[Congressional Record Volume 146, Number 73 (Tuesday, June 13, 2000)]
[House]
[Page H4224]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    COMPACT-IMPACT FUNDING FOR GUAM

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 19, 1999, the gentleman from Guam (Mr. Underwood) is recognized 
during morning hour debates for 5 minutes.
  Mr. UNDERWOOD. Mr. Speaker, I rise today to discuss an issue of vital 
concern to the people of Guam and this concerns Compact-Impact Aid, 
which is part of the Interior Appropriations bill which will be brought 
to the floor today.
  Compact-Impact Aid is the assistance that is annually given to the 
people of Guam as compensation for social and educational costs for the 
unrestricted migration of 3 newly-created independent States in the 
Central Pacific, the Compact States of the Republic of the Marshalls, 
the Republic of Palau and the Federated States of Micronesia.
  The President's budget for fiscal year 2001 proposes that Guam 
receive an increase of $5.42 million for Compact-Impact funding in the 
Department of Interior's Office of Insular Affair's budget, which would 
bring Guam's total to $10 billion annually. Last year, Guam received a 
total of $7.58 million, a 3.5 increase from previous years. From fiscal 
year 1996 to 1999, Guam received $4.58 million annually. Annual actual 
Compact-Impact costs for all of the social and educational costs to the 
government of Guam as a result of this free and unrestricted migration 
are actually estimated to be between $15 million to $20 million 
annually.
  Unfortunately, this year's Interior Appropriations provides only 
$4.58 million to Guam because of budgetary scoring problems that the 
House Committee on Appropriations had with the way in which the 
administration had identified the source of funding within the Office 
of Insular Affairs. This is a very serious issue which hopefully will 
be resolved in the context also of current renegotiations of these 
Compacts between the United States and the Federated States of 
Micronesia and the Republic of the Marshall Islands.
  I simply want to emphasize that Compact-Impact Aid has been a Federal 
responsibility since 1986 which has only recently been addressed for 
Guam, and 1986 was the year that these Compacts went into effect. I 
understand that the House Committee on International Relations 
Subcommittee on Asia and the Pacific will be holding an oversight 
hearing later on this month, and I certainly hope, and I plan to raise 
the issues of migration of FAS citizens at this important hearing.
  The issue of Compact-Impact Aid is not new. Funding authority for 
Compact-Impact assistance to Guam stems from the 1986 law which governs 
the relationship between the United States and these newly-created 
nations. Section 104(3)6 pertains to impact costs and states: ``There 
are hereby authorized to be appropriated for fiscal years beginning 
after September 30, 1985 such sums as may be necessary to cover the 
costs, if any incurred, by the State of Hawaii, the territories of Guam 
and American Samoa, and the Commonwealth of the Northern Mariana 
Islands resulting from any increased demands placed on educational and 
social services by immigrants from the Marshall Islands and the 
Federated States of Micronesia.''
  Since Guam is clearly the most economically developed island in the 
central Pacific and because of its geographical proximity, the vast 
majority of these immigrants come to Guam. Under the Compact Agreement, 
it also states that ``It was not the intent of the Congress to cause 
any adverse consequences for the U.S. territories and commonwealths or 
the State of Hawaii.''
  It also states that if any adverse consequences occur, Congress will 
act sympathetically and expeditiously to redress these adverse 
consequences.
  We are now in the 15th year of the implementation of these contracts, 
and while I appreciate all of the sympathy that Congress could perhaps 
give on this issue, I certainly expect more expeditious action, 
particularly in the reimbursement of costs that are incurred directly 
by the taxpayers of Guam.
  Guam's unemployment rate is currently over 15 percent, and from mid 
1997 to mid 1998, the total of Compact migrants to Guam was over 7,000. 
This is a population of 140,000, and this exceeds the numbers that are 
going to Hawaii and other areas.
  This is not the same as problems normally referred to in addressing 
the impact of immigrant issues in the 50 States. The obligation to Guam 
is clear in the law; the obligation is written into the treaties of 
free association between these new countries and the United States, and 
the obligation to the people of Guam is clear. I am hopeful that we 
will be able to work on this through the process of conferencing, and 
we are grateful for the fact that this still remains a high priority 
for the Clinton administration.

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