OIA PRESS RELEASEEMBARGOED UNTIL: February 4, 2003 At 1 PM ADMINISTRATION PROPOSES FY 2004 BUDGET FOR ISLANDSThe President's budget for Insular Affairs proposes a total of $377.0 million, including $87.5 million in current appropriations. This is a $3.5 million decrease from the 2003 request . In accordance with the Compact of Free Association Act of 1985, the Administration is developing a proposal to renew financial assistance for the Republic of the Marshall Islands and the Federated States of Micronesia for an additional 20 years. The modified Compact will provide $149.4 million in a permanent appropriation for grant assistance to the two aforementioned freely associated states, as well as $1.0 million for audits. This modified Compact does not affect the grant assistance to Palau. The budget will also include a permanent $15.0 million appropriation for mitigation aid to Guam, the Commonwealth of the Northern Mariana Islands and Hawaii to be allocated according to a formulation that is currently being developed by OIA. The modified Compact will dramatically improve the accountability requirements on the part of the FAS governments and provide for much more on-site monitoring of the grant funding being provided. To fulfill these new requirements, OIA will set up a Compact Office in Hawaii, as well as station personnel in the U.S. embassies. The budget includes $820,000 in current funding for OIA to continue supporting the additional staffing needed to monitor the Compact grant funding. The American Samoa grant will remain at $23.1 million.
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