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Washington, ?6 20515

November 22, 2019
The Honorable The Honorable The Honorable
Michael R. Pompeo Mark T. Esper David L. Bernhardt
Secretary of State Secretary of Defense Secretary of the Interior
Department of State Department of Defense Department of the Interior
2201 St, NW 1000 Defense Pentagon 1849 St, NW
Washington, DC 20520 Washington, DC 20301 Washington, DC 20240

Dear Secretary Pompeo, Secretary Esper and Secretary Bernhardt:

We write regarding renegotiation of the Compacts of Free Association with the Republic of the
Marshall Islands (RMI) and the Federated States of Micronesia (FSM) and the integrally connected
issue of Compact impact aid to our affected constituencies.

We are supportive of the Compacts and the Administration?s recent steps to reaf?rm the
commitment of the United States to the Freely Associated States (FAS), including the historic
White House meeting with all three FAS heads of state as well as Secretary Pompeo?s visit to the
FSM and subsequent announcement that Compact renegotiations have begun. Although the
economic provisions of the current Compacts with the RMI and FSM do not expire until 2023,
beginning the renegotiations now sends a crucial message to the entire Indo-Paci?c that the United
States remains committed to the existing regional order.

The Compacts have become especially important amidst growing geopolitical competition in the
Indo-Pacific region. In exchange for ?nancial assistance and access to some U.S. domestic
programs, the AS grant the U.S. ?ill authority and responsibility for their security and defense.
This includes access to and responsibility for their lands, waters and airspace that cover the vast
distance between Hawai?i and the western Paci?c Ocean. By renegotiating and approving these
Compacts, the United States will be reaf?rming its commitment to these countries and their
peoples with whom we share historic ties and shared values. This furthers a key priority established
by our 2017 National Security Strategy at a time when China is actively deepening its relationships,
investments and in?uence in the Paci?c Islands.

However, as the Administration proceeds to renegotiate these important national security
agreements, we must raise an issue which we consider fully interrelated with whether and under
what terms the Compacts should be extended. That is the suf?ciency of Compact impact aid to
those jurisdictions, primarily Hawai?i, Guam, American Samoa and the Northern Mariana Islands,
which have been asked and expected to bear unreasonably high costs as a result.

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When Congress first approved the Compacts through the Compact of Free Association Act of 1985
(PL. 99-239; 99 Stat. l770), it was already understood that these agreements would likely lead to
disproportionate impacts on certain jurisdictions arising from the open migration of Compact
residents and related demand on public services. Thus, Congress committed to redress any adverse
consequences and authorized such sums as may be necessary to cover the costs of these agreements.
When the Compacts were renewed in 2003, Congress reaf?rmed that commitment and authorized
and appropriated a total of$30 million each year through ?scal year 2023 to assist these affected
jurisdictions in the Compact of Free Association Amendments Act of 2003 (PL. 108-188; 117
Stat. 2739). That law also authorized additional grants as necessary each fiscal year to meet the
demands of HAS migrants in these affected jurisdictions.

Unfortunately, the related costs of FAS migrants residing in these affected jurisdictions have
ballooned far beyond the assistance that Congress established or that the affected jurisdictions can
reasonably be expected to bear. For example, in 2003, when the Compacts were renewed, the .8.
Census Bureau estimated around 20,000 FAS migrants in these four urisdictions. As of 20 8, that
estimate has grown to over 38,000 FAS migrants, with the vast majority in Hawai?i and Guam.
Not only have the total numbers of migrants grown, but so have the public services cost of each
migrant. For Fiscal Year 2018 alone, the State of Hawai?i estimated costs of about $198 million
for direct services to support FAS migrants [primarily health and education) and Guam reported
over $147 million in such costs for Fiscal Year 2017. For Fiscal Year 2019, the Department of the
interior distributed roughly $16.8 million for Guam, I4.8 million for Hawai?i, $2.3 million for
the Northern Mariana islands and $23,000 for Arnerican Samoa.

In short, the actual impact of the Compacts on our jurisdictions far exceeds existing federal
assistance and that gap is growing and can only be expected to continue to grow. As a result, our
state and territorial governments bear a disproportionate responsibility for the Compacts in the
form of the signi?cant and growing financial costs associated with PAS migrants. While we
welcome the important and growing contributions of FAS migrant communities in our
jurisdictions and recognize the national security value of the Compacts, the status quo is li nanciall 
unsustainable for our jurisdictions.

In the 2003 Compact renegotiatiOns, the position taken by the Administration was that extension
of the Compacts and Congressional approval was unrelated to the issue of sufficient Compact
impact aid to disproportionately affected jurisdictions. We must respectfully but directly disagree
with regard to the current renegotiations. Without corresponding increases of guaranteed federal
assistance to fully reimburse our jurisdictions being included as part and parcel of the
Congressional Compact extension approval process, we will ?nd it dif?cult to support Compact
renewal.

For decades the Compacts have mcmorialized a mutually bene?cial relationship between the
peoples of the FAS and the United States. To ensure that these invaluable relationships and mutual
bene?ts endure for the coming decades, we therefore request that the Administration explicitly
address full and adequate Compact impact aid to all disproportionately affected jurisdictions as
part of your RMI and FSM Compacts process and include in any proposed Congressional approval
provision for such aid.

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We appreciate your consideration of our concerns and stand ready to assist the Administration in
extending the Compacts and fully funding Compact impact aid.

Sincerely,
Ed Case Michael 0.83:1 Nicolas
Member of Congress Member of Congress
we. am we?
Tulsi Gabbard Gregorio Kilili Camacho Sablan
Member of Congress Member of Congress

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