OIA: Appropriation bills provide federal funding support for Micronesia

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President Trump has signed federal budget and defense spending bills that provide millions of federal dollars for Micronesia.

The two federal spending bills provide temporary increases in Medicaid funding for the territories, increases the number of foreign construction workers permitted to support disaster recovery efforts in the CNMI and a $5 million payment to the trust fund for the Republic of the Marshall islands under the Compact of Free Association.

In a news release, Assistant Secretary for Insular Affairs Doug Domenech said both measures include funding increases for key programs in the insular areas and he thanked the president and Congress for their support for the U.S. territories and Freely Associated States.”

SPENDING HIGHLIGHTS:

MEDICAID: The FY 2020 budget included several important changes with respect to Medicaid for the territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. The key change provides a temporary increase in the Federal Medical Assistance Percentage (FMAP) from the statutory level currently set at 55 percent to the maximum of 83 percent, two figures both set by law under the Social Security Act. The change takes effect for the period beginning December 21, 2019 and ending September 30, 2021.

PERMITS FOR CONSTRUCTION WORKERS IN THE CNMI: The legislation directs Homeland Security to provide 3,000 additional permits for foreign workers in construction and extraction occupations in the CNMI for fiscal years 2020, 2021, and 2022 related to typhoon recovery.

TAX AND TRADE COMPENSATION TO THE REPUBLIC OF THE MARSHALL ISLANDS (RMI): An amount of $5 million for the benefit of the RMI to compensate for adverse financial and economic impacts as authorized by the Compact of Free Association, as amended, or Public Law 108-188. The $5 million is designated for deposit to the Trust Fund for the People of the Republic of the Marshall Islands. The Trust Fund, as established under Public Law 108-188, will provide a source of income to the RMI government when direct grants under current law expire in 2023.

RUNIT DOME: The FY 2020 National Defense Authorization Act (NDAA), also signed by President Trump on December 20, 2019, includes a provision requiring the Secretary of Energy to submit by June 2020 a report on the status of Runit Dome in the Republic of the Marshall Islands (RMI). The report is to include 1) a detailed plan to repair the dome; 2) effects on the environment that the dome has currently and is projected to have in five years, ten years, and twenty years; 3) an assessment of the current condition of the outer constructs of the dome; 4) an assessment of the current and long-term safety to local humans; 5) an assessment of how rising sea levels might affect the dome; and 6) a summary of bilateral interactions between the U.S. and the RMI about the dome. The report is to be made available to the public.

OFFICE OF INSULAR AFFAIRS BUDGET INCREASES: The Office of Insular Affairs (OIA) received a $2.2 million increase in its budget for fiscal year (FY) 2020. The OIA programs that received additional funding for FY 2020 are Energizing Insular Communities, American Samoa Operations, the Maintenance Assistance Program, the Coral Reef and Natural Resources Initiative, and the Enewetak Program.

The full text of the Further Consolidated Appropriations Act, 2020 (Public Law 116-94) is available at: https://www.congress.gov/116/bills/hr1865/BILLS-116hr1865enr.pdf

The full text of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92) is available at: https://www.congress.gov/116/bills/s1790/BILLS-116s1790enr.pdf

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