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Compact of Free Association migrant compensation

Guam and Hawaii were reimbursed 16 cents on the dollar for hosting Pacific Islander migrants. Arkansas, home to the largest such community outside Hawaii, was never eligible for a cent.

Summary

A federal grant paid four places $30 million a year to offset the cost of hosting migrants from the Compact of Free Association nations. The Government Accountability Office found it covered $509 million of the $3.2 billion in costs those places reported between FY2004 and FY2018 — about 16%. In 2023 the grant expired outright. It was written by law to reach only Guam, Hawaii, the Northern Marianas, and American Samoa — never Arkansas, where the 2020 Census counted 14,533 Native Hawaiians and Pacific Islanders, most of them Marshallese.

By Locusta · July 11, 2026

Citizens of the Marshall Islands, Micronesia, and Palau can live and work anywhere in the United States without a visa, under Compacts of Free Association the U.S. signed after administering their islands as a Pacific trust territory — including the sixty-seven nuclear tests the U.S. military conducted over Bikini and Enewetak atolls between 1946 and 1958, according to CRS. More than 94,000 of their citizens and children now live in the United States, GAO found — up 68% from about 56,000 a decade earlier. Congress built exactly one mechanism to compensate the places absorbing that growth, and named only four of them.

Reported cost, FY2004–18
$3.2B
Guam, Hawaii & CNMI vs GAO-20-491
Federal compensation
16%
$509M of $3.2B reimbursed vs FY2004–19
Arkansas's share, ever
$0
14,533 residents, 2020 Census vs not an eligible jurisdiction

A grant built to cover a third of the cost, and it didn't

The Compact of Free Association Amendments Act of 2003 created the "Compact Impact" grant: $30 million a year, mandatory funding running FY2004–FY2023, split by formula among four jurisdictions Congress designated "affected" — Guam, Hawaii, the Commonwealth of the Northern Mariana Islands (CNMI), and American Samoa. The idea was straightforward: these were the places absorbing the health, education, and social-service costs of Compact migration, so the federal government that signed the Compacts would help pay for it.

It didn't come close. GAO's 2020 review found Guam, Hawaii, and CNMI self-reported a combined $3.2 billion in Compact-migrant-related costs for fiscal years 2004 through 2018. Over roughly that same window, FY2004–19, those jurisdictions received approximately $509 million in Compact Impact grants — about 16% of what they said it cost them. The other 84%, some $2.69 billion, came out of their own budgets.

Where the $3.2 billion in reported Compact-migrant costs was covered
Guam, Hawaii & CNMI, self-reported costs vs. federal grant receipts, FY2004–FY2018/19, $ millions
Reported cost of hosting Compact migrants, FY2004–18$3.2BCovered by federal Compact Impact grants$509MAbsorbed by Guam, Hawaii & CNMI budgets$2.7B
Source: GAO-20-491, Compacts of Free Association (June 2020)
View data as table
Reported cost vs. federal compensation
Reported cost, FY2004–18 (Guam, Hawaii, CNMI)$3.2BGAO-20-491
Covered by Compact Impact grants, FY2004–19$509M≈16% of reported cost
Absorbed locally, uncompensated$2.69B≈84% of reported cost

Then, under current law, the $30 million grant simply ends — its statutory authorization ran out at the close of fiscal year 2023, and Congress has not renewed it. A bill to bring it back for Guam, CNMI, and American Samoa through 2043, the Guam Host Community Compensation Act, was introduced in November 2023. It never received a floor vote and died with the 118th Congress.

Named jurisdictions only — and Arkansas was never one of them

The last full breakdown of the grant, for FY2019, shows exactly whose budgets that $30 million (plus $4 million in added discretionary funds) reached — and, by statute, whose it couldn't.

FY2019 Compact Impact grant funding, by jurisdiction
Federal grant dollars distributed under P.L. 108-188, §104(e), $ (Arkansas added for comparison)
Guam
$16.8M
Hawaii
$14.9M
CNMI
$2.3M
American Samoa
$22,678
Arkansas
$0
Source: U.S. Dept. of the Interior, Office of Insular Affairs (FY2019 distribution)
View data as table
FY2019 Compact Impact grant funding
Guam$16,835,958
Hawaii$14,880,034
CNMI$2,261,330
American Samoa$22,678
Arkansas$0not an eligible jurisdiction under P.L. 108-188

Guam and Hawaii split 94% of it. American Samoa, with a tiny resident Compact-migrant population, got $22,678. Arkansas got nothing, because Arkansas was never in the statute — P.L. 108-188 names Guam, Hawaii, CNMI, and American Samoa as the only "affected jurisdictions" eligible for this money, full stop. That's a problem the law never had to reckon with, because by the time the grant existed, the largest Marshallese community in the continental United States was already thirty years old and growing in Springdale, Arkansas — built, family by family, around jobs at Tyson Foods' poultry plants. The 2020 Census counted 14,533 Native Hawaiians and Other Pacific Islanders statewide, 8,711 of them in Springdale alone, according to the Encyclopedia of Arkansas's tally of Census Bureau data — more people than lived in three of the four jurisdictions the federal government was actually compensating.

Where Compact migrants live
2018 COFA migrant enumeration (Guam, Hawaii, CNMI, American Samoa) vs. Arkansas's 2020 Census NHPI population
Guam
18,874
Hawaii
16,680
Arkansas
14,533
CNMI
2,535
American Samoa
25
Source: U.S. Census Bureau / Dept. of the Interior, 2018 COFA Migrant Estimates; Encyclopedia of Arkansas, citing 2020 Census
View data as table
Population by jurisdiction
Guam18,8742018 COFA enumeration
Hawaii16,6802018 COFA enumeration
Arkansas14,5332020 Census NHPI count — not a COFA enumeration
CNMI2,5352018 COFA enumeration
American Samoa252018 COFA enumeration

Arkansas's bar is an approximation — the 2020 Census counts race, not Compact-migrant status, and the Census Bureau has never run a COFA-specific enumeration there, because Arkansas doesn't receive the grant that enumeration funds elsewhere. But the order of magnitude isn't in doubt: a 2020 CDC investigation of Benton and Washington counties found Marshallese and Hispanic residents were about 19% of the local population but 64% of COVID-19 cases and 57% of deaths — with Marshallese mortality running 65 times the rate among white residents. A 2021 University of Arkansas for Medical Sciences survey of 113 employed Marshallese adults found 31 of them, 27%, working in food-processing plants — the industry that drew the community to northwest Arkansas in the first place.

The fix Congress chose wasn't a bigger grant

Rather than reauthorize Compact Impact funding, or extend it to states like Arkansas that had never gotten any, Congress took a different approach when it renewed the underlying Compacts in 2024. The Compact of Free Association Amendments Act of 2024 (P.L. 118-42, §209(f)), signed March 9, 2024, made Compact migrants nationally eligible for federal safety-net programs — Medicaid, , and SSI among them — regardless of which state they live in. That's a policy that reaches Arkansas for the first time, on the same terms as Hawaii, rather than a jurisdiction-by-jurisdiction grant that reaches only four places by name. The 2025 reconciliation law that stripped Medicaid, SNAP, and ACA eligibility from several other immigrant categories (P.L. 119-21) left Compact migrants' eligibility for those programs intact — Congress's clearest signal yet that the benefits-eligibility route, not the grant, is now the standing mechanism.

What that doesn't do is compensate a state's general fund, a hospital, or a school district the way a Compact Impact check did. Medicaid and pay providers and grocers for services rendered; they don't reimburse a county health department for the outreach staff, translators, or emergency response the found Benton and Washington counties needed and didn't have enough of in 2020. The jurisdictions that got a fraction of a fixed, if inadequate, grant now get an open-ended eligibility rule instead — and the places that never got the grant at all get the same rule, for the first time, as compensation for a cost they'd already been carrying for decades.

The takeaway

  • The grant covered 16 cents of the dollar it was built for. found $509 million in federal Compact Impact funding against $3.2 billion in self-reported costs across Guam, Hawaii, and CNMI, FY2004–2019.
  • Then it expired, and nothing replaced it as a grant. The $30 million-a-year mechanism ran out at the end of FY2023; a bill to revive it for three of the four jurisdictions has sat without a vote since November 2023.
  • Arkansas was never in the statute. Home to 14,533 Native Hawaiians and Pacific Islanders per the 2020 Census — more than Guam's, Hawaii's, or CNMI's federally compensated populations, respectively, on their own — it received $0 from a grant written to reach only four named places.

Cost and grant figures are drawn from -20-491 (FY2004–2018/19) and the Department of the Interior's FY2019 Compact Impact distribution, the most recent full jurisdiction-by-jurisdiction breakdown published before the grant's FY2023 expiration; Arkansas figures use the 2020 Decennial Census and are not an official COFA migrant count.

Sources

  • U.S. Government Accountability Office, -20-491: Compacts of Free Association — Populations in U.S. Areas Have Grown, with Varying Reported Effects (June 2020) — the $3.2 billion in self-reported Compact-migrant costs and $509 million in federal grant receipts, FY2004–2018/19, and the 56,000-to-94,000 national population growth figure. gao.gov
  • U.S. Department of the Interior, Office of Insular Affairs, Compact Impact program page — confirmation that the $30 million annual Compact Impact grant, authorized FY2004–FY2023, "ends in 2023" under current law. doi.gov
  • U.S. Department of the Interior, Office of Insular Affairs, press release — the FY2019 Compact Impact grant distribution by jurisdiction ($16.8M Guam, $14.9M Hawaii, $2.3M CNMI, $22,678 American Samoa). doi.gov
  • U.S. Census Bureau / U.S. Department of the Interior, 2018 Estimates of Compact of Free Association (COFA) Migrants (April 26, 2019) — the official jurisdiction-by-jurisdiction COFA migrant population count used to apportion the FY2019 grant. doi.gov
  • Congressional Research Service, The Compacts of Free Association (IF12194, updated April 25, 2024) — the statutory citation and March 9, 2024 signing date for the Compact of Free Association Amendments Act of 2024 (P.L. 118-42), including §209(f)'s restoration of federal-program eligibility, and background on the compacts' history and nuclear-testing compensation. crsreports.congress.gov
  • Congress.gov, H.R. 6273 — Guam Host Community Compensation Act, 118th Congress — the unenacted bill to extend Compact Impact grants for Guam, CNMI, and American Samoa through 2043. congress.gov
  • Association of State and Territorial Health Officials, One Big Beautiful Bill Law Summary — documentation that P.L. 119-21 (2025) preserved Compact migrants' Medicaid, , and marketplace eligibility while restricting it for other immigrant categories. astho.org
  • Encyclopedia of Arkansas, Marshallese — the 2020 Census count of 14,533 Native Hawaiians and Other Pacific Islanders statewide (8,711 in Springdale) and the history of Marshallese migration to northwest Arkansas's poultry industry. encyclopediaofarkansas.net
  • , Morbidity and Mortality Weekly Report, "Multidisciplinary Community-Based Investigation of a COVID-19 Outbreak Among Marshallese and Hispanic/Latino Communities — Benton and Washington Counties, Arkansas" (Dec. 4, 2020) — the 19%-population/64%-cases disparity and 65-times mortality-rate finding. cdc.gov
  • Rowland, B., et al., "Experiences of Marshallese food processing workers during the COVID-19 pandemic," Journal of Agromedicine (2021), University of Arkansas for Medical Sciences Northwest — the 27% (31 of 113) survey share of employed Marshallese respondents working in food processing. pmc.ncbi.nlm.nih.gov
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