In 2003, the compacts with RMI and FSM were renewed for 20 years. These new compacts provided $3.5 billion to both countries. $30 million is also provided annually to American Samoa, Guam, Hawaii and the Northern Marianas through “Compact Impact” funds. This funding helps the governments of these places to meet the costs of providing services to immigrants from the RMI, the FSA and Palau. The U.S. use of Kwajalein Atoll for missile tests was renewed for the same period.  The New Covenants also changed some immigration rules. RMI and WSF citizens travelling to the United States must now have a passport. The U.S.
Postal Service had the option to apply international shipping charges for mail between the U.S. and RMI/FSM (gradually over five years). The USPS began implementing the amendment in January 2006, but decided to resume domestic services and tariffs in November 2007.  Each of the Associated States actively participates in all activities of the Office of Island Affairs in the field of technical assistance. The United States has access only to these countries to many U.S. national programs, including the Disaster Response and Recovery and Risk Reduction programs of the Federal Emergency Management Agency, some U.S. Department of Education programs, including Pell Grant, and the services of the National Weather Service, the U.S. Postal Service, the Federal Aviation Administration, the Federal Communications Commission and the UNITED States Representation. the International Frequency Registration Board of the International Telecommunication Union.  Although located outside the customs territory of the United States, the Compact Zone is primarily duty-free for imports.  The Pact also provides for the renegotiation of certain conditions of the agreement after a certain period of time. These negotiations took place in 2003 and resulted in the Amendments Act 2003.
President Bush signed it on December 17, 2003. On 26 May 2004, after the four MSF member states had ratified these amendments, the WSF Congress approved the amended pact. The Pact of Free Association between the Federated States of Micronesia and the United States is based on the economic support of the United States (including the merits of certain American federal programs), the defense of the SM and other advantages in exchange for the American defense and certain other exploitation rights in the SM, the denial of access to the WSF by other nations, and other agreements. The pact was created as an extension of the U.S.-United Nations Territorial Trusteeship Agreement, which required the U.S. federal government to “promote the development of people from the Trust Territory toward autonomy or independence, based on the particular circumstances of the Trust Territory and its peoples and the freely expressed wishes of the peoples concerned.”  Under the Pact, the U.S. federal government provides guaranteed financial assistance over a period of 15 years, managed through its Office of Island Affairs in exchange for full international defense power and responsibility. The Compact of Free Association (COFA) is an international agreement that establishes and governs the relationship of free association between the United States and the three sovereign Pacific 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 called freely associated states.
Questions about U.S. responsibility have also been raised regarding the issue of many dilapidated warships and tankers abandoned or destroyed by the U.S. military in atolls and islands throughout the compact zone.  For more details on the compact funds made available to the WSF, see www.uscompact.org. . . .