Oversight Hearing on: "Implementation of the Compact of Free Association Amendments Act of 2024

Public Lands and Energy MarkupsHouse Natural Resources Subcommittee on Indian and Insular Affairs · January 14, 2026 · 119th Congress
The House Natural Resources Subcommittee on Indian and Insular Affairs held this oversight hearing to examine how the Departments of Interior and State are implementing the Compact of Free Association (COFA) Amendments Act of 2024, one year after its renewal, including delivery of economic assistance, VA veterans' benefits, and defense/security commitments to the Freely Associated States (FAS) — Palau, the Marshall Islands, and the Federated States of Micronesia. Begins at ▶ 0:12:10
Transcript
Highlights

Title

Oversight of Compact of Free Association implementation for FAS nations

Purpose

The House Natural Resources Subcommittee on Indian and Insular Affairs held this oversight hearing to examine how the Departments of Interior and State are implementing the Compact of Free Association (COFA) Amendments Act of 2024, one year after its renewal, including delivery of economic assistance, VA veterans' benefits, and defense/security commitments to the Freely Associated States (FAS) — Palau, the Marshall Islands, and the Federated States of Micronesia. Ambassadors from all three FAS nations testified in a second panel about implementation gaps, including veterans' health care, bonding requirements, and a tuna tariff dispute. Begins at▶ 0:12:10

Who spoke

• Chairman (Rep. Hurd)▶ 0:12:10: Opened the hearing, honored the late Rep. Doug LaMalfa▶ 0:13:08, and framed the hearing around ensuring COFA is "faithfully implemented" amid PRC influence efforts▶ 0:15:13; later pressed witnesses on the December 19 interagency group meeting▶ 0:22:29 and DOI's late single-audit report▶ 1:26:19.

• Ranking Member Teresa Leger Fernandez (D-NM)▶ 0:16:51: Said the Trump administration has not lived up to COFA promises, citing delayed VA benefits for FAS veterans▶ 0:17:49▶ 0:21:03; later condemned proposed US acquisition of Greenland▶ 1:56:15 and questioned witnesses about tuna tariffs' effect on de-population▶ 1:59:00.

• Chairman Bruce Westerman (R-AR), Full Committee Chair▶ 0:21:54: Noted the committee held four prior COFA oversight hearings and a 2023 bipartisan CODEL to the FAS▶ 0:23:14; questioned Demapan on interagency cooperation and controls over COFA fund use▶ 0:41:19▶ 0:43:51.

• Ranking Member Jared Huffman (D-CA), Full Committee Ranking Member▶ 0:24:37: Entered a New Scientist article on Pacific climate change into the record▶ 0:25:03; warned Trump is "slow walking" delivery of COFA commitments▶ 0:27:13 and pressed both witnesses on whether Greenland planning involves their office▶ 0:57:29 and on the USAID-to-State disaster-response transition▶ 0:59:15.

• Angel Demapan, Deputy Assistant Secretary, DOI Office of Insular Affairs▶ 0:31:46: Testified DOI has made about $1.5 billion available of the $6.5 billion COFA Act economic assistance▶ 0:33:52, later revised to $750 million issued since entry into force▶ 1:20:41; described a $20 million pension-reform grant to Palau▶ 0:35:08 and $250,000 technical-assistance grants to FSM governments for audit timeliness▶ 1:27:24; said he was not aware of any implementation weak spots▶ 0:44:18 and could not speak for the VA▶ 0:44:45.

• Antone Gruebel, Director, State Dept. Office of Australia, New Zealand, and Pacific Affairs▶ 0:36:41: Said Deputy Secretary Landau and VP Vance met with FAS leaders▶ 0:38:36; described completed USAID-to-State disaster-response transition▶ 0:59:45; said no one has contacted his office about Greenland▶ 0:58:20; said COFA funding has done "80-90% of our job" countering Chinese economic influence▶ 1:25:04.

• Rep. Aumua Amata (Vice Chair, American Samoa)▶ 0:51:46: Thanked Rep. King-Hinds for HR 6652, the US VETS of the FAS Act▶ 0:52:24; asked about legislative gaps needing clarification▶ 0:52:56 and status of the State Department's FAS unit▶ 0:53:45.

• Rep. James C. Moylan (Guam)▶ 1:10:46: Raised delays in VA implementation and USPS airmail service problems to the FAS and territories▶ 1:11:55▶ 1:13:22; later proposed relocating the VA's regional office from the Philippines to Guam▶ 2:07:49 and asked ambassadors about PRC fishing/tourism interference▶ 2:09:15.

• Rep. Kimberlyn King-Hinds (Northern Mariana Islands)▶ 1:16:33: Described COFA as a "strategic bargain," not traditional foreign aid▶ 1:17:16; asked Demapan about the greatest economic/security threat to the FAS, drawing his answer on de-population▶ 1:18:11; later asked ambassadors to identify their top implementation priorities▶ 2:13:19.

• Chair (self-recognized for questions)▶ 1:21:35: Asked about the December 19, 2025 interagency group meeting's agenda items — VA access, USPS delays, Head Start, Peace Corps▶ 1:22:29 — and about DOI's response to the IG report on late single audits▶ 1:26:19.

• Rep. Raúl Grijalva (D-AZ)▶ 1:05:46: Criticized administration delays on VA benefits and raised confusion caused by Trump's birthright-citizenship order for FAS citizens▶ 1:06:43; questioned embassy staffing levels and the USAID-to-State transition▶ 1:07:39▶ 1:08:08.

• Rep. Addison McDowell (R-NC)▶ 1:00:33: Emphasized the FAS's strategic location and asked Demapan and Gruebel how China is expanding influence and how COFA blocks it▶ 1:02:21▶ 1:04:18.

• Ambassador Hersey Kyota, Republic of Palau▶ 1:31:34: Said implementation is "progressing well" overall▶ 1:32:35, citing Peleliu airfield and Malakal Seaport construction▶ 1:32:56; flagged unresolved issues — DHS still requiring work permits despite the law▶ 1:34:20, denial of in-state tuition▶ 1:35:58, and a proposed commercial driver's license rule that could disqualify FAS citizens▶ 1:36:49; said over 250 registered Palauan veterans currently receive no VA benefits▶ 1:51:37.

• Ambassador Jackson Soram, Federated States of Micronesia▶ 1:38:56: Reported FSM has one of the highest per-capita US military enlistment rates▶ 1:42:16; said VA talks begun after the 2024 hearing were suspended in April 2025▶ 1:42:39; described the high cost and difficulty of veterans traveling to Guam/Hawaii for care▶ 1:53:14.

• Ambassador Charles Paul, Republic of the Marshall Islands▶ 1:44:13: Requested restoration of a 10% bonding standard to allow local contractors to bid on COFA infrastructure projects▶ 1:44:42; detailed the unresolved nuclear legacy issue from 1946-1958 testing▶ 1:46:38; said an October 2025 CBP reclassification imposed a 45% tariff on RMI tuna, "effectively closing the US market"▶ 1:49:31; requested Resolution 60 be entered into the hearing record▶ 1:49:59.

Key moments

• Demapan testified DOI has made roughly $1.5 billion available of the $6.5 billion in economic assistance under the 2024 COFA Act▶ 0:33:52, though he later cited a different figure of $750 million issued since entry into force▶ 1:20:41.

• Leger Fernandez said an April 2025 internal VA memo directed officials to "sustain the status quo," contradicting the law's intent to expand VA services for FAS veterans▶ 0:47:09.

• Ambassador Kyota said Palau's Department of Homeland Security fact sheet still tells citizens EAD work permits are "highly recommended" despite the compact eliminating the requirement, and that a Palauan citizen was terminated from a job two days earlier for lacking one▶ 1:34:40▶ 1:35:06.

• Ambassador Paul said an October 2025 CBP reclassification of tuna based on vessel flag imposed a 45% tariff, effectively closing the US market to Marshallese tuna, the country's core economic sector▶ 1:49:31▶ 1:59:49.

• Ambassador Paul described a 10% bonding standard used successfully for two decades in the RMI, saying new interim bonding guidance would exclude local contractors from a proposed $100 million hospital project despite no history of local-contractor defaults▶ 1:44:42▶ 2:15:37.

• Huffman asked both witnesses directly whether their agencies had been consulted on any US plan regarding Greenland; both said no ("No one's been in touch with my office")▶ 0:58:20▶ 0:58:47.

• Leger Fernandez cited Trump's statements that acquiring Greenland was "psychologically important" to him personally and that he was "not opposed to using... force," calling any attempt to use the compact mechanism for that purpose unacceptable▶ 1:56:40▶ 1:57:41.

• Ambassador Soram said FSM-VA talks that began productively after the September 2024 hearing were suspended in April 2025 and remain unresolved▶ 1:42:39.

• Gruebel said COFA economic assistance has done "about 80-90% of our job" preventing China from filling an economic vacuum in the FAS, but acknowledged remaining gaps▶ 1:25:04.

• Moylan proposed relocating the VA's regional office serving Pacific veterans from the Philippines (which serves ~11,000 people) to Guam, which along with the FAS and American Samoa could serve over 20,000 veterans▶ 2:07:49▶ 2:08:17.

Metadata

CommitteeHouse Natural Resources Subcommittee on Indian and Insular Affairs
Chamber / CongressHouse · 119th Congress
DateJanuary 14, 2026
TypeHearing
Witnesses
The Honorable Angel Demapan — Deputy Assistant Secretary Office of Insular Affairs, U.S. Department of the Interior
The Honorable Antone Greubel — Director of the Office of Australia, New Zealand, and Pacific Affairs (EAP/ANP), U.S. Department of State
The Honorable Hersey Kyota — Ambassador to the U.S., Republic of Palau
The Honorable Jackson Soram — Ambassador to the U.S., Federated States of Micronesia
The Honorable Charles Paul — Ambassador to the U.S., Republic of the Marshall Islands
Videoyoutube
Transcript289 caption blocks · 18,098 words · 2:18:40 runtime
EventCongress.gov 118822