The renewed compact (commonly known as “Compact II”) for FSM came into effect on June 25, 2004 and June 30, 2004 for RMI. The pact also ordered the renegotiation of certain terms of the agreement after a certain period of time. These negotiations took place in 2003 and culminated in the 2003 Amendment Act. President Bush signed it on December 17, 2003. On 26 May 2004, after the four WSF member countries ratified the amendments, the WSF Congress approved the amended pact. The pact was created by expanding the territorial trust agreement between the United States and the United Nations, which committed the U.S. federal government to “promote the development of the people of the fiduciary territory toward autonomy or independence, depending on the particular circumstances of the fiduciary territory and its peoples and the freely expressed wishes of the people concerned.”  Under the pact, the U.S. federal government provides guaranteed financial assistance over a 15-year period, managed through its Office of Insular Affairs in exchange for international defence authority and responsibility. The Compact of Free Association (COFA) is an international agreement establishing and regulating free trade relations between the United States and the three Pacific sovereign states of the Federated States of Micronesia (FSM), the Republic of the Marshall Islands (RMI) and the Republic of Palau. As a result, these nations are sometimes referred to as freely associated states. Title 2 of the Compacts of Free Association describes the financial commitment of the United States to the Federated States of Micronesia (WSF) and the Republic of the Marshall Islands (RMI), with an initial period of financial support from 1986 to 2003. An amended pact, adopted as public law 108-188, followed with constant financial support until 2023.
In 2018, the free association agreement with the Republic of Palau, enshrined in Law 99-658, was followed by a review agreement by the United States and Palau, which extended certain provisions of financial law until September 30, 2024. All aspects of the relationship that the United States has with each of these freely associated states and the economic assistance of the OIA-managed Covenant are governed by pacts and related agreements. On August 5, 2019, Minister Pompeo announced negotiations with the Republic of the Marshall Islands, the Federated States of Micronesia and the Republic of Palau on agreements amending the free association pacts between these states and the United States. On May 27 and 28, 2020, the United States held preliminary consultations with the governments of the three nations to organize the talks. Following the pacts, the U.S. House of Representatives Foreign Affairs Subcommittee on Asia and the Pacific also criticized unfulfilled U.S. commitments to address the effects of U.S. nuclear tests on the Marshall Islands, which were in part the Pacific Proving Grounds. The speakers stressed that: That, although in paragraph 177 of the Free Association Pact recognizes the responsibility of the United States to “address the past, present and future consequences of nuclear test applications,” less than $4 million from a US$2.2 billion judgment issued by a nuclear claims tribunal established under the RMI Pact and the U.S. Court of Claim had rejected two appeals for enforcement.  With respect to these unsentled claims, physicians also noted the possible large-scale effects of nuclear testing at the Pacific test site, which are reported by the prevalence of radiogenic diseases, heart disease, diabetes and obesity associated with forced changes in the U.S.
administration`s dietary patterns and lifestyles after testing.   In 2011, legislators also found that the U.S. Congress had not been able to cover the cost of medical care and services promised to displaced compact citizens emigrating to the United States for health care, education and employment opportunities, particularly since the passage of the Labor Responsibility and Personnel Responsibility Act.  While Beijing is making these efforts to try to put states in its orbit throughout the Pacific. The United States seems to be taking shape within the framework