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After months of delays, the United States has formally agreed to direct $7.1 billion in aid to Compacts of Free Association nations in a bill that also paves the way for Micronesian migrants in the U.S. to access federal assistance programs for the first time in nearly 30 years.

The U.S. renewed separate treaties with the Republic of Palau, the Republic of the Marshall Islands and the Federated States of Micronesia in the fall. But partisan fighting in Congress delayed approval of the funding, which is to be used for economic assistance to the three Pacific island countries.

The congressional agreement will have a significant impact in Hawaii, home to nearly 20,000 Micronesians.

“In addition to solidifying our relationship with the Compact nations for the next 20 years, this agreement corrects a nearly 30-year-old policy failure that has prevented the tens of thousands of COFA citizens who live, work, and pay taxes in the U.S. — many of whom choose to build their lives in Hawaii — from accessing federal benefits,” U.S. Sen. Mazie Hirono’s office said in a press release late Friday.

The provision will allow COFA citizens living in the U.S to access federal benefits such as the Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Families and Supplemental Security Income, among other programs.

Hawaii delegates previously helped restore Medicaid eligibility for COFA citizens, a bill signed into law in 2020. The 1996 Welfare Reform Act had ended that eligibility, the “policy failure” that Hirono referenced.

The funding for the COFA treaties was secured with President Joe Biden signing of six spending bills on Saturday to keep a range of federal departments in operation. It avoids a partial shutdown and keeps the government funded through September.

U.S. Sen. Brian Schatz’s office said Friday that the appropriations package will also allow the Department of Veterans Affairs to provide medical care to veterans of the U.S. military living in the the three COFA nations. The countries are also known by the acronym FAS, for Freely Associated States.

“The VA would no longer be restricted from providing services to veterans residing in the FAS, including through direct care from VA providers, such as via telehealth, or through contracts with community providers; shipping medications to the FAS,” according to a press release. “And reimbursing veterans for travel from their home countries to the United States.”

National Security

The COFA pacts are national security agreements that give the U.S. strategic control over a vast region in the Pacific. In return, COFA citizens are entitled to study, work and live in the United States without a visa.

It’s estimated that about 100,000 COFA citizens live in the U.S. and its Pacific territories, in particular in Hawaii, Washington state, Arkansas, Oregon and California but also Guam and the Northern Mariana Islands.

Micronesia has been of heightened interest in recent years as China seeks to expand its influence globally.

“The COFA are the cornerstone of U.S. presence in the Pacific Islands and have been recognized as strategically critical by numerous national security documents, including the 2022 Indo-Pacific Strategy, Hawaii Congressman Ed Case to House Speaker Mike Johnson last week, urging passage of the COFA amendments. “The PRC currently is waging political warfare to expand its influence and disrupt friendly relations throughout the region, making our deep and enduring partnerships with these nations more critical than ever.”

Case added that senior officials from the State Department and Department of Defense had repeatedly emphasized “how crucial these relationships are to U.S. presence and operations in the Indo-Pacific.”

The monthslong delay in approving COFA funding had caused consternation in parts of the Pacific.

Marianas Variety that during her speech at the 70th anniversary of the Bravo hydrogen bomb test on March 1, RMI President Hilda Heine questioned the U.S commitment to the islands.

“At some point, our nation needs to seriously consider other options available to us if the U.S. is unable or unwilling to keep its commitments to us,” Heine said. “Our nation has been a steadfast ally of the United States, but that should not be taken for granted.”

T the funding bill language “does not include annual reimbursements for host communities” like Guam. That funding expired at the end of fiscal year 2023.

“Our team continues to work with various entities in pursuing reimbursements which are vital for our public safety entities and education department,” James Moylan, Guam’s delegate to Congress, said.

‘Billions’ For Hawaii

In addition to COFA, the departments of Veterans Affairs, Agriculture, Interior, Commerce, Justice, Energy, Transportation and Housing and Urban Development. There is also money for water projects and military construction, according to The Hill.

The U.S. Senate voted 75-22 Friday evening to approve the funding bills, which followed a 339-85 vote Wednesday in the U.S. House of Representatives.

Schatz said Hawaii is to set to receive billions of dollars as a result of the deal.

“The new funding will improve our roads and infrastructure, provide people with housing, food assistance, and other essential services, and cover significant costs for the state and help address its budget challenges,” said Schatz, a senior member of the Senate Appropriations Committee.

Congress will now work on a second set of appropriations bills to fund the departments of Defense, Health and Human Services, Labor and Homeland Security before a March 22 deadline. Approval is not certain, as passage of the first batch of bills involved weeks of difficult negotiations between Republicans and Democrats.