[Congressional Record Volume 151, Number 153 (Thursday, November 17, 2005)]
[Senate]
[Pages S13181-S13183]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. AKAKA (for himself and Mr. Inouye):
  S. 2051. A bill to extend eligibility for certain Federal benefits to 
citizens of the Freely Associated States; to the Committee on Finance.
  Mr. AKAKA. Mr. President, I rise today to introduce legislation with 
my senior colleague from Hawaii, Senator Dan Inouye, to provide certain 
Federal

[[Page S13182]]

public benefits for citizens of the Freely Associated State, FAS, who 
are residing in the United States. The bill would provide eligibility 
for nonemergency Medicaid, Food Stamps, Temporary Assistance to Needy 
Families, TANF, and Supplemental Security Income, SSI, to FAS citizens 
residing in the United States.
  Citizens from the FAS are from the Republic of the Marshall Islands, 
RMI, Federated States of Micronesia, FSM, and the Republic of Palau, 
which are jurisdictions that have a unique political relationship with 
the United States. The Compact of Free Association established these 
nations as sovereign states responsible for their own foreign policies. 
However, the FAS remain dependent upon the United States for military 
protection and economic assistance.
  Under the compact, the United States has the right to reject the 
strategic use of, or military access to, the FAS by other countries, 
which is often referred to as the ``right of strategic denial.'' In 
addition, the U.S. may block FAS government policies that it deems 
inconsistent with its duty to defend the FAS, which is referred to as 
the ``defense veto.'' The compact also states that the United States 
has exclusive military base rights in the FAS.
  In exchange for these prerogatives, the United States is required to 
support the FAS economically, with the goal of producing self-
sufficiency, and FAS citizens are allowed free entry into the United 
States as nonimmigrants for the purposes of education, medical 
treatment, and employment. Many FAS citizens reside in the State of 
Hawaii. Since 1997, when Hawaii began reporting its impact costs, the 
State has identified more than $140 million in costs associated with 
FAS citizens. In 2002, the State of Hawaii expended more than $32 
million in assistance to FAS citizens. P.L. 108-188, the Compact of 
Free Association Amendments Act of 2003, provides $30 million in annual 
funding for compact impact assistance to be shared between the State of 
Hawaii, Guam, the Commonwealth of the Northern Mariana Islands, CNMI, 
and American Samoa. While this funding is a positive step forward, it 
does not begin to reimburse the affected jurisdictions for the costs 
associated with FAS citizens.
  This legislation would provide assistance to states and territories 
that shoulder the majority of the costs associated with the compact. 
The Federal Government must provide appropriate resources to help 
States meet the needs of the FAS citizens--an obligation based on a 
Federal commitment. It is unconscionable for a State or territory to 
shoulder the entire financial burden of providing necessary 
educational, medical, and social services to individuals who are 
residing in that State or territory when the obligation is that of the 
Federal Government. For that reason, we are seeking to provide 
reimbursement of these costs. It is time for the Federal Government to 
take up some of the financial responsibility that until now has been 
carried by the State of Hawaii, CNMI, Guam, and American Samoa by 
restoring public benefits to FAS citizens.
  This bill would restore eligibility of FAS citizens for nonemergency 
Medicaid. FAS citizens lost many of their public benefits as a result 
of the Personal Responsibility and Work Opportunity, PRWORA, Act of 
1996, including Medicaid coverage. FAS citizens were previously 
eligible for Medicaid as aliens permanently residing under color of law 
in the United States.

  After the enactment of welfare reform, the State of Hawaii could no 
longer claim Federal matching funds for services rendered to FAS 
citizens. Yet the State of Hawaii, Guam, American Samoa, and the CNMI 
have continued to meet the health care needs of FAS citizens. The State 
of Hawaii has used its resources to provide Medicaid services to FAS 
citizens.
  In 2003 alone, the State spent approximately $9.77 million to provide 
Medicaid services without receiving any federal matching funds. This 
represents a dramatic increase from $6.75 million in State fiscal year 
2002. Furthermore, the trend in the need for health care services among 
FAS citizens continues to rise. During fiscal year 2004, the number of 
individuals served in the State of Hawaii's Medicaid program grew from 
3,291 to 4,818 people based on the average monthly enrollment. This is 
an increase of 46 percent.
  This bill would also provide eligibility for FAS citizens residing in 
the United States to participate in the Temporary Assistance for Needy 
Families and Supplemental Security Income programs. According to 
Hawaii's attorney general, financial assistance in the form of the 
Temporary Assistance to Other Needy Families, TAONF, Program, a State 
program, provided $5.1 million to FAS citizens in State fiscal year 
2003. This continues an upward trend from $4.5 million in State fiscal 
year 2002. This total includes funds that go to the General Assistance 
Program, which supports individuals and couples with little or no 
income and who have a temporary, incapacitating medical condition; the 
aged, blind, and disabled program for FAS citizens with little or no 
income who are not eligible for federally-funded Supplemental Security 
Income; and the State's TAONF Program that assists other needy families 
who are not eligible for federal-funding under the Temporary Assistance 
to Needy Families program. The financial assistance that the State of 
Hawaii provides to FAS citizens in the form of TAONF is a great support 
to those families attempting to achieve economic stability, but it has 
a significant financial impact on the State's budget.
  The bill would also provide eligibility for the Food Stamp Program. 
Mr. President, the Food Stamp Program serves as the first line of 
defense against hunger. It is the cornerstone of the Federal food 
assistance program and provides crucial support to needy households and 
those making the transition from welfare to work. We have partially 
addressed the complicated issue of alien eligibility for public 
benefits such as food stamps, but again, I must say it is just partial. 
Not only should all legal immigrants receive these benefits, but so 
should citizens of the FAS. Exclusion of FAS citizens from Federal, 
State, or local public benefits or programs is an unintended and 
misguided consequence of the welfare reform law. We allow certain legal 
immigrants eligibility in the program. Yet FAS citizens, who are not 
considered immigrants but who are required to up for the Selective 
Service if they are residing in the United States are ineligible to 
receiving food stamps. This bill corrects this inequity.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record. I also ask unanimous consent that a letter of 
support I received last week from Director Lillian Koller of the State 
of Hawaii, Department of Human Services be printed in the Record.
  I look forward to working with my colleagues to enact this measure 
which is of critical importance to my State of Hawaii, which has borne 
the costs of these benefits for FAS citizens living in Hawaii for the 
past 19 years.
  There being no objection, the materials were ordered to be printed in 
the Record, as follows:

                                S. 2051

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXCEPTION FOR CITIZENS OF FREELY ASSOCIATED 
                   STATES.

       (a) In General.--Section 402(a)(2) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1612(a)(2)) is amended by adding at the end 
     the following:
       ``(M) Exception for citizens of freely associated states.--
     With respect to eligibility for benefits for the specified 
     Federal programs described in paragraph (3), paragraph (1) 
     shall not apply to any individual who lawfully resides in the 
     United States (including territories and possessions of the 
     United States) in accordance with--
       ``(i) section 141 of the Compact of Free Association 
     between the Government of the United States and the 
     Government of the Federated States of Micronesia, approved by 
     Congress in the Compact of Free Association Amendments Act of 
     2003;
       ``(ii) section 141 of the Compact of Free Association 
     between the Government of the United States and the 
     Government of the Republic of the Marshall Islands, approved 
     by Congress in the Compact of Free Association Amendments Act 
     of 2003; or
       ``(iii) section 141 of the Compact of Free Association 
     between the Government of the United States and the 
     Government of Palau, approved by Congress in Public Law 99-
     658 (100 Stat. 3672).''.
       (b) Medicaid and TANF Exceptions.--Section 402(b)(2) of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (8 U.S.C. 1612(b)(2)) is amended by adding at the 
     end the following:

[[Page S13183]]

       ``(G) Medicaid and tanf exceptions for citizens of freely 
     associated states.--With respect to eligibility for benefits 
     for the programs defined in subparagraphs (A) and (C) of 
     paragraph (3) (relating to temporary assistance for needy 
     families and medicaid), paragraph (1) shall not apply to any 
     individual who lawfully resides in the United States 
     (including territories and possessions of the United States) 
     in accordance with a Compact of Free Association referred to 
     in subsection (a)(2)(M).''.
       (c) Qualified Alien.--Section 431(b) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1641(b)) is amended--
       (1) in paragraph (6), by striking ``or'' at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(8) an individual who lawfully resides in the United 
     States (including territories and possessions of the United 
     States) in accordance with a Compact of Free Association 
     referred to in section 402(a)(2)(M).''.
       (d) Conforming Amendment.--Section 1108 of the Social 
     Security Act (42 U.S.C. 1308) is amended--
       (1) in subsection (f), in the matter preceding paragraph 
     (1), by striking ``subsection (g)'' and inserting 
     ``subsections (g) and (h)''; and
       (2) by adding at the end the following:
       ``(h) The limitations of subsections (f) and (g) shall not 
     apply with respect to medical assistance provided to an 
     individual described in section 431(b)(8) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996.''.
       (e) Effective Date.--The amendments made by this Act take 
     effect on the date of enactment of this Act and apply to 
     benefits and assistance provided on or after that date.
                                  ____

                                                  State of Hawaii,


                                 Department of Human Services,

                                   Honolulu, HI, November 9, 2005.
     Sen. Daniel K. Akaka,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Akaka, I am writing in support of your 
     legislation to reinstate eligibility for Compact migrants 
     from the Freely Associated States for various Federal 
     programs, including Temporary Assistance for Needy Families 
     (TANF), Supplemental Security Income (SSI), Food Stamps, and 
     Medicaid. As you know, ``Compact migrants'' refers to those 
     who have relocated to Hawaii from the Republic of Palau, the 
     Federated States of Micronesia, and the Republic of the 
     Marshall Islands. As you know, a high percentage of the 
     Compact migrant population are poorly educated and live in 
     poverty, and are thus part of the additional demand on the 
     already strained social support systems of the State.
       The Department of Human Services is the lead agency that 
     administers social safety net programs for individuals and 
     families in Hawaii. The amount of State resources that is 
     being expended to care for Compact migrants has been steadily 
     increasing as the number of migrants continues to grow. The 
     costs to the State cannot be measured in the numbers of 
     migrants alone. What is not reflected in the numbers of 
     migrants alone, is that many of these migrants come to Hawaii 
     with serious medical conditions that require costly intensive 
     and extensive services. In 2004, the Department of Human 
     Services alone spent over $26.6 million to provide services 
     to over 10,800 migrants in our financial assistance, medical 
     assistance, vocational rehabilitation, and youth services 
     programs.
       Allowing Compact migrants to be served with Federal funds 
     under the TANF, SSI, Food Stamps, and Medicaid programs would 
     tremendously assist the State of Hawaii. I appreciate your 
     leadership in this area and look forward to continuing to 
     work with you on your legislative efforts to assist Compact 
     migrants in Hawaii.
           Sincerely,
                                           Lillian B. Koller, Esq.
     Director.

                          ____________________