2003 Renewal
In 2003, the Compacts with the RMI and FSM were renewed for 20 years. These new Compacts provided US$3.5 billion in funding for both nations. US$30 million will also be disbursed annually amongst American Samoa, Guam, Hawaii, and the Northern Mariana Islands in "Compact Impact" funding. This funding helps the governments of these localities cope with the expense of providing services to immigrants from the RMI, FSM, and Palau. The U.S. usage of Kwajalein Atoll for missile testing was renewed for the same period. The new Compacts also changed certain immigration rules. RMI and FSM citizens traveling to the U.S. are now required to have passports. The U.S. Postal Service was given the option to apply international postage rates for mail between the U.S. and RMI/FSM (phased in over five years). The USPS did begin implementing the change in January 2006, but decided to resume domestic services and rates in November 2007.
The renewed Compact (commonly called "Compact II") for FSM took effect on May 1, 2004, and for RMI on June 30, 2004.
The economic provisions of the Compact for Palau which provided $18 million in annual subsidies and grants, expired on September 30, 2009, and the renewal talk was expected to conclude in early 2010. U.S. financial support for Palau is currently based on a continuing resolution passed by the U.S. Congress. The Compact Trust Fund set up to replace US financial aid underperformed due to the recession. The military and civil defense provisions will remain until 2015.
Read more about this topic: Compact Of Free Association
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