To continue this free service to you, we include affiliate links, which means we may receive a commission from purchases made through links. Commissions received from linked purchases will help fund ongoing costs.
Pacific Islands Bulletin – The Compact of Free Association (COFA), is a unique international agreement that grants certain Pacific Island nations, such as the Federated States of Micronesia, Palau, and the Marshall Islands, a special relationship with the United States. Under this compact, these nations receive financial assistance, defense provisions, and access to certain U.S. programs and services in exchange for certain strategic and security rights for the United States in the region. This arrangement fosters cooperation and mutual benefits, allowing the Pacific Island nations to maintain their sovereignty while receiving critical support, particularly in areas like economic development and regional stability.
The Compact of Free Association has its roots in the aftermath of World War II, when the United Nations entrusted the United States with the administration of the Trust Territory of the Pacific Islands. This territory included the Marshall Islands, which became central to U.S. nuclear testing during the Cold War. The devastating atomic tests, including the infamous Bikini Atoll tests, caused significant environmental and health impacts on the Marshallese people. As a result, compensation and rehabilitation efforts were incorporated into the negotiations for the Compact, highlighting the lasting legacy of the atomic testing and the need for ongoing support and cooperation.
In accordance with distinct COFA agreements, in exchange for exclusive defense access, residents of the three nations can live and work in the United States without visas. Nevertheless, the unique “non-immigrant” status of COFA migrants has complicated their access to federal benefits. An error in the 1996 Personal Responsibility and Work Opportunity Reconciliation Act has led to these migrants being excluded from most federal benefits, including Medicaid, SNAP, and TANF.
The absence of essential services like Medicaid has resulted in low insurance coverage, increased uninsured emergency room visits, and elevated mortality rates among COFA migrants in the U.S. The challenges are particularly severe for migrants from the RMI due to ongoing health issues stemming from U.S. nuclear tests, leading to higher rates of chronic diseases, even for those presently in the United States. COFA migrants also experience above-average poverty rates and face discrimination in employment, housing, and education.
The legislative framework for the original Compacts in 1986 aimed to prevent “adverse consequences for the United States territories and commonwealths or the State of Hawaiʻi.” As a result, the federal government has been providing compact impact funding to states and U.S. territories, including Hawaiʻi, Guam, and the Commonwealth of the Northern Mariana Islands, to help cover the costs associated with accommodating COFA migrants since 2004.
Starting in FY-2004, a $30 million Compact Impact allocation has been divided proportionally among the eligible areas based on the COFA migrant population share, with additional appropriations ranging from $3-5 million annually since 2012. In 2018, Guam reported total Compact-related spending of nearly $1.37 billion since 2004, while it received only $244.8 million from the federal government.
Following the loss of federal safety net access by COFA migrants in 1996, some states, such as California, Washington, Oregon, and Hawai’i, provided ad-hoc healthcare coverage. In 2020, Congress reinstated COFA eligibility for Medicaid, but the cost-sharing structure of Medicaid places a financial burden on state governments.
To further restore federal program eligibility for COFA migrants, lawmakers from both sides of the aisle reintroduced the CIFA in March 2023. The Act was initially proposed in 2021 but did not gain traction at the time. CIFA would grant eligibility for SNAP, TANF, Supplemental Security Income, and Social Block Grant federal programs without a five-year waiting requirement.
Hawai’i Representative Ed Case emphasized the unfairness of expecting states and localities to bear the financial burden for what are essentially federal responsibilities. Guam Delegate Moylan echoed this sentiment, highlighting the need to reduce the depletion of Guam’s resources. CIFA, by advocating a more equitable distribution of federal and local responsibilities, has gained bipartisan support.