$7.1-billion compact renewal deal signed by President Biden

The multi-nation agreement identifies a collective $7.1-billion in dramatically increased funding for the Freely Associated States (FAS) over the next twenty years.

Federated States of Micronesia President Wesley Simina made the announcement in a national address on his official social media page.

“My fellow citizens, I have the honor to speak to you today at an important milestone in the history of our beloved nation. As many of you may know, US President Biden has just signed into law the Compact Amendments Act of 2023, or Compact 3. This officially opens an important next chapter in our enduring partnership,” said President Simina.

Simina notes there were delays and anxious moments before the signing, and fears that an aggressive China could step forward.

He added, “But in this you can be certain, at the end of the day the FSM and the US reached an agreement on an outcome that I am confident will benefit both our nations, and contribute to greater peace and prosperity for our peoples and greater security and stability for the Indo-Pacific region and the world.”

The renewed deal gives the U.S. exclusive defense access to vitally strategic ocean, that it has controlled since the post world war two trust territory era.

In exchange, the compact nations get billions in aid for education, health care, the environment and infrastructure.

And over the next two years, the FSM will receive an added infusion of $500-million to its trust fund for economic advancement.

Simina said, “Now that we have it, it is up to us to make the most of it by working together to make the FSM a beacon of peace, prosperity and stability in our Indo-Pacific region…Lastly I want to say thank you to our citizens for your patience, trust and resiliency. May god bless you all and may god bless the Federated States of Micronesia.”