H.R. 2085 would change and approve the agreement and appendices signed between the United States and the Republic of Palau on September 3, 2010, in connection with the Compact of Free Association between the two nations. The compact, agreements, and appendices that were approved in 1994 govern the political, economic, and military relationships between the United States and Palau.
CBO estimates that enacting the bill would increase direct spending by $156 million over the 2018-2027 period. Because enacting the bill would affect direct spending, pay-as-you-go procedures apply. Enacting the bill would not affect revenues. CBO also estimates that if appropriated funds are provided, continuing federal services in Palau would cost $108 million over the 2018-2022 period.
CBO estimates that enacting H.R. 2085 would not increase net direct spending or on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2028.
H.R. 2085 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments.
