Compact Legislation Clears Final Hurdle in Congress
Compact-Impact Provisions for Guam Remain Intact

FOR IMMEDIATE RELEASE – November 20, 2003 – Washington, D.C. – Congresswoman Madeleine Z. Bordallo announced today in Washington that House Joint Resolution 63, the Compact of Free Association Amendments Act, passed the House of Representatives by a recorded vote of 417-2 after having been passed in its final form by the Senate two weeks ago. The bill which passed today will now go to the President for his consideration. It is expected that President Bush will sign the bill into law in the near future.

“This has been a long and difficult journey to reach this point,” Congresswoman Bordallo stated. “We can now say with certainty that the legislation will become law, and that includes our provisions for Compact-impact assistance, both Compact-impact reimbursement of $30 million each year and Compact-impact reconciliation. This is a very good day for Guam,” said Bordallo.

Congresswoman Bordallo was instrumental in fighting to increase the amount of Compact-impact reimbursement from the $15 million that the Bush Administration had proposed to the amount of $30 million included in the bill. The $30 million will be shared between Guam, Hawaii and the Northern Marianas on a pro-rata basis determined by the numbers of immigrants from the Freely Associated States residing in these jurisdictions. The legislation also includes the Compact-impact reconciliation provision which Congresswoman Bordallo championed. This provision authorizes the President to release, reduce or waive, in whole or in part, any amounts owed by the Government of Guam to the United States Government as an offset for past un-reimbursed Compact-impact costs. These costs are estimated by Guam to total $187 million.

H. J. Res. 63 includes an authorization for additional appropriations for Compact-impact over and above the annual mandatory funding level of $30 million. This authorization was not included in the bill that the Bush Administration had sent to Congress.

The Compact legislation had stalled earlier due to concerns over its budgetary impact. These concerns had been negotiated by the House and Senate Committees of jurisdiction. The final bill restores eligibility for the Freely Associated States for Pell Grants, federal education assistance, federal labor assistance and federal disaster assistance.

“We now look forward to the implementation of this legislation. In the coming weeks and after the bill is signed into law, Governor Camacho will have the opportunity to submit a report substantiating un-reimbursed Compact-impact costs. After this report is submitted, the Governor may request the President to release, reduce or waive, in whole or in part, any amounts owed by the Government of Guam to the Federal Government. The President’s authority to grant such relief will expire on February 28, 2005. I will work closely with Governor Camacho so that the full benefits of the reconciliation provision can be realized for Guam,” 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.