GAO reports on FAS trusts

What happens to the economies of the Federated States of Micronesia and the Republic of the Marshall Islands when their annual Compact of Free Association funding ends in 2023 could have an effect on the Marianas. The Government Accountability Office issued a report on May 17 on the condition of the trust funds that are intended to replace the U.S. grant assistance with investment returns. It appears that intention will not be realized. The FSM and RMI will have less money to run their governments and provide public services than they do now. This could lead to out-migration to Guam, Hawai’i, the Marianas, or other U.S. jurisdictions. The Compacts allow FAS and RMI citizens to live and work without visas in any part of the U.S. As pressures to find more U.S. workers increase in the Marianas, the availability of labor from these nearby Micronesian nations may become more and more important to the success of our economy. Read the report, Actions Needed to Prepare for the Transition of Micronesia and the Marshall Islands to Trust Fund Income, here.