Several other OIA funding programs with specific targeted purposes are identified below.
AMERICAN SAMOA OPERATIONS
Each year the Office of Insular Affairs provides grant funds to American Samoa for the operation of the local government, including the judiciary. The purpose of this program activity is to fund the difference between budget needs and local revenues.
CAPITAL IMPROVEMENT PROJECT (CIP)
Capital Improvement Project (CIP) funds address a variety of infrastructure needs in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands and the U.S. Virgin Islands to include critical infrastructure such as hospitals, schools, wastewater, and solid waste systems.
COMPACT of FREE ASSOCIATION SECTOR GRANT FUNDING
Funding provided under the Compacts of Free Association to each of the freely associated states – the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau. Compact funding comprises sector grant funding described under Section 211 of the Compact of Free Association (Public Law 108-188) for the Federated States of Micronesia and the Republic of the Marshall Islands. Compact grant funding also includes financial assistance to the Republic of Palau under the Palau Compact Review Agreement signed in 2018 under the Compact of Free Association with the Republic of Palau (Public Law 99-658). Funding assistance under the Compacts of Free Association is currently being considered between the United States and each the three Pacific Island countries.
Discretionary Compact Impact grants supplement a $30 million annual permanent appropriation for Compact Impact as authorized by Section 104(e) of Title One of the amended Compacts of Free Association for affected jurisdictions due to the residence of qualified non-immigrants from the freely associated states. In some years, Congress appropriates additional discretionary funding to offset the costs borne by the affected jurisdictions.Compact Impact funding expires in fiscal year 2023.
GUAM SECTION 30 FEDERAL INCOME TAX PAYMENTS
Under Guam’s Organic Act, federal income taxes derived from active members of the United States Armed Forces and pensions paid to retired civilian and military employees of the United States, or their survivors, who reside in, or who are domiciled in Guam, are annually “covered-over” to the Guam Treasury to support the operations, activities, and programs of the local government (48 U.S. Code 1421 Section h). Each year, these funds pass through OIA to Guam once calculated and certified by the Internal Revenue Service.
USVI RUM TAX COVER OVER
Under the Revised Organic Act of the Virgin Islands (48 USC Chapter 12 Section 1541), any excise tax collected on manufactured rum from the U.S. Virgin Islands (USVI) imported into the mainland United States is transferred to or “covered-over” to the USVI. The USVI Government submits an advance estimate of rum excise taxes to OIA on an annual basis so that a payment can be made by September of each fiscal year. Any adjustments necessary are calculated and paid later based upon amounts advanced from rum excise taxes derived from the USVI and actual receipts collected by the federal government. Each year, these funds pass through OIA to Guam once calculated and certified by the Internal Revenue Service.