Definition of Each Type of Grant Assistance Funding

Capital Improvement Project (CIP) Funding

CIP grant funding (also known as Covenant grants) addresses a variety of infrastructure needs in the U.S. territories including critical needs such as hospitals, schools and wastewater systems. Improvements to critical infrastructure not only benefit the current population and businesses, but lay the groundwork to attract new investment to the territories thereby promoting economic development and self-sufficiency. CIP funding is subject to annual appropriations and is specifically for capital improvements in any of the four U.S. territories. A unique feature of these grants is that they may be used to meet the local matching requirement for capital improvement grants of other Federal agencies, subject to OIA's approval.

Maintenance Assistance Program (MAP)

This fund is used to promote and develop insular institutions and capabilities that improve the operation and maintenance of island infrastructure. This is the only OIA program that has specific legislative authority to require a matching contribution from the insular government. The MAP grant may be used by any of the four U.S. Territories and the three freely associated states.

Technical Assistance Program (TAP)

Technical Assistance Program (TAP) grants are awarded on an annual basis through an application process. These grants are intended for short-term, non-capital projects and are not meant to supplant local funding of routine operating expenses of an insular government. TAP priorities include but are not limited to projects which foster development of the insular areas in the following categories: accountability; financial management; economic development; training/education; energy; life; safety and health issues. TAP grants may be granted to any of the four U.S. Territories and the three freely associated states and is appropriated annually by the U.S. Congress.

Brown Treesnake Control

This fund is used to control ecological and economic damage caused by the Brown Treesnake on Guam and prevent dispersal to other areas.

Coral Reef Initiative

This fund is used to promote sound management and conservation of coral reefs in the insular areas

Compact Impact Aid

The Amended Compact of Free Association with the Marshall Islands and Micronesia, under Section 104 (e) of Title One, authorizes financial assistance to affected jurisdictions such as Hawaii, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. The goal of this assistance is to provide through 2023, $30 million in annual grants to affected jurisdictions to aid in defraying costs incurred as a result of increased demands placed on health, educational, social, or public safety services, or to infrastructure related to such services, due to the residence in affected jurisdictions of qualified nonimmigrants from the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau.

Compact Grants

This includes all financial assistance directly authorized and specified in the Compacts of Free Association with the Federated States of Micronesia, the Republic of the Marshall Islands and the Republic of Palau. All Compact financial assistance is guaranteed in the Compacts and is provided through either mandatory appropriations or permanent appropriations. The financial relationships are governed exclusively by the Compacts and related subsidiary agreements. Except as specified in those documents, U.S. laws and regulations do not apply. The Compacts and related agreements may be viewed on the OIA website or on the US Compact website. 

The U.S. provides Compact funding to the RMI and FSM to assist in their efforts to promote the economic advancement, budgetary self-reliance, and economic self-sufficiency of their people, and in special recognition of the special relationship that exists between them and the United States. Current Compact assistance is provided on a sector grant basis until 2023. The sectors are: Education, Health, Private Sector Development, Capacity Building in the Public Sector, Environment and Public Infrastructure.

The Republic of Palau has a separate Compact agreement with the United States. Compact funding is provided to the Government of Palau to assist in its efforts to advance the well-being of the people of Palau and in recognition of the special relationship that exists between the United States and Palau. Only the grant assistance provisions of the U.S.-Palau Compact expire on September 30, 2009.

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