The Puerto Rico Status Act, a legislative measure currently awaiting action in Congress, aims to present voters in Puerto Rico with three alternatives for establishing a more dignified and democratic relationship with the United States: statehood, independence, and independence with a “free association” element.
While the meanings of being a state or an independent nation are well understood, the concept of “free association” is not as widely recognized. Fortunately, the United States has three Compacts of Free Association that serve as illustrative examples.
The United States Department of the Interior has made public statements concerning the political status of all three Free Associated States. These statements share several key similarities:
- All three FAS are independent, sovereign nations. Each is noted to have achieved independence prior to entering into their Compacts of Free Association.
- The U.S. provides a degree of economic support to the FAS. In practical terms, this support encompasses USPS (postal service) and limited financial assistance, akin to what is provided to foreign countries but significantly less than what states receive from the federal government. There is no access to federal programs such as Medicare, Medicaid, or refundable tax credits for working families.
- In exchange for defense and financial aid, the U.S. gains “exclusive and unlimited access to [FAS] land and waterways for strategic purposes,” which translates to unrestricted national security and defense rights and authority.
- Citizens of the FAS can enlist in the U.S. military, but they do not hold U.S. citizenship and are ineligible to vote for the President, the Commander in Chief.
- FAS citizens are allowed to work or study in the U.S. but lack any special pathway to U.S. citizenship.
This starkly contrasts the proposals of some advocates for free association for Puerto Rico, which often resemble the definitions of “enhanced commonwealth” that have been rejected by all three branches of the federal government. The definition of free association carries a different meaning altogether.
Palau
The U.S. Department of the Interior characterizes Palau’s political status as follows:
The Republic of Palau (Palau) emerged from the Trust Territory of the Pacific Islands (TTPI) which the United States administered on behalf of the United Nations from 1947 to 1978. Palau was the final district of the TTPI to decide its political future and achieve sovereign status. After gaining independence in 1994, Palau entered into a 50-year Compact of Free Association (U.S. Public Law 99-658) with the United States, similar to those of its neighbors, the Federated States of Micronesia and the Republic of Palau. Palau also became a United Nations member in 1994. Through the Compact, the United States, via the Department of the Interior, provides economic and financial support, ensures Palau’s territorial integrity, and grants unrestricted access for Palauan citizens to the United States in exchange for exclusive and limitless access to Palau’s land and waterways for strategic reasons. The historical strategic and economic connections between the United States and Palau, which date back to the conclusion of World War II, are reflected in the hundreds of Palauan citizens who serve in various branches of the U.S. Armed Forces and seek educational opportunities in the United States. Palau also utilizes the U.S. dollar as its currency.
Federated States of Micronesia (FSM)
Here is how the U.S. Interior Department describes the FSM:
The Federated States of Micronesia (FSM) emerged from the Trust Territory of the Pacific Islands (TTPI) which the United States managed on behalf of the United Nations from 1947 until 1978. The FSM implemented its own constitution and became an independent nation in 1979; it entered into a Compact of Free Association with the United States in 1986 and achieved United Nations membership in 1991. The initial financial package of the Compact spanned 15 years, from 1986 to 2001. Provisions in the Compact allowed for a two-year extension while the United States and the FSM negotiated a new financial agreement in 2003, which covers the period from 2003 to 2023. A Trust Fund was also established to aid in the FSM’s long-term budgetary self-reliance when the financial grant terms of the Compact come to an end in 2023. Under the Compact, the United States provides financial support, defends the FSM’s territorial integrity, and facilitates unrestricted travel for FSM citizens to the U.S. In return, the FSM grants the United States unlimited and exclusive access to its land and waterways for strategic objectives. The enduring ties between the United States and the FSM, established since the end of World War II, are also evident in the numerous FSM citizens who serve in all U.S. Armed Forces branches and advance their education in the United States. The FSM employs the U.S. dollar as its currency.
The Marshall Islands
The Marshall Islands is also described on the U.S. Department of Interior website:
The Republic of the Marshall Islands (RMI) was a district of the Trust Territory of the Pacific Islands (TTPI) that the United States administered on behalf of the United Nations from 1947 until 1978. The RMI became a sovereign nation in 1979 and entered into a Compact of Free Association with the U.S. in 1986. The first financial agreement of the Compact lasted 15 years, from 1986 to 2003. Under the Compact’s provisions, the United States and the RMI reached a new financial agreement in 2003 that extends from 2003 to 2023. According to the Compact, the United States provides economic and financial assistance and safeguards the RMI’s territorial integrity. In return, the RMI enables the United States to have unlimited and exclusive access to its land and waterways for strategic aims. A Trust Fund was also established to support the RMI’s long-term budgetary independence. In 2024, the United States and the RMI finalized a new Compact agreement. The close relationship between the United States and the RMI that traces back to World War II is also illustrated by the fact that the RMI uses the U.S. dollar as its currency. Strategically, the RMI accommodates the U.S. Army Kwajalein Atoll (USAKA) Reagan Missile Test Site, an essential component of the U.S. missile defense framework.
Puerto Rico
Given the explicit descriptions provided earlier, if Puerto Rico opts for sovereign free association, the characterization of the Puerto Rico-U.S. relationship is unlikely to entail the continuation of U.S. citizenship for any extended period under any Compact arrangements. Likewise, Puerto Rico would be expected to grant the United States unlimited and exclusive access to its land and waterways for military purposes. While the U.S. might maintain minimal financial aid and federal programs for Puerto Rico, such as the U.S. Postal Service, it would likely discontinue eligibility for Medicare, Medicaid funding, and Child Tax Credit reimbursements, and the overall level of U.S. resources allocated to Puerto Rico would be anticipated to decline sharply. Claims to the contrary exist among proponents of free association for Puerto Rico, but are absent from any realistic depiction of an existing freely associated state.
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