties with family and
friends living in the United States and serving in the U.S.
Armed Forces.
We continue to foster our close relationship with these
countries by engaging with FAS leaders at every opportunity.
Deputy Secretary Kurt Campbell held bilateral meetings with all
three leaders on August 28 during the Pacific Islands Forum
meetings in Tonga, which included a joint statement with
Japanese Parliamentary Vice Minister for Foreign Affairs Komura
Masahiro that the United States and Japan intend to explore the
possibility of a joint collaboration to remove oil from World
War II sunken vessels in the Chuuk Lagoon and the Federated
States of Micronesia.
And then, on September 3, the United States announced plans
to provide $20 million to Palau. These funds would help the
government of Palau continue to invest in its people and
support the government's ambitious program of reform. USAID,
for its part, is working closely with Palau to develop a
Memorandum of Understanding to enhance Palau's disaster
preparedness and response capabilities.
I am pleased to report that the United States and Palau
have completed negotiations on a new Federal Programs and
Services Agreement, or FPSA. We are now engaged in internal
processes to approve the text for signature, which we hope will
happen in the coming weeks. Moreover, we are very close to
finalizing the FPSA with the Marshall Islands.
And Chairman Westerman, I want to assure you that the first
meeting of the Interagency Group on the Freely Associated
States, or IAG, was held in April of this year, during which
the duties of the IAG were discussed. IAG members were briefed
on the COFA agreements, as well as COFA-related legislation.
During that meeting, the IAG members selected USAID Assistant
Administrator Michael Schiffer to serve on the Joint Economic
and Management Committee with the Federated States of
Micronesia.
A second meeting of the IAG will be held in 2 days' time on
Thursday, September 12. The IAG will receive updates on U.S.
Government activities, both those related to implementation of
the agreements and other activities implemented under U.S.
statutes that further the bilateral relationship.
Now, as we move forward on implementing the COFA-related
agreements and statutory authorities, we remain cognizant of
the challenges facing the FAS. PRC economic pressure on Palau
and the Marshall Islands, both of which maintain diplomatic
relations with Taiwan, is frequently reported. More generally,
the PRC continuously attempts to increase its influence in the
region through development aid and proposed security
arrangements.
The effects of climate change are clearly seen in the
islands. In January, massive waves flooded over a U.S. military
facility in the Marshall Islands, highlighting the
vulnerability of Pacific atolls to rising sea levels, tidal
events, storm surges, and waves. The challenges the FAS face
are numerous, and we continue to support partners in the FAS
with needed programs and services.
I welcome your questions and look forward to discussing
implementation of the COFA-related agreements with you. Thank
you.
[The prepared statement of Mr. Ruggles follows:]
Prepared Statement of Taylor Ruggles, Senior Advisor for Compact
Implementation, U.S. Department of State
Chairwoman Hageman, Ranking Member Fernandez, distinguished members
of the House Natural Resources Subcommittee on Indian and Insular
Affairs: thank you for this opportunity to testify before you today. I
am grateful for the bipartisan approach of this subcommittee regarding
the Compacts of Free Association (COFAs) with the Freely Associated
States (FAS)--the Federated States of Micronesia (FSM), the Republic of
the Marshall Islands (RMI), and the Republic of Palau and am pleased to
see Congress' continued interest in the FAS.
Without question, the passage of the Compact of Free Association
Amendments Act of 2024 (2024 Compact Amendments Act) and the entry into
force of the 2023 Compact-related agreements have materially
strengthened the relationships between the United States and the Freely
Associated States. U.S. economic assistance helps the Freely Associated
States to withstand political and economic pressure in an era of
strategic competition. And, with Ambassador Stone's arrival in the
Marshall Islands in July, all three of the Freely Associated States
have Senate-confirmed ambassadors.
Our relationships are also strengthened by the connections between
our people. Many citizens of the Freely Associated States now live in
America, where they are part of communities in Hawaii, Oregon,
California, Texas, Arkansas, Guam, and many other states and
territories. The high rates of U.S. military service by citizens of the
Freely Associated States are points of pride and powerful symbols of
our close relationships. Our partners from the FAS have pointed to the
importance of postal services provided under the COFA-related
agreements as crucial to maintaining ties with family and friends
living in the United States and serving in the U.S. Armed Forces.
We continue to foster our close relationships with these countries
by engaging with FAS leaders at every opportunity. Deputy Secretary
Campbell held bilateral meetings with all three leaders on August 28
during the Pacific Islands Forum meetings in Tonga, which included a
joint statement with Japanese Parliamentary Vice-Minister for Foreign
Affairs Komura Masahiro that the United States and Japan intend to
explore the possibility of a joint collaboration to remove oil from
World War II sunken vessels in the Chuuk Lagoon in the Federated States
of Micronesia. And then on September 3, the United States announced
plans to provide $20 million to Palau. These funds would help the
Government of Palau continue to invest in its people and support the
government's ambitious program of reform. USAID is working closely with
Palau to develop an MOU to enhance Palau's disaster preparedness and
response capacities. We will continue our support and engagement in the
FAS in October, when the United States will send a senior-level
delegation to attend the 30th Anniversary of Palau's independence.
I am pleased to report that the United States and Palau have
completed negotiations on a new Federal Programs and Services Agreement
(FPSA). We are now engaged in internal processes to approve the text
for signature. We are close to finalizing the FPSA with the RMI.
Additionally, we are also working to implement the new COFA related
agreements that have already entered into force.
The first meeting of the Interagency Group on the Freely Associated
States in 2024 was held in April during which the duties of the IAG
were discussed and the members selected USAID Assistant Administrator
Michael Schiffer for the Joint Economic and Management Committee with
the Federated States of Micronesia. A second meeting will be held in
two days' time, on Thursday, September 12. The agenda includes updates
on U.S. government activities, both those related to implementation of
the agreements and other activities implemented under U.S. statutes
that further the bilateral relationship.
In addition to the COFA-related agreements, the Department of State
also supports other U.S. agencies in implementing authorities granted
to them in the 2024 Compact Amendments Act. The Department of Veteran
Affairs (VA) is working to implement those provisions of the 2024
Compact Amendments Act which give the Secretary of Veteran Affairs
authority to expand access to VA health care and other veterans'
services for veterans living in the Freely Associated States. The
Department of State participates in the VA interagency working group
related to outreach and agreements with the FAS and will be a diligent
partner as the VA proceeds to develop services for veterans in the FAS.
As we move forward implementing the COFA-related agreements and
statutory authorities, we remain cognizant of the challenges facing the
FAS. PRC economic pressure on Palau and the Marshall Islands, both of
which maintain diplomatic relations with Taiwan, is frequently
reported. More generally, the PRC continuously attempts to increase its
influence in the region, through development aid or proposed security
arrangements. The effects of climate change are clearly seen in the
Islands. In January, massive waves flooded over a U.S. military base in
the Marshall Islands, highlighting the vulnerability of Pacific atolls
to rising sea levels, tidal events, storm surges, and waves. The
challenges the FAS face are numerous as we continue to support partners
in the FAS with needed programs and services.
I welcome your questions and look forward to discussing
implementation of the COFA-related agreements with you. Thank you.
______
Questions Submitted for the Record to Mr. Taylor Ruggles, Senior
Advisor for COFA Implementation, U.S. Department of State
Mr. Ruggles did not submit responses to the Committee by the
appropriate deadline for inclusion in the printed record.
Questions Submitted by Representative Westerman
Question 1. During the hearing, you were asked ``if the Congress
did not interpret the relevant provisions [of the Compact of Free
Association with Palau] in the same manner as the Department, did the
Department advised the President and/or Congress of its interpretation
before the Palau COFA was transmitted to Congress?'' This question was
asked in the context of the request by the administration to address
the Act of Congress requirement and the Federal Deposit Insurance
Corporation (FDIC) authority for the Palau FPSA.
You stated that ``some of the text there previously provided by the
administration were not accepted . . .''.
To be clear, the legislative proposal transmitted to Congress by
the administration did not include any language addressing the Act of
Congress requirement.
Furthermore, the language on FDIC provided by the administration
was for appropriations, not authorization, for FDIC to carry out
services in the FAS. When Congress reviewed the administration's
legislative proposal, the FDIC informed Congress that they had
technical amendments to the language as the provided language did not
provide the FDIC with the authorization to carry out services.
The revised language cleared by the FDIC became part of the Compact
of Free Association Amendments Act of 2024.
1a) Can you correct for the record that the legislative proposal
transmitted to Congress by the administration did not address the Act
of Congress requirement nor the FDIC authority for Palau, and that
Congress did not fail to accept provisions from the administration's
transmittal that would have addressed these issues?
Question 2. The administration has requested for an extension for
Palau's Federal Programs and Services Agreement (FPSA).
In addition to the extension, the administration has requested for
technical amendments to ensure that the Federal Deposit Insurance
Corporation has the authorization to carry out services in Palau under
the forthcoming FPSA.
The administration has brought to Congress its concerns that the
COFA Amendments Act does not provide requisite authority for entering
into force any new FPSA with Palau. The administration stated that
Palau's COFA requires an Act of Congress for any FPSA to enter into
force.
The administration has not only requested for a repeal of the Act
of Congress statute within the Palau COFA, but also an authorization
for the President to enter into force any agreement to amend, change,
or terminate the FPSA. This authorization is not specific to the
forthcoming FPSA, but to all future FPSA agreements with Palau.
This language does not exist within the RMI and the FSM COFA laws.
It is not clear why the administration is requesting for Congress
to provide the President with this authorization when addressing the
Act of Congress statute should be sufficient.
This is particularly concerning as this authorization does not
stipulate that the 90-day Congressional review period required under
COFA law must occur before the President can enter into force the FPSA.
This also could mean the President could unilaterally terminate the
FPSA with Palau.
2a) Why is the administration requesting for Congress to provide
the President with the authority to enter into force any agreement to
amend, change, or terminate the Palau FPSA when it has already
requested a repeal for the Act of Congress statute?
2b) Is it the administration's intent to bypass the 90-day
Congressional review period and to allow for the President to
automatically enter a new Palau FPSA agreement without Congressional
review of such agreement?
2c) Does the administration and the Department of State, understand
and agree that the law stipulates that any agreement to amend, change,
or terminate the Palau FPSA must first undergo a 90-day Congressional
review period before the agreement can be entered into force?
Question 3. Under the Compact of Free Association Amendments Act of
2024, the Department of State is charged with establishing a FAS unit
in the Bureau of East Asian and Pacific Affairs.
This unit is responsible for managing the bilateral and regional
relations with the FAS, supporting the Secretary of State in leading
negotiations relating to the Compacts with the FAS, and for
coordinating implementation of the Compacts.
When asked on the establishment of this unit during the hearing,
you stated that the Department of State has begun internal processes
for establishing the FAS unit.
However, there was no mention on when we can expect this FAS unit
to be established.
3a) Please provide us with a general timeline on when we can expect
the FAS to be established by the Department of State. Will this happen
within the coming days? Months? Year?
Question 4. The administration has yet to finalize FPSA's with
Palau and the RMI. This is particularly concerning as the Palau FPSA
expires this month, on September 30, 2024.
4a) Can you provide an update on the status of the FPSA with Palau
and the RMI? When can we expect the administration to transmit these
agreements to Congress?
4b) What is the cause for the delays in transmitting these
agreements?
Question 5. As you are aware, the Interagency Group for the Freely
Associated States (IAG) was formed to coordinate the development and
implementation of COFA.
This group includes the Secretaries of State and the Interior who
serve as co-chairs, the Secretaries of Defense and Treasury, and other
heads of relevant Federal agencies carrying out COFA obligations.
Your department serves as one of the co-chairs of the group.
In your testimony, you stated that the IAG has already held its
first meeting in April of this year. You stated that the duties of the
IAG were internally discussed, IAG members were briefed on COFA, and an
appointment was made to the Federated States of Micronesia's Joint
Economic Management Committee.
To be clear, the meeting you described is not what Congress
understands as a formal meeting of the IAG. The Compact of Free
Association Amendments Act of 2024 states the specific responsibilities
and duties of the IAG. The congressional mandate for the IAG to meet on
no less than an annual basis was intended to ensure that the IAG
convenes to coordinate the work of the IAG.
With that being said, we are encouraged to hear that the IAG will
be convening again in the days following the hearing. We hope this
meeting will fulfill Congress' expectations for the IAG.
5a) When exactly is the IAG convening this month and what topics
will be discussed?
5b) Who has the Department of State designated as their
representative for the Interagency Group?
5c) Can you commit today that you will raise the issues discussed
in this hearing at the next formal meeting?
Questions Submitted by Representative Case
Question 1. The Fiscal Year 2024 Appropriations Act that renewed
COFA included a provision requiring the establishment of a unit for the
Freely Associated States in the Bureau of East Asian and Pacific
Affairs. Can you provide an update on the status of establishing that
unit, to include a detailed timeline for its establishment, its
estimated annual budget, the number of personnel who will be assigned
to it, and any challenges you are facing in setting up the unit?
______
Mrs. Radewagen. The Chair now recognizes Mr. Brewer for 5
minutes.
STATEMENT OF JOHN BREWER, DIRECTOR, OFFICE OF INSULAR AND
INTERNATIONAL AFFAIRS, U.S. DEPARTMENT OF THE INTERIOR,
WASHINGTON, DC
Mr. Brewer. Madam Chair, Ranking Member, Chair Westerman,
and members of the Subcommittee on Indian and Insular Affairs,
thank you for the opportunity to testify on the implementation
of the Compact of Free Association Amendments Act of 2024.
I am the Director of the Office of Insular Affairs, the
office responsible for administering economic assistance
provided under the Compacts of Free Association and related
agreements with the Federated States of Micronesia, the
Marshall Islands, and Palau: collectively, the Freely
Associated States, or FAS.
Strong ties between the United States and these Pacific
islands form the foundation of U.S. engagement in the Pacific.
The Interior Department is pleased to play a leading role in
implementing the economic assistance provisions under the new
Compact-related amended agreements, which extends $6.5 billion
in economic assistance to the FAS over the next 20 years.
Following President Biden's signing of the COMPACT Act on
March 9, 2024, Interior and its Federal partners have worked
tirelessly to implement the new agreements. This Fiscal Year,
$825 million has been provided to the FAS for Compact Trust
Fund contributions, special purpose funds, and sector grant
support under the new Compact-related agreements and the
COMPACT Act.
Section 208(d) of the COMPACT Act provides an outline to
revitalize the Interagency Group on Freely Associated States. I
am happy to report that on September 12, this Thursday, the
Interagency Group on Freely Associated States will hold its
second meeting of the year. We look forward to providing the
interagency group's first annual report to the White House and
to Congress in March 2025.
Since enactment of the Compact amendments in March,
Interior and its interagency and Freely Associated State
partners have prioritized meetings of the bilateral committees
required under the new agreements. The new Compact agreements
require the establishment of bilateral committees to review and
approve plans of use for economic assistance from the United
States. Both the United States and the FAS have made the
necessary appointments to all required Committees. Interior
Secretary Haaland is in the process of notifying the
appropriate committees of Congress of these appointments. In
the meantime, these committees are fully operational, are
meeting regularly, and have successfully adjudicated plans from
the FAS governments for the use of economic assistance and the
disbursements of grants.
In the coming weeks, I will chair meetings of the Compact
Trust Fund Committee with the Federated States of Micronesia
and with the Marshall Islands. Again, the United States, FSM,
and NRMI have all made necessary appointments to the respective
trust fund committees.
In Fiscal Year 2024, the United States contributed $250
million to the Micronesia Trust Fund and $200 million to the
Marshall Islands Trust Fund under the new agreements. In Fiscal
Year 2024, the United States also contributed $50 million to
the Palau Compact Trust Fund under the new Compact Review
Agreement.
The Federal Government and the government of each of the
FAS have a responsibility to effectively and efficiently apply
the new resources provided under the new Compact-related
agreements and the COMPACT Act. Interior is committed to doing
its part to fulfill the terms of the three amended Compact
agreements.
We are also confident that, working together with the
interagency and our FAS partners, we can ensure that the FAS
thrive in a free and open Indo-Pacific.
Madam Chair, Ranking Member, Congressman Westerman, it is a
pleasure to appear before your Subcommittee. I look forward to
your questions. Thank you.
[The prepared statement of Mr. Brewer follows:]
Prepared Statement of John D. Brewer, Jr., Director, Office of Insular
Affairs, United States Department of the Interior
Chair Hageman, Ranking Member Leger Fernandez, and members of the
Subcommittee on Indian and Insular Affairs, thank you for the
opportunity to testify on the implementation of the Compact of Free
Association Amendments Act of 2024. I am the Director of the Office of
Insular Affairs (OIA) at the U.S. Department of the Interior, the
office responsible for administering economic assistance provided under
the Compacts of Free Association (Compacts) with the Federated States
of Micronesia (FSM), the Republic of the Marshall Islands (RMI), and
the Republic of Palau (collectively, the freely associated states or
FAS).
Strong ties between the United States and these Pacific Islands,
individually and collectively, form the foundation of U.S. engagement
in the Pacific. The Department of the Interior is pleased to play a
leading role in implementing the economic assistance provisions under
the newly amended agreements, which extend $6.5 billion in economic
assistance to the freely associated states for the next 20 years.
Following President Biden's signature on Public Law 118-42 on March
9th of this year, Interior and its federal partners have worked
tirelessly to implement the new agreements as approved by the Congress.
This fiscal year, $825 million out of an available $977 million has
already been provided to the FAS for Compact Trust Fund contributions,
special purpose funds, and sector grant support under the Compact of
Free Association Amendments Act of 2024. The remaining funds will be
provided as plans for infrastructure and other special projects are
approved.
Interagency Group on Freely Associated States
Section 208(d) of the Compact of Free Association Amendments Act of
2024 provides an outline to revitalize the Interagency Group on Freely
Associated States. I am happy to report that on September 12th, this
Thursday, Assistant Secretary Carmen Cantor from Interior and Assistant
Secretary Dan Kritenbrink from State will co-chair the second meeting
of the Interagency Group on Freely Associated States. Their first
meeting was held on April 29, 2024, at which the group's representative
to the joint economic management committee for the FSM was appointed.
We look forward to providing the interagency group's annual report to
Congress in March 2025.
Bi-Lateral Committees
Since the Compact amendments were enacted and brought into force,
the Department of the Interior, along with interagency and freely
associated state partners have prioritized forming the requisite bi-
lateral committees to ensure that economic assistance under the new
agreements is available and within the framework approved by Congress.
The amended Compact agreement with each of the FAS requires the
establishment of bi-lateral committees to review and approve plans of
use for economic assistance from the United States. Both the U.S. and
the FAS have made the necessary appointments to all required
committees. Interior Secretary Haaland is in the process of notifying
the appropriate committees of Congress of these appointments. In the
meantime, the Compact-required committees are fully operational, are
meeting regularly, and have successfully adjudicated plans from the FAS
governments for the use of economic assistance and the disbursement of
grants. The economic assistance is being used primarily to support the
health and education sectors in the FAS countries.
To highlight some of our recent engagements: in June, Assistant
Secretary Cantor and the United States Ambassador to Palau, Ambassador
Joel Ehrendreich, led a United States delegation in conducting
bilateral economic consultations with the Republic of Palau. At those
consultations, Palau President Whipps reaffirmed the strength and
importance of Palau's relationship with the United States. Last week in
Hawaii, Assistant Secretary Cantor chaired meetings of the Joint
Economic Committees with the Federated States of Micronesia and the
Republic of the Marshall Islands. The discussions at these meetings
centered upon concurrence by the Committees with the issuance of Fiscal
Year 2025 economic assistance grants to both nations totaling over $200
million.
Compact Trust Funds
Next week I will chair a meeting of the Compact Trust Fund
Committee with the Federated States of Micronesia. Again, the U.S., FSM
and RMI have each made all necessary appointments to the respective
trust fund committees.
The 2023 trust fund agreements improve and expand the functionality
of the Trust Funds. Both trust fund committees have established a
working group to address the set up required accounts, to adjust
investment policy and asset allocations, to amend by-laws and articles
of incorporation, and to carry out other activities as needed.
In fiscal year 2024, the U.S. contributed $250 million to the Trust
Fund for the People of the Federated States of Micronesia, and $200
million to the Trust Fund for the People of the Republic of the
Marshall Islands under the new agreements. These funds were invested
immediately according to their respective investment asset allocations
approved by the trust fund committees. As of July 31st, the FSM trust
fund has a total value of $1.4 billion and an annual average return
since inception of 6.1 percent. As of July 31st, the RMI trust fund has
a total value of $1.0 billion and an annual average return since
inception of 6.8 percent. In fiscal year 2024, the U.S. also
contributed and $50 million to the Palau Compact Trust Fund under the
new the new Compact Review Agreement.
The RMI government requested a distribution for fiscal year 2024
according to the rules of the 2004 Trust Fund Agreement to provide
bridge budgetary support in the health, education, and infrastructure
sectors until the 2023 Amended Compact was approved. A total of $8.1
million was distributed to the RMI government for those sectors. The
fiscal procedures of the 2003 Amended Compact and those of the
Committee have been applied for the use of those funds. The FSM
government did not request any distributions for fiscal year 2024.
The respective signatory governments and trust fund committees are
evaluating the steps required to comply with the 2023 Amendment terms
for any future distributions.
Conclusion
The Federal government and the government of each of the FAS have a
collective responsibility to efficiently and effectively apply the new
resources provided under the Compact of Free Association Amendments Act
of 2024. The Department of the Interior is committed to doing its part
to fulfill the terms of the three amended Compact agreements. There is
still a tremendous amount of work to be done over the next two decades,
but we are confident that working together with the interagency and our
FAS partners we can ensure that the FAS nations and their people thrive
in a free and open Indo-Pacific.
Chair Hageman, Ranking Member Leger Fernandez, it is a pleasure to
appear before your Subcommittee regarding implementation of the Compact
of Free Association Amendments Act of 2024. I look forward to your
questions. Thank you.
______
Questions Submitted for the Record to Mr. John Brewer, Director, Office
of Insular and International Affairs, U.S. Department of the Interior
Mr. Brewer did not submit responses to the Committee by the appropriate
deadline for inclusion in the printed record.
Questions Submitted by Representative Westerman
Question 1. The Department of the Interior plays a lead role in
administering and implementing the various provisions of the Compacts
agreements. The Department is also responsible for overseeing the
disbursement and use of Compact funds.
1a) Can you provide specific examples on how the Department of the
Interior has been overseeing and managing Compact funds to make sure
that they are being used for the intended purpose?
Question 2. As you are aware, the Interagency Group for the Freely
Associated States was formed to coordinate the development and
implementation of COFA.
This group includes the Secretaries of State and the Interior who
serve as co-chairs, the Secretaries of Defense and Treasury, and other
heads of relevant Federal agencies carrying out COFA obligations.
Your department serves as one of the co-chairs of the group.
2a) Who has the Department of the Interior designated as their
representative for the Interagency Group?
2b) Can you commit today that you will raise the issues discussed
in this hearing at the next formal meeting?
Question 3. In the hearing, you mentioned that all agencies have
listed guidance for carrying out the services and obligations mandated
under the Compact of Free Association Amendments Act of 2024. However,
Ambassador Jackson Soram of the Federated States of Micronesia stated
in his testimony that the Social Security Administration (SSA) has not
issued guidance for the Social Security Income (SSI) program.
3a) Can you please confirm if the SSA has issued guidance for the
SSI program? If so, when has this been issued and where can we find
this guidance?
3b) If guidance has not been issued, why did the Department of the
Interior believe that the SSA did issue guidance? Will the Department
of the Interior commit to carry out its responsibilities as the primary
agency charged with administering and implementing the Compact of Free
Association (COFA), and to keep close track of all COFA-related
obligations?
3c) If SSA guidance has not been issued, can the Department of the
Interior commit to coordinate with the SSA to ensure that the SSA
issues guidance for the SSI program in a timely manner?
Question 4. The Department of the Interior's webpage on the
Interagency Group for the Freely Associated States currently has no
documents, calendar, or any information on the activities of the
Interagency Group.
4a) If the working group did convene back in April, why has no
information on this or minutes from the meeting been shared to anyone
other than the attendees?
4b) When will the website be updated? What information can we
expect to be provided on the website?
______
Mrs. Radewagen. I thank the witness for their testimony.
The Chair now recognizes Mr. Lee for 5 minutes.
STATEMENT OF ANKA LEE, DEPUTY ASSISTANT SECRETARY OF DEFENSE
FOR EAST ASIA, U.S. DEPARTMENT OF DEFENSE, WASHINGTON, DC
Mr. Lee. Chair Radewagen, Ranking Member Leger Fernandez,
Committee Chair Mr. Westerman, and distinguished members of the
Subcommittee, I am Anka Lee, Deputy Assistant Secretary of
Defense for East Asia. Thank you so much for inviting me to
testify today about the importance of the Compacts of Free
Association, or COFA, for the Department of Defense.
The Compact States play an essential role in enabling the
Defense Department to implement its national defense strategy
writ large, as well as the U.S. strategic vision for the Indo-
Pacific region. I appreciate the opportunity to talk with you
today about how COFA underpins our national security interests
in the Indo-Pacific.
We are grateful to Congress for approving the COFA nearly a
year ago with strong bipartisan support. Members of this
Subcommittee along with the Full Committee were instrumental in
leading the way with advocating for the Compact's final
passage, and we immensely appreciate your advocacy.
The renewal of the Compacts honors our commitments to the
people of these states, and facilitates our continued strategic
partnership with the Palauan, Micronesian, and Marshallese
partners. These partnerships are critical to our ongoing
operations, our ability to test and exercise capabilities, and
execution of multilateral exercises such as such as KOA MOANA,
COPE NORTH, PACIFIC PARTNERSHIP, and VALIENT SHIELD, all of
which were hosted by Compact States.
Another example is our civic action team in Palau. For the
past 50 years, rotational detachments, engineers, and medical
teams have fueled people-to-people ties between the United
States and Palau. The cooperative work of these teams with
Palauan counterparts have facilitated larger force rotations
associated with locally hosted U.S. exercises.
Now, this Subcommittee is very well versed in the strategic
environment, but I think it is really worth reiterating and
noting the People's Republic of China, or PRC, and how it
remains to be the most serious challenge to our national
security interests and our work to preserve a free and open
Indo-Pacific region. The PRC seeks to expand its influence in
the Compact States and is increasing its coercive activities
throughout the region.
From illegal, unreported, and unregulated fishing to
coercion aimed at sovereign nations that have diplomatic ties
to Taiwan, the PRC's provocative behavior attempts to erode the
strategic partnerships of the United States with our closest
friends and allies. In this context, it is essential that we
continue to enhance our engagement in the region through an
interagency approach while working alongside like-minded
partners and allies like Australia, Japan, New Zealand, and the
Republic of Korea.
Your support for COFA has enabled the Defense Department to
bolster its engagement with the Compact States by providing a
tangible embodiment of the United States' enduring, decades-
long commitment to sustaining the FAS. COFA provides assurances
to the Republic of Palau, to the Republic of Marshall Islands,
and to the Federated States of Micronesia that the United
States is present, and that we are working to secure a stable
and free Indo-Pacific region.
The Compact States should not be viewed solely as
recipients. Far from it. They share with the United States our
values and our vision for the future of the region. Secretary
Lloyd Austin has discussed our common priorities with the
presidents of each of the Compact States in bilateral meetings
at the Pentagon during his tenure, highlighting how critical
these relationships are to the department's Indo-Pacific
strategy. Contributions by the FAS are many, often, for
example, contributing a higher enlistment per capita than many
U.S. states.
Also critical are the military use and operating rights
agreements that we hold with the Compact States. These
delineate the Department of Defense's cooperation with and in
the Compact States. The Defense Department is engaging in the
Pacific Islands in a renewed way alongside interagency
partners, demonstrating our strength and commitment to the
Pacific Islands region.
The Department is diligently expanding its work in the
Pacific Islands through expanded exercises, humanitarian
assistance and disaster relief efforts, work to strengthen the
Pacific Islands' capabilities to exercise maritime domain
awareness, and expanding security cooperation initiatives writ
large. We are continuing to engage in a deliberate way with the
interagency, as well as like-minded partners and allies to
ensure that this work continues.
Thank you so much again for allowing me to testify and for
your support of COFA, and I look forward to answering your
questions.
[The prepared statement of Mr. Lee follows:]
Prepared Statement of Anka Lee, Deputy Assistant Secretary of Defense
for East Asia Policy, Office of the Secretary of Defense
Chair Hageman, Ranking Member Leger Fernandez, and Members of the
Subcommittee: thank you for the opportunity today to discuss the
importance of the Compacts of Free Association (Compacts) to our
national security and the Biden Administration's Indo-Pacific strategy.
I am pleased to testify today alongside my colleagues from the
Departments of Interior, State, and Veterans Affairs. This panel
underscores the significant interagency and government-wide commitment
to the Freely Associated States (FAS) and implementation of the
Compacts.
Partnership with the Freely Associated States (FAS)
The United States is an Indo-Pacific country and we share a unique
and special relationship with the FAS. Forged eighty years ago on the
World War II Pacific campaign battlefields of Guadalcanal, Tarawa, and
Peleliu, we share a history of service and sacrifice. Citizens of
Palau, the Federated States of Micronesia (FSM), and the Republic of
the Marshall Islands (RMI) have a long and proud history of service in
all branches of the U.S. Armed Forces--often contributing higher
enlistment per capita than many U.S. states. They've fought in our
ranks in Vietnam, Iraq, and Afghanistan, and we will be forever
grateful for their service.
Our peoples value democracy, freedom, and human rights. We share
the same profound concerns over the existential threat from climate
change and seek opportunities to build prosperous and healthy
societies. The United States recognizes the links between the Pacific's
future and our own: U.S. prosperity and security depend on the Pacific
Islands region remaining free and open, and the Compacts are one way we
communicate our long-term commitment to these partners.
Strategic Environment
The most comprehensive and serious challenge to U.S. national
security, as identified by the Department's 2022 National Defense
Strategy, is the People's Republic of China's (PRC's) coercive and
increasingly aggressive effort to change the status quo of the Indo-
Pacific region and the international system to align with its
interests. As the National Defense Strategy states, the PRC is the
pacing challenge for the Department.
The PRC also seeks to expand its influence in the FAS and is
increasing its coercive activities throughout the Pacific Islands
region. From illegal, unreported, and unregulated (IUU) fishing to
coercion aimed at sovereign nations that have diplomatic ties with
Taiwan, the PRC's provocative behavior appears focused on eroding the
U.S. strategic partnership with the FAS. The Compacts are an important
signal to both our partners and our competitors that the U.S.
commitment to the FAS is iron-clad.
National Security Implications of the Compacts
Passing the Compact of Free Association Amendments Act of 2024
marked one of the 118th Congress' most significant achievements to
advance U.S. strategic priorities in the Indo-Pacific region--and we
thank the many Members of this Committee who played a pivotal role in
advocating for this legislation. Although the Department does not have
a direct role in implementation of the new agreements, we continue to
work closely with our partners in the FAS to advance initiatives of
mutual interest, consistent with U.S. rights under Title III of the
Compacts.
The Compacts ensure that the United States--and only the United
States--can maintain a military presence in the FAS. As part of these
agreements, the U.S. military serves as the defense force for FSM,
Palau, and RMI, which in return grant the United States assured access
for our military operations, as well as sites for critical defense
posture in the region. In particular, RMI hosts the Ronald Reagan
Ballistic Missile Test Site at Kwajalein Atoll, and we are exploring
opportunities for new cooperation with Palau and FSM, including with
FSM on Yap Island. The Compacts also limit the access of third country
militaries or their personnel, including would-be adversaries, from
accessing FAS land, airspace, and territorial seas, securing a key area
of the Indo-Pacific region.
In addition to force posture, the assured access guaranteed by the
Compacts provides locations for bilateral and multilateral training and
exercises. The FAS have previously hosted exercises, including KOA
MOANA, COPE NORTH, PACIFIC PARTNERSHIP, and VALIANT SHIELD. These
exercises support the readiness of the joint force and often provide
opportunities for U.S. forces to exercise alongside allies and
partners--including critical Allies like Australia and Japan--enhancing
our comprehensive engagement in the FAS.
PACIFIC PARTNERSHIP is the largest multinational humanitarian
assistance and disaster relief preparedness mission conducted in the
Indo-Pacific region, and it has included visits to all three COFA
states in the last year. The exercise involves provision of medical
care, engineering and infrastructure projects, and people-to-people
engagements. For example, the stop in Palau late last year included
Japanese, Australian, and German forces, who completed more than 132
medical engagements, distributed more than 1,400 pairs of prescription
eyeglasses, and conducted 80 surgeries aboard the USNS Mercy.
The rights afforded to the United States under the Compacts and
related agreements have also facilitated other important Department
exercises in the past year. For example, more than 600 U.S. service
members conducted training across the Palau island chain during VALIANT
SHIELD 24, which included live-fire training and the U.S. Army's first
launch of a Precision Strike Missile outside of American-based testing
sites. Such training and exercise programs are invaluable for ensuring
the readiness and interoperability of our and our partners' Armed
Forces.
It is for all these reasons that the Department of Defense once
again thanks Congress for its strong bipartisan support for the
Compact.
Conclusion
Madam Chair, thank you again for the opportunity today to testify
about the value of the Compacts to our national security and defense
interests. I look forward to your questions.
______
Questions Submitted for the Record to Mr. Anka Lee, Deputy Assistant
Secretary of Defense for East Asia, U.S. Department of Defense
Mr. Lee did not submit responses to the Committee by the appropriate
deadline for inclusion in the printed record.
Questions Submitted by Representative Westerman
Question 1. This hearing is timely as Congress is voting this week
on legislation relating to the ongoing competition between the U.S. and
the People's Republic of China.
The Compact of Free Association agreements with the FAS increases
U.S. capacity to deter increasing PRC aggression in the Pacific.
1a) Can you please explain to us how the Compacts supports U.S.
defense posture in the Indo-Pacific?
1b) Is it fair to say that it is critical for the U.S. to make sure
that the Compacts are properly implemented?
Question 2. As you are aware, the Interagency Group for the Freely
Associated States was formed to coordinate the development and
implementation of COFA.
This group includes the Secretaries of State and the Interior who
serve as co-chairs, the Secretaries of Defense and Treasury, and other
heads of relevant Federal agencies carrying out COFA obligations.
2a) Who has the Department of Defense designated as their
representative for the Interagency Group?
Question 3. Can you commit today that you will raise the issues
discussed in this hearing at the next formal meeting?
______
Mrs. Radewagen. I thank the witness for their testimony.
The Chair now recognizes Dr. LaPuz for 5 minutes.
STATEMENT OF MIGUEL LaPUZ, SPECIAL ASSISTANT TO THE DEPUTY
UNDER SECRETARY FOR HEALTH, U.S. DEPARTMENT OF VETERANS
AFFAIRS, WASHINGTON, DC
Dr. LaPuz. Good morning, Chairman Radewagen, Ranking Member
Leger Fernandez, and members of the Subcommittee. I appreciate
the opportunity to discuss the VA's efforts in implementing the
Compact of Free Association Amendments Act of 2024.
Since March, VA has been urgently working across the
government, including the White House and the Departments of
State, Interior, and Defense, to develop a comprehensive
strategy and approach to assess health care delivery options in
the area and develop the best path forward. As a result of this
work, yesterday VA announced that we are now ready to begin
direct coordination with the Republic of Palau, the Federated
States of Micronesia, and the Republic of Marshall Islands.
During the next several months, we will be regularly
meeting with the FAS governments to conduct a comprehensive
environmental scan to review the current state of hospital care
and medical services within the FAS. This coordination period,
which precedes official negotiations, will provide us with
critical information about the local veteran populations and
needs for care in the region. We have sent letters to each of
the governments to begin this important collaboration, which we
expect to last through the end of this calendar year. VA will
coordinate with the Department of Defense leaders to get their
expert inputs on delivering care in the FAS.
We will also work with the Departments of State and
Interior to draft and ultimately finalize the Action
Memorandum. This is required before VA can officially begin
negotiations on international agreements. Once those steps are
completed, likely between January and March 2025, VA will begin
formal negotiations on the final agreements with each of the
FAS governments.
All of this work will be done with the ultimate goal of
ensuring that the veterans in those nations receive the care
that they have earned and deserve. VA is exploring a
comprehensive care model for how FAS veterans can access
hospital care and medical services to align generally with how
VA provides care to veterans living in the United States.
Implementation may look different, depending on agreements with
the FAS governments, current infrastructure, and the varying
degree of reliance on the ways veterans can access care.
In addition to collaboration with the Departments of the
Interior and State to conduct outreach to and enter agreements
with each of the FAS governments, VA may also need to
collaborate with the U.S. Postal Service to explore solutions
for mailing prescriptions or controlled substances to FAS
veterans.
In conclusion, VA is fully committed to delivering hospital
care, medical services, and beneficiary travel benefits to FAS
veterans. While we finalize the next steps towards
implementation, we want eligible veterans who live in the FAS
to know they can enroll for VA health care and continue
receiving VA health care at VA medical facilities in the United
States, including Guam. Eligible veterans can also access other
VA services, including reimbursement for health care for
service-connected disabilities through the Foreign Medical
Program, disability benefits, educational assistance, and
pension services.
Chairwoman Radewagen, this concludes my testimony. Thank
you for the opportunity to testify today and for your continued
support of our mission. I am happy to respond to any question
you or the Committee may have.
[The prepared statement of Dr. LaPuz follows:]
Prepared Statement of Miguel LaPuz, M.D., Special Advisor to the Deputy
Under Secretary for Health, Veterans Health Administration (VHA),
Department of Veterans Affairs (VA)
Good morning, Chairwoman Hageman, Ranking Member Leger Fernandez,
and members of the Subcommittee. I appreciate the opportunity to
discuss VA's efforts in implementing the Compact of Free Association
(COFA) Amendments Act of 2024.
Overview
On March 9, 2024, President Biden signed into law the Consolidated
Appropriations Act, 2024 (P.L. 118-42). Division G, Title II of this
Act is the COFA Amendments Act of 2024, which allows VA to expand
access to health care for Veterans living in the Freely Associated
States (FAS). The FAS consists of three sovereign nations in the
Pacific: the Republic of Palau, the Federated States of Micronesia, and
the Republic of the Marshall Islands. At the end of fiscal year (FY)
2023, VHA estimated that 132 Veterans in the FAS were enrolled in VA
health care and approximately 1,100 Veterans lived in the FAS.
Based on amendments made by this law, VA can furnish hospital care
and medical services to Veterans in the FAS. As a condition of
furnishing care and services, VA must enter into agreements with the
FAS governments that define the terms and conditions of VA's delivery
of care and services. These agreements also must, to the extent
practicable, incorporate the applicable laws of the FAS. VA also can
furnish beneficiary travel for Veterans and other persons traveling in,
to, or from the FAS for receipt of care or services legally authorized
to be provided by VA under these amendments.
Implementation of COFA Amendments Act
Since March, VA has been urgently working across the Government--
including the White House and Departments of State, Interior, and
Defense--to develop a comprehensive strategy and approach to assess
health care delivery options in the area and develop the best path
forward.
As a result of this work, VA is now ready to begin direct
coordination with the FAS governments. During the next several months,
we will be regularly meeting with the FAS governments to conduct a
comprehensive environmental scan to review the current state of
hospital care and medical services within the FAS. This coordination
period--which precedes official negotiations--will provide us with
critical information about the local Veteran population and needs for
care in the region. We have sent letters to each of the FAS governments
to begin this important collaboration, which we expect to last through
the end of this calendar year.
During this time, VA will coordinate with Department of Defense
leaders to solicit their input on delivering care in the FAS. We will
also work with the Departments of State and Interior to draft and
ultimately finalize the Action Memorandum (C-175), which is required
before VA can officially begin negotiations on international
agreements. Once those steps are complete, likely between January and
March 2025, VA will begin formal negotiations on the final agreements
with each of the FAS governments. All of this work will be done with
the ultimate goal of ensuring that the Veterans in the FAS receive the
care they have earned and deserve.
Conclusion
VA is fully committed to ensuring that U.S. Veterans in the FAS
have access to hospital care, medical services, and beneficiary travel
benefits. While we finalize next steps toward implementation, eligible
Veterans in the FAS can enroll for VA health care at https://
www.va.gov/health-care/how-to-apply/ and continue receiving VA health
care at VA medical facilities in the U.S. (including Guam) or in the
FAS through the Foreign Medical Program (if eligible). Eligible
Veterans can also access other VA services, including disability
benefits, educational assistance, and pension services.
If Veterans have any questions about VA health care and benefits,
they can visit https://www.va.gov/ or call MyVA411 (1-800-698-2411) 24/
7. Veterans living outside the U.S. can dial their country's exit code
+001-800-698-2411.
Chairwoman Hageman, Ranking Member Leger Fernandez, and members of
the Subcommittee, this concludes my testimony. Thank you for the
opportunity to testify today and for your continued support of our
mission. I am happy to respond to any questions you or the Committee
may have.
______
Questions Submitted for the Record to Dr. Miguel LaPuz,
Special Assistant to the Deputy Under Secretary for Health,
U.S. Department of Veterans Affairs
Dr. LaPuz did not submit responses to the Committee by the appropriate
deadline for inclusion in the printed record.
Questions Submitted by Representative Westerman
Question 1. The Compacts of Free Association Amendments Act was
signed into law on March 9, 2024, of this year and includes provisions
to address the lack of access to health care benefits for veterans from
the Freely Associated States (FAS) who have served in the U.S. armed
forces.
The law requires the Department of Veterans Affairs, beginning on
the date of enactment, to conduct robust outreach to and engage with
each government of the Freely Associated States.
It has been six months since the enactment.
1a) How many meetings has the Department of Veterans Affairs held
with each respective FAS government since March?
1b) Are there plans for the Department to hold meetings and formal
negotiations with the FAS governments before the end of this calendar
year? If so, when specifically?
Question 2. As you are aware, the Interagency Group for the Freely
Associated States was formed to coordinate the development and
implementation of Compact of Free Association (COFA).
This group includes the Secretaries of State and the Interior who
serve as co-chairs, the Secretaries of Defense and Treasury, and other
heads of relevant Federal agencies carrying out COFA obligations.
2a) Who has the Department of Veterans Affairs designated as their
representative for the Interagency Group?
2b) Can you commit today that you will raise the issues discussed
in this hearing at the next formal meeting?
Question 3. During the hearing, you were asked to provide a
specific date we can expect the Department of Veterans Affairs to carry
out services in the Freely Associated States. However, your response
did not include a specific date.
Can you please provide a specific date for when the Department of
Veterans Affairs will carry out services in the Freely Associated
States?
Questions Submitted by Representative Case
Question 1. You said in your testimony regarding healthcare
delivery in the Freely Associated States (FAS) that the ``VA is now
ready to begin direct coordination with the FAS governments. During the
next several months, we will be regularly meetings with the FAS
governments to conduct a comprehensive environmental scan to review the
current state of hospital care and medical services within the FAS.''
My office sent the VA a letter urging the acceleration of in-country
healthcare services to our veterans living in the FAS in May, to which
the VA's response on August 6 was just that the VA is ``actively
assessing how to implement the authority provided by the COFA
Amendments Act'' without any additional information. Meanwhile, my
office has received reports that communication from the VA to the FAS
governments has been insufficient thus far. How are you going to ensure
that communication on this issue, both with the FAS governments and
Congress, improves going forward? Additionally, what is your detailed
timeline for the provision of comprehensive care to our veterans living
in the FAS?
______
Mrs. Radewagen. I thank the witness for their testimony.
The Chair will now recognize Members for 5 minutes for
questions. I now recognize myself for 5 minutes.
Mr. Ruggles, additional agreements and Acts of Congress the
Administration has requested to implement the COFA Amendments
Act of 2024 for Palau include both extension of the current
COFA 2 Palau Federal Programs and Services Agreement, as well
as technical amendments deemed necessary to authorize the
Federal Deposit Insurance Corporation to operate as agreed
under the COFA 3 FPSA in Palau. At the same time, the
Administration asserts the COFA Amendments Act of 2024 needs to
be augmented by additional agreements and Acts of Congress
authorizing future Palau FPSA agreements to enter into force or
be amended.
The Administration's legal position seems at odds with the
limitation of the COFA 2 and 3 approvals of Palau FPSA and
amendments by Congress to portions thereof, rather than the
entire agreements, as well as the COFA authorization of the
2010 COFA Review Agreement, which also altered the FPSA. This
legal interpretation also would anomalously impute to the
President, Congress, and the courts an intention to treat Palau
differently than the FSM and RMI COFA 3, based on an ambiguous
and hypertechnical interpretation of variances between the
three COFA agreements.
If the State Department's assessment is that the COFA
Amendments Act of 2024 does not provide requisite authority for
its implementation, does that mean that the Department and
Administration identified but failed to address and resolve
deviations from its own interpretation of these provisions in
the negotiations and/or transmittal to Congress?
Mr. Ruggles. Thank you for your question, Representative
Radewagen.
First of all, again, I just want to reiterate our
appreciation for the Committee's support for implementation of
these agreements and appreciate Congress considering the
Administration's anomaly request which would ensure
uninterrupted provision of Federal programs and services to
Palau as we complete the process to bring the new agreement
into effect.
Palau's FPSA is subject to different statutory requirements
than the Marshall Islands and FSM. There are existing statutory
requirements outside of the COFA Amendments Act that regard
certain agreements that would require an Act of Congress before
they can be brought into force, including some that would apply
to a new FPSA with Palau.
Now, in consultation with staff on this Committee as well
as on the Senate oversight committees, we are working to
provide an option that would make Palau as similar as possible
to the provisions that govern RMI and FSM. So, our aim, and I
believe it is our shared aim, is to have a common set of
requirements for Palau with FSM and RMI going forward. We
believe the anomaly request we provided would accomplish that,
as well as ensure that there would be uninterrupted services
for Palau when its existing FPSA concludes at the end of this
month. Thank you.
Mrs. Radewagen. If the Congress did not interpret the
relevant provisions in the same manner as the Department, did
the Department advise the President and/or Congress of its
interpretation before the Palau COFA was transmitted to
Congress?
Mr. Ruggles. Well, there has been frequent communication
between the Administration and Congress, both at the Member and
staff level, about the COFA agreements. I certainly am not
looking to point fingers, but we have had an exchange of texts
over the course of months, and some of the texts that were
previously provided by the Administration were not accepted.
Again, I think we have a shared commitment to bring these
agreements into effect, and we are looking forward to working
with you and others to make sure that we support Palau. Thank
you.
Mrs. Radewagen. What is the intent behind the authorization
request?
If seeking to expedite FPSA implementation, why did the
Administration not request Congress to waive the 90-day
congressional review period?
Mr. Ruggles. In the anomaly request, there is a
notwithstanding language that has been proposed that would
waive the requirement for subsequent congressional action to
ratify the Palau FPSA.
As I said, we are trying to conform Palau's FPSA as much as
possible to RMI and FSM, rather than create a unique structure
with Palau. For simplicity's sake, in other words, we are
trying to keep all three agreements as much alike as possible.
Mrs. Radewagen. Thank you. I have many other questions, Mr.
Ruggles, but I am out of time. I now recognize the Ranking
Member for 5 minutes for questions.
Ms. Leger Fernandez. Thank you, Madam Chair.
And thank you for the testimony. I will start with you, Dr.
LaPuz. Did I pronounce that correctly? Thank you very much for
your comments and for pointing out the great patriotism that we
see coming from the Freely Associated States.
I come from the state of New Mexico, and we also have a
higher-than-average participation in the military. Latinos, it
is a majority minority state. Latinos and Native Americans are
incredibly patriotic. So, we have a lot of veterans in New
Mexico, similar to the way we noticed and that you pointed out.
One of the issues that I am real concerned about is we are
actually in a moment right now where we have a shortfall,
almost $3 billion, for the VA immediately and about another $12
billion, I believe, for the next year. And that is because we
expanded services and veterans are now saying, ``I need to
apply for these services,'' and they have earned those. So, the
fact that there is a shortfall is because people are now taking
advantage of what they have earned.
We are in a battle right now because there is a continuing
resolution that Republicans have put forward that does not fund
the shortfall. So, the very first action that we took, they did
not prioritize funding the VA shortfall, which I think is just
shameful because you pointed out in your testimony they have
earned the services.
My question to you is, does this shortfall impact veterans
living in the Freely Associated States? Does it impact what
they might see?
Is it something that we are just going to be impacted with
here in the continent, or is it something that we will see
throughout the VA, including in the Freely Associated States?
Dr. LaPuz. First of all, let me join you in thanking the
residents and citizens of the Freely Associated States because
of their high participation in our military.
And we in the VA and the Secretary are committed to ensure
that we fund the requirements of the expansion of the services
to the veterans in the Freely Associated States.
Now, having said that, I am sure that there will be a
different kind of conversation that will be happening that,
unfortunately, I will not be able to speak up to in reference
to the discussion regarding budget.
Ms. Leger Fernandez. So, you are not able to discuss the
shortfall, which means Congress, I mean it is our job to raise
this, and I think that that is a concern, and it should be a
concern for all of us. It should be a priority for everybody in
Congress, both parties, to fund the shortfall.
Mr. Lee, thank you so very much for pointing out the
importance of the relationship, that the relationship goes both
ways, right? And that there is strategic importance.
And when I was there and looked at our bases and spoke with
the representatives from the sovereign nations, it struck me:
What if we didn't have this? Which points us to why we should
act to make sure we implement all of our obligations, which are
some of the problems that we are trying to talk about here. But
could you imagine or could you describe to us, is it even
imaginable what it would be like if we did not have the
Compacts with the Freely Associated States and the reciprocal
arrangements? What would it be like out in the Pacific, from a
military, strategic viewpoint?
Mr. Lee. Thank you so much, again. And you have all said it
better than I have. It is just we know the PRC is aggressive.
They are pushing very hard, and we have to compete with them
toe to toe, and we are showing up and we are able to
demonstrate not only are we offering a choice for our partners
in the region, but we are also getting something in return,
which is the ability to exercise our activities, our right to
defend the region. And without a commitment, we would be
opening a path for PRC to move forward, and we do not want that
to happen.
So, this is really critical for our national security and
our strategic interests.
Ms. Leger Fernandez. So, if we are concerned about the
CCP's aggression, if we are concerned about their military
aggression, their national security aggression, their attacks
on everything, from our cybersecurity to our commerce, we need
to be concerned about honoring the Compacts and honoring our
obligations to the Freely Associated States. Is that correct?
Mr. Lee. That is correct, because we are ensuring the
stability, prosperity, and security of a region that is going
to be underwriting so much economic activity and growth for the
next generation. This is our responsibility, and we take it
very seriously.
Ms. Leger Fernandez. And I think that there is a strong
bipartisan support for this obligation and for meeting it. I
look forward to addressing the concerns that we are going to
hear, especially later.
With that, I yield back, Madam Chair.
Mr. Lee. Absolutely. Thank you.
Mrs. Radewagen. I thank the witness for their testimony.
The Chair will now recognize Mr. Case for 5 minutes for
questions.
Mr. Case. Thank you, Madam Chair.
Mr. Ruggles, the bill reauthorizing the COFA called for the
establishment of a unit on the FAS in the State Bureau of East
Asian and Pacific Affairs. Has that been established at this
point?
Mr. Ruggles. Thank you very much, Representative Case. The
Department has started the internal procedures to decide best
how to stand up that unit.
If I can be candid with you, prior to becoming Senior
Advisor, I was the State Department's Director for Australia,
New Zealand, and the Pacific from 2021 to 2023. And during that
period, we started the process of setting up new embassies in
Solomon Islands, Tonga, and just this year Vanuatu, and staffed
those embassies, as well. So, the positions we have prioritized
initially have been in the field, but I am cognizant as well
that we need a support structure in Washington to manage these
relationships and provide support to our embassies.
We are very much focused on ensuring that we provide that
support, including through the unit that Congress mandated.
Mr. Case. Yes. Well, I think our judgment was that you
needed to have that focus for the FAS specifically through the
creation of a separate unit. So, I appreciate the effort on the
other parts of the Pacific Islands, but this was our priority,
that it be more highlighted, more organized and less ancillary
within the Department of State.
What is your timing on actually creating that unit?
Mr. Ruggles. I should have elaborated, Representative. In
Palau, for example, I think we have increased the U.S. direct
hire presence in our embassy in Palau by 83 percent in the past
2 years, and similarly in FSM have added several positions,
U.S. direct hire positions. So, it is not just the rest of the
Pacific.
But, again, I can assure you that this is front and center
on my and Assistant Secretary Kritenbrink's attention, and have
every desire to move forward as soon as possible in
establishing the unit.
Mr. Case. OK. Again, this is for the unit in Washington,
DC, not in the field. We are not talking about the field. We
are talking about coordination here. Correct?
Mr. Ruggles. Yes, sir, you are right. I was just
illustrating that, in terms of personnel and full-time
equivalent positions, there is a limit of positions available.
And in the past 2 years, we have been very much focused on
standing up our presence in the field, and that has meant that
we have had to defer some growth in Washington.
But I certainly accept and understand that we need to also
look to Washington, as well, which we will do.
Mr. Case. OK, thank you.
Mr. Lee, thanks for highlighting the Defense Department's
partnerships. Are there plans to expand, and by the way, I do
want to commend you on the Pacific Action Team in Palau, which
has just been a really good effort all around. I have visited
them and seen them in action, and I think they are very well
respected and integrated.
Are there plans to do that as well in the FSM and the
Marshall Islands?
Mr. Lee. Sir, thank you so much, anyway, for your
thoughtful leadership, also support the Department's work over
years, and I really appreciate and am grateful for that.
You are absolutely right. The CAT teams are inspirational
in many ways, the work that they do, building classrooms,
building schools, facilitating people-to-people ties for 50
years. It has been not just an instrument of hard defense
power, but soft power.
We are certainly looking to consider what options there
might be in the future to replicate this kind of work, and I
know that I will be working with my colleagues closely to
consider options in the future. It is something that we would
like to do and plan to do, and look forward to working with you
and coordinate with you to see what is possible, sir.
Mr. Case. Yes, we would love to work with you on that
because that cost benefit is about the best in the entire U.S.
Government, as far as I can see.
Dr. LaPuz, you have heard the remarks in the opening
statement which expressed frustration with the pace of the
extension of the COFA renewal benefits for our veterans. I have
expressed this to you, along with my colleagues in letters to
the Secretary. And the response back was, frankly, not
inspiring in terms of pace of getting things done. So, it is
good that you finally set up the coordinating committees, but
do you have a sense of when you can actually complete the
coordination, the negotiations, and the agreements, and have
something ready for Congress if any congressional action is
required to implement what we now have in law?
Dr. LaPuz. Soon after the signing of the law, the Secretary
has actually directed the formation of a working group to look
at all of the available options for the Secretary to exercise
the discretionary authority that is granted by the law.
And recently the Secretary has made a decision. And truly,
it is my pleasure to actually share with the Committee that the
decision of the Secretary is to go for a comprehensive model of
care that is going to be in alignment with how veterans living
in the continental United States are receiving care.
Mr. Case. I appreciate that. And my time is up. I can go to
a second to ask further questions, but my question was, I
understand all of that. Do you have a sense of timing? How long
is it going to take you to actually get from where we are today
to an agreement?
Are we talking about 6 months? Are we talking about a year?
What is it?
Dr. LaPuz. Sir, we are going to be in direct collaboration
with the FAS governments beginning soon, very soon, until maybe
the end of the calendar year. Then we will have a good
environmental scan and understanding of the veteran population
in the FAS nations.
And then the next thing that we are going to do is prepare
the action memorandum that is going to be required for us to
enter into international agreements with the FAS governments.
Mr. Case. OK.
Dr. LaPuz. And that will take a little bit more time, sir.
Mr. Case. OK, we don't have all that much more time because
these benefits are due, and veterans need this help. They are
in a very difficult situation. We all know this. So, we are
going to stay in touch with you on this, but I would urge
alacrity. Thank you.
Dr. LaPuz. Thank you, sir.
Mrs. Radewagen. I thank the witness for their testimony.
The Chair will now recognize Mr. LaMalfa for 5 minutes for
questions.
Mr. LaMalfa. Thank you, Madam Chair. I appreciate that we
are having this important oversight hearing on the
implementation of the COFA amendments that we were able to
successfully pass earlier this year and keep accountability up
on that because, indeed, it is important that the United States
have its commitments with its allies reliably kept. So, thank
you.
Sorry, I am kind of parachuting in here a little late, so
if I say anything redundant please forgive me. The COFA
Amendments Act of 2024 includes provisions to allow for FAS
citizens residing in the United States to have the ability to
gain certain Federal programs. So, these agencies need, of
course, to issue updated guidance to reflect the newness of the
law.
Mr. Brewer, have all the relevant agencies issued guidance,
or are there any agencies that have not yet done so?
And if there are any agencies that have not issued
guidance, what is the Department of the Interior doing to make
sure this happens in a timely manner?
Mr. Brewer. Thank you very much for your question,
Congressman.
We are tracking this situation, and the relevant
departments have issued their guidance. We are tracking that to
ensure that it is being pushed down and out for the----
Mr. LaMalfa. I am sorry, let me jump in there. So, you are
tracking that. Does that mean more in the yes or no category,
have all the relevant agencies issued the guidance, or are
there some that have not yet done that?
Mr. Brewer. To my understanding, sir, all the relevant
agencies have issued the guidance.
Mr. LaMalfa. OK.
Mr. Brewer. HHS, USDA, and SSA have all issued their
guidance. We have also put that guidance on our website for the
public to have access to.
Mr. LaMalfa. OK, so that is all fully fleshed out and it is
good to go?
Mr. Brewer. It has been issued, we are tracking it. We are
working closely with those relevant agencies to make sure they
are doing----
Mr. LaMalfa. By ``tracking,'' do you mean that it is
actually working as planned, people are accessing, and all that
stuff?
Mr. Brewer. We are following that to see that. As I said,
it is my understanding that that information is out and
available to the public, and the relevant agencies are making
sure that they provide the guidance and answer any questions
that may come toward them.
Mr. LaMalfa. Well, all right, we will go with that. Thank
you, Mr. Brewer.
The Act would renew a system of agreements and support has
gone back more than 80 years, and in many of our opinions
around here, the Biden-Harris administration has repeatedly
failed to take the threat of China very seriously. And their
failure to implement key elements of the COFA Act in a timely
manner demonstrates that. So, when you have the People's
Republic of China's aggressive tactics, we must work more to
safeguard our interests and that of our alliances there. So,
upholding our end of the deal is extremely important with the
Freely Associated States.
Many of the delays in implementation of the COFA Act seem
to be caused by issues that could be worked out by the
congressionally-mandated and outlined Interagency Working
Group, IWG. The Department of the Interior's website on the
interagency group does not have any documents, calendars, or
links that we can find, which might indicate a lack of staffing
for the interagency group, I am not sure.
Mr. Brewer, what do you think are the delays at the
Department of the Interior in this regard?
Mr. Brewer. Congressman, as I stated in my opening
statement, the Interagency Working Group has met, they met in
April. They will be meeting again this Thursday to carry out
their responsibilities of management for the coordination of
our efforts of COFA implementation.
Mr. LaMalfa. How many meetings have there been, or how
often do they----
Mr. Brewer. This year there have been two. There has been
one in April and the next one will be this Thursday.
Mr. LaMalfa. That is a bit of a gap, wouldn't you think?
Mr. Brewer. We have been working diligently to get
implementation done, and those were the meetings we were able
to accomplish.
Mr. LaMalfa. OK. So, you will be meeting next week or so.
Well, the rest of the question: What is causing the delay to
have it jump from April all the way to mid-September? How come
there couldn't have been more work done in June, July,
somewhere in there, moving up the pace?
Mr. Brewer. Sir, as you know, the Act is about 6 months
old. In that time, we have been really focused on getting money
out to the FAS, to establishing the various other committees:
the Trust Fund Committee, which I chair; the FPSAs have been
being worked on. So, I wouldn't characterize it as a delay, it
is just that we are moving very aggressively to get the work
done that needs to be done for implementation, forming the
committees and getting money out to the FAS nations.
Mr. LaMalfa. OK, all right, I better stop there. I am
afraid the Chair is going to get me with that gavel there.
Anyway, I appreciate it, and please keep us abreast of the
progress. If you wouldn't mind, maybe a couple of weeks after
this next meet-up, let me and the Committee know, if you would
please. All right?
Thank you so much. I yield back.
Mrs. Radewagen. I thank the witnesses for their valuable
testimony and the Members for their questions.
The members of the Committee may have some additional
questions for the witnesses, and we will ask you to respond to
these in writing. The first panel is now dismissed. The second
panel may now be seated.
[Pause.]
Mrs. Radewagen. I will now introduce the witnesses for our
second panel: His Excellency Hersey Kyota, Ambassador to the
United States, Republic of Palau; His Excellency Jackson Soram,
Ambassador to the United States, Federated States of
Micronesia; His Excellency Charles Paul, Ambassador to the
United States, Republic of the Marshall Islands.
Let me remind the witnesses that under Committee Rules,
they must limit their oral statements to 5 minutes, but their
entire statement will appear in the hearing record.
To begin your testimony, please press the ``talk'' button
on the microphone.
We use timing lights. When you begin, the light will turn
green. When you have 1 minute left, the light will turn yellow.
And at the end of 5 minutes, the light will turn red, and I
will ask you to please complete your statement.
I would also allow all witnesses on the panel to testify
before Member questioning.
The Chair now recognizes Ambassador Kyota for 5 minutes for
questions.
STATEMENT OF HIS EXCELLENCY HERSEY KYOTA, AMBASSADOR TO THE
UNITED STATES, REPUBLIC OF PALAU, WASHINGTON, DC
Mr. Kyota. Thank you, Madam Chair and members of the
Subcommittee, for inviting me to testify before this
Subcommittee.
Before I begin, I would like to thank, he has left, but I
would like to thank Chairman Westerman and yourself, Madam
Chair, Ranking Member Leger Fernandez, co-Chair Sablan, and
Congressman Case, and other distinguished Members for your
unwavering leadership throughout the whole process of the
Compact required 30-year anniversary review from the
negotiation to the final enactment of the COMPACT Act. Your
efforts substantially benefited the United States as well as
Palau. Thank you, as well, for the last addition to the Compact
agreement that President Whipps requested. The law greatly
improved and strengthened the relationship between our nations.
A top U.S. military commander once said that Palau is part
of the U.S. homeland. Although it is now a sovereign nation, it
is part of the homeland because the security right Palau has
led the U.S. exercise under the Compact, and Palau is the
closest part of the homeland to Asia. Your law would meet
Palau's need much more than the Compact as originally entered
into or through the 15th anniversary review.
One of the most important improvements contemplates
continuing the assistance after Fiscal Year 2043 on the same
terms instead of phasing out assistance. Another major
advancement is upgrading U.S. executive branch attention to the
Freely Associated States. Our status in relation to the United
States is far closer than any other sovereign nation.
I am pleased to report the successful conclusion of the
talks on our Compact Federal program and service agreement. The
current agreement expired on September 30. The Compact
helpfully pre-approved the agreement, but approval is subject
to a 90-day congressional review, so the State Department has
asked for technical amendments. My government hopes that you
will try to pass the necessary language before the end of this
month.
We look forward to the Veterans Affairs Department's draft
agreement for the health care that veterans living in the
Freely Associated States are entitled to under the law.
As you know, your law substantially broadened the mission
of the Palau Economic Advisory Group. The Economic Advisory
Group is meeting in Palau this week.
I am also pleased to report that the plan required for
spending Fiscal Year 2024 financial assistance was found to be
completed with requirement.
The Department of the Interior has worked with us to assure
fulfillment of the provision of the Compact Review Agreement
and the law. We greatly appreciate that the COMPACT Act made
Freely Associated States' citizens in the United States
eligible for additional education benefits, restored
eligibility for programs open to the permanent residents, and
informing local agencies and education institutions, as well as
Federal officials regarding this will be needed.
Federal understanding of the Freely Associated States'
unique status is essential. We are encouraged by the initial
effort of the Interagency Group on the Freely Associated
States, and hope that the State Department will soon fulfill
the requirement to re-establish a Freely Associated States
Office, and hope that your Committee will continue oversight
like this one today.
Thank you, mesulang, for all that you have done for our
nation's democracy and prosperity, for the peace, security of
all Pacific nations, including the United States and Taiwan.
Thank you, Madam Chair.
[The prepared statement of Mr. Kyota follows:]
Prepared Statement of His Excellency Hersey Kyota, Ambassador of Palau
Thank you, Madame Chair, for inviting me to testify on the
implementation of the Compact of Free Association Amendments Act of
2024.
And thank you, Chair Hageman, Chairman Westerman, Ranking Minority
Members Grijalva and Leger Fernandez, and other Distinguished Members
of the Subcommittee for your unwavering leadership throughout the whole
process of the Compact's required 30th Anniversary Review of Palau's
needs and of the association between our nations--from the negotiations
to the enactment of the Compact Act of 2024. Your efforts substantially
benefited the United States as well as Palau.
Thank you as well for the law's additions to the Compact Review
agreements that were requested by President Whipps and Chief Compact
Negotiator Udui and worked out with Presidential Envoy Yun and the
bipartisan leadership of this Committee.
The law greatly improved and strengthened our relationship. A top
U.S. military commander said that Palau is ``part of'' the U.S.
``homeland.'' It is a part because of the Compact's U.S. security
rights, with Palau being the closest ``part'' to Asia. Palau is also a
part for many otherwise U.S. domestic programs and for the free
movement of our peoples.
Your law would meet Palau's needs much more than the Compact as
originally entered into or through the 15th Anniversary Review. One of
the most important improvements contemplates continuing the law's much
greater assistance after Fiscal Year 2043 on the same terms, instead of
phasing out assistance. Continuation of much needed aid would make our
association more equitable and maintain its significant benefits for
both of our nations indefinitely.
Another major advancement is upgrading U.S. Executive branch
attention to what were parts of a territory that now, although
sovereign nations, let the U.S. exercise fundamental aspects of our
sovereignty. Our status in relation to the U.S. is far closer than that
of other sovereign nations.
I am pleased to report the conclusion of the talks on the Compact
Review's major outstanding Agreement. It would update Federal Programs
and Services agreements that cover some major U.S. services (but not
all programs).
Signing is planned before the current agreements expire this month.
The Compact Act helpfully pre-approved it, but the approval is subject
to a 90-day congressional review. So, the Executive branch has asked
you to extend the current agreements. It has also asked the Congress to
clarify the new Agreement's approval and insurance of bank deposits.
Approval of these technical amendments at the earliest possible
opportunity is essential because it is Executive agencies that have to
implement the Agreement. Palau strongly supports congressional
approval.
We now look forward to the Department of Veteran Affairs' draft
agreement for the healthcare that U.S. military veterans living in the
``freely associated states'' are entitled to under your law. Many
veterans have not returned and contributed to our islands because they
have had to live in the U.S., the Philippines, or Canada to receive
this care. U.S. Deputy Secretary of State Campbell--who continues to
play a pivotal role in improving our association--has just highlighted
the importance, as a State Department news release announced last week.
As you know, your law substantially enhanced the mission of the
Palau Economic Advisory Group by broadening its mandate beyond just
local economic, financial, and fiscal management recommendations. Thank
you for this. The EAG is meeting in Palau this week.
I am also pleased to report that the plan required for spending the
law's FY 2024 financial assistance was approved. Additionally,
indications are that the FY25 plan will be approved, too. We, further,
expect the annual financial report to be on time and meet requirements.
The Department of the Interior's Office of Insular and International
Affairs has worked collaboratively with us to ensure fulfillment of the
law's provisions.
We greatly appreciate that the Compact Act made freely associated
state citizens working, studying, and living in the U.S. eligible for
important education benefits as well as restored eligibility for
programs open to other permanent residents. Federal agencies have acted
to make States, territories, and educational institutions aware of
this, but continue informing of local agencies and educational
institutions as well as Federal officials is needed.
Federal understanding of the freely associated states' unique
status in relation to the United States and appreciation of our crucial
role in U.S. defense and a free and open Indo-Pacific are principal
reasons that President Whipps sought, and Envoy Yun and you acted, to
upgrade the Executive branch's handling of matters concerning our
islands. This included: elevating and re-invigorating the Interagency
Group on Freely Associated States, with a key role for the Department
of Defense as well as the State and Interior Departments; a restored
Freely Associated States office with additional personnel; and regular
reporting to the President through his staff and to the Congress for
oversight.
We are encouraged by the initial Interagency Group efforts; hope
that State will soon fulfill its new office and personnel
responsibilities; trust that there will be reports of substantial
actions; and hope that your Committee will continue oversight, such as
it is in this hearing.
Mesulang--thank you very much--for all that you have done for our
nations' democracy and prosperity and for the peace and security of all
Pacific nations--including yours and Taiwan.
______
Questions Submitted for the Record to His Excellency Hersey Kyota,
Ambassador to the United States, Republic of Palau
His Excellency Hersey Kyota did not submit responses to the Committee
by the appropriate deadline for inclusion in the printed record.
Questions Submitted by Representative Westerman
Question 1. Can you summarize any issues Palau's government has
encountered relating to COFA implementation since the bill passed?
1a) How have these challenges impacted Palau's government and
citizens?
1b) Have you raised these concerns with the administration? If so,
what was their response?
Question 2. The Federal Programs and Services Agreement (FPSA) the
U.S. and Palau signed pursuant to the 2010 Compact Review Agreement is
due to expire on September 30, 2024.
As such, the administration has requested for an extension for this
FPSA until a new FPSA is entered into force.
2a) Can you explain how your government and the people of Palau
would be impacted if there was a lapse in federal programs and
services?
Question 3. How has the delay of Department of Veterans Affairs
services impacted Palau's veterans?
______
Mrs. Radewagen. I thank the witness for their testimony.
The Chair now recognizes Ambassador Soram for 5 minutes.
STATEMENT OF HIS EXCELLENCY JACKSON SORAM, AMBASSADOR TO THE
UNITED STATES, FEDERATED STATES OF MICRONESIA, WASHINGTON, DC
Mr. Soram. Thank you, Madam Chair Radewagen, Ranking Member
Leger Fernandez, and members of the Subcommittee. Thank you for
convening this hearing and for the opportunity to testify
today. My name is Jackson Soram. I am honored to serve as the
Ambassador of the Federated States of Micronesia to the United
States.
The United States and the FSM enjoyed a close relationship
that has been strengthened through diplomatic, economic, and
military partnership and commitments as part of the Compacts of
Free Association. Earlier this year, the U.S. Government
demonstrated this support through the enactment of the COFA
Amendments Act, and this law updates and extends economic
assistance provisions of the Compact between our two nations
for an additional 2-year period. It restores or extends other
key benefits for FSM citizens in the United States.
We are deeply grateful to this Committee and to the Trump
and Biden administrations for the years of work required for
these achievements. Your delegation reinforces our mutual
commitments to our enduring partnership and the fact that we
have no greater friend than the United States.
We are grateful that Congress approved an annual
appropriation of $140 million for sector grants for the FSM in
the law. This is a significant increase. Last week, we had our
first in-person meeting with the United States under the
framework of the Joint Economic Management Committee, or JEMCo.
The Joint Committee has provisionally concurred with the FSM-
proposed sector grant allocations for Fiscal Year 2025. We
remain hopeful for JEMCo's final concurrence in the coming
days, and it is evident in this transition period that there
are bilateral challenges to overcome in implementation. The FSM
is committed to working with the United States in this
transition to the new agreements.
In addition to extending the U.S. financial assistance and
U.S. Federal programs and services for the FSM, the law
addresses several long-standing challenges for FSM citizens who
live, work, and study in the United States, and serve in the
U.S. military. We are pleased FSM citizens residing lawfully in
the United States are again eligible for key public benefits as
a result of the bipartisan Compact Impact Fairness Act.
Additionally, we are delighted the amended Compact includes
a bipartisan Care for COFA Veterans Act, which provides
improvements to medical care access to veterans in the FAS. The
law also ensures eligibility for Pell Grants and other
education benefits for FSM students, which will strengthen the
future of our country for generations to come.
Since the enactment of the law, the FSM has engaged with
Federal agencies regarding Compact implementation. We are
pleased the Departments of Education, Agriculture, Health and
Human Services, and FEMA have issued guidance to reflect the
changes in the updated Compact.
Overall, we are pleased with the progress on
implementation, but are disappointed by the lack of engagement
by the VA. The law establishes a 1-year period following
passage during which the VA is directed to work with the FAS
governments to assess options for required delivery of care to
veterans residing in the FAS. We are very concerned that 6
months have elapsed without collaboration or communication on
these initiatives which are critical to the health of our
veterans.
Additionally, despite our outreach, the Social Security
Administration has not released guidance on the eligibility of
FSM citizens for Supplemental Security Income. We remain
hopeful implementation efforts can move forward quickly, given
the impact of these programs for our citizens. And we stand
ready to assist.
The FSM appreciates the Committee's commitment to the
implementation of the COFA Amendments Act. We look forward to
working with Congress on implementation and exploring ways to
bolster our relationship beyond the Compact. Thank you again
for the opportunity and for holding this hearing, and I look
forward to answering questions. Thank you, Madam Chair.
[The prepared statement of Mr. Soram follows:]
Prepared Statement of Ambassador Jackson T. Soram of the Federated
States of Micronesia
Chairman Westerman (R-AR), Ranking Member Grijalva (D-AZ),
Subcommittee Chair Hageman (R-WY), Ranking Member Leger Fernandez (D-
NM), and members of the Subcommittee, thank you for convening this
hearing and for the opportunity to testify before you today. My name is
Jackson Soram. I am honored to serve as the Ambassador of the Federated
States of Micronesia (FSM) to the United States.
The U.S. and the FSM enjoy an extraordinarily close relationship
that has been strengthened through our enduring diplomatic, economic,
and military partnership and commitments as part of the Compact of Free
Association. Earlier this year, the U.S. Government demonstrated this
support through the enactment of the Compact of Free Association (COFA)
Amendments Act. This critical legislation updates and extends economic
assistance provisions of the Compact of Free Association between our
nations for an additional 20-year period and restores or extends other
key benefits for FSM citizens in the United States. We are deeply
grateful to the House Natural Resources Committee and the Trump and
Biden Administrations for the years of work required for these
achievements. Your dedication reinforces our mutual commitments to our
enduring partnership and the fact that we have no greater friend in the
world than the United States.
We are grateful that the U.S. Congress approved an annual
appropriation for sector grants for the FSM of $140 million per year in
the COFA Amendments Act. This is a significant increase. During the
first week of September, we had our first in-person meeting with the
United States under the framework of the Joint Economic Management
Committee, or JEMCO. The Joint Committee has provisionally concurred
with the FSM proposed sector grant allocations for Fiscal Year 2025. We
remain hopeful that final concurrence will happen in the coming days.
It is evident that in this transition phase to a new framework of U.S.-
FSM agreements that there are bilateral challenges to be overcome in
detailed implementation. The FSM is committed to working with the U.S.
in this transition to the new agreements.
In addition to extending the U.S.'s critical financial assistance
and the provision of U.S. federal programs and services in the FSM, the
COFA Amendments Act addresses several longstanding challenges for FSM
citizens, who choose to live, work, and study in the U.S. and serve in
the U.S. military. We are pleased FSM citizens residing lawfully in the
U.S. are again eligible for key public benefits as a result of the
bipartisan and bicameral Compact Impact Fairness Act. Additionally, we
are delighted the Amended Compact includes the bicameral and
bipartisan, Care for COFA Veterans Act, which provides improvements to
medical care access to veterans in the Freely Associated States (FAS).
We appreciate congressional support for these pieces of legislation.
The COFA Amendments Act also ensures continuing eligibility for Pell
Grants and other key education benefits for FSM students, which will
strengthen the future of our country for generations to come.
Since the enactment of the Amended Compact, the FSM has worked
diligently to engage with federal agencies regarding Compact
implementation. We are pleased that the Departments of Education,
Agriculture, Health and Human Services, and FEMA have issued guidance
to reflect the changes in the updated Compact:
The Department of Health and Human Services (HHS)
published guidance discussing changes to several programs,
including the Temporary Assistance for Needy Families
Program, the Low-Income Home Energy Assistance Program, and
the Social Services Block Grant.
HHS has been in contact with the FSM and Congress
regarding the Head Start Program, which was authorized by
the Compact and will require discretionary appropriations.
Notable, these funds have been included in the House and
Senate Fiscal Year 2025 Labor, Health and Human Services,
Education and Related Agencies appropriations bills, thanks
to the support of several lawmakers;
The Department of Education issued information regarding
the education provisions within the Amended Compact;
FEMA announced the eligibility of FAS citizens for
disaster assistance; and
The Department of Agriculture released guidance on the
eligibility changes to the Supplemental Nutrition
Assistance Program.
Overall, we are pleased with the progress toward implementation of
the law by the agencies previously mentioned. Unfortunately, we are
disappointed by the lack of engagement from the Department of Veterans
Affairs (VA). The COFA Amendments Act establishes a one-year period
following the enactment of the Act during which the VA is directed to
work with the FAS governments to assess options for the required
delivery of care to veterans residing in the FAS. We are very concerned
that six months have elapsed without progress on these initiatives,
which are so critical to the health of our veterans. The FSM government
stands ready to be of any assistance necessary.
We remain hopeful that implementation efforts can move forward
expeditiously with all of our federal partners, given the importance
and impact of these programs to our citizens. For example, despite our
outreach, the Social Security Administration has not provided a
timeline on implementation of eligibility of FSM citizens for
Supplemental Security Income.
The FSM Government greatly appreciates the Committee's continued
commitment to the implementation of the COFA Amendments Act, which
supports our enduring partnership. We look forward to keeping the
Committee informed of implementation developments, and to exploring
additional means of bolstering our countries' relationship beyond the
Compact, including future military construction commitments and the
restoration of the Peace Corps program in the FSM. We hope these
endeavors will serve as opportunities for our nations to reaffirm our
unique friendship, strong partnership, and mutual commitment to
promoting security and stability in the Indo-Pacific region.
Thank you again for holding this hearing on this important topic. I
look forward to answering any questions.
______
Questions Submitted for the Record to His Excellency Jackson Soram,
Ambassador to the United States, Federated States of Micronesia
His Excellency Jackson Soram did not submit responses to the Committee
by the appropriate deadline for inclusion in the printed record.
Questions Submitted by Representative Westerman
Question 1. During the hearing, the Department of the Interior's
witness stated that to his knowledge all the relevant U.S. agencies,
including the Social Security Administration, have issued guidance on
carrying out programs to adhere the Compact of Free Association
Amendments (COFA) Act of 2024.
1a) To your knowledge, has the Social Security Administration
issued guidance for the Social Security Income program to reflect the
2024 COFA law?
Question 2. Can you summarize any issues FSM's government has
encountered relating to COFA implementation since the bill passed?
2a) How have these challenges impacted FSM's government and
citizens?
2b) Have you raised these concerns with the administration? If so,
what was their response?
Question 3. Your written testimony lists the agencies who have
issued guidance on carrying out the services and obligations under the
COFA Amendments Act.
3a) To your knowledge, which of the relevant agencies have not
listed updated guidance?
3b) Has your government reached out to these agencies? If so, what
has been their response?
Question 4. How has the delay of Department of Veterans Affairs
services impacted FSM's veterans?
______
Mrs. Radewagen. I thank the witness for their testimony.
The Chair now recognizes Ambassador Paul for 5 minutes.
STATEMENT OF HIS EXCELLENCY CHARLES PAUL, AMBASSADOR TO THE
UNITED STATES, REPUBLIC OF THE MARSHALL ISLANDS, WASHINGTON, DC
Mr. Paul. Talofa [Speaking Foreign Language] Madam
Chairwoman Radewagen, Ranking Minority Member Leger Fernandez,
Chairman Westerman, Mr. Case, and other distinguished members
of this honorable Committee.
I must begin by saying kommol tata as emphatically as I can
for your leadership in enacting the COMPACT Act and your
additions to the agreement that it approved. The package meets
Marshall Islands' needs more than ever before, greatly
improving our nation's association. It addresses long-standing
problems and includes provisions that would enable a deeper and
more equitable partnership to endure for 20 years and longer.
It not only secures our vast waters and airspace, it also helps
ensure a free and open Pacific for all democratic nations,
including Taiwan.
Implementation is in its initial stages. There are still
agreements being negotiated, including a revised agreement for
certain U.S. services that we hope will be completed this
month. And we are waiting for a draft agreement to enable the
law's mandate for our veterans to receive health care in our
islands or travel for care instead of having to live in the
United States, the Philippines, or Canada.
Madam Chair, we are pleased to have received a letter from
the Secretary of Veterans Affairs outlining next steps in
developing the said agreement to provide health care services
to all deserving veterans residing in the Marshall Islands. In
our islands, a new administration and parliament, Nitijela,
took office in January. It would conclude these agreements,
implement the agreements and laws enacted last year, and
develop required plans.
Last year's actions substantially and beneficially changed
U.S. financial assistance. The most fundamental changes were in
the trust fund for our people. The purpose was changed to two
areas, with specific uses now determined by the RMI government
and the Joint Trust Fund Committee Ensuring Fiscal Integrity.
Funds that had already been contributed will be used to benefit
our people directly, instead of subsidizing the government. And
the new contributions are for programs for the people from
atolls adversely affected by U.S. nuclear bomb tests and
nuclear waste disposal and islands that have unmet claims
regarding other U.S. military activities.
Our plan for the much greater general budgetary assistance
for Fiscal Year 2024 was found to be sound by the Joint
Committee, and last week there was a helpful meeting with the
Committee regarding the Fiscal Year 2025 plan.
My government has named its members of the new Working
Groups for the Additional Assistance for Health Care, and to
address increasing challenges of nature. We look forward to the
U.S. Government naming its members so that these committees can
meet and begin their work.
Plans are being developed for new assistance for
infrastructure in the civilian areas of the Kwajalein Atoll,
which supplies much of the labor for the world's premier range
on testing ICBMs, for accessing records, and for a museum
regarding the U.S. nuclear program and additional environmental
programs.
As I noted earlier, the new trust fund contributions will
be used to address exceptional hardship and unmet needs. To use
the words of U.S. Presidential Envoy Yun in this Committee's
hearing on the legislation, and I quote, ``Islands that have
been affected by nuclear tests.'' As he further testified
regarding the people of these islands, ``They are suffering,
which is why the new contributions were put into the trust
fund.''
We thank the Committee for the COMPACT Act, reiterating the
Compact agreements enabling my government to seek measures
regarding damage to property and injury to individuals from the
nuclear programs not known at the time of the Compact, a
changed circumstance petition, and requiring the U.S.
Government to engage in meaningful consultations on our joint
tragic nuclear legacy. We will be making use of these
provisions.
Madam Chair, I have in my hands the Nitijela Resolution
15ND1 that was passed unanimously 2 days ago in the RMI
Nitijela, and I ask that this Nitijela resolution urging the
RMI Government to file a changed circumstance petition be
included in the record.
Mrs. Radewagen. So ordered.
[The information follows:]
NITIJELA OF THE REPUBLIC OF THE MARSHALL ISLANDS
45TH CONSTITUTION REGULAR SESSION, 2024
Republic of the Marshall Islands
RESOLUTION 15ND1
A RESOLUTION urging the Cabinet to pursue the Change Circumstances
Petition through Congress of the United States of America to adopt
adequate measures under the 177 Agreement to compensate for the
injuries and damages caused by the U.S. Nuclear Testing Program in the
Marshall Island.
WHEREAS, Section 177 of the Compact of Free Association, provides that
the Government of the United States accepts the responsibility for
compensation owing to citizens of the Marshall Islands . . . for loss
or damage to property and person . . . resulting from the nuclear
testing program which the Government of the United States conducted in
the Northern Marshall Islands between June 30, 1946, and August 18,
1954; and
WHEREAS, Section 177 requires that the U.S. Provides $150 Million to
the RMI to create a Fund that, over the 15-year period of the Compact,
was intended to generate $270 Million in proceeds for disbursement ``as
a means to address past, present and future compensation consequences
of the U.S. Nuclear Testing Program, including the resolution of
resultant claims''; and
WHEREAS, injuries and damage resulting from the U.S. Nuclear Testing
Program could not have been discovered, or could not have been
determined, prior to the effective Compact, and such injuries, damages
and adjudication render the terms of the Section 177 Agreement
manifestly inadequate to provide just and adequate compensation for
injuries to Marshallese people and for damage to or loss of land
resulting from the U.S. Nuclear Testing Program; and
WHEREAS, in lieu of an assessment of damages by the Federal Courts, the
Government of the Marshall Islands accepted the U.S. Proposal that it
espouse and settle the claims of the Marshallese people arising from
the Nuclear Testing Program conducted by the U.S. in conjunction with
the establishment of a Claims Tribunal. The U.S. expressly recognized
that its technical assessment of radiological damage to persons and
property in the RMI was limited to a ``best effort'' at the time of the
Compact, and was based on limited disclosure of available information
and incomplete scientific knowledge. As a result, further adjudication
of the claims by an internal RMI Nuclear Claims Tribunal was agreed to
by the United States; and
WHEREAS, in addition to Nuclear Claims Tribunal, the U.S. in exchange
for the RMI espousing and settling its citizens claims, to adopt a
``Change Circumstance'' procedures, through which Congress accepted the
authority and responsibility at a later date to determine the adequacy
of the measures adopted under the 177 Agreement to compensate for the
injuries and damages caused by the U.S. Nuclear Testing Program; and
WHEREAS, on September 1, 2000, the Cabinet endorsed the petition for
change circumstances produced by the Ministry of Foreign Affairs in
cooperation with Change Circumstances Advisory Group (CCAG), the
Cabinet enabled the CCAG to participate in the presentation of the
change circumstance petition and authorized the Ministry of Foreign
Affairs to submit the Petition to the United States Congress; and
WHEREAS, it is fitting that through the sense of the Nitijela urging
the Cabinet to pursue the Change Circumstances Petition through
Congress of the United States of America to adopt adequate measures
under the 177 Agreement to compensate for the injuries and damages
caused by the U.S. Nuclear Program in the Marshall Islands; now
therefore,
BE IT RESOLVED by the People of the Republic of the Marshall Islands,
through their Nitijela in its 451 Constitutional Regular Session, 2024,
that the Nitijela hereby, urging the Cabinet to pursue the Change
Circumstances Petition through Congress of the United States of America
to adopt adequate measures under the 177 Agreement to compensate for
the injuries and damages caused by the U.S. Nuclear Testing Program in
the Marshall Islands; and
FURTHERMORE, urging the Cabinet to re-appoint the membership to the
Change Circumstances Advisory Group (CCAG) to participate in the
presentation of the change circumstance petition.
CERTIFICATE
I hereby certify:
1. That Nitijela Resolution No: 15ND1 was passed by the Nitijela of
the Republic of the Marshall Islands on the 9th day of
September, 2024; and
2. That I am satisfied that Nitijela Resolution No: 15ND1 was passed
in accordance with the relevant provisions of the
Constitution of the Republic of the Marshall Islands and
the Rules of Procedures of the Nitijela.
I hereby place my signature before the Clerk this 10th day of
September, 2024.
Brenson S. Wase
Speaker
Nitijela of the Marshall Islands
Attest:
Morean S. Watak
Clerk
Nitijela of the Marshall Islands
______
Mr. Paul. Thank you. Other greatly appreciated measures
restored the eligibility of Freely Associated State citizens in
the United States for several Federal programs, and entitled
them to additional post-secondary educational assistance.
Federal agencies must explain the law to state and territorial
agencies and post-secondary educational institutions.
The COMPACT Act also includes very important sections
regarding the U.S. executive branch's handling of Freely
Associated State matters.
I conclude by thanking you, Madam Chair, and members of
this Honorable Committee for your leadership and for this
opportunity to testify before you. I look forward to answering
any questions you may have.
[The prepared statement of Mr. Paul follows:]
Prepared Statement of His Excellency Charles Paul, Ambassador of the
Republic of the Marshall Islands to the United States
Honorable Chair, Ranking Minority Member, and other Distinguished
Members:
Before I discuss the implementation of this year's Compact
Amendments Act, I am compelled to say Kommol tata as sincerely and
emphatically as I can for your leadership in its enactment and your
additions to the agreements that it approved.
The package meets needs regarding the Marshall Islands more than
ever before, greatly improving and strengthening the association
between our nations, ours formerly part of a territory that yours
administered but is now a sovereign state non-bindingly associated with
yours.
The law will substantially better the quality of life of our people
and address longstanding problems. It includes provisions that would
enable a deeper and more equitable partnership to endure for 20 years
and longer. By doing so, it not only secures our vast waters and
airspace as well as our land just southwest of Hawaii, it helps ensure
a free and open Pacific for all democratic nations, including Taiwan,
with which we have close and lasting diplomatic relations.
Implementation is just in its initial stages since the law only
became fully effective in the case of the Marshall Islands on May 1st.
There are still agreements being negotiated, including a new agreement
for certain U.S. services that we hope will be completed soon this
month and an agreement that would enable our U.S. military veterans to
receive veterans' healthcare in our islands or travel for care instead
of having to live in the U.S., Canada, or the Philippines.
A new administration and parliament, Nitijela, took office in
January. It is negotiating and will conclude these agreements,
implementing the agreements and the law enacted last year, and
developing the required plans.
Last year's actions substantially--and beneficially--changed U.S.
financial assistance.
The most fundamental changes were in the Trust Fund for our people.
The purpose was changed to two areas, with the uses now determined by
our new administration and Nitijela.
Our administration and Nitjela have decided to use the funds that
had already been contributed to benefit our people directly instead of
subsidizing the Government. The new contributions are for programs for
the peoples t5o address the needs of the atolls adversely affected by
U.S. nuclear bomb tests and nuclear waste disposal, and islands that
have unmet claims regarding other U.S. military activities.
The Joint Economic and Financial Accountability Committee, which is
responsible for ensuring compliance with the new Fiscal Procedures
Agreement, concurred with our plan for the much greater Fiscal Year
2024 budgetary assistance for education; continuing health programs;
infrastructure; private sector growth; the environment; special aid for
Enewetak Atoll, which was resettled by its people, but still has high
levels of radiation; and fiscal management, reporting, and auditing.
Last week, there was a helpful meeting on the FY25 plan. The Interior
Department's Insular and International Affairs Office has been very
helpful in our efforts in this regard.
My Government has named its Members of the new Working Groups for
the new Compact package's assistance for additional health care and to
address increasing challenges of nature. We are looking forward to the
U.S. naming its Members.
Plans are being developed for the new assistance for infrastructure
in the civilian areas of Kwajalein Atoll, which supply much of the
labor for the world's premiere range for testing ICBMs and military
space operations support; accessing records and developing a museum
regarding the U.S. nuclear weapons and waste programs; and additional
environmental programs.
Developing fiscally responsible programs in these regards requires
complex decisions and careful planning that is underway.
As I noted earlier, the new Trust Fund contributions will be used
to address extraordinary circumstances of exceptional hardship and
unmet needs in the case of people in our islands from atolls and
islands that face challenges due to location, inadequate housing, lack
of arable land, or limited local economic opportunities.
As the chief U.S. negotiator, Special Presidential Envoy Joseph
Yun, testified during this Committee's hearing on what became the
Compact Act, these are primarily people from ``islands that have been
affected by nuclear tests.''
As he further explained to your counterpart Senate committee,
``They are suffering. we've always still felt that there were
additional needs . . . which is why'' the new contributions were ``put
into the Trust Fund'' to ``be used for development, education,
environment issues of nuclear atolls'' among others, citing ``continued
radiation and suffering and health effects.''
Too many of our people still have losses due to the nuclear weapons
testing program and the disposal of radiological waste--including waste
from the U.S. So, these individuals will, rightfully, be the
beneficiaries of the Trust Fund programs funded by the new
contributions.
These programs for our seriously adversely affected people will be
consistent with the Compact, as were other U.S. laws enacted after the
approval of the Compact that addressed needs arising from the nuclear
weapons and waste programs. Such measures are compatible with the
Compact, as Envoy Yun further agreed in his testimony to this
Committee. These provisions and their effective implementation are
essential for my government's agreement to extend our free association.
In this connection, let me thank the Committee for including in the
new Compact Act reiterations of the Compact agreements enabling my
Government to seek provisions for damages to property and injuries to
individuals from the nuclear programs not known at the time of the
Compact, a Changed Circumstances Petition, and requiring the U.S.
Government to engage in meaningful consultations on nuclear legacy
matters at my Government's request. We are hopeful that this process
will result in further addressing the consequences of U.S. nuclear
testing in the Marshall Islands.
Our governments are close to concluding a new Federal Program and
Services Agreement to provide terms for the continuation of U.S.
services that are essential to our free association and have been part
of the Compact arrangement since its inception. Based on the progress
made in negotiations late last week, we hope for a resolution this
week. The next step in the process is a revised U.S. proposal.
This would leave one other critical agreement to negotiate: the one
needed for our U.S. military veterans to receive health care in our
islands or be transported to where they can receive that care. One of
the major improvements in the association made by this year's Compact
Act is entitling them to this care. It will enable them to return home
instead of having to stay in the U.S. or move to Canada or the
Philippines. Our Minister of Foreign Affairs and Trade, the Honorable
Kalani Kaneko, was a U.S. military recruiter in the freely associated
states, and looks forward to receiving a Department of Veterans Affairs
draft for this agreement.
Other greatly appreciated provisions of the Compact Act restored
the eligibility of freely associated state citizens who are in the U.S.
due to employment or education for several Federal programs and
entitled them to post-secondary educational assistance. Federal
agencies are implementing these provisions and must explain the law to
State and territorial agencies and post-secondary educational
institutions.
The Compact Act also includes very important provisions regarding
the U.S. Executive branch's handling of matters concerning the freely
associated states. These include restoring an office in the State
Department with new staff solely dedicated to addressing issues and
fulfilling commitments in our nations' unique partnership, which is the
closest relationship possible between sovereign nations; revitalizing
the interagency group on these matters; and requiring regular reports
to the President of the United States and from the President to the
Congress.
I conclude with my initial point: The leaders of this Subcommittee
and Committee and your counterparts on both sides of the Capitol from
both U.S. political parties did a great service to the Marshall Islands
and the other states in free association with the U.S., the Pacific
region as a whole, and the United States itself in leading the Congress
to work with the Executive branch as one and enact the Compact of Free
Association Amendments Act of 2024. It will ensure the security of our
nations and enable our economies to grow for at least the next 20
years, with provisions for continued benefits on an indefinite basis.
Thank you for doing this.
______
Questions Submitted for the Record to His Excellency Charles Paul,
Ambassador to the United States, Republic of the Marshall Islands
Questions Submitted by Representative Westerman
Question 1. Can you summarize any issues the RMI government has
encountered relating to COFA implementation since the bill passed?
Answer. First, thank you, Mr. Chairman, for leading the House and
co-leading the Congress in developing and enacting the law. Your
efforts contributed to the negotiation of the agreements that the law
approved as well as added to it, favorably responding to our requests,
in addition to simply approving it. We are also grateful for the
assistance that you received from others such as Subcommittee Chair
Hageman and Task Force Co-Chair Radewagen.
Second, we greatly appreciate the oversight of implementation of
the law, which was finally passed March 8th and signed March 9th, much
later than any of us anticipated and hoped for. We hope that this will
continue. It is needed.
There has been much to do since the law was enacted. One of the
most essential measures was to negotiate the agreement pre-approved by
the law for continuing certain U.S. services. These are not most U.S.
programs, but are some of the most essential U.S. services, such as the
delivery of mail to and from our islands. Negotiations did not begin
until after the enactment of the law and were difficult on details. I
am pleased to report, however, that the talks have concluded and the
final agreement language was initialed September 24th. (The agreement
will be signed as initialed when the U.S. Department of State is ready,
which we expect will be in a couple of weeks.)
Another immediate task was to prepare an implementation plan for
Fiscal Year 2024 financial assistance for education, health,
infrastructure and maintenance, public sector capacity building,
private sector development, and the residents of irradiated Enewetak
Atoll in accordance with the new--and improved--Fiscal Procedures
Agreement (``FPA'') approved by the law. My Government did so and the
plan obtained concurrence as meeting the requirements of the FPA and
the law from the law's revised--and much improved--Joint Economic
Management and Financial Accountability Committee, ``JEMFAC'' (with new
appointments from both governments).
We have also had to draft an Annual Implementation Plan (``AIP'')
for the law's FY 2025 assistance. This has now also been done and
submitted to JEMFAC for review of its fiscal soundness. We expect
agreement soon.
The U.S. Department of the Interior's Office of Insular and
International Affairs has been very helpful in these regards.
The law's also revised and improved joint committee to ensure the
fiscal integrity of the repurposed Trust Fund for the People of the
Marshall Islands had to be appointed and the Government of the Marshall
Islands has had to decide on and develop plans for uses of the
distributions, which begin in FY25, in accordance with the requirements
of the Trust Fund Agreement. The new committee has met, and my
government is finalizing plans for use of Trust Fund Agreement Article
17 distributions for the benefit of the people of the Marshall Islands
as a whole. It has also made decisions regarding Article 18
distributions for the people of mutually agreed upon atolls and
islands. The 13 are the peoples of 11 atolls affected by U.S. nuclear
weapons testing and radioactive waste disposal and an island and an
atoll with issues related to U.S. military missile testing at Kwajalein
Atoll. Development of plans for these distributions is underway.
We have also made initial plans or are beginning work on plans for
the additional funding for health care; education and job-training;
infrastructure for the civilian areas of Kwajalein; access to records
and education regarding U.S. nuclear weapons testing; the environment,
including the impacts of the rising seas; and additional U.S. programs,
including Head Start, elementary and secondary schools assistance,
vocational and technical education, adult education, the Job Corps, and
a program for preschoolers with special needs similar to the U.S.
Individuals with Disabilities Education Act Part C program.
Our primary areas of concern have been the Department of Veterans
Affairs beginning the law's healthcare for our U.S. military veterans
who have returned home or travel to places where they can receive care
and the implementation of education and `social safety net' services
available to non-citizen permanent residents of the U.S.
1a) How have these challenges impacted RMI government and its
citizens?
Answer. So far--and, as you know, it is very early in the
implantation process--it is that our U.S. military veterans at home
have not been able to receive the law's healthcare and travel for
healthcare benefits and others who may have wanted to return home have
not done so because our veterans still can only receive these benefits
in U.S. areas, the Philippines, and Canada. The Veterans Affairs
Department, however, has just announced, as you know, its timetable for
implementing the law. The timetable seems to be a little slow--
conclusion of the required agreement to begin the services as long as a
full year after enactment of the law--but we now at least see movement.
Our citizens who have come to work or study in the U.S. are
entitled under the law to post-secondary educational assistance,
including new eligibility for in-State tuition, and `social Safety net'
programs for which other non-citizen residents have been eligible but
from which our citizens were previously excluded. Some U.S. agencies
have taken longer than others to inform Federal officials or States and
territories, resulting in some erroneous denial of benefits, but all
have now issued the necessary guidance or have issued most of it.
1b) Have you raised these concerns with the administration? If so,
what was their response?
Answer. Yes. The VA has responded with its timetable. Other
agencies have issued or are finalizing guidance regarding provisions of
the law.
Question 2. How would the RMI government and its citizens be
impacted if the Federal Programs and Services Agreement negotiations
are not completed in a timely manner?
2a) Would it be fair to say that it should be a priority for these
negotiations to be completed as soon as possible?
Answer. Fortunately, you helped lead the Congress in enacting
legislation that continued the current FPSA until a new one takes
effect. If not, a lapse in postal, weather, aviation and bank deposit
insurance would have been devastating.
Additionally, as you now also know, the negotiations have been
completed, as evidenced by the initialing of a FPSA September 24th.
Question 3. How has the delay of Department of Veterans Affairs
services impacted RMI's veterans?
Answer. I addressed this above. U.S. military veterans in the RMI
still are not receiving the care that they should under the law in the
RMI or up-front financial assistance enabling them to travel to where
they can receive that care, primarily, Guam, Hawaii, and the
Philippines. Those who can, continue to pay out of pocket for
exorbitant travel costs. Some cannot afford to do so. Others remain in
the States or territories, primarily Guam, or they could live in the
Philippines or Canada, rather than returning home.
______
Mrs. Radewagen. I thank the witness for their testimony.
The Chair will now recognize Members for 5 minutes for
questions. I will now recognize myself for 5 minutes.
My question is for all witnesses: Has the Department of
Veterans Affairs initiated negotiations for veterans services
with your respective governments?
And how has the delay in veterans services affected
veterans from your respective countries?
This is for all witnesses, please.
Ambassador Kyota?
Mr. Kyota. Madam Chairman, we have tried to reach out to
the VA. We haven't received anything, but I did receive a
letter addressed to President Whipps from the VA. I received it
last night, so I sent it to Palau, and it talks about the time
where we can sit and discuss in more detail what Palau and VA
can discuss, and put them into use.
But I must say that, while the VA in Palau hasn't really
started speaking in more detail, many veterans living in Palau
are suffering, and they need medication. They need to travel to
Guam or Hawaii, but most of them do not have enough resources
to pay for their own ticket. A flight from Palau to Hawaii is
very, very expensive, so I hope that this letter to our
President will open a negotiation or discussion real soon.
Thank you.
Mrs. Radewagen. Ambassador Soram?
Mr. Soram. Thank you, Madam Chair, for the question. And
firstly, let me join my other colleagues as well to thank the
Committee for the support that you have given throughout all
these processes from the negotiations up until now in calling
this meeting as well.
The answer is no, we have not engaged with the VA on any
negotiations on the agreement. As I stated in my statement, our
concern relates to the timing because the agreement calls for a
1-year duration. We are within 6 or 7 months now, and we have
not heard anything.
Now, that being said, I want to acknowledge the efforts of
the first panel, particularly from the Department of Veterans
Affairs, in laying out a plan. I think that is encouraging. We
have yet to see once again, as I said, timing is an issue here.
We were given 1 year to complete the negotiations to work
through all of this, so I hope we can keep that in mind.
But, again, the answer is no, but looking forward to
working with the VA on this.
Thank you, Madam Chair.
Mrs. Radewagen. Ambassador Paul?
Mr. Paul. Thank you, Madam Chair, for the question. Along
with my colleagues from FSM and Palau, we too just received the
letter from the Veterans Affairs Secretary. The letter was
addressed to President Heine, and that has been forwarded to
Majuro.
We look forward to working with the Veterans Affairs to see
how we can move this along, as we have veterans in the islands
that need the help. And the sooner we get there, the better it
is for our veterans for receiving the care that they earned and
they deserve. Thank you.
Mrs. Radewagen. I thank the witnesses for their testimony.
I will now recognize Ranking Member Leger Fernandez for 5
minutes.
Ms. Leger Fernandez. Thank you, Ambassadors, for your
testimony.
And thank you, Ambassador Kyota, for pointing out how
expensive it is to travel. Because it is not just the flight,
right? Once you get to another island that is providing
services, or the mainland, you need to pay for housing. There
are other costs that are involved, which is why it is so
important to make sure that the services are available closer
and as close as possible to where the veteran lives.
It sounds like it is a good thing we had this hearing.
Sometimes hearings just nudge. I call it WD-40. Like, Congress
and each of us are responsible for having a huge can of WD-40.
I have my little can of WD-40, I can do little things. But
really, a chair of a Committee, they have a really big can. So,
I am glad to hear that we have a letter, that we have a process
set out for engaging in creating that plan.
What are your expectations? Maybe I will go down the line
from Ambassador Kyoto through to Paul. What are your
expectations on how quickly you think you would be able to move
forward in pushing for that kind of plan so that we can get
those veterans services offered on your island? How long would
you like it to take, and what would you set out?
Mr. Kyota. For the VA? Yes, I mean, we would welcome the
discussion as soon as possible because, as I said earlier, many
of our veterans who are living in Palau are suffering a lot.
The term PTSD, we have a law in Palau called PTSD, so I get
these two mixed up. But I think from January until today we
have had, I believe, three or four suicides. So, we welcome the
discussion with the VA as soon as possible.
But, again, this letter that was received yesterday, and I
sent it to President already, I hope that will speed up things.
Thank you.
Ms. Leger Fernandez. Thank you.
Ambassador Soram?
Mr. Soram. Thank you for the question.
Obviously, we are not different from Palau and Marshall
Islands because of the remoteness of our islands. That speaks
to the challenges that our veterans face: access to health
benefits, traveling to Guam or traveling to Hawaii to be able
to receive these benefits. So, I think we can speak in general
terms for now in terms of getting access to health benefits for
our veterans.
Like I said, it is encouraging to hear the Department of VA
coming out with a plan, and we will be looking at that and
looking at the various challenges. Because when you talk about
distance, you are also talking about not only access, but you
are talking about cost. Those kind of things will have to be
factored in.
But as we go through the negotiations on what works for the
FSM or what works for Palau, then obviously we will get to that
point where we lay out those. But just top of my head, those
are some of the issues that we can speak to for now.
Ms. Leger Fernandez. Right, you are each sovereign nations,
you each have your own essentials. I saw the islands. They are
all kind of different from islands that were formed from
volcanoes falling to islands that were formed from volcanoes
exploding. And each creates unique barriers and opportunities
in terms of where you could build and another things.
Ambassador Paul, what is your thought on the timeline of
how quickly it could proceed, now that you have received the
letter and now that there is an opening for a plan?
Mr. Paul. Thank you very much for the question.
The Marshall Islands is ready right now. We are ready to
move forward with it, because we feel that our veterans, they
have given a lot. I think it is incumbent upon us to do what we
can to get them the benefits that they have earned and deserve.
My boss, the Foreign Minister, is a 20-year U.S. Army
veteran. So, he is very keen on seeing this, and he has made
this a priority, along with the President of the Cabinet. So,
we are ready to go. Thank you.
Ms. Leger Fernandez. Thank you, Ambassador.
With that, my time is almost up, and I yield back.
Mrs. Radewagen. I will now recognize Chairman Westerman for
5 minutes for questions.
Mr. Westerman. Thank you, Madam Chair, and thank you,
Ambassadors, for being here today. And I send greetings to each
of your countries and appreciation for the hospitality and the
way that we were able to work together to get COFA passed. And
I think everybody, from the Freely Associated States, to the
Administration, to Congress, is happy that we got COFA passed,
and I think we would all just like to see it implemented a
little bit faster.
And on the VA issue, I know that, Madam Chair, several
years ago we visited American Samoa, and that is an issue in
American Samoa even, and the expensive flights to Hawaii. It
seems like if we could invest that money in better hospitals
and healthcare services closer to where the veterans are, that
could benefit everyone.
But as we look at implementing COFA, I know from the
testimony from the Administration it sounded like they felt
like they were working towards getting everything implemented.
The data that we have seen looks like it is taking too long,
from my perspective, but I would like to get your perspective
on what is the No. 1 priority that the Administration and the
FAS should be working on from your country's perspective. What
should be top priority right now, and what would you like to
see happen as soon as possible?
And we will start with Mr. Kyota.
Mr. Kyota. Thank you, Mr. Chairman. That is a very tough
question because we have a lot of things that we want to start,
so it is very hard to pick one.
But I think one of the things this Administration is hoping
to start is the hospital, because the hospital is located in a
very low coastal area, and when we have a storm the water can
fill up the floor. And it has happened before, and some
patients have been evacuated to a higher ground building next
to the hospital. So, although it is not specifically funded
under the Compact, we are planning to have that built as soon
as possible.
We have begun a full survey, and we have identified a
public land which is on a very high land that we want to start
that.
Mr. Westerman. So, the healthcare issue is where you think
the No. 1 priority is.
Mr. Soram, what would you like to see happen with the
implementation of COFA as soon as possible?
Mr. Soram. Thank you very much, Chairman Westerman. Perhaps
not a priority, but I can tell you that the CODEL visit was
very welcome in the islands. And if you have more of those,
that would be very encouraging. And I think to see Members of
Congress and CODEL staff in the islands is a good thing. So,
for one, I can say that.
But like I said in my testimony, we are very pleased with
the progress of implementation. I think everyone is trying to
do what we can from our end and from the U.S. end in trying to
implement the progress. There have been a few challenges here
and there, but I think we will get through.
Obviously, just because we didn't know until today and
until the letter, is perhaps with the Veterans Affairs. And as
I also stated in my testimony, the issue with the Social
Security Administration, that they have not issued guidelines
specific to our citizens accessing Social Security Supplemental
Income, which was set out in that. So, those are some of the
things.
But generally speaking, we are pleased with the progress
made not too long ago. That process is on its own track and
happening. My colleague, John Brewer, also testified to an
upcoming meeting with the Compact Trust Fund. So, that is also
on its own track.
Mr. Westerman. It is good to hear that you are pleased with
the progress. I want to give Mr. Paul a second to respond.
Mr. Paul. I have 1 second, thank you.
[Laughter.]
Mr. Paul. Thank you, Chairman. To be honest, I think the
processes of working, whether it is the JEMFAC, ours is JEMFAC,
but our expectations regarding the trust fund agreement. This
is brand new, the trust fund agreement, the two purposes of the
trust fund, but specifically the trust fund section that
addresses the nuclear legacy.
And as I said in my oral statement, the points from
Presidential Envoy Yun, he specifically said the purpose of
this trust fund is to address the extraordinary needs of those
populations that were displaced due to the nuclear testing
program. So, now this is a totally brand new part of the
agreement, and we have to work through that with the U.S.
Government. Obviously, we have our own interpretations of the
rules and the law, and obviously the United States will have
theirs. We look forward to that discussion.
But I think the overall message, and we should not forget
what the trust funds were established for, it is so that the
leaders and the people that were affected by the testing, they
know what is best for their people. So, I think when we discuss
those programs, we should keep that in mind. Thank you.
Mr. Westerman. Thank you.
And Madam Chair, I yield back.
Mrs. Radewagen. I thank the witnesses for their testimony.
I will now recognize Representative LaMalfa for 5 minutes for
questions.
Mr. LaMalfa. Thank you, Madam Chair. I have a couple for
the Ambassadors, as well, here on the situation with China.
China has a pattern of offering what we call debt diplomacy in
the Pacific and other areas for infrastructure and such. And
the loans that are put out seem to have a pattern of having
very difficult terms for some nations to be able to repay,
which then gives China a leverage over maybe any country that
might be in that position.
The United States does not tend to put our friends into a
position with agreements it has that gives incredible leverage
over our friends and other governments to have to do sometimes
extreme things in order to get out of that loan situation, get
out of that debt, thereby maybe perhaps losing their
sovereignty or even their dignity of what they would have to do
in terms of with China.
So, Mr. Kyota, the importance of these Indo-Pacific
Partnerships in your testimony is indeed being made clear to
all of us here. In earlier testimony, pressure on Palau and the
Marshall Islands continues to happen. What do you think can be
done by the United States to help deal with these outside
pressures?
Anybody on the panel? Mr. Kyota?
Mr. Kyota. Thank you. Palau is one of the few countries
around the world that recognizes Taiwan. So, we don't have any
debt with China, and we are proud of that.
Mr. LaMalfa. Good.
Mr. Kyota. I recall one Pacific Island forum a few years
ago. One of the countries in the South Pacific introduced a
resolution to ask the forum to pay or to request China to
forgive the debts that they owe. We didn't support the
resolution because we, as I said, are one of the few countries
that recognizes Taiwan.
I think what we want to see the United States do is to have
more presence because my President wants to say that presence
is deterrent because we know we have caught a few Chinese ships
in our water, and the two recent ones were right above the
fiber optic cable line. So, we want to see more U.S. presence,
especially the Coast Guard, more patrol around the area because
that way it will deter the Chinese from coming to our waters.
Mr. LaMalfa. Do you think the Coast Guard will be the best
medium? Not necessarily the U.S. Navy or----
Mr. Kyota. Well, the Coast Guard now does some patrolling
around our water, but, I mean, the Navy would be even better.
Mr. LaMalfa. Certainly. OK. And I appreciate that
courageous position on recognition of Taiwan, for what that is
worth. Thank you, Ambassador.
Mr. Kyota. Thank you.
Mr. LaMalfa. Ambassador Soram, it was outlined that
previously the People's Republic of China seeks to expand its
influence in the FAS and is doing more coercive things in the
region. Can you go into a little more detail on what you see
that the activities of the People's Republic of China are doing
in this coercion and in this pressure, et cetera?
And how is that making life difficult with trade or with
other aspects of what Micronesia is dealing with?
Mr. Soram. Thank you, Chair, for the question. The FSM is
the only one of the three FAS countries that has a relationship
with the Chinese, with China, with PRC. We have a diplomatic
relation with PRC dated back to 1989. So, our contact with the
Chinese is within the scope of our relationship.
With regards to your question on loans, the government has
made that conscious decision, a position that we have taken
since we established relations with China, that we only take
grants from Chinese and no loans. So, up until now that has
been the position of the government.
But given, as well, our relations with China are secondary
to what we have with the United States, there is no country
compared to our relations with the United States.
That being said, in terms of our dealings with the Chinese,
it is very much within the scope of Title III of the Compact.
This is on security and defense. So, any time we move in that
direction, then we feel that there is an infringement on Title
III of the Compact, and we know where our priorities are and
where our positions are.
Mr. LaMalfa. OK. Ambassador, I appreciate that. Thank you.
I am sorry. My time is expired, so I have to yield back. Thank
you, panelists, I appreciate it.
Mrs. Radewagen. I thank the witnesses for their testimony.
I will now recognize Representative Gonzalez-Colon for 5
minutes for questions.
Mrs. Gonzalez-Colon. Thank you, Madam Chair, and thank you,
Ambassadors, for being here.
First of all, I need to thank Madam Chair and the Chairman
of this Committee and all Members that, with a very fast pace,
literally approved this COFA agreement. I mean, I feel honored
to be part of this Committee in a process like this, more than
20 years and a lot of conversations and a lot of things
happening in the Pacific.
And I sense that the approval of this agreement showcases
the real importance of the relationship of the United States
and the islands, and the Pacific islands and the current threat
from Communist China in the Pacific. So, in that sense, I want
to say thank you to the Committee and all the staffers that
worked out that agreement, and the Ambassadors for making that
happen.
In that sense, I just have one comment. Ambassador Kyota,
in your written testimony, you stated that Palau strongly
supports congressional approval of the Administration's
proposed language to extend the Federal programs and service
agreements, and clarify the agreements approval and insurance
of bank deposits. But the Administration proposed language for
clarifying congressional approval of this includes a provision
to provide the President with the authority to enter into force
any agreement to amend, change, or terminate the Federal
Programs and Service Agreement.
My concern here would be there are concerns that this
language may allow the President to unilaterally enter into
force an agreement to terminate the Federal Programs and
Service Agreement with Palau. Would it be correct to say that
Palau will not want to see any unilateral actions by the
President, and that it is important for Congress to maintain
its oversight authority?
Mr. Kyota. We asked that Congress find the appropriate
acceptable language to the amendment, to this matter. We agree
with you, but Palau wants the appropriate language. It doesn't
have to be what the Administration proposed, but I think we
need language that is good for both us and Palau.
Mrs. Gonzalez-Colon. And we agree with you. My concern was
that the language the President is providing gave him an
opportunity and the authority to put into force any agreement
to amend, change, or terminate Federal programs on the islands.
And that language specifically gives him unilaterally that
force. So, that is the reason I want to make clear what Palau
is thinking about this.
In that sense, then, would it be correct to state that
Palau will also support congressional approval of language that
differs from the Administration's proposal, as long as this
language addresses the various challenges to enacting the new
Federal Programs and Service Agreement in a timely manner?
Mr. Kyota. Yes, yes, I strongly agree. And if there is any
termination of any program, it should be discussed first and be
bilaterally agreed upon.
Mrs. Gonzalez-Colon. I agree with you. That is the reason I
want to make that clear. Because in the written testimony, it
may sound that you may want the President of the United States
to unilaterally decide to terminate any kind of relationship
with Palau, and we don't want that. I believe that it should be
in a bilateral way.
Mr. Kyota. No.
Mrs. Gonzalez-Colon. So, it would therefore be correct to
say that Palau is not requesting for Congress to support only
the Administration's proposed language?
Whenever we always put the importance of the Federal
Programs and Service Agreement, and clarify any of those
insurance of bank deposits, you will be OK with that?
Mr. Kyota. Yes, like I said, we stand to agree on any
program or services. If the United States wants to terminate
that, we need to talk. We need to agree before it is
terminated.
Mrs. Gonzalez-Colon. I agree, so it can be changed. Thank
you, and I appreciate all the Ambassadors for coming today
here.
I yield back.
Mrs. Radewagen. I thank the witnesses for their valuable
testimony and the Members for their questions.
The members of the Committee may have some additional
questions for the witnesses, and we will ask you to respond to
these in writing.
Under Committee Rule 3, members of the Committee must
submit questions to the Subcommittee Clerk by 5 p.m. on Friday,
September 13, 2024. The hearing record will be held open for 10
business days for these responses.
If there is no further business, without objection, this
Committee stands adjourned.
[Whereupon, at 12:11 p.m., the Subcommittee was adjourned.]