Congresswoman Madeleine Bordallo of Guam, a U.S. territory, has introduced legislation to “deal with the longstanding problem” of inadequate compact impact reimbursements from the federal government.
Guam and Hawaii receive about $18 million annually out of a $30 million expenditure to help offset local costs from increasing Micronesian immigration.
But the actual costs to the islands are much higher, as the Compact of Free Association has allowed citizens of three Micronesian nations to live and work in Hawaii and Guam.

“Whether it’s compact aid, medicaid, highway aid, or technical aid, Bordallo argues federal sums for Guam are not realistic,” according to a news report. “She says compact aid has come up short of local needs by millions every year, for decades, leaving a big hole in budgets like that of the Guam Memorial Hospital.”
Bordallo said, “My bill would permit the affected jurisdictions to use the cumulative amount that they have spent to provide social services to COFA migrants, towards the non-federal portion of providing medicaid to their local residents. The bill proposes a new formula that would increase the federal medical assistance percentage for each of the affected jurisdictions.”
U.S. Rep. Mark Takai of Hawaii, a Democrat, is a co-sponsor of the legislation.
“One of my first bills I introduced when I came to Congress, The Compact-Impact Aid Act of 2015, would increase annual funding for regional migrant costs from $30 million to $185 million,” he told Civil Beat. “I am happy to work with Congresswoman Bordallo on this legislation to find additional ways to require the federal government to send states like Hawaii money to provide social services and lift the burden on our local populations.”
Takai added, “When the compacts were enacted, Congress was required by law to address adverse impacts on states and territories — it is time that we take action to do so.”
Read more about COFA and Micronesia.
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About the Author
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Chad Blair is the politics editor for Civil Beat. You can reach him by email at cblair@civilbeat.org or follow him on X at @chadblairCB.