Interior Applauds JEMCO, JEMFAC, and Trust Fund Meetings Held under Compact of Free Association Partnerships with Micronesia and Marshall Islands

Approved $92.8 Million FY2020 Funding; Reviewed Trust Fund Performance

9/19/2019
Last edited 11/30/2020

WASHINGTON – U.S. Department of the Interior Assistant Secretary, Insular and International Affairs, Doug Domenech applauded the U.S-Federated States of Micronesia (FSM) Joint Economic Management Committee (JEMCO), the U.S.-Republic of the Marshall Islands (RMI) Joint Economic Management and Financial Accountability Committee (JEMFAC), and the FSM and the RMI Trust Fund Committees for their recently concluded annual meetings. Officials from the United States, the FSM, and the RMI held several meetings this month in Honolulu as called for under the Compact of Free Association relationships that the United States shares with the FSM and the RMI in their respective Compacts of Free Association (U.S. Public Law 108-188). The Committees approved a total of $92,806,877 in fiscal year (FY) 2020 funding for the FSM and the RMI and reviewed the performances of their respective Compact trust funds.

“I was pleased to participate in the annual meetings this year and witness in action the strong partnerships we share with both the Federated States of Micronesia and the Marshall Islands,” said Assistant Secretary Domenech. “Funding provided under the Compacts continues to bolster the operations and infrastructure in both the health and education sectors in each of these countries, and it is great to see that the Compact Trust Funds have maintained steady and positive growth despite the usual ups and downs in the market.”

The JEMCO allocated $56,689,446 in FY 2020 Compact assistance for the FSM as follows:

$          26,418,524 Education
$          23,078,518 Health
$            3,917,863 Infrastructure
$            1,614,501 Enhanced Reporting and Accountability
$            1,223,820 Public Sector Capacity Building
$               221,060 Private Sector Development
$               215,160 Environment

The JEMFAC allocated $36,117,431 in FY 2020 Compact assistance to the RMI as follows:

$          11,276,496 Education
$            8,054,640 Public Sector Infrastructure
$            7,588,095 Health
$            2,725,899 Ebeye Special Needs – Education
$            2,269,742 Ebeye Special Needs – Health
$            2,361,700 Kwajalein Impact Fund
$            1,343,659 Ebeye Special Needs – Capital Infrastructure
$               248,600 Kwajalein Environmental Impact
$               248,600 Disaster Assistance Emergency Fund

As of June 30, 2019, the net-of-fees asset value of the Trust Fund for the People of the RMI was $431,665,432 (preliminary and unaudited). Since inception in 2004, this fund has had an average annual net return of 6.03 percent.

Similarly, as of June, 30, 2019, the net-of-fees asset value of the Trust Fund for the People of the FSM was $684,414,562 (preliminary and unaudited). Since inception in 2004, this fund has had an average annual net return of 5.5 percent.

As provided for under the Compact of Free Association agreements, the Trust Funds were established to contribute to the economic advancement and long-term budgetary self-reliance of the people of the Federated States of Micronesia and the Republic of the Marshall Islands when annual grant assistance under their respective Compacts expires after fiscal year 2023.

For more information regarding the JEMCO and the JEMFAC, visit the OIA website at www.doi.gov/oia. In addition, more information on the RMI Trust Fund may be found at https://rmicfatf.com/ and the FSM Trust Fund at https://fsmcfatf.com/. For pictures and news on the Insular Areas follow @ASIIADomenech on Twitter.

The Assistant Secretary, Insular and International Affairs, and the Office of Insular Affairs carry out the Secretary of the Interior’s responsibilities for the U.S. territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. Additionally, OIA administers and oversees federal assistance under the Compacts of Free Association to the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau.

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