The Joint Economic Management Committee (JEMCO) of the Compact of Free Association as Amended has concurred with the FSM’s FY 2025 Annual Implementation Plan (AIP), paving the way for funding the Compact sector grant portions of FSM’s FY 2025 budget currently being considered by the FSM Congress, and soon to be considered by the FSM State Legislatures.

Members of JEMCO from the United States and the Federated States of Micronesia met on September 4 in Honolulu for their first in-person meeting since the adoption of the 2023 amendments to the Compact and Fiscal Procedures Agreement. At that meeting, the United States Members considered the FSM’s proposed FY 2025 AIP but indicated that they would require some additional time to review the proposal. They agreed to hold a subsequent virtual meeting to consider concurrence with the plan in time for the 5th Regular Session of the 23rd FSM Congress, and FSM State Legislatures to formally approve the FY 2025 budget.

On September 20, 2024, JEMCO voted to concur with the proposed AIP with a minor adjustment to account for limitations on the use of sector grants for international travel that are still under review. This means that sector grant awards will now be made totaling over $139 million for the use of the FSM in its FY 2025 annual budget and this amount can be reflected in the FSM’s FY 2025 budget.