<home> -- <press releases> -- <October 28, 2003>

Landmark Compact Renewal Legislation Passes House
Bordallo Amendments Addressing Compact-Impact Included

FOR IMMEDIATE RELEASE – October 28, 2003 – Washington, D.C. – Legislation to renew the Compacts of Free Association with the Federated States of Micronesia (FSM) and the Republic of the Marshall Islands (RMI) passed the House of Representatives today under Suspension of the Rules.  Before reaching the floor House Joint Resolution 63 (H.J.Res. 63) was reported out of the House’s Committee on International Relations, the Committee on the Judiciary, and the Committee on Resources.  Included in the House-passed version are Congresswoman Bordallo’s amendments addressing Compact-impact aid, which were adopted by the Committee on Resources in early September.

“Today is an historic occasion for Micronesia, with House Joint Resolution 63, the Compact of Free Association Amendments Act of 2003, passing the House today.  H.J.Res 63 represents a significant step forward in addressing the impact of the Compacts of Free Association in Guam, both in the past and for the future,” Congresswoman Bordallo said.

H.J.Res. 63 was initially scheduled to be considered by the full House late last month, but debate was postponed after differences in Committee versions of the legislation were unable to be reconciled in time for floor debate.  Budgetary concerns lead to the postponement and prompted further discussions between stakeholders.  To avoid interruption of key economic assistance for the FSM and the RMI, which expired under the original Compact on September 30, 2003, Congress passed a Continuing Resolution to extend assistance until the end of this month.

Bordallo, who left Guam on Monday morning to return in time for floor consideration, has been closely involved in the development of this legislation, especially provisions relating to Compact-impact for Guam, the Commonwealth of the Northern Mariana Islands, and the State of Hawaii, and also Guam debt relief.  Earlier this year, Bordallo introduced two bills that contained her key provisions:  H.R. 2522, the Compact-Impact Reconciliation Act, and H.R. 2716, the Compact-Impact Reimbursement Act.  The Committee on Resources held a hearing on H.J.Res. 63 and H.R. 2522 in July at which Governor Felix Camacho and Speaker Ben Pangelinan testified. 

“Compact-impact reconciliation addresses un-reimbursed Compact-impact costs from the last 17 years of the Compact by authorizing offsets between amounts owed to Guam and debts Guam owes to the Federal Government.  This amount is approximately $187 million. Compact-impact reimbursement will double Compact-impact funds from $15 million, as proposed by the Bush Administration, to $30 million to be shared between Guam, Hawaii, the CNMI, and American Samoa.  This is something that Guam has long advocated as it will help cover the costs of our overburdened health and education services,” Bordallo said.

In anticipation of floor consideration, Bordallo issued a joint letter yesterday with Congressman Elton Gallegly (R-CA), Congressman Neil Abercrombie (D-HI), and Congressman Ed Case (D-HI), urging their colleagues support for the legislation.  H.J.Res. 63 was considered today under a parliamentary procedure known as “Suspension of the Rules” to expedite its passage.  Legislation considered under “Suspension of the Rules” requires a two-thirds vote to pass, cannot be amended or modified on the floor, and is subject to limited debate. 

The legislation will now be considered by the full Senate, which may take up H.J.Res. 63 as passed by the House or its own version, S.J.Res. 16.  Bordallo’s provisions for Compact-impact assistance and Compact-impact reconciliation (Guam debt relief) are included in identical language in S.J.Res. 16, as reported by the Senate Committee on Energy and Natural Resources.  This helps to ensure Bordallo’s provisions are included in whichever version of the Compact legislation is finally agreed to by both chambers.  Once an identical version of the legislation is passed by both chambers, the legislation will then be sent to the President for his consideration.

“Although it has been an uphill struggle, the House action marks a major hurdle that has been overcome.  We have to remain vigilant and we have to engage the Senate to ensure that the progress made in the House is realized in the Senate.  I’m counting on my friends in the Senate and I will be working with them in the coming days.  There is still work to be done, and I am going to remain involved to see Guam and the region’s interests all the way through to the end,” said Bordallo.

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Contact: Neil Weare in Washington, D.C., at (202) 225-1188 or Joaquin Perez in Guam at (671) 477-4272.