US Department of the US Department of the InteriorInterior

The Office of Insular The Office of Insular Affairs (OIA)Affairs (OIA)

What Does the Office of What Does the Office of Insular Affairs Do?Insular Affairs Do?

On behalf of the Secretary of Interior:On behalf of the Secretary of Interior:

Directs, guides, and coordinates Federal policy in the Directs, guides, and coordinates Federal policy in the territoriesterritories

Manages grants and direct financial assistance to the Manages grants and direct financial assistance to the territoriesterritories

Administers and oversees Federal assistance provided Administers and oversees Federal assistance provided to the FSM, the RMI, and Palauto the FSM, the RMI, and Palau

Administers Compact impact grantsAdministers Compact impact grants

OIA’S BUDGET?OIA’S BUDGET? Annual budget of $570 million reflects the long-Annual budget of $570 million reflects the long-

term interests of the U.S. in the western Pacific and term interests of the U.S. in the western Pacific and the Caribbeanthe Caribbean

The budget is the framework through which OIA The budget is the framework through which OIA targets critical issues impacting the insular areastargets critical issues impacting the insular areas

The goal is to provide assistance that will empower The goal is to provide assistance that will empower insular communities to overcome challenges and insular communities to overcome challenges and seize opportunities to pursue economic seize opportunities to pursue economic development, find sustainable energy solutions, development, find sustainable energy solutions, promote sound financial management, and improve promote sound financial management, and improve quality of life quality of life

There are two funding categories in the budget: There are two funding categories in the budget: current ($104 million) and permanent ($466 current ($104 million) and permanent ($466 million) appropriationsmillion) appropriations

WHERE DOES MONEY WHERE DOES MONEY GO?GO?

Most of the budget reflects Most of the budget reflects mandatory commitments to the mandatory commitments to the insular areas.insular areas.

Approximately 98% of OIA’s budget Approximately 98% of OIA’s budget passes to the insular areas in the passes to the insular areas in the form of grants or direct assistance.form of grants or direct assistance.

What Does Assistance What Does Assistance Include?Include?

American Samoa operations grant - $22.7 millionAmerican Samoa operations grant - $22.7 million

Covenant grants to CNMI, Guam, American Covenant grants to CNMI, Guam, American Samoa and the US Virgin Islands (construction, Samoa and the US Virgin Islands (construction, disaster assistance, special initiatives) - $27.7 disaster assistance, special initiatives) - $27.7 millionmillion

General technical assistance - $12.5 to $15 General technical assistance - $12.5 to $15 millionmillion

Operations and maintenance grants - $2.2 millionOperations and maintenance grants - $2.2 million

Brown Tree Snake control - $3 millionBrown Tree Snake control - $3 million

Coral reef initiative - $998,000Coral reef initiative - $998,000

What Else Does Assistance What Else Does Assistance Include?Include?

Insular management controls/empowering Insular management controls/empowering communities - $2.2 millioncommunities - $2.2 million

Compacts of Free Association grant program and Compacts of Free Association grant program and performance oversight - $287 million (includes performance oversight - $287 million (includes temporary extension of financial assistance to temporary extension of financial assistance to Palau)Palau)

Compacts of Free Association Federal services Compacts of Free Association Federal services subsidies - $2.8 millionsubsidies - $2.8 million

Enewetak support - $449,000Enewetak support - $449,000

Compact impact assessments and provision of Compact impact assessments and provision of impact grant aid - $35 millionimpact grant aid - $35 million

How Does OIA Assistance How Does OIA Assistance Relate to Health Care and Relate to Health Care and

Systems Development?Systems Development?

Hospital and health center constructionHospital and health center construction Construction of health centers and other health Construction of health centers and other health

facilitiesfacilities Improvement of power, potable water, waste water, Improvement of power, potable water, waste water,

and solid waste treatmentand solid waste treatment Medical equipment purchasingMedical equipment purchasing Direct financing of health departmentsDirect financing of health departments Focal point for IGIAFocal point for IGIA Coordination of pharmaceutical and other supportCoordination of pharmaceutical and other support Health information and accounting systems Health information and accounting systems

developmentdevelopment Strategic planningStrategic planning

Technical Assistance?Technical Assistance? Competitive grant and cooperative Competitive grant and cooperative

agreement program available to the agreement program available to the U.S. insular areas and non-profit groups U.S. insular areas and non-profit groups

Application is made through Grants.GovApplication is made through Grants.Gov

Financial assistance gives support not Financial assistance gives support not otherwise available to the insular areas otherwise available to the insular areas to combat deteriorating economic and to combat deteriorating economic and fiscal conditionsfiscal conditions

What Else About TAP?What Else About TAP?

Grants and cooperative agreements are performance-basedGrants and cooperative agreements are performance-based

Grantees expected to provide evidence of demonstrated Grantees expected to provide evidence of demonstrated financial management capacity and measurable outcomesfinancial management capacity and measurable outcomes

Examples of grant programs include building institutional Examples of grant programs include building institutional capacity in health care, education, public safety, data capacity in health care, education, public safety, data collection and analysis, fiscal accountability, energy, collection and analysis, fiscal accountability, energy, transportation, economic development and communication.transportation, economic development and communication.

What About OIA and the What About OIA and the Compacts of Free Compacts of Free

Association?Association? OIA administers U.S. assistance to the FSM, RMI and OIA administers U.S. assistance to the FSM, RMI and

Palau as delegated by the Secretary of the Interior Palau as delegated by the Secretary of the Interior and authorized by law.and authorized by law.

2004-2023 (PL 108-188): Second Compact period 2004-2023 (PL 108-188): Second Compact period separates agreements for FSM/RMIseparates agreements for FSM/RMI

US defends FSM, RMI and Palau as if they were US US defends FSM, RMI and Palau as if they were US territories and US defense arrangements continue territories and US defense arrangements continue until at least 2066until at least 2066

Financial and other selected provisions for FSM and Financial and other selected provisions for FSM and RMI were renegotiated to promote economic RMI were renegotiated to promote economic advancement and budgetary self-relianceadvancement and budgetary self-reliance

$3.6 billion total provided over 20 years: $2.1 billion $3.6 billion total provided over 20 years: $2.1 billion FSM and $1.5 to RMIFSM and $1.5 to RMI

What Else About the What Else About the Compacts?Compacts?

For the RMI and the FSM:For the RMI and the FSM:

The financial package includes direct financial The financial package includes direct financial assistance, trust fund contributions, authorized assistance, trust fund contributions, authorized Federal services, disaster assistance, and inflation Federal services, disaster assistance, and inflation adjustmentadjustment

Direct assistance is through annual grants and only Direct assistance is through annual grants and only in six areas: education, health, public infrastructure, in six areas: education, health, public infrastructure, public sector capacity building, and private sector public sector capacity building, and private sector developmentdevelopment

HEALTH, EDUCATION, AND RELATED CIP ARE HEALTH, EDUCATION, AND RELATED CIP ARE TOP PRIORITIESTOP PRIORITIES

What Important Provision What Important Provision Continues?Continues?

Compact citizens are exempt from U.S. Compact citizens are exempt from U.S. passport, visa and labor certification passport, visa and labor certification when entering the U.S., and are when entering the U.S., and are considered “non-immigrants”considered “non-immigrants”

Migration has increased 86% since Migration has increased 86% since 20032003

Is There More?Is There More?

Stronger accountability and ties to strategic Stronger accountability and ties to strategic development goals and actual performancedevelopment goals and actual performance

US funding decreases annually as trust fund US funding decreases annually as trust fund contributions increasecontributions increase

At end of 20 years, trust fund intended to take the At end of 20 years, trust fund intended to take the place of annual assistanceplace of annual assistance

About 35% of funds go to education, 27% to About 35% of funds go to education, 27% to infrastructure, and 22% to healthinfrastructure, and 22% to health

For Palau:For Palau:

Palau’s renegotiated Compact package awaits U.S. Palau’s renegotiated Compact package awaits U.S. congressional action and the provisions will be congressional action and the provisions will be different than RMI and FSM’sdifferent than RMI and FSM’s

What’s Done to Mitigate Impact? What’s Done to Mitigate Impact?

As authorized by law, OIA provides $30 million in As authorized by law, OIA provides $30 million in grant assistance to Guam, CNMI, Hawaii, and grant assistance to Guam, CNMI, Hawaii, and American Samoa only to mitigate the financial American Samoa only to mitigate the financial impact of migrationimpact of migration

No other US state includedNo other US state included

Hawaii received an additional $5 million this Hawaii received an additional $5 million this year to provide educational technical helpyear to provide educational technical help

Uses have included health insurance coverage Uses have included health insurance coverage and hospital financingand hospital financing

Mitigation strategy includes improving education Mitigation strategy includes improving education and health status in the FSM and RMI to address and health status in the FSM and RMI to address problems that drive people to migrateproblems that drive people to migrate

Is This Enough?Is This Enough?

Guam and Hawaii claim millions of Guam and Hawaii claim millions of dollars of unreimbursed impactdollars of unreimbursed impact

U.S. states without mandatory U.S. states without mandatory annual grant assistance are also annual grant assistance are also beginning to ask for impact aidbeginning to ask for impact aid

Health, education, and public safety Health, education, and public safety are the three biggest areas of needare the three biggest areas of need