Contributions

Contributions to the Trust Fund by the U.S. and FSM governments are governed by the schedule in Section 216 of the Amended Compact. According to that schedule, the U.S. government is obligated to contribute $16 million in FY04 through FY06 and to contribute $16 million, plus a cumulative amount that increases by $0.8 million annually, beginning in FY07 until FY23. This additional amount corresponds to the amount by which U.S. direct sector grant assistance provided under the Amended Compact is reduced in that fiscal year. A partial inflation adjustment is also added to the amount of the U.S. contribution as indicated in the Amended Compact. The FSM government was obligated to contribute at least $30 million prior to 30 September 2004. Initial contributions began in FY05 as the U.S. contribution was dependent on the FSM contribution that occurred in FY05. The following are contributions to date ($s millions, $s rounded, FY=fiscal year):