These compacts are an integral part of Washington`s military primacy in the Indo-Pacific space. They allow the United States to maintain lines of communication in both the East and South China Seas and in the railways, which account for the bulk of the commodity trade that flows through Asia. Although the standards that the United States has guaranteed in this region are currently threatened by China`s revisionist activities, the presence of the United States is part of what prevents the complete undermining of these standards. In 2003, the compacts with RMI and FSM were renewed for 20 years. The new pacts provided $3.5 billion to both countries. In addition, US$30 million is paid annually to American Samoa, Guam, Hawaii and the Northern Mariana Islands for a compact impact amount. These funds help the governments of these municipalities bear the costs of providing services to immigrants from the RMI, WSF and Palau. The use of Kwajalein Atoll by the United States for missile tests was renewed for the same period.  The new pacts have also changed some immigration rules. Citizens of the RMI and WSF who travel to the United States must now have a passport.
The US Postal Service has had the opportunity to apply international port rates for U.S.-RMI/FSM postal relations (progressively in more than five years). The USPS began implementing the amendment in January 2006, but decided to resume domestic services and rates in November 2007.  For more information on the compact funds available to the WSF, see www.uscompact.org. As Beijing makes the effort to put Pacific states into orbit, the United States appears determined to maintain the pacts as part of a new engagement in the Pacific. While U.S. President Donald Trump may not understand the importance of the country`s network of alliances and agreements, he instinctively understands China`s rise and the challenge it poses to the United States. There was broad consensus within Washington that the Pacific is now the greatest place for the United States and its security commitments. This allows “Blob” to add substance to Trump`s splendour instead of being left out by his daily whims. If the conditions under which the United States engages in Micronesia are framed exclusively by the objective of strategic competition with China, they risk undermining the legitimacy necessary to facilitate these strategic objectives. If these goals are to include human flowering, which is promised by a broader, free and open, Indo-Pacific strategy, the Micronesians themselves must experience it. 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.