The 'Compact of Free Association' ('COFA') defines the relationship that three sovereign states—the
Federated States of Micronesia (FSM), the
Republic of the Marshall Islands (RMI) and the
Republic of Palau—have entered into as
associated states with the
United States.
Now sovereign nations, the three freely associated states were formerly part of the
Trust Territory of the Pacific Islands, a
United Nations trusteeship administered by the
United States Navy from
1947 to
1951 and by the
United States Department of the Interior from
1951 to
1986 (to
1994 for Palau).
Under the COFA relationship, the United States provides guaranteed financial assistance over a 15-year period administered through the
Office of Insular Affairs in exchange for certain defense rights. The freely associated states actively participate in all Office of Insular Affairs technical assistance activities. The U.S. treats these nations uniquely by giving them access to many U.S. domestic programs, including disaster response and recovery and hazard mitigation programs under
Federal Emergency Management Agency.
In
2003, the Compacts between the RMI and FSM were renewed for 20 years. These new Compacts provided US$3.5 billion in funding for both nations. US$30 million was also provided to
American Samoa,
Guam,
Hawaii, and the
Northern Mariana Islands in "Compact Impact" funding. This funding helps the governments of these localities cope with the expense of providing services to immigrants from the RMI, FSM, and Palau. The U.S. usage of
Kwajalein Atoll for missile testing was renewed for the same period.
[1] The new Compacts also changed certain immigration rules. RMI and FSM citizens traveling to the U.S. are now required to have passports.
[2] Furthermore, U.S. domestic postage rates no longer apply for mail between the U.S. and RMI/FSM and regular international rates are being phased in over five years, although the
United States Postal Service continues to handle mail transportation between islands and U.S.
ZIP codes continue to be in use.
The renewed Compact (commonly called "Compact II") for FSM took effect on
May 1,
2004 and for RMI on
June 30,
2004.

Map of the TTPI from 1961
The Compact for Palau expires in
2009.
See also
★
Associated state
★
Suzerainty
★
Protectorate
★
Tributary state
External links
★
1986 Compact of Free Association between RMI and FSM
★
Proclamation by Ronald Reagan about the 1986 COFA between RMI and FSM
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Pacific Islands Report: Compacts of Free Association Renegotiations (includes the text of the 2003 RMI and FSM COFAs)