Source: GAO estimate based on the amended Compacts. Under the amended Compacts, U.S. payments are adjusted for inflation at two-thirds of the percentage change in the U.S. gross domestic product implicit price deflator.

Note: Numbers may not sum due to rounding.

*The 1986 U.S.-RMI Military Use and Operating Rights Agreement (MUORA) grants the United States access to certain portions of Kwajalein Atoll and provides $24.7 million of funding for development and impact on Kwajalein from 2004 to 2016. Approximately $112 million of the new proposed U.S. grant assistance of $701 million is for increasing this funding to Kwajalein from 2004 to 2016 and for continuation of the increased level of funding through 2066 and possibly to 2086 if the agreement is extended.

**As part of the 1986 MUORA, the RMI government has also allocated $162 million of U.S. funding from 2004 to 2016 under this agreement to landowners via a traditional distribution system to compensate them for the U.S. use of their lands for defense sites. The U.S. proposal increases these payments from 2004 to 2016 and continues the increased level of payments through 2066 and possibly to 2086 if the agreement is extended.

***Federal services authorized in the Compact include weather, aviation, and postal services. Services associated with the Federal Emergency Management Agency have been excluded. An estimate of assistance from the U.S. Agency for International Development's Office of Disaster Assistance has not been included.

Source: GAO estimate based on amended Compacts adjusted for expected inflation.

Note: The historic average real rate of return from the U.S. stock market has been 7 percent. Assuming a trust fund based on 60 percent stocks, which at a forecasted inflation rate of 2.2 percent would earn a 9.2 percent return, and 40 percent long-term U.S. government bonds, which would earn the forecasted nominal rate of return of 5.8 percent, a nominal rate of return of 7.9 percent could be achieved for the trust fund. The estimated value of the trust funds includes monies accrued in the buffer accounts and reflect the initial contribution made by the FSM and the RMI to their respective trust funds.

*The RMI trust fund under this scenario continues to grow in perpetuity. However, this analysis assumes a steady real rate of return and does not account for volatility in returns.

Source: GAO legal analysis of the original and amended Compacts.

Note: In addition, any of the authorities in the amended Compacts that the United States may exercise could also be exercised by the governments of the U.S. territories or possessions where the INA does not apply (i.e., the CNMI and American Samoa), so long as the exercise of such authority is lawful under the laws of that territory or possession.

*Such naturalized citizens would also have to meet additional requirements, including residency requirements, unless they are an immediate relative of a citizen of the FSM or the RMI who is serving in the U.S. military.

**The United States promulgated regulations in September 2000 regarding the rights and limitations of habitual residents in the territories and possessions of the United States. These regulations applied to Compact nonimmigrants in Guam, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands. They did not apply to Compact nonimmigrants residing in the 50 states, the District of Columbia, American Samoa, or the CNMI.

***The INA would now expressly apply to any Compact migrant who seeks admission or is admitted to the United States. As such, in addition to the Attorney General's authority to promulgate regulations, any grounds of inadmissibility or deportability under the INA would now apply to Compact migrants except where the amended Compacts specify otherwise. Some modifications, however, were made to the INA provision, section 237(a)(5), allowing for deportation on the basis of an alien becoming a public charge.

Source: GAO estimate based on the amended Compacts.

Note: Numbers may not sum due to rounding.

Notes:

1. Agreements apply to both FSM and RMI except as noted.

2. Chart based on Compact Act as submitted to U.S. Congress.

July 10, 2003