Compact of Free Association: Population growth across U.S. regions, with varying impacts reported

What the GAO found

According to the U.S. Census Bureau, more than 94,000 compact immigrants (citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau, and their U.S.-born children and grandchildren under 18) live and work in the United States and its territories. The total compact immigrant population in the U.S. grew by about 68 percent, from about 56,000 to about 94,000, based on U.S. Census Bureau survey data from 2005 to 2009 and 2013 to 2017, as well as the 2018 count. Historically, many compact immigrants have lived in Hawaii, Guam, and the Commonwealth of the Northern Mariana Islands (CNMI). From 2013 to 2018, an estimated 50 percent of compact immigrants lived in the continental United States.

Estimated compact immigrant populations in selected regions of the United States from 2013 to 2018

Hawaii, Guam, and the Commonwealth of the Northern Mariana Islands track and report on the financial costs associated with compact migration or compact migration impacts in their states or territories. The territories reported estimated costs totaling $3.2 billion between fiscal years 2004 and 2018. Hawaii, Guam, and the Commonwealth of the Northern Mariana Islands received a total of approximately $509 million in federal grants between fiscal years 2004 and 2019 to help share the costs of providing services for compact migration.

In the regions GAO visited—Arkansas, the Commonwealth of the Northern Mariana Islands, Guam, Hawaii, Oregon, and Washington—state and territorial officials identified the impact of providing public education and health care services to compact immigrants. Some local governments use a combination of federal and state or territorial funds to provide health insurance to compact immigrants. For example, some states help compact immigrants pay for insurance through health insurance exchanges established under the Patient Protection and Affordable Care Act of 2010, which cover premiums not covered by prepaid premium tax credits available to eligible compact immigrants. The impact of compact immigrants in these U.S. regions also includes compact immigrants’ contributions to the budget through taxes and fees and their labor contributions—for example, through work in hospitality, manufacturing, the U.S. military, poultry processing, nursing, and government.

Why GAO conducted this study

The United States’ Compacts of Free Association allow qualified citizens of the Freely Associated States (FAS), which include Micronesia, the Marshall Islands, and Palau, to immigrate to the United States and its territories without a visa or labor certification. In fiscal year 2004, Congress authorized and appropriated $30 million over 20 years to cover costs associated with immigration to the Compacts in the affected jurisdictions, specifically Hawaii, Guam, and the Commonwealth of the Northern Mariana Islands. This funding will end in 2023, but immigration to the U.S. territories is allowed to continue, and immigration is expected to increase.

The GAO was asked to review topics related to compact immigration. This report describes (1) compact immigration population estimates and recent trends in compact immigration; (2) reports on the costs associated with compact immigration in Hawaii, Guam, and the Commonwealth of the Northern Mariana Islands; and (3) the impacts of compact immigration on government, the workforce, and society in these and other U.S. regions. The GAO reviewed Census Bureau data to determine the number of compact immigrants in U.S. regions. In addition, the GAO interviewed federal, state, and territorial government officials; representatives of the private sector and nonprofit organizations that employ or serve compact immigrants; FAS embassy and consular officials; and members of the compact immigrant community.

In commenting on the draft report, regional governments and FAS ambassadors to the United States identified areas for further research related to compact migration and its impacts. Some countries also discussed policy considerations, including restoring Medicaid benefits for compact migration.

For more information, please contact David Gootnick at (202) 512-3149 or GootnickD@gao.gov.