U.S. and Federated States of Micronesia Enact Compact of Free Association as Amended

The United States and the Federated States of Micronesia (FSM) exchanged diplomatic notes in Palikir on June 25 bringing into force the Compact of Free Association, as amended. The Compact is a bilateral agreement, originally agreed to in 1986, through which the U.S. provides a defense commitment and substantial economic assistance to the Federated States of Micronesia.

Grants provided under the Amended Compact over the next twenty years will facilitate the economic and social development of all citizens of the Federated States of Micronesia. The Amended Compact also creates a Trust Fund to provide an ongoing source of economic support to the Micronesians after the twenty years of grant funding ends in 2023.

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