▶ 0:12:10On indian and insular affairs will come to order. Without objection, the chair is authorized to declare recess of the subcommittee at any time. The subcommittee is meeting today to hear testimony for an oversight hearing entitled implementation of the compact of free association amendments act of 2024 under committee rule four f. Any oral opening statements at hearings are limited to the chairman and to the ranking minority member.
▶ 0:12:31I therefore ask unanimous consent that all other members opening statements be made part of the hearing record if they are submitted in accordance with committee rule three. Oh, without objection, so ordered. I ask unanimous consent that the gentleman from wisconsin, Mr. tiffany, the gentleman from guam, Mr. moylan, the gentleman from the commonwealth of the northern mariana islands, miss king hines, and the gentleman from hawaii, Mr. case be allowed to sit and participate in today's hearing.
▶ 0:12:59Without objection. So ordered. I will now recognize myself for an opening statement. Good morning, everyone, and thank you for being here for today's hearing examining the implementation of the compact of free association amendments act of 2024. I first want to take a moment to acknowledge a great loss on this dais and in the halls of this institution. Congressman doug lamalfa passed away suddenly last week. Mr.
▶ 0:13:27Lamalfa was an exceptional legislator, a dedicated defender of his district, and a strong voice on natural resource issues. Uh, doug was also a genuinely decent man. He once held this very gavel, and I'd be remiss not to acknowledge the great legacy that he has left behind. So I'd ask, please, for a moment of silence, to honor Mr. lamalfa. Thank you.
▶ 0:13:52And, doug, we will surely miss your presence here in this room. Okay. The compact of free association, or cofa, are the foundation for our special relationship with the freely associated states, or fas.
▶ 0:14:16The fas comprised three sovereign pacific island nations the republic of palau, the republic of the marshall islands, and the federated states of micronesia. The cofa are mutually beneficial agreements between the united states and each of the fas nations. These agreements provide strategic security opportunities for the united states, including a sustained us presence in the pacific. In return, the fas received economic assistance as well as defense guarantees.
▶ 0:14:47Together, these agreements reflect the united states commitment to its pacific allies and to our broader strategy of peace through strength. As the committee of jurisdiction, the house committee on natural resources played a crucial role in passing the compact of free association amendments act of 2024. But our work is far from over. Authorization was a critical step, but oversight is what ensures these commitments are carried out fully, faithfully and on time.
▶ 0:15:13The people's republic of china seeks to undermine the united states leadership in the indo-pacific region, and to exert influence over the fas through economic as well as operational coercion. Now, more than ever, it is essential that the cofa agreements are faithfully implemented as congress intended. That includes implementation across agencies, delivery of promised services, and accountability for how compact resources are used.
▶ 0:15:41Today, we will hear from the administration witnesses on the progress of key provisions, including where implementation is working, where it has lagged, and what remains to be done. It is important that we not only hear about successes, but also where work remains. This committee values transparency and effective oversight depends on a clear and honest assessment of not only the progresses but also the challenges.
▶ 0:16:08We are also joined in the second panel by ambassadors from each fas, whose perspectives are essential to assessing progress in cofa implementation. The cofa agreements put into action the united states commitment to some of our closest allies in the indo-pacific.
▶ 0:16:25By fully implementing the cofa agreements, we signal not just to the fas, but to all our allies in the region that the united states remains a reliable and strong partner in the security and prosperity of the pacific. Our goal today is to ensure that the compact remains not just a promise on paper, but a living commitment carried out as congress intended.
▶ 0:16:51With that, the chair now recognizes the ranking minority member for any statement. Representative leger fernandez. >> thank you very much, Mr. chair, and thank you for that moment of silence for our colleague with whom we had just spent time in the grand tetons, uh, on a congressional delegation. He was indeed, um, an incredibly decent and funny man. Uh, and committed. He always showed up.
▶ 0:17:20He always showed up, um, on this committee. Uh, but I also want to welcome our witnesses today, especially our friends, the ambassadors for the freely associated states of the marshall islands, micronesia and palau. And we are here today because the united states made a commitment to you. Uh, we made a promise to you. Our allies on the blue continent. A promise that I don't believe the trump administration has yet lived up to.
▶ 0:17:49And this committee traveled so we could see firsthand why it was so important to enter into the agreements. What were the benefits to the united states, and what were the requests of the cofa states? What did they need? Like what would the exchange be?
▶ 0:18:12And based on that information, and I thank the chair, uh, who took us all there on that trip? Congress came together and on a bipartisan basis, we knew the agreements. And these are not symbolic partnerships. Our partnerships with the freely associated states have formed a bedrock of us cooperation for nearly four decades.
▶ 0:18:35Through the compacts, the united states military secures exclusive access across the pacific, beyond hawaii, all the way to palau. They include positions on one of the outermost island chains for strategic defense against china. This access allows us to keep the people's republic of china in check, as it seeks to expand its influence and control of the pacific.
▶ 0:19:03Just last month, the people's liberation army conducted its largest military exercises to date around taiwan. The chinese navy literally encircled taiwan as its ships launched missiles into the surrounding waters. While china carried out these massive drills, president trump and secretary hexa focused the might of the us navy not on the presence in china around china, but on blowing up small boats in the pacific.
▶ 0:19:31But china is not losing its focus or backing away. Instead, it continues to test the limits of america's commitment to the pacific from the pacific. As we saw, china can directly threaten the united states. That's why the military axis or cofa partners provide is so vital.
▶ 0:19:53In exchange, the united states promised to provide $7.1 billion of mandatory funding over the next 20 years to meet us obligations under the new agreements. Congress authorized this commitment. President biden signed it into law.
▶ 0:20:08We expanded access to va health care for veterans living in their home islands, including expanded telehealth options, which they talked to us about directly mail order pharmacy benefits and travel benefits to eligible veterans. I want to remember remind everybody, these are veterans who served in our military services, and we want them to get the health care they need.
▶ 0:20:34The citizens of the freely associated states serve at higher rates than those on the mainland united states. These patriotic veterans deserve access to the va health care that they have earned. Congress gave the administration the authority and responsibility to coordinate across agencies to carry out these commitments without delay. But more than a year after congress renewed the compacts, the trump administration has yet to fully carry out its commitments.
▶ 0:21:03It's an embarrassment when the us fails to honor the promises we made today. Veterans on the island still await the expanded va benefits. They must travel off island to access the healthcare they need. Many veterans from the freely associated states make the difficult decision to remain on the us mainland, where they can access that va care instead of returning home.
▶ 0:21:28Our failure to deliver on our promises will eat away at our goodwill with these nations. And when we lose the goodwill, you lose everything. And so I believe that the compact of free associations remain one of the smartest national security investments this country has made. And I look forward to a bipartisan republican democrat commitment to make sure that we honor those promises.
▶ 0:21:54And I think that oversight hearings, like what we are doing today, listening directly to the ambassador is so very important, which is why I'm so glad we are having this hearing today, and I look forward to the testimony. And with that, Mr. chair, I yield back. >> thank you. Ranking member leger fernandez. At this time, the chair now recognizes the chairman of the full house committee on natural resources, Mr. westerman, for an opening statement. Mr. westerman. >> thank you, chairman, and thank you to the witnesses for being here today.
▶ 0:22:22As we all know, the united states holds a special relationship with the republic of palau, the republic of the marshall islands and the federated states of micronesia, collectively known as the freely associated states, or fas. This relationship with our pacific allies is memorialized through the compact of free association, or cofa. These are agreements that we maintain with each of these nations.
▶ 0:22:48These cofa agreements are the cornerstone of the united states leadership in the pacific, and an embodiment of peace through strength. As the people's republic of china continues its campaign to undermine the united states global leadership, our firm commitment to the fas must be demonstrated and strengthened daily through the full implementation of the cofa as congress intended. I want to take a moment to reiterate the work that led to this moment.
▶ 0:23:14My colleagues and I work tirelessly to ensure a timely renewal of the cofa agreements in the 118th congress, the natural resources committee held four oversight hearings on cofa and move the compact of free association amendments act of 2024 through regular order and with bipartisan support as ranking member. Leger fernandez mentioned in august of 2023, we took a historic bipartisan congressional delegation to the freely associated states.
▶ 0:23:42We met with governmental leaders and we informed we reinforce the united states continued commitment to our fas partners. The delegation saw firsthand the strength of the us and the fas partnership, and how the prc is attempting to spread its oppressive and malign influence in the indo-pacific. Today's hearing is the second oversight hearing on the implementation of the most recent iteration of cofa.
▶ 0:24:08When congress passed the cofa reauthorization legislation in march of 2024, we knew that the job was not over. That was only the first step. It is now essential that congress continue to oversee the implementation of the legislation to ensure that the cofa provisions are carried out in a manner that congress intended, including timely interagency coordination, faithful execution of statutory requirements, and the delivery of promised benefits to our fas partners.
▶ 0:24:37I look forward to hearing from administration witnesses about the work accomplished in implementing cofa and the work that remains. It is my understanding that the interagency working group met at the end of last year. I look forward to updates on its progress and next steps. Also look forward to hearing from our witnesses representing the fas, hearing directly from our fas partners is critical to understanding what has been accomplished and where additional action is needed.
▶ 0:25:03Thank you again to the witnesses for being here today to discuss this critical topic and I yield back. >> thank you very much. The chair now recognizes the ranking member of the full house committee on natural resources, Mr. huffman, for his opening statement. Mr. huffman. >> thank you very much. Mr. chairman, before I begin, I have a unanimous consent request. I'd like to enter into the record an article from january 6th in the new scientist. It's entitled the pacific islanders fighting to save their homes from catastrophe.
▶ 0:25:32And it speaks to the way climate change is causing desperate measures in many pacific island communities just to stay above rising sea levels. >> without objection. >> thank you, Mr. chairman, and good morning, everyone. I do want to begin by thanking the dignitaries who are with us here today from palau, marshall islands and the federated states of micronesia. Your presence here is very much appreciated. And it underscores a basic truth that too often gets lost in washington.
▶ 0:26:01The compacts represent agreements between sovereign partners, and the relationships we're discussing today are built on decades of mutual commitment and shared sacrifice. I also appreciate the participation of the departments of state and interior. These agencies carry important responsibilities for delivering the commitments that congress has already made, and today's hearing is an opportunity to ensure implementation is moving with the speed and the seriousness that our partners deserve.
▶ 0:26:29The premise of the hearing is straightforward and a rare bipartisan moment. Democrats and republicans agree. I believe that the united states must follow through on the deals that we make with our allies, especially when national security is at stake.
▶ 0:26:46Our nations entered into compacts that secured us defense and security rights across strategically important areas of the pacific, and in exchange, we promised reasonable assistance, like health care, for veterans who bravely served in the us armed forces. This military presence, governed by the compacts, is a core element of our indo-pacific security approach. And congress recognized that reality when we updated the compacts in 2024.
▶ 0:27:13But it's been about a year since that time, and I am concerned, I think many of us are concerned that president trump has seemed to be slow walking delivery of our end of that bargain.
▶ 0:27:26We need to make sure that's not happening at a time when america's global leadership and trust is on shaky ground because of the volatility of our president and some of the folks around him, like the defense secretary, we should not let this administration drop the ball and risk losing our military dominance in such a critical region. Compact implementation is inseparable from our credibility on the global stage.
▶ 0:27:53When execution lacks lags, the consequences are significant because it affects our partners confidence. It affects military planning and perceptions of american leadership. That credibility is especially important right now. China continues to expand its reach across the region using economic leverage and foreign influence campaigns designed to weaken democratic resilience and reshape the regional order.
▶ 0:28:18Recent prc military activity around taiwan only underscores the stakes and the urgency that we need to show with respect to defending american credibility in the region. So when our competitors are pressing forward, the united states cannot afford to drift, delay or undermine our own interests. Oversight of compact implementations overdue. And this committee has a responsibility to insist on clarity, coordination and results.
▶ 0:28:47So I want to be very specific about what I am looking for today. First, I think we need a clear, candid account of where implementation stands across the federal government. The compacts require coordinated work with the state interior. The va, the defense department and other agencies have coordination is working. We should be able to see it reflected in timeliness, in deliverables and measurable progress.
▶ 0:29:12If it's not working, we need to know what's broken and what will be done immediately to fix it. Second, the committee needs clarity on the status of specific deliverables that have been authorized by congress, including the administration's progress on expanding va health care services for veterans in their home islands. These are tangible services with direct implications for veterans access to care.
▶ 0:29:36It's important for this committee to understand what's been completed, what remains pending, and the anticipated timelines going forward. And then third, we need accountability around decision making when delays occur, who owns them when milestones are missed, who is responsible for getting implementation back on track? If additional administration actions are required, what are they and when will they occur?
▶ 0:30:02Finally, we should consider all of these issues in the broader strategic environment. American leadership and trust are already under strain. Volatility at the top has real costs, and one of the best ways to counter that damage is to demonstrate through competent execution that the united states can still act with consistency and keep faith with its allies. That is what the compact's demand.
▶ 0:30:29That is what is at stake in this conversation, and it's what our partners deserve. So my hope is that we leave this hearing with a clear picture of the gaps, and a credible plan to close them with firm timelines that reflect the seriousness and commitments of congress that we've made to our compact partners. And I yield back. >> thank you, ranking member huffman. Now, at this time, I'd like to introduce the witnesses for our first panel. The first is Mr. angel demapan.
▶ 0:30:54He is the deputy assistant secretary, office of insular and international affairs for the united states department of the interior here in washington, D.C. welcome, Mr. pan. And our second witness is Mr. anton gruber, who is the director of the office of australia, new zealand and pacific affairs at the united states department of state here in washington, D.C. welcome, Mr. gruber.
▶ 0:31:17Let me remind both of our witnesses that under committee rules, you must limit your oral statements to five minutes, but that your entire written statement will appear in the hearing record. To begin your testimony, we talked about this briefly when I met you guys before. Just press the talk button on the microphone. We do use timing lights here. Green means go. Yellow means you have a minute left, and when you see the light turn red, I would ask that you please wrap up your statement or the answer to your question as quickly as possible.
▶ 0:31:46Um, I'm also going to allow each of you, as well as the witnesses on our second panel, when we get to that second panel to testify before member questioning begins. Uh, with that, the chair now recognizes Mr. demapan for five minutes. Mr. demapan. >> thank you. And good morning, chair hurd. Ranking member leger fernandez, chairman, westerman and ranking member hoffman and the members that are present today.
▶ 0:32:11Thank you for the opportunity to testify before you today regarding implementation of the compact of free association amendments act of 2024. I am angel demapan and I serve as the deputy assistant secretary for insular and international affairs at the department of the interior.
▶ 0:32:32The department, through the office of insular affairs, administers and oversees federal assistance provided under the sofa agreement to the republic of palau, the republic of the marshall islands, and the federated states of micronesia, collectively known as the freely associated states. The cofa agreements serve as the bedrock of the united states special relationship with the fas.
▶ 0:32:55Advancing economic growth, promoting self-sufficiency in the fas, and reinforcing partnerships that support a free and open indo-pacific. The cofa agreements are more important than ever, as the people's republic of china has intensified efforts to undermine and compromise our critical national defense apparatus hosted in these important island nations.
▶ 0:33:21The prc has deployed an extensive influence operation aimed at corroding, corrupting and coercing democracies. The cofa agreements are vital in countering this threat, as they provide the fas with the tools to enhance democratic resiliency.
▶ 0:33:40Oaa is prioritizing steadfast oversight of compact resources, ensuring that investments drive accountability, infrastructure growth, and improved delivery of public services.
▶ 0:33:52Since the enactment of the cofa act of 2024, which provides $6.5 billion in economic assistance, the office of insular affairs has already made approximately $1.5 billion available to the fas, in accordance with the 20 year schedules outlined in the compact agreements.
▶ 0:34:13The administration continues to strengthen compact partnerships through its appointments of us members and designees to the joint economic management committee, gemco, the joint economic management and financial accountability committee, gem, phac and the us palau economic advisory group, as well as meetings with representatives from the fas.
▶ 0:34:40In july, doi hosted the third us palau bilateral economic consultations, which highlighted palau's progress in implementing significant fiscal reforms and accountability measures that reaffirm the strength of the us palau partnership. In august, the department chaired annual gemco and gem fac meetings to review, review and approve the fsm and the rmi fiscal year 2026 budget proposals and strategic development plan.
▶ 0:35:08Interior collaborates extensively with interagency partners to advance shared goals in the fas and the broader pacific region. Recently, oaa awarded $20 million to palau, utilizing funds provided by the state department to support reforms to its civil service pension system.
▶ 0:35:29This grant will be released in phases contingent upon palau enacting necessary and sustainable reforms to ensure the long term viability of its civil service pension fund. Oaa continues to support initiatives that promote long term economic growth in the fas, including investments in tourism, critical infrastructure, healthcare and education towards such projects such as construction of and improvements to school
▶ 0:35:59Buildings, roads, water systems, airports and electrical grids. While much work remains, the department remains steadfast in working with our partners to ensure that cofa funds are properly utilized. Our goals are to increase economic opportunities, reduce outmigration and deny prc the opportunity to weaken our pacific partnerships.
▶ 0:36:23Thank you again for the opportunity to testify on the department's commitment to carrying out its obligations under the cofa agreements. I look forward to your questions. >> thank you, Mr. demophon, for that testimony. The chair now recognizes Mr. gruebel for five minutes. Mr. gruebel okay.
▶ 0:36:41>> good afternoon, chairman and ranking member fernandez and distinguished members of the subcommittee, thank you for the opportunity to testify on the united states enduring partnership with the freely associated states, the republic of the marshall islands, federated states of micronesia, and the republic of palau. The security and prosperity of the united states are closely tied to the pacific region, reflecting our shared values and interests.
▶ 0:37:11The freely associated states are not just our neighbors. They are essential partners. Their trust and cooperation are vital to our national security and economic interests. And we've now completed the first year of implementing the renewed compact of free association, marking a significant milestone in our commitment to the central pacific and the people of the freely associated states.
▶ 0:37:40These agreements do the cornerstone of our engagement in the region. This is a region that is increasingly central to united states security and global stability. And as geopolitical competition intensifies, the pacific strategic sea lanes, abundant resources and vibrant communities, they're more important than ever to the united states and our allies and partners.
▶ 0:38:06Our continued partnership with the faz strengthens regional resilience. It supports economic development while upholding peace and security. So the department of state, in close partnership with the department of the interior, we're co-leading the implementation of the 2023 compact agreements. And we're not simply paying attention. We are taking action at the highest levels of government.
▶ 0:38:36This past fall, deputy secretary landell made his first trip to the pacific, visiting palau and the marshall islands, and he also met with all three fast presidents. The vice president, vance, also met with palau president whipps, underscoring the administration's commitment. These high level engagements are producing tangible results.
▶ 0:39:02For example, we have supported the rebuilding of the marshall islands parliament building, advanced palau's pension reform, and deepen cooperation on infrastructure and economic resilience. And in partnership with taiwan, we are enhancing the marshall islands disaster response and air infrastructure with the purchase of american made cessna aircraft in the federated states of micronesia.
▶ 0:39:29We continue to promote regional connectivity through the east micronesia cable and other telecommunications projects, but we're not resting on past achievements. We are committed to doing even more for the farce in the years ahead. That is why next week, alongside deputy alongside assistant secretary december and department of interior's bill haig, we will travel to the republic of the marshall islands and the federated states of micronesia.
▶ 0:39:57The purpose of our purpose of our travel is to strengthen our ongoing dialog, ensure effective coping cocopa implementation while aligning our efforts with our shared goals. By engaging directly with stakeholders, we can gain valuable insights into the practical impacts of our programs and identify areas for improvement.
▶ 0:40:19So this firsthand understanding enables us to address challenges, proactively adapt our approach while reinforcing our commitment to being the partner of choice for the fast. Our visit demonstrates the united states dedication to transparency, responsiveness, and mutual respect. Our mission is clear deliver on the 2023 compact agreements. So we deeply appreciate congress's steadfast support for our work.
▶ 0:40:50Congressional leadership has been instrumental in driving progress and ensuring accountability. Your engagement empowers us to deliver meaningful results for our pacific partners. Thank you. >> thank you very much, Mr. gruber, for that testimony. The chair will now recognize members for five minutes of questions, and we will begin by recognizing the gentleman from arkansas, Mr. westerman, for five minutes. Mr. westerman. >> thank you. Chairman. Heard. Mr.
▶ 0:41:19Could you speak to the importance of interagency cooperation in addressing threats posed by adversaries in the pacific? >> thank you, chairman westerman. The importance of interagency collaboration, uh, cannot be overstated.
▶ 0:41:33Uh, in order for us to fully implement the commitments of the compact agreements, the department has been actively engaged with our interagency partners in the federal government through um consultation bodies and through the interagency group on the pfas. Um, the department also chairs the gemco and the gem fac.
▶ 0:41:57And so through these bodies and the palau economic advisory group, um, we are able to increase and keep interagency collaboration active to ensure that all of our agencies are aware of ongoing responsibilities and commitments. >> I know that, uh, interior and state have kind of a co-lead role on on cofa. We just, uh, remind us all the other agencies that are involved in cofa.
▶ 0:42:27>> along with interior and state, we have the department of war. Um, we have, uh, department of treasury. Um, and then because education and healthcare and infrastructure are large parts of our economic, uh, commitments to the, uh, we have h.r. Education, um, uh, and department of homeland security. >> so are we getting, uh, good participation from all the agencies.
▶ 0:42:56>> our communications with the agencies remain active and engaged. >> so how how is, uh, a working to curtail the influence of the prc in the freely associated states and the pacific territories? >> I'm sorry, Mr. chairman. Can you repeat that question? >> how is working to curtail the influence of the prc in the freely associated states in the pacific territories. >> from, uh, side of, of its responsibilities?
▶ 0:43:26Um, the economic assistance, uh, grants that we provide and the commitments to the trust fund, um, are centered around building, uh, stability, security and prosperity in these sovereign nations. Uh, to ensure that the united states commitment is met in return for its full access of defense and security in the nations.
▶ 0:43:51>> and what controls have do put in place to ensure that cofa funds are being used appropriately and for the intended purpose. >> there are several controls that the doi has in place and like I mentioned, the gem code, the gem pac, and the economic advisory group are the bodies, um, that actively monitor and track the expenditure of these funds, the budget, the approves, the budgeting proposals that are put forward by the fas.
▶ 0:44:18And then we also have at the staff level, a weekly cadence of of engagements and meetings with the fas countries. >> are you seeing any any weak areas with any of the other agencies on implementing the provisions in cofa? >> I have not, Mr. chairman. I think the coordination has been working very well. >> so you think the va's living up to all their obligations from cofa?
▶ 0:44:45>> I can't speak for for the va, but I can tell you from interior side that, um, our coordination continues and interior, uh, always stands ready to actively assist. >> Mr. griebel. At the end of december last year, the us and palau signed a new national security agreement that seeks to degrade the prc's efforts to disrupt palau's economy and politics. How is the prc actively working in palau and the freely associated states to disrupt these nations and undermine U.S.
▶ 0:45:15Interests in the region? Yeah. >> thank you for that question, sir. Yes. So we are concerned about, uh, um, organized crime groups linked to the prc who might who might be involved in smuggling drugs and narcotics into palau, um, who are and trying to do malign influence and political warfare in that country.
▶ 0:45:40So this package that we came up with was we established it to help give palau the resources and for law enforcement, maritime domain awareness, um, and cyber security to push back and effectively counter these, uh, these attempts by china to undermine the, um, to, to achieve their objectives. >> right. Mr. chair, I'm almost out of time, I yield back. >> the gentleman yields at this time.
▶ 0:46:09The chair recognizes the gentleman from the state of new mexico. Miss leger fernandez for five minutes. Mr. leger fernandez. >> uh, thank you, uh, Mr. chair, and thank you to our witnesses for testifying. And both in the questions of the chair of the natural resources committee and in, I think, our our own understanding, the issuance of the va benefits is really essential.
▶ 0:46:37Uh, so I am a bit disappointed that we don't have the va testifying today. And so we're going to ask two the witnesses to provide us information that they are aware of, since it is supposed to be interagency, you know, at the september 2024 subcommittee hearing, a va representative was here, said that they had begun the assessment of the hospital and medical services within the freely associated states to determine how to provide for the needs of the
▶ 0:47:09Local on island, uh, veteran population. Since that work had begun under the biden administration. However, I don't think we have seen the progress that is expected. And in fact, in april 2025, an internal va memorandum had said had directed the va officials to sustain the status quo, which is not consistent with the intent of increasing va services.
▶ 0:47:35So deputy assistant secretary demapan, um, what actions is the office of insular affairs taking with the va to fix this problem and deliver veteran benefits as congress intended? >> thank you. Ranking member uh, from the department of interior.
▶ 0:47:53Um, we have actively communicated with the department of va, uh, because the concerns about veteran benefits, um, have been at the forefront and the highest priority, uh, concerns that we have received from the fas countries. And so, in recognition and acknowledgment of those serious concerns from, from the country's, uh, interior has actively offered our assistance in any way that we can to work with the va.
▶ 0:48:23And so, uh, we are constantly. >> waiting to you when they might begin actually delivering their services that were promised almost two years ago. >> I don't have that update at this time, ranking member, but I'd be happy to take it back.
▶ 0:48:38>> uh, with regards to the, um, the office of freely associated states affairs at the state department, uh, we there is the requirement of the freely associated states unit at the state department. Uh, can you describe the full time staff that have been assigned to the union? And was the status of that? >> yes, yes, yes. Ranking member.
▶ 0:49:04So we have the in the office of australia, new zealand, pacific island affairs. We have two officers in our pacific bilateral unit who are dedicated to working on freely associated states issues. And then and then of course, then we have a unit chief and three other desk officers who, who, um, who provide assistance when necessary to their colleagues. >> okay. And are those two, uh, officers that are assigned?
▶ 0:49:33Is that their sole assignment or what. What are they splitting their time between. >> yes. No, that is their sole assignment. So, um, they focus on bilateral relationships and and interagency issues dealing with cofa for just rmi, fast fsm and palau.
▶ 0:49:54>> so when we were on, uh, in at the freely associated states, we heard about the fact that there was in addition to, I think, the military action around the area as the the interference with, uh, the maritime, the fishing, lots of other stuff. There was a lot of economic activity coming from the prc, from coming from china. How are you seeing that as the economic activity, the investments, uh, continuing?
▶ 0:50:22And how do they compare to where they were maybe two years ago? >> no. So there is a lot of, um, there is a lot of investment and business activity from china in the freely associated states. All three of them, even the ones that recognize taiwan. Um, so there's a lot of chinese owned or affiliated businesses, um, and the restaurant and retail sector, uh, fisheries processing.
▶ 0:50:48Um, and then there's also, um, and then just in general import export trading issues. And I do think it is increasing. Um, there's a even a car dealers are starting to show for used cars, you know, some cars that were sold. >> and I'm running out of time. But how do you see that with regards to I mean, we've had some interesting economic issues here. We've had the tariffs. We've had a lot of other issues that have caused economic disruption in the united states and inflation.
▶ 0:51:17How do you see what's happening and when out of time? But I think I'd like to learn more and we will submit a written question, because I would love to understand better how these economic forces are shaping the viewpoints and the political viewpoints on the ground in the freely associated states. So we'll submit that as a written question as my time is expired. Thank you. Thank you very much, Mr. chair. >> the gentleman yields at this time.
▶ 0:51:46The chair recognizes the vice chair of the subcommittee, the gentleman from american samoa. Mr. for five minutes. Mr. >> thank you. Chairman. Westerman. Chairman. Hurd ranking member leger fernandez for holding this important hearing today. A warm welcome to all the ambassadors. Thank you for traveling all this way to present your testimony.
▶ 0:52:11As we're all aware, one of the hiccups with cofa implementation was with va programs and services for cofa citizens who made the sacrifice to serve in the us military.
▶ 0:52:24To that end, I want to thank representative king hines for introducing hr 6652, the us vets of the pfas act, to explicitly provide certain va services to our pfas allies, and I'm proud to be a co-sponsor of the bill. I also want to express my thanks to my colleagues who worked on the ndaa to include language for briefing on the issue. Mr.
▶ 0:52:56Jimmy panetta, the problem with va can be summed up as a misalignment between legislative intent and the execution of discretionary authority. Are you aware of any other aspects of cofa agreements that may be lacking in explicit legislative direction? Do we need to mandate additional reports on the other aspects of the agreements?
▶ 0:53:18To be clear, I don't mean to sound as if I'm reprimanding anyone for working with what they were given, but if we can improve how we keep the legislative and executive branches aligned in our mission, I'd appreciate the feedback. Mr. dempsey. >> thank you, congresswoman. And at this point, I'm not aware of of any other issues that require further refinement.
▶ 0:53:45Uh, I believe that the existing reporting requirements that are in place today, uh, give us the opportunity to effectively communicate the progress and implementation concerns, if any, to congress. >> and welcome Mr. griebel, my friend. Congress included the requirement that the state department established a unit within its bureau of east asian and pacific affairs responsible for managing pfas relations and implementation.
▶ 0:54:14And in a previous conversation with the committee, state department had given a goal of standing up a full pfas unit by 2029. Can you provide a status update on the unit and speak to how the state department is managing pfas relations and implementation? In the interim? >> yes. Thank you. Congressman. Congresswoman? Uh, yes.
▶ 0:54:37The state department does intend to establish a a dedicated fast unit in line with in according to the mandates, uh, legislations mandate, um, within that timeframe by 2029. In the interim, we are managing bilateral relations with the three fast countries and the implementation of the cofa agreements, uh, within the uh pacific islands unit of the australia new zealand pacific
▶ 0:55:07Island affairs office. So there are two officers, two desk officers solely dedicated to fast issues. And then they also have the backing of the other four officers, as well as myself as office director and my deputy director. Um, when when their workload increases. >> the implementation of cofa is important to ensure the us remains a strong and stable partner in the indo-pacific.
▶ 0:55:34It's a statutory requirement that an annual report describing the activities and recommendations of the interagency group is submitted to congress. Thank you for your submission last night of the 2024 interagency group report, which detailed the work of the interagency group from march 9th, 2024, to march 9th, 2025.
▶ 0:55:59My question is, the transmitted 2024 report noted weekly discussions between state, doi and treasury. Do these weekly discussions still occur, and, if yes, what issues have been raised most recently?
▶ 0:56:17>> congresswoman, I can't say it's exactly weekly, but I'd say if you just count email, uh, it's pretty daily that, um, either I myself am getting hold of, um, insular affairs or else, um, one of my desk officers are talking with the department of interior officials, so it's it's definitely weekly, whether you call that a meeting or not. And then we do also have more formal settings.
▶ 0:56:38Um, and I think, like next week's joint trip to, to um, fsm and rmi with, uh, with um, acting assistant secretary bill hague and assistant secretary michael de sombras evident of how they're working together on this issue to implement most effectively since there. >> thank you, Mr. chairman, I yield back. >> gentleman yields at this time. The chair recognizes the gentleman from california, Mr. huffman, for five minutes. Mr.
▶ 0:57:08Huffman. >> thank you, Mr. chairman. And thank you, director gruebel. I want to turn briefly to another place where the concept of free association compacts has been discussed recently, and I realize it's not the region that you oversee right now, sir, but I'm talking about greenland.
▶ 0:57:29Uh, and as you know, president trump has publicly expressed a fixation on greenland, even telling the new york times that it is, quote, psychologically important to him that the united states own it. And so, uh, sir, I want to I want to ask if your department has begun any discussions, internal planning or contingency analysis regarding a potential change in the united states relationship with greenland, beyond our existing arrangements with denmark and the government of greenland?
▶ 0:57:59And again, I understand you are in a different region, but you do oversee these compacts in that region. And one would assume that if the administration is serious about pursuing this particular mechanism, that they would be, um, involving you in, in some level of planning and consultation. So there's the question. >> no. Thank you for that question, sir.
▶ 0:58:20Um, no, I would have to go back to the department of state and ask and get and see any issues regarding with the with greenland, but I but I can tell you that my office. No one's been in touch with my office. >> all right. Well, that that is good to hear. Um, assistant secretary, can I ask the same question? >> thank you. Ranking member. Uh, at this point, we have not received any communications on that matter.
▶ 0:58:47>> all right, well, that is good to hear, because I think many of us and I would dare say a strong bipartisan majority in the congress, uh, believe that even talking about invading or taking over greenland or, uh, strong arming our way into some sort of arrangement that strains the nato alliance, that would shred our global credibility and trust on the world stage is absolute madness.
▶ 0:59:15And if anyone, uh, proposes to use the compact mechanism to achieve a goal like that, to tell the world that we are on a colonial conquest binge, um, that needs to come through this committee, and I hope you will convey that up the chain as candidly as you possibly can. Um, director, I want to ask you about, uh, usaid, because, uh, the compacts provide that a us agency will assist in disasters.
▶ 0:59:45And usaid previously led coordination of that assistance. What's the status of transitioning those responsibilities from usaid to state department? >> no. Thank you. That's a good question. So that was one of our biggest priorities over the last year, was to get that transition from usa to the state department. So the, the, the bureau of east asia pacific affairs affairs focuses on helping the, the fast prepare for natural disasters.
▶ 1:00:10And then the bureau of population, refugees and migration at state department will take the lead in any disaster response. >> all right. Uh, thank you very much. That's all I have for you right now. And I yield back. >> the gentleman yields at this time. The chair recognizes the gentleman from north carolina. Mr. mcdowell, for five minutes. Mr. mcdowell. >> thank you, chairman, and thank you to the witnesses for being with us today.
▶ 1:00:33Um, the nations of micronesia, the marshall islands and palau are, uh, they they sit on some of the most strategically important property on the planet, uh, right along the sea lanes in the air routes that our military depend on to defend our territories, uh, and to keep the indo pacific free and open. And if we lose the foothold there, we are never going to get it back.
▶ 1:01:01Under our existing treaties with these nations, the united states has exclusive defense and security rights across millions of square miles of the pacific. That means that no foreign military, no chinese naval base, no hostile radar station, no back door deals with beijing. That strategic denial alone is worth far more than than what we spend on these agreements.
▶ 1:01:31China understands this, which that is why beijing is attempting to bribe small pacific nations with loans, with port deals, infrastructure projects that are often coming with with strings attached. They're trying to push the united states out of its own backyard and rewrite the balance of power in the pacific. This is about strength, stability, and deterrence.
▶ 1:01:54A strong forward presence prevents war, and it reassures our allies, uh, it protects our troops in guam and hawaii, and it makes it harder for china to threaten american interests without firing a shot, letting these compacts lapse or weaken would be an open invitation for china to move in and make the pacific less stable.
▶ 1:02:21It would put american forces at greater risk, and it would ultimately cost the taxpayers far more to fix later. As we defend our national interests in these territories. So my question to Mr. demapan for you is, can you describe how china is actively trying to expand its influence in the pacific islands, and how cofa helps to block beijing from gaining a strategic foothold in this region?
▶ 1:02:53>> thank you for that question, congressman. And and along with your your lead up to the question, you're absolutely correct. Um, we see a lot of activities, uh, that are happening in, in the fas countries. Uh, and unfortunately, their activities that are illegal or, um, are meant to, to coerce, uh, a free and and a, a free and stable indo pacific region.
▶ 1:03:19And so through the cofa commitments, uh, the department, um, is actively engaging in economic development grants, investing in those economic development in terms of infrastructure, in terms of building their capacity in the sectors of health, uh, of education and building a sense of good governance, so that in our efforts to to instill stability, security and prosperity in this, in these countries, um, we we
▶ 1:03:50We believe that through these commitments, uh, the societies of, of the cofa countries will understand that the enduring relationship that is on the cusp of four decades, uh, through the cofa, uh, through its origination, um, is there and that the commitment of the united states is way, uh, is valued at way higher amounts than soft power and land grabs and, and just business entities.
▶ 1:04:18So I think the united states has shown its commitment and continues to be fully committed to toward those threats. >> Mr. grubel how to compacts of free association give the united states concrete military and security advantages in the pacific that we could not replicate if these nations were to drift towards china. >> very good question, sir.
▶ 1:04:40Um, so the compacts are absolutely essential for our national security in the indo-pacific with the exclusive military rights. Um, what exclusive military access? Every country's military before they stop to refuel, like aircraft or ships?
▶ 1:04:59Um, and the freely associated states, they have to ask for permission, not just from its normal diplomatic permission from the host government, but then the united states department of war and the state department have to clear on that. So and that's a regular that's something that we regularly do with department of war. There's a state department, office of pm, bureau for defense integration. They help coordinate that. So without that, this this guarantees us our access across the pacific.
▶ 1:05:28And it also ensures that no, no threat can emanate from the freely associated states. >> got it. Thank you, Mr. chairman I yield back. >> gentleman yields at this time. The chair recognizes the gentleman from the state of arizona. Miss grijalva, for five minutes. Mr. grijalva. >> thank you, Mr. chairman, and thank you to the witnesses for being here.
▶ 1:05:46It's now been over a year since congress revised the compact of free association amendments act of 2024, which renewed our nation's commitment to the freely associated states and expanded federal benefits for their for veterans. I share um, ranking member leger fernandez disappointment that we don't have a va representative here, because I think all of us have expressed some concern about ensuring that those benefits extend to veterans. The law is very clear. Funding is in place now.
▶ 1:06:16The trump administration must be held accountable for fully implementing the agreements and delivering the services that were promised under the compacts. Fas citizens are eligible to serve in the us armed forces, and they've done so with honor. In return, congress authorized expanded access to va health care, including telehealth, mail order pharmacy beneficiary travel benefits so veterans can access even if they live far away from va facilities.
▶ 1:06:43The trump administration appears to be withholding implementation of these benefits, and continues to stall in carrying out their federal obligation. At the same time, trump's birthright citizenship, executive order and immigration crackdown have created confusion amongst people from those freely associated states who are living lawfully and working in the us, even though their legal status is protected under the compacts.
▶ 1:07:08This hearing is about whether trump administration is honoring both the letter and spirit of the compacts, including the obligations of cofa veterans and the freely associated states, whose partnership is vital to us security and regional stability. Since I know that neither of you can address fully some of those questions, which I'm sure will be submitted, I do have a question for Mr. demapan. Um, what are the current staffing levels in countries embassies, and how do they compare to prior staffing levels?
▶ 1:07:39>> thank you. Congresswoman, I will have to defer that to my colleague from state because I don't have the staffing levels of the embassies. >> Mr. >> yes. So so our unit, the department of state, maintains embassies in each of the countries, and the standard number of personnel is about four for direct hires permanently assigned. And then there's often tdy personnel coming through on a regular basis. >> and that's not changed. >> that is not changed. >> okay. And so the compacts provide that a us agency will assist in disasters.
▶ 1:08:08Usaid previously led coordination of this assistance. What's the status of transitioning these responsibilities from usaid to the state? >> yes. Thank you for asking that question. Uh, we that was one of our highest priorities was to transition the disaster response and preparation as quickly as possible from usaid, the state department. And that has been done.
▶ 1:08:31So the department of the bureau of east asia pacific affairs handles, um, disaster related preparation issues. And the bureau of population, refugees and migration will handle disaster response if there's a disaster. >> and so I'm assuming there's been no increase in staffing to any of those departments, but just added duties.
▶ 1:08:53>> uh, and in manila, we did we have a unit of, uh, that handles the disaster response there. Some of them are former us usaid officers who were hired by this, who were hired to state department. >> right. But overall, we haven't had a significant increase in staffing to take on the additional duties that have been transferred. But from. >> I would say no since we hired the former state department, usaid officers who are handling handling that now, they're with state.
▶ 1:09:23So we were able to even that out. >> and can you share with us the documentation of that so we can see the staffing levels prior to usaid, um, dismantling and what it looks like now? >> yes, we can. >> do that. Okay, great. And then, um, when were us officials appointed to the compact oversight boards? And what impact has that had on your ability to carry out the oversight functions in a timely manner? And that might be, I don't know either, Mr. grupo.
▶ 1:09:54Mr. epipen. >> I guess we were both assigned to that. >> yep. >> I know that's, um. >> no. So I took so I took over. It was as just a regular permanent foreign service, permanent change of assignment. I took duties as the office director in july. And then so then I was appointed the next month to the jim co and jim fact boards. >> okay. >> thank you congresswoman.
▶ 1:10:17Uh, I too, I'm new to the department, but I was appointed to the jim gemco, um, boards and the interagency group, uh, in may. And so since I've been there, I've started basically essentially the same oversight period with Mr. gribble's here. And so we've been committed to to taking our appointments and running with it to make sure that we're implementing what needs to be implemented and prioritizing the commitments of the compact. >> okay.
▶ 1:10:46Thank you so much, I yield back. >> the gentleman yields at this time. The chair recognizes the gentleman from guam, Mr. moylan, for five minutes. Mr. moylan. >> thank you. Chairman and ranking member, uh, thank you for hosting today's important hearing on the compacts and allowing me to wave on. It's a pleasure to be back here and seeing some familiar faces.
▶ 1:11:05The renewal of the compact of free association in 2024 reflected our country's continued commitment to partnership with the freely associated states, and served as the backbone to free, open and diplomatic indo-pacific for decades. The us and the republic of palau, federated states of micronesia and the federated states of marshall islands as well.
▶ 1:11:29Uh, likewise, the marianas and these island nations share deep historical and cultural connections. Guam, like other host communities, continue to welcome our brothers and sisters from the neighboring islands. However, implementation of the renewal compacts were not as smooth as I had hoped. My colleagues will remember the delays in implementing the provisions intended to expand health care access and v.a. Service.
▶ 1:11:55This is something I'm particularly concerned with and have joined my colleagues in pushing for quick implementation. Additionally, with issues with the united states post office will continue to be a great concern. Uh, question. First question is, have there been any further delays or uncertainties in implementing the veteran service provisions under the 2024 compacts? Either one please.
▶ 1:12:27>> thank you. Congressman, um, we're not aware of the specifics of the implementation. Uh, that is a question that we would have to defer to veterans affairs. Uh, but we are aware of the significance of the issue, and we continue to communicate, uh, the significance of the issue that has been relayed to the department from the fas to the department of veterans affairs. >> director, anything. >> yes.
▶ 1:12:52Um, we can say that the, uh, our interlocutors and the freely associated states are often raising the concerns about the veterans affairs, and we are passing, um, passing, um, those messages on to department of veterans affairs. And thank you. >> if we can stress that even more. It's a great concern, especially their commitment to the nation. Uh, they have so many purple heart winners over there as well. And that's something we promised. And that's something we should deliver. Thank you for that. Uh, next question.
▶ 1:13:22In the past year, I've heard many complaints about issues with postal service, uh, in the pacific, where many faced several delays and, uh, and efficiencies can be introduced. Uh, but this applies to both the territories and the free associated states. And it's come to my attention that usps is not maximizing the potential of its airmail contracts, which result in delay of service to residents.
▶ 1:13:50Can either of you speak to the logistics issues and the timelines associated with usps services? >> thank you, congressman. And yes, um, we have heard the the same concerns, uh, from the fas communities and as well as the territories. Um, and that was a subject of our discussion at our december meeting in the interagency group, uh, on fas.
▶ 1:14:15Uh, we were fortunate to have representatives from usps there, and although they were not aware of what the underlying factors are that is causing the mail delays, um, they were very, um, committed to taking it back and to ensuring to finding ways on how to resolve the issue. Uh, and so we are that that meeting just took place in mid-december. So we're waiting to hear some, um, affirmative action back from the dugouts that were discussed at that meeting.
▶ 1:14:44Uh, I'm also happy to report that, um, the recent feedback from the fas, uh, have seen very, uh, few delays and packages as I think, um, some of the glitches have been sorted out. Uh, but we continue to, to track that issue. >> I don't have anything to add, sir. Thank you. >> okay, I appreciate that. Maybe we can help the postal service understand or we're. There's no road going to it. We can't put it on a truck.
▶ 1:15:13It ends up going on a ship. We do have a commercial airlines that provides this service. They say we can pick up these packages, but we're not allowed to. And we have all this room. They're willing to just continue in doing it without an increase in cost. But I'm glad, uh, you folks are looking into it and we really need that that help as well. Uh, I may have time for one more question. So, uh, generally, how have the 2024 compacts been implemented?
▶ 1:15:39And are there delays in areas that we have not discussed? >> thank you. Congressman. Uh, I don't believe there are any significant delays in areas that we have not discussed. Uh, but in terms of implementation, uh, I believe that the department and our interagency partners are are working very hard and ensuring that the commitments are upheld.
▶ 1:16:03Uh, for the department of interior, I can say that, uh, we have an active engagement with the fas countries to push economic assistance grants toward their way. Director. >> nothing, sir. >> thank you. Thank you very much. I'm happy to work with both of you. I'm looking forward to getting the compact agreement finalized and helping our free associated states, and especially our territories. Thank you so much, Mr. chairman. Thank you. >> the gentleman's time has expired at this time. The chair recognizes the gentleman from the commonwealth of northern mariana islands.
▶ 1:16:33Miss king hinds for five minutes, miss king. >> thank you, chairman and ranking member, for allowing me to participate in today's hearing. And thank you to the witnesses for coming before us today. My district, the northern mariana islands, has a deep interest in the affairs of the freely associated states.
▶ 1:16:51Going back to our time as a single political unit, as the trust territory of the pacific islands, before we became a commonwealth and entered into political union with the united states. Um, you know, a lot of the conversations that I've been having within this past year as it relates to the freely associated states is, I think, is a misunderstanding of what the relationship is all about. Right.
▶ 1:17:16Um, and I guess, you know, the cofa agreement was never designed as a foreign to me anyway, was never designed as a foreign aid in the traditional sense. Uh, they were it was a strategic bargain. The united states receives critical defense and security rights in the pacific. And in return, the united states commits to helping ensure that these nations are economically stable, self-governing and resilient.
▶ 1:17:41And so I wanted to just have, uh, put that out there as, uh, you know, as a statement of fact, I think because there's a lot of misunderstanding as to what as to what the cofa agreement is intended to be. Um, so I wanted to ask this question, uh, to, uh, Mr. demapan, who is actually the first representative of micronesian descent on the joint economic management communities.
▶ 1:18:11And I want to see what your thoughts are on what you see as the greatest economic and security threat to the freely associated states. >> thank you. Congresswoman. Um, I truly appreciate that question because it is a deep concern, uh, for for the department, uh, for the department, the most significant threat, uh, in that region is de-population of the communities.
▶ 1:18:38And de-population is premised on the lack of available services and opportunities in the countries. And the cofa agreement can prevent that from happening, because the cofa agreement offers a platform to develop, um, the economies of these countries, to improve the livelihoods of these societies, to improve health care outcomes, to improve education outcomes, and to improve infrastructure needs.
▶ 1:19:06And I appreciate this question because on a personal note, I am married to an fas citizen. And and yes, I am. I'm of micronesian descent, and I have the opportunity to bring the work and the perspective of an islander to the table through the gem and the gem pack and the eag and the iag.
▶ 1:19:26And so I'm very grateful for this opportunity to be able to provide input, uh, from the department's point of view and to ensure that the commitments that america has made for a free and open indo-pacific, for a free and open, freely associated states, um, is there and it's upheld. >> so let me follow up then to ask you what what is what what new actions are the department of interior?
▶ 1:19:51What new action is the department of interior taking to propel economic development in the freely associated states under the renewed compact? >> thank you again, congresswoman. So under the renewed compact, um, there are many new projects that have rolled out and the department has been actively working, uh, with with our counterparts in the fas countries, uh, in in fact, uh, the gem fact, the gem co and the eag has also been actively working on, on
▶ 1:20:21Projects that are out there. So we're looking at, uh, grants that have been awarded to invest in, in schools, upgrading schools, upgrading health facilities and health centers, uh, upgrading the ports, um, upgrading power generation distribution to ensure that we can harden these needs in the communities as much as possible.
▶ 1:20:41And so, you know, to this point, we've already issued $750 million in payments just since the entry of force into this round of the covenant of the cofa agreements. >> so just one quick question. Um, you know, some of these benefits have to our citizens, like, uh, food stamp or nap, for example, um, has been extended. Right.
▶ 1:21:06But in the marianas, for example, we receive we don't have a snap program, we have a nap program, but we don't have the additional resources to be able to extend that benefit to our citizens. And so how can we work together to be able to ensure that these benefits are afforded to them wherever they go through the compact agreement? >> I don't have that information with me right now, congresswoman, but I'd be happy to take it back. >> all right. Thank you.
▶ 1:21:35I'm out of time. Thank you, I yield back. >> gentleman yields at this time. The chair recognizes himself for five minutes. Mr. dave min, in your testimony, you say the prc, the people's republic of china, has deployed an extensive influence operation aimed at corroding, corrupting and coercing democracies. What aspects of that influence operation give you greatest concern? And are the cofa agreements addressing those issues? >> thank you. Chair.
▶ 1:22:00So, um, all aspects of the prc activities and the fas, uh, are of grave concern to us. Um, and so we believe that through the commitments of the cofa agreements, uh, the united states has this opportunity, uh, to thwart those threats by. >> is there any threat that we're not addressing through cofa agreements that you're aware of? >> I'm not aware of any chair. >> I have a question about a meeting that happened december 19th, 2025. The interagency group on the fas met.
▶ 1:22:29Congress has not received an official briefing on how that meeting, uh, went. Could you speak to some of the issues that were raised in that in that meeting? >> thank you. Chair. Yes, I could um, that meeting was just held, um, a couple of weeks ago or in mid-december.
▶ 1:22:47Uh, some of the issues that we discussed there were the concerns raised by the fas on on veterans access to services, um, usps mail delays were discussed there. Uh, we had a discussion with hhs on the reestablishment of the head start program in the marshall islands and in the federated states of micronesia. We also had a discussion with the peace corps on, um, on reestablishing their presence in the fas countries.
▶ 1:23:16Um, and what. >> were the follow ups for doi that came out of that meeting? >> I'm sorry, can you repeat that? >> what were the follow ups for the department of the interior that came out of that meeting? >> so at that meeting, we we did have a list of we generated a list of due outs and the representatives of those agencies that were at the december 19th meeting took those due outs back to their agencies. And so we're now waiting to hear back, um, on some of the action items that need to be reported back to the iag.
▶ 1:23:46>> Mr. how about on the state department side? We're we're there follow up actions generated from that december 19th meeting for state. >> so the follow ups from the state department were more associated with um, with more chairing the iag to to. So what the state department's response with interior will come up with the checklist. And we're going to be working with all the other departments on all these lists on these items as a follow up on that.
▶ 1:24:15So checking with them on that to those methods. >> can I ask you the question about china that I asked your colleague? Um, what aspects of the influence operation in the chinese, the people's republic of china is exercising give you the most concern? And do you believe that those threats or challenges are being addressed through the agreements, or are they not being addressed?
▶ 1:24:41>> so china uses diplomatic information and economic tools, some of them malign, some of them normal, to expand its influence. And what what the cofa agreements, the economic assistance related with them. What's most important is that it creates an economic vacuum for being established.
▶ 1:25:04China loves vacuums, and so if we didn't have the jim crow jim fac committees, you know, these sector grants and so on to help these countries economically with their with their services, uh, china would be filling that gap. So from that point, I think the agreements have done about 8,090% of our job.
▶ 1:25:27But there's always a few gaps that we have to be using through regular state department and, and other interagency efforts. >> so is depopulation a concern of yours? Is that fundamentally the the one of the top issues? >> yes. So, yes. So these as we know, the fast countries, all of them are concerned about our outward immigration to the united states, perhaps too much of it.
▶ 1:25:54And sometimes that's got to be filled by other third country nationals. You know, there's a lot of filipinos, for example, um, working in them. That's fine. But that's shows of where they have to get some of their sources of, um, labor is coming from other countries in the region, including as well as china. You also see some chinese, just like in other pacific island countries. You're seeing people moving in from china as well. >> thanks. Mr. uh, Mr.
▶ 1:26:19Demapan, in september 2025, the doi office of the inspector general published a report on late single audit submissions by the american territories and fas. What steps is doi taking to address the late single audit submissions by the fas?
▶ 1:26:35>> thank you chair, and I'm happy to to report that even before the ig report came out, uh, under the current leadership at insular and international affairs, we had raised this flag, uh, with the with the fas countries and the territories, uh, at the beginning of this administration, because we saw the significant delays in, in audit timeliness.
▶ 1:26:57And so we raised that flag and we had begun the efforts to try to assist, uh, the countries in getting their audits back up to date. And so the efforts that we have taken since, uh, and the I.g. Report came out in between that undertaking, uh, we have provided an economic assistance, uh, technical assistance grants in the form of $250,000 to each, uh, government.
▶ 1:27:24And that means in the fsm, the national government and each of their state governments. Um, and so we provided 250,000 for each government to hire additional manpower to address audit needs and audit timeliness. We have also engaged in a contract with independent contract with audit firm that is, uh, contracted by interior to go out to deploy out to the islands to also assist in audit timeliness. And so that contract is rolling out on february 1st. >> thank you very much.
▶ 1:27:53My time has now expired, and I want to thank both of our witnesses for their valuable testimony and also for my colleagues for their questions. The members of the committee may have some additional questions for you as witnesses, and we would ask that you respond to those in writing. And with that, thank you very much, gentlemen. I would ask the clerk to please reset the table for our second panel.
▶ 1:29:19I would invite our next witnesses to go ahead and take their seats. Our ambassadors.
▶ 1:30:06We can't start without our dean of the ambassador corps here. >> getting ready. >> okay, great. At this time, it's my pleasure to introduce the witnesses for our second panel. The first is Mr. hershey kyota, ambassador to the united states from the embassy of the republic of palau in washington, dc.
▶ 1:30:29Our next witness is his excellency jackson sorum, ambassador to the united states from the embassy of the federated states of micronesia here in washington, D.C. and last is his excellency charles paul, ambassador to the united states from the embassy of the republic of the marshall islands, also here in washington, D.C. let me remind the witnesses that under committee rules, you will limit your statements to five minutes, but that your entire written statement will appear on the hearing record.
▶ 1:30:57To begin your testimony, there should be a talk button in front of you. Go ahead and press that. We do use timing lights. When the light is green, you are able to speak. When it turns yellow, you have one minute left and when it turns red, I would ask that you please wrap up your opening statement, or the answer to any question that you're giving as quickly as possible, and I'm going to allow each of you to testify before member questioning begins. And with that, if you are ready, um, ambassador kyota, I recognize you for five minutes.
▶ 1:31:34>> thank you, Mr. chairman. Uh, ranking member and distinguished member of the subcommittee on indian and insular affairs. Good morning. Thank you for this opportunity to appear before this subcommittee. The relationship between the united states and palau under the compact of free association continues to improve.
▶ 1:32:02Our relationship is so close that last the last us indo pacific commander said once palau is part of the homeland, we have cooperated and collaborated on many issues and we will continue to do so. I hope that you will continue to have hearings like this to discuss issues and problems that we may have in the future.
▶ 1:32:35Generally, the implementation of the compact of free association act of 2024 is progressing well. Funding projects and programs are making the intended impact. Assistance is being dispersed in a timely manner.
▶ 1:32:56Some infrastructure projects are under construction and contracts for some will be awarded soon. Most of palau domestic responsibility under the compact of free association act have been met. Some are being fulfilled exceptionally well. The construction of the peleliu airfield and its facilities is underway at a remarkable pace.
▶ 1:33:26The environmental impact assessment and work permits for the renovation and improvements of malakal seaport are completed. This project are important to the united states military and to the palau commerce as well. Some areas are designated for exclusive military use and some are designed for joint use.
▶ 1:33:52The military early warning radar system is almost operational. The missile test shots have been successful for the most part, the compact act has been implemented as intended. As I said, there are a few provisions, however, that have not been or have not fully been implemented.
▶ 1:34:20As a result, our citizens and our bilateral bilateral relationship are denied of these benefits or programs. One of them is the the employment authorization document, or ead, or sometimes referred to as work permit.
▶ 1:34:40In the in the new compact, we were able to successfully negotiate that citizens of palau won't be won't be required to have ead to work in the united states, and it's in the law. But the the department of homeland security continue to require our citizens to obtain work permit in order to work.
▶ 1:35:06As a matter of fact, two days ago, one of our citizens called the embassy and request assistance because he was terminated, because he didn't have a ead. And one of the. Of their site, one of the site, the is called the fact sheet republic of palau.
▶ 1:35:29When you go to that site, it said that although it is no longer required, it is highly recommended that citizens of palau have obtained. There is something that we need to discuss more with the homeland security to see how what we can do to prevent this from happening again. Uh, in-state tuition is another one.
▶ 1:35:58The last, the the compact, the current compact. We were we negotiated to have our students pay in-state tuition and the, uh, the department of education put that in their website. But there are many public colleges and universities that still deny our citizens of this, uh, opportunity.
▶ 1:36:27Uh, I guess we have to, uh, ensure that this institution are reminded of this law. Uh, another issue is the the recent, uh, new rule on commercial driver's license.
▶ 1:36:49Uh, the department of transportation proposed new rule on commercial driver's license. Would, uh, this would disqualify aliens not domiciled in the us. Which include citizens of freely associated states, but fas citizens are domiciled here under the compact.
▶ 1:37:17So I and and I, I like to thank, uh, secretary uh december and deputy assistant secretary uh demapan for writing a letter to, uh, the secretary of transportation explaining our special relationship so that our citizens would be able to continue to obtain commercial driver's license.
▶ 1:37:48>> thank you. Ambassador, if I could ask if you wrap up really quickly, please, I apologize, but we're out of time here. >> okay? The the veterans, the veterans benefit. Everybody talks about this. The us military recruits freely associated, uh, citizens, uh, to serve in the us military.
▶ 1:38:07So since november, this this congress has enacted two, two laws are pressing the department, uh, to to provide telecare telehealth care and mail, prescription medicine.
▶ 1:38:30Us military, uh, veterans living in palau. >> Mr. ambassador, thank you very much for this testimony. I promise you that everything that you've submitted in writing will definitely appear. >> thank you so much. >> uh, in the record. And at this time, the chair now recognizes ambassador sorin for five minutes. Ambassador sorin. >> Mr.
▶ 1:38:56Chairman and ranking member, thank you for the opportunity to testify before you today regarding the implementation of the compact of free association amendments act. My name is jack, and I'm the ambassador of the federated states of micronesia to the united states. Our countries enjoy a close, mutually beneficial relationship with long held diplomatic, economic and military partnership underpinned by the comeback of free association, or cova.
▶ 1:39:25Our bond was reinforced in 2024, when the congress voted unanimously to update key provisions of the compact for another 20 years. This critical law provides updates and extends economic assistance provisions to help the fsm build a more prosperous, self-sustaining economy. The agreement restores and extends other important federal benefits for fsm citizens in the united states.
▶ 1:39:53We are extremely grateful for the leadership by this committee and other champions to pass the act, as well as your dedication to ensure proper implementation of the agreement. I would also like to highlight the department of wars planned infrastructure investment in the state of yap. As announced in march 2024.
▶ 1:40:15We are pleased to continue our collaboration with the department of war on these projects to advance our shared security and defense priorities in the indo-pacific region. These projects would not have been possible without the continued success of the comeback in bringing our nations closer together than ever before. I'm pleased to provide an update on the implementation of the comeback agreement.
▶ 1:40:44The agreement provides annual sector grant funding in key areas to support the essential health, education and infrastructure projects. The sector grants helps support our hospitals and clinics, assisting the funding of our educational system and support critical infrastructure improvement projects for telecommunications, roads and bridges. We are also grateful to the united states for its additional contribution to the compact trust fund.
▶ 1:41:12Following passage of the amendments act. This infusion grows comeback fund and continues to fsm on its path to long term budgetary self-reliance. The has worked closely with current and previous administrations on implementation of key benefits and programs authorized under the law.
▶ 1:41:35In 2024, several agencies started the restoration of public benefits for fsm, including programs such as snap, tanf, and fema assistance for eligible citizens in the united states.
▶ 1:41:53Additionally, we have worked with the department of education and health and human services on the continuation and restoration of key programs benefiting fsm citizens, including pell grants and head start. We appreciate congress support through the continuing resolution to provide funding for the head start program.
▶ 1:42:16Implementation of the agreement is going well, but we have encountered challenges specifically for the department of veterans affairs regarding the support for veterans in fsm. The fsm is extremely broad. You have one of the highest enlistment rates per capita in the united states military. Sadly, when our veterans return home, they face significant cost and access barriers to va health care.
▶ 1:42:39You are pleased that the amendments act gives the va new authorities to provide enhanced access to care, including health care, beneficiary travel and mail order pharmacy services for veterans in the fsm.
▶ 1:42:55Unfortunately, we are still waiting on the va to deliver on your mandate after your last oversight hearing in september september 2020 for the fih started productive talks with us, but those were suspended in april 2025. We stand ready to start, restart talks and finalize the agreement as soon as possible. We appreciate the committee's leadership, which led to bipartisan, bicameral legislation and ultimately senate passage last month.
▶ 1:43:25We look forward to working with congress and the administration to see that our veterans have access and benefits they earned through their services to ensure the implementation is consistent with the congressional intent of the law unanimously approved by the congress.
▶ 1:43:45In closing, I would like to highlight the importance of restoring the peace corps in the fsm and appreciate the members here who have supported that effort. Thank you, and I look forward to answering your questions. >> thank you, ambassador sorum, for your testimony. The chair now recognizes ambassador paul for five minutes. Ambassador paul. >> chairman. >> ranking member fernandes and distinguished members, thank you for the opportunity.
▶ 1:44:13The compact is not merely an existing framework. It is the foundation of a partnership between the us and the marshall islands, advancing us national security, regional stability and long term resilience in our islands and the pacific. I will focus on five priority issues. First, the bonding requirement. Compact infrastructure is essential to economic stability, workforce development and our national resilience. New interim bonding guidance.
▶ 1:44:42However, risk excluding capable local contractors not because of performance risk but because of structural financial barriers. For more than two decades, the rmi has successfully implemented projects under a 10% bonding standard combined with strict safeguards reimbursable payments only after inspection, mandatory insurance and retainage through a warranty period. This framework has operated without defaults due to local contractor performance.
▶ 1:45:14The true issue is not contractor experience or audit history. It is the absence of a functioning surety market in remote pacific jurisdictions. Bonding that relies on letters of credit or full collateralization are simply unavailable locally and effectively precluding capable and qualified marshallese firms from being prime contractors.
▶ 1:45:37The rmi therefore seeks restoration of a 10% bonding standard, which proved to be effective in promoting public funds while enabling local participation essential to long term economic growth and stability. Second, the definition of programs, use of the supplemental health grant and the trust fund.
▶ 1:45:59Contributions to island adversely affected by euclid by us nuclear weapon testing and waste disposal of I or icbm testing have been held have been held delayed due to differing interpretations of the term. Programs in proposals for use. This is not a technical or administrative question. It is an issue of policy and intent. The rmi has formally transmitted its definition, which which is consistent with the compact and related agreements.
▶ 1:46:28The us has responded with its own and a proposed agenda for discussion. The rmi is currently preparing its response so that the government to government discussions can be scheduled as soon as possible to reach a shared, consistent interpretation and allow compact resources to be used further without further delay. Third is the nuclear legacy, the unresolved legacy of the us nuclear testing and waste disposal in the marshall islands is not abstract history.
▶ 1:47:00It continues to affect families, communities and our association. From 1946 through 1958, marshallese communities were moved back and forth away from their homes and islands and exposed to fallout and continuing radiation. The consequences did not end when testing ceased or nuclear waste, including from nevada, was disposed of in our islands.
▶ 1:47:23They persist today in health effects on even a fourth generation loss of land and intergenerational trauma. For most of all, the atmospheric bomb testing and the us ever detonated. This committee helped determine a key fact.
▶ 1:47:38It found that the day before, the largest ever bomb tested at evacuated bikini, the atomic energy commission learned that the winds had shifted and fallout would land on roll up and woodruff atolls, but proceeded despite the fact that the people had not been evacuated. That record matters not to assign blame, but to ensure that the issue is addressed fully and responsibly.
▶ 1:48:06The marshall islands proceeded with the 2024 compact amendments in good faith, with an understanding, shared understanding with members of congress that the nuclear legacy would remain an open matter. Congress reinforced that understanding with explicit provisions for reconsideration of the issue. Support for a nuclear legacy museum, access to declassified records, programs for affected communities, etc.
▶ 1:48:30Given this committee's proud record and oversight role, it is well positioned to ensure this issue is finally resolved. Fourth, veterans health care I address this most direct and disappointing failure in implementing the compact act in a veterans affairs committee health subcommittee hearing on a bill ensured that the va provides the health care intended by the compact act, sponsored by congresswoman king hines, with others including
▶ 1:49:01Congresswoman radewagen. Yesterday, I asked that my statement be included in the record of this hearing to and that you support the legislation. Finally, the tuna tariff issue in october 2025, us customs and border protection reclassified tuna harvested in the exclusive economic zone as foreign or foreign origin based solely on vessel flag. Reversing decades of established practice without prior consultation.
▶ 1:49:31As a result, tuna now faces a 45% tariff, effectively closing the us market. Tuna is a cornerstone of our economy, supporting government revenue, employment and food security. This directly implicates compact implementation. In response, the of the. The parliament of the republic of the marshall islands has unanimously adopted resolution 60, addressing the legal and economic implications of this action. Mr.
▶ 1:49:59Chairman, with your permission, I respectfully request that resolution 60 be introduced into the record of this hearing. >> Mr. Mr. your time is almost up. If you could conclude your remarks. >> thank you. >> in closing, the rmi approaches compact implementation as a shared responsibility grounded in trust, accountability and partnership where challenges arise.
▶ 1:50:25We believe that the best resolved through timely, good faith government to government engagement. Thank you and I look forward to your questions. >> thank you very much. Mr. ambassador. At this time, I am going to be recognizing members for five minutes of questions, and I will start by recognizing myself for five minutes. This is a question for all three of you ambassadors.
▶ 1:50:44Under the cofa agreement, citizens of the fas are eligible to serve in the united states military, and my understanding is that the fas countries have some of the highest rates of enlistment per capita, even when compared to the 50 united states. My question is this. The cofa include provisions addressing va benefits owed to us, us veterans in the fas.
▶ 1:51:04Could each of you speak, please briefly to the importance of providing veterans benefits to fas veterans of the us military who return to the fas after their service, and also talk a little bit about the challenges that fas veterans face. Us ambassador kyota.
▶ 1:51:37>> thank you, Mr. chairman. Uh. The palau is the. I'm sorry for palau. It is veterans administration. I mean, uh, benefits right now.
▶ 1:51:54We have, uh, more than 250 veterans who are registered as members of the palau veterans association palau. There may be more, but only 200 are registered. But and they and right now there's no benefits.
▶ 1:52:20So, uh, we we we want to request this committee and, and everybody in congress to please. Right now there's two, two laws that provide for benefits to veterans living abroad in palau and fsm. Rmi but they have not, you know, uh, implemented.
▶ 1:52:43So we ask that, uh, you know, palau is so far from, from guam and from hawaii, and they cannot afford to travel to hawaii for, uh, for medical, uh, care. So if they if this, uh, medical health care is provided to them in palau, we would appreciate that very much. >> thank you. Ambassador. Ambassador sorum.
▶ 1:53:14>> thank you, Mr. chairman, for the question. Uh, let me begin by providing some background information as to the situation with our veterans. I think that should shed light on the kind of challenges that our veterans face, uh, because of our remoteness, because of our isolation. When veterans return to the islands, uh, they face the problem, the issue of access to to health care.
▶ 1:53:36So they are forced to travel long distance, often to guam and to hawaii, uh, to receive the services. And in doing so, they are forced to pay for expensive tickets on their own in hopes that they will be able to be reimbursed for it. Sometimes they get reimbursed, sometimes not.
▶ 1:53:58And even in the process of doing that in visiting, whether it's guam or hawaii, uh, those services are often longer because of appointments. And so they will be forced to do some lodging and, uh, expenses of those are very, very expensive. I think the picture I'm trying to paint here is for our citizens that challenges that our face. Face is very real. Uh, so those are the kind of things that they go through.
▶ 1:54:26But I think it's also good that we we focus on what we think should be the, the solutions in trying to find this. And we've, uh, like I said in my testimony, we we had started the talks with the va on this, outlining some of the areas of that we can address. Uh, one is beneficiary travel. Another is telehealth, another is mail services for pharmaceuticals. And, uh, yeah.
▶ 1:54:59>> that is very. >> helpful, ambassador. Thank you. And I want to give ambassador paul time as well. Ambassador paul, can you speak to the importance of providing veterans benefits to veterans, um, who are of the us military and some of the challenges they face? >> thank you, Mr. chairman. Yes.
▶ 1:55:14Um, the veterans, they we I think we could all agree that, you know, some of the challenges and the the issues that they, they, they, they face, whether it's medical or or mental health issues, it's, um, it's unique to veterans. Um, and, and we're seeing those we're seeing a lot, a lot of that in the marshall islands. And it's very important that the care that they're, they're promised is, is provided. And, um, thank you, Mr. chairman.
▶ 1:55:48>> great. >> uh, thank you very much, ambassador paul. And I see that my time has expired. Ambassador paul, I want to follow up on a request you made. You made an official request into the record. As your statement is added fully into the record, please have your team send that over. After this hearing, we'll make sure that that document gets entered into the record as well. Okay, ambassador. >> thank you. >> Mr. chair. >> thank you very much. At this time, I would like to recognize the ranking member subcommittee, miss leger fernandez for five minutes. Miss leger fernandez. >> thank you, Mr.
▶ 1:56:15Chairman, and I'm going to go back and I'm going to get to the witnesses in a bit. But the ranking member of the natural resources committee began the hearing talking about the issue of greenland. And he asked the ambassadors, has there been any discussion at state about taking over greenland? And people might have said, well, why are we talking about that here?
▶ 1:56:40Well, because this is the committee of insular affairs and because we should not be talking about taking over greenland, because it is an independent nation. It is part of denmark. We have a relationship with the freely associated states because they freely entered into compacts with us. And this is not theoretical. What he raised, secretary of the interior, secretary burgum just posted.
▶ 1:57:09A map that shows the new interior contains greenland. The new interior does not contain greenland. President trump has said it is psychologically important for me to own greenland for him, not for the nation. And he says I am not opposed to using nuclear force.
▶ 1:57:41If he needed it to acquire greenland. He then said that the only thing that can stop me is my own mind, my own morality. Well, I need to tell you, president trump, you cannot go and acquire a nato state because you want it. So you can be psychologically happier.
▶ 1:58:07Congress can stop you from invading a nato state. We need to remember that nato states were our allies in fighting fascism in world war two. We have no business trying to take over a nato state, an element of a nato state. So congress needs to act, and I hope that my republicans will join with the democrats, because this is a bipartisan issue.
▶ 1:58:33We should not be allowing a president to say he's going to take over a nation state, a member of nato. This is an outrage. But let's talk about what is before this committee, the insular affairs committee that looks at interior issues. And I am concerned about an element of de-population that was mentioned earlier.
▶ 1:59:00And I think that I was going to ask a lot of questions about the va, but I think that I thank the chairman for going into detail about that. But I think this issue about de-population relates to if people can't get care on their island, they will leave. But also, ambassador paul, you mentioned the issue of the tariffs.
▶ 1:59:23The tariffs are wreaking havoc on prices in the united states, but tariffs are also hurting your nation. Can you go on to do is what happens when you can no longer because of the tariffs altoona to us. How does that hurt the ability of people to stay on the island and make a living? >> thank you ranking member.
▶ 1:59:49So yes, the tuna tariff is is really hurting our tuna industry. Uh, effective, like I said, effectively closing the, um, the us market to us. And tuna is a bedrock of our of our government resources that provide jobs. It provides opportunities for us and and that and a couple other things. And I mentioned the bonding issue.
▶ 2:00:16Um, all those things contribute to jobs, loss of jobs, opportunities, that is will drive up immigration out. And obviously, the marshall islands government is doing everything in its power to try to keep our people, uh, lowering taxes, um, you know, giving incentives for people to stay in the islands. But it's always about jobs and opportunities. And if, if and we're trying our best to try to mitigate those issues.
▶ 2:00:45So that's why we we're pushing for government to government discussions to try to resolve a lot of these issues before they get out of hand. >> right. And we should not be imposing such high tariffs. Was it 45% on tuna? Am I remembering that correctly? >> that is correct. Yeah. Uh, sorry. >> you're an ally. You're you're important to us for our own military security. And so I'm sorry about that. And, uh, just if I could just have a yes or no.
▶ 2:01:13Ambassador kyota, your statement about this is impacting your family itself. The fact that they can't, they're veterans and they can't get care. And, uh, also, ambassador sorum, the issue of depopulation is the lack of va care contributing to de-population. >> that's what we're so. >> if you could turn on your microphone, Mr. ambassador, and answer very quickly.
▶ 2:01:43>> please answer very quickly because we have run out. >> of time. >> um. I'm sorry. Just say, uh, even some of our veterans who live in the united states have gone back to palau. But when they, as soon as they find out there's no health service, health care, they pack up and leave to guam or hawaii or back to the where they were from. So it is it is difficult. Thank you. >> thank you. Uh, sir. >> yes, I would share the same sentiments as my colleagues are saying.
▶ 2:02:13Uh, I've been around the country with visiting states, uh, different parts of the country, and we have a large population of our veterans who are also here in the united states. And the reason why they're not coming back is because they can't access the benefits back home. Uh, preference would always be to be back in the islands, but because of those accessibility barriers, uh, they chose to remain out here. >> well, you have beautiful islands that I'm sure people would love to go back to. And with that, I yield back. Mr.
▶ 2:02:44Chair. >> thank you. Uh, the gentleman's time has expired. At this time. The chair recognizes, uh, the vice chair of the subcommittee, the gentleman from american samoa for five minutes. Mr. pat harrigan. >> thank you, Mr. chairman. Welcome. Um, your excellencies, uh, my question is, is for all the ambassadors, but, um, my question's very similar to the one I asked Mr.
▶ 2:03:09Demapan earlier, and, uh, quite a bit of it has been covered. But let me ask anyway, are there any aspects of the agreement you think might benefit from clarifying language or direction from congress to avoid a similar situation as what happened with va?
▶ 2:03:41>> uh, thank you, congresswoman, for the question. And as it pertains to va, I think the three of us here have been clear on our position on va, on on the barriers that we're facing. And, uh, it couldn't be any clearer than what the congress has mandated in, in the law that authorized va to provide these benefits. Uh, what the obstacles are and what the challenges are is something that I think we need to work through with the us government.
▶ 2:04:09But to your question, yes, I think congress has been clear with that authority. And it's a matter of implementation. And I hope that the the administration will take take note of that and proceed with whatever we need to do to implement that authority provided by law as passed by the congress. >> ambassador paul. >> thank you. Thank you, madam vice chair.
▶ 2:04:36Um, for my it's specifically on the programs issue. And this issue has come up with, uh, both in the trust fund agreement and the supplemental health fund, uh, both rmi and the us, we have differing views on what a program is. Obviously, programs is not defined in the compact. So that's the issue. And it's causing, uh, disruptions in operations and planning for the rmi.
▶ 2:05:05And um, hopefully within the next couple weeks, we'll be able to meet to resolve those issues with the administration. Thank you. Thank you. >> and, uh, to the dean of the entire diplomatic corps, ambassador kyota. >> thank you. Uh, congresswoman, first of all, I'd like to thank you for co-sponsoring the the the bill, uh.
▶ 2:05:30For, uh, to provide the again, uh, benefits to, uh, veterans living in, in the freely associated states. Uh, right now, there are, as I recall, there are two laws, uh, the continuing resolution and the ndaa act.
▶ 2:05:54They have authorization for to va to start, uh, providing health care benefits to our citizens who are living at home, veterans who are living at home. Uh, but, uh, va has yet to really show, uh, uh, their attempt to, uh, abide by this legislation.
▶ 2:06:24And so hopefully this bill and other bills pending in congress to provide the benefits to our, uh, citizens who are who serve they didn't only they they are not only entitled to they they they serve. Some of them, uh, made the ultimate sacrifice. And I think they deserve to, to get these benefits. Thank you very much.
▶ 2:06:51>> uh, and lastly, I would like to give a special greeting to, uh, retired colonel leo falcam, uh, who is sitting right behind, uh, ambassador kyota, I want to thank you for your service and your sacrifice to our nation. >> gentleman. Yields at this time. The chair recognizes the gentleman from guam, Mr. moylan, for five minutes. Mr. moylan. >> thank you, Mr. chairman.
▶ 2:07:20Thank you, your excellencies, for providing your statements. I'm a soldier myself, and it's very unfair that. Well, we should be correcting this problem right away. I'm glad you're in discussion with the va. And so, so are the marianas. Uh, we have very similar situations. Uh, in fact, it's a great struggle as well. Uh, traveling to hawaii. Uh, we could go to the philippines, but there's still a lot of, uh, transportation issues with that to one big thing.
▶ 2:07:49We we our problem is having it at least have a regional office for the va on on guam. Uh, we hope we can also service, uh, the free associated states as well. The processing of that paperwork is so important. Uh, it's it's. It's interesting to know that within the philippines, they have a regional office and they have the, uh, the medical facility as well, uh, since world war two.
▶ 2:08:17Uh, but yet our free associated states and mariana islands have none. And the philippine services, about 11,000 people, uh, between the marianas and the free associated states were. And american samoa were over, uh, 20,000 that we can be servicing. And we should, uh, I proposed the, uh, removing the regional office from the philippines and moving that at least to guam.
▶ 2:08:46Uh, we'll continue that fight, but I, I hear you and I, I want to make sure our veterans, our soldiers and the history of the free associated states involvement in the wars, uh, with the united states and the continuing, uh, partnership that you offer, uh, with the united states and the sacrifices, uh, that your, your community is doing is is worthy much more worthy of that, uh, I think, and should be brought back, uh, back to a support us. So I'll continue to update you on how that goes.
▶ 2:09:15In the meantime, my concern is with also with the terrorists and the fishing fishing industry. And how is the, uh, do you seek additional, um, uh, aggression from the ccp in the waters and fishing of the tuna with the iuu fishing? And is that being addressed also in your, um, uh, ambassadors, please? Your excellencies, whoever wishes to chime in on that. Thank you.
▶ 2:09:49>> uh, let me start by, uh, tourists first, just before covid hit, uh, we had so many tourists from, uh, uh, prc coming to palau. Uh, and they were trying to, uh.
▶ 2:10:09Ask us to switch from prc to, from taiwan to prc. So they fled, uh, the market tourist market in palau. But when we we when we didn't barge, they stopped. They stopped tourists. So the economy went down because, you know, the tourist was down. And then we got hit by covid. So our economy was so down.
▶ 2:10:37But, uh, we didn't we didn't change because we believe that, uh, we believe in democracy in taiwan stand for democracy. That's why we believe in, uh, there are some other, uh, influence by by chinese. And we have asked the united states, especially, you know, the cia, to assist us.
▶ 2:11:01So they have identified those, uh, illegal or illegal, uh. Illegal companies or illegal individuals that are tied with ccp. So, so our president have identified them and put them in, uh. Was undesirable aliens. And and we send them back.
▶ 2:11:29So this is in hope that we can do, uh, legitimate business when they come to palau, instead of just picking up somebody without knowing his, his or her background. Unfortunately, some of these illegal activities going on in palau are also supported by some of our leaders on the left wing leaders.
▶ 2:11:54So it's hard, but we are making progress, and we thank the united states for assisting us in this process. >> thank you, your excellency. Uh, just a couple of minutes there. Uh, anybody else? Briefly. Seconds. >> yeah. Let me just speak to the issue of fisheries in general as as a major sector for the islands. And this is very true for for the three of us, fishing is our number one economy.
▶ 2:12:20Uh, so when you speak to fishing industry, it's $1 million industry. And when you speak to iou, that's also $1 million loss, more than $1 million loss. So you can see the critical need to have this kind of cooperation. And we're grateful for the us coast guard doing all the monitoring ship writers agreement that provide for monitoring and surveillance. Your excellency. >> I'm sorry. I'm out of time, but thank you. Thank you very much. Thank you, Mr. chair.
▶ 2:12:51>> the gentleman's time has expired. At this time. The chair recognizes the gentleman from the northern mariana islands. Miss king hanes for five minutes. Miss king hanes. >> uh, thank you, Mr. chair. And thank you to the ambassadors for being with us today. You know, all too often I sit in these rooms where everybody is an expert in our island communities, our economies. But nobody's talking about how does the government keep the light on, how do we put food on the table, and how do we secure a future for our children in our islands? So your presence here is very important.
▶ 2:13:19So we can hear directly on record what the challenges are. And I, you know, want to give you guys the opportunity, uh, to each share which implementation issues are top of mind for each of you and why these are important to upholding, uh, us commitments. And any of you can start and I know ambassador sorum was speaking about the fisheries, so I'm not sure if that's number one on the issue, but I guess you can go ahead and start.
▶ 2:13:48If you wanted to further elaborate. >> yeah, let me speak. Uh, since I've already talked to you, but in terms of implementation, top of mind implementation issues for the comeback, I would like to highlight again the veterans issues because I think it presents a different challenge now in its own implementation. We've talked about it the previous panel, I've talked about it. So I want to put on the table that that is a challenge.
▶ 2:14:14Uh, in terms of implementation, the second item that I want to associate myself with, my colleague here is the funding issue. Uh, just because it provides a different challenge in, uh, the way the funding requirements are set up now currently eliminates our local companies to participate in, in the process of compact development and economic development. So but I also want to say that we are working through this with our partners.
▶ 2:14:42I'm grateful for toy and department of state. We're we're looking at options. Uh, we've been communicating. They've we've give them their views. They provided their, our their views as well. Uh, the process is ongoing. We are looking at what they have come up with. So those two items, I think, uh, in terms of implementation. Thank you. >> madam. Thank you so much for for that question.
▶ 2:15:08Um, I just want to also add to, um, the issues top of mind for us obviously, is also the bonding issue, uh, programs. We're trying to clear that up now with the us and the nuclear legacy issue. But back to the bonding issue, if I may, to give you a, um, example, the rmi government is looking to build a new hospital. That hospital could probably cost about $100 million.
▶ 2:15:37There's absolutely no way local contractors would be able to be to bid on those on that project because of the bonding requirement. Um, now, ironically, there will be the ones who will build it because they'll be most likely subcontracted. So it defeats the purpose of this whole process.
▶ 2:16:02And um, and we made we're making that clear to the us administration and hopefully we can come to an agreement on that. And obviously the nuclear legacy issue, it's, you know, it's it's at the forefront of our everyone's mind. And it's something that, you know, we feel that it needs to be addressed. It has to be addressed. There's a moral obligation to try to, um, address it once and for all. So we look forward to working with the, um, with, with with congress.
▶ 2:16:31I'm trying to see how we can move move those issues forward. Thank you. >> ambassador kudo, I have about a minute and 20s left. >> this is very quick. Uh, last year, uh, I know the last september, 2024, when we had our last hearing here, I, uh, I mentioned about the need for a new hospital in palau because our hospital was built the probably more than 40 years ago
▶ 2:17:01During the trust territory time, and it was built in a low area. So right now, when the, uh, what they call the king tide or storm, uh, the floor is initiated by flood, uh, seawater, seawater coming into. So and on top of that, it's located across the causeway. So it's very hard for emergency. Uh, fortunately, we have been able to, uh, uh, get, uh.
▶ 2:17:30An agreement with the us to provide a new hospital. So my, my, uh, my request is if the, uh, administration are request funding from congress, I would appreciate if you help us in this new period, because we definitely need it. Thank you. >> I'm out of time, I yield back.
▶ 2:18:01>> the gentleman's time has expired. At this time. I want to thank each of our witnesses, the ambassadors, for their valuable testimony. And also to my colleagues on the dais here for their valuable questions. Members of this committee may have some additional questions for each of you witnesses, and we'd ask that you respond to those in writing. Under committee rule three, members of the committee must submit those questions to the committee clerk by 5 p.m. On tuesday, january 20th, 2026.
▶ 2:18:28The hearing record will be held open for ten business days for these responses. If there is no further business. Without objection, the committee stands adjourned. Thank you.