edited November 2017
Life is a beach
All 3 COFA nations depend on funds from Compact agreements. My hope is that US economy in the future will grow around 3 or 4%; so that the deficit and US debts will begin to be decreased.
When the US government has a lot of excess money in its coffers, it would allow Congressmen and Senators to have more freedom in appropriating funds for projects, not only in their states, but all over the world. This is how it was before the "sequestration" had to be put in place, several years ago, in order to minimize budget deficit.
As a result, the military was cut; and the Congress put in a requirement that for any new appropriation, it should identify or deduct the same from clearly identified line items in the budget. This is why the Palau's Compact money could not be appropriated by the Congress; because it would have been de-appropriated from other funds.
So for the short term solution, the Obama administration directed the Department of Interior to provide the funds--from its budget-- to Palau in the amount that was approved for in the Compact. So Palau has been treated the same as interior agency; it has not been treated as if it's not an independent country which should be under the Department of State.
Now, if the US economy picks up and more money comes to the US government, I believe the "sequestration" will be removed; that more funding will be allowed for appropriation by Congress. I am hoping for this scenario because the current Compacts' financial provisions are expiring by 2023. I hope that if the US economy's growth were to bring a lot of money to the US Government, it will be easier for the Congress to consider any request that the COFA nations might put forth prior to 2023. Just a wish.
Thank you Trump for this great news.