Obama requests $474.4M for insular areas, FAS

The current appropriations request includes $59.5 million in discretionary funding, $27.7 million in mandatory funding and a $10.1 million transfer from the Department of Defense for vehicles and supplies for the transportation of civilian students on Guam.

In addition, $377.1 million in permanent and indefinite appropriations is estimated for 2012 for fiscal payments mandated by law to U.S. territories and Freely Associated States.

Obama’s budget reflects many difficult budget choices, cutting worthy programs in order to fund the highest priority requirements, and advancing efforts to shrink federal spending while being mindful of ongoing commitments.

“The 2012 budget request demonstrates President Obama’s continued commitment to the well-being of the U.S. insular areas while remaining fiscally disciplined,” said Assistant Secretary for Insular Areas Tony Babauta. “Among the strategic investments we are making, we are proposing to take big strides toward helping the insular areas implement energy efficiency and renewable energy projects recommended by the U.S. Department of Energy’s National Renewable Energy Laboratory in assessments funded by OIA in 2010.”

“In addition, the budget proposal reflects our commitment to addressing the impacts of the U.S. Marines’ relocation to Guam,” Babauta explained.

The 2012 budget proposal will also support efforts to control the invasive brown tree snake on Guam, assist coral reef conservation initiatives, and support the operations of the American Samoa government.

Current mandatory appropriations of $27.7 million will continue to be used to undertake capital improvement projects that create economic opportunity in U.S. territories and improve the quality of life in those communities.  With these funds, American Samoa is scheduled to receive $10.1 million in CIP funding, the CNMI $9.5 million, Guam $6.1 million and the U.S. Virgin Islands $2 million.

Permanent appropriations for 2012 include $145 million in payments to Guam and the U.S. Virgin Islands.  Guam is slated to receive an estimated $45 million in taxes collected in the territory via the IRS ”mirror” code that are by law transferred to the government of Guam to support its public safety, health care, education and other services and operations.  The U.S. Virgin Islands is scheduled to receive an estimated $100.0 million for Federal taxes collected on distilled spirits in the territory that are by law transferred to the local government to support its operations.  The budget includes $232.1 million in payments to the Freely Associated States under the Compact of Free Association legislation including $67.1 million for the Republic of the Marshall Islands and $105.5 million for the Federated States of Micronesia.

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