U.S. Strengthens Compact Partnerships with FSM and RMI at Annual Economic Meetings

09/05/2025 — The Department of the Interior chaired annual economic management meetings with the Federated States of Micronesia (FSM) and the Republic of the Marshall Islands (RMI) on August 27-28. Deputy Assistant Secretary for Insular and International Affairs Angel Demapan, appointed by Secretary of the Interior Doug Burgum, led the U.S. delegations. 

The Joint Economic Management Committee (JEMCO) with the FSM and the Joint Economic Management and Financial Accountability Committee (JEMFAC) with the RMI oversee the use of more than $4.5 billion in Compact of Free Association economic assistance over 20 years. The FSM receives about $140 million annually and the RMI about $80 million. 

Discussions focused on completing overdue audits, implementing infrastructure and development plans, and finalizing the Fiscal Year 2026 Annual Implementation Plans. Both sides emphasized accountability, mutual respect, and advancing strong economic partnerships. The next in-person meetings will be held in spring 2026. 

These efforts reflect the Trump administration’s commitment to strengthening national security, securing U.S. interests in the Indo-Pacific, and ensuring American taxpayer dollars are used in a responsible manner. Through these Compact agreements, the United States advances economic growth, promotes self-sufficiency in the freely associated states, and reinforces alliances that support a free and open Indo-Pacific. 

The meetings included participation from senior U.S. officials across the Departments of State, the Treasury, and the Interior, alongside ambassadors to both nations. Leaders from the FSM and the RMI also joined, including cabinet members, Governors, lt. Governors, and education and health officials. Their involvement underscored the importance of cooperative planning and transparency in how Compact funds are managed. The Department of the Interior reaffirmed that oversight of these resources will remain steadfast, ensuring that investments drive accountability, infrastructure growth, and improved public services for the people of the FSM and the RMI. (PRESS RELEASE)