President Proposes Over $400 Million in FY 2007 to Assist Territories

FOR IMMEDIATE RELEASE—February 6, 2006—Washington, D.C.—

Today, President Bush proposed a budget of $426.3 million in 2007 to assist seven insular areas, including four U.S. territories and three island nations who have the status of “free association” with the United States. The Department of Interior’s Office of Insular Affairs (OIA) administers these program funds.

“President Bush’s proposal reflects the long-term commitments made to the territories,” Bordallo stated. “These grants and program funds will help to promote the economic development of Guam” Bordallo concluded.

The total includes $347.1 million in permanent funding to the territories and the freely associated states as well as $79.2 million in current funding for assistance to the insular areas. Guam’s Compact-Impact allocation of $14.2 million to Guam will remain the same for FY 2007. The U.S. Department of the Interior’s OIA is budgeted approximately $74.4 million in current funding for the U.S. territories. Congresswoman Bordallo, along with her colleagues in Congress, has asked the OIA to prioritize capital improvement (CIP) grants based on court-mandated infrastructure improvements. Guam’s share of the proposed Fiscal Year 2007 CIP grants is $3.3 million. This is $71,000 less than the amount received this year--Fiscal Year 2006-- totaling $3.4 million. The budget proposal also includes $8.2 million in technical assistance funding for the territories.

This is the second consecutive year that the island has fared well under the new competitive formula, which is based on accountability and auditing standards. The Government of Guam is applying $2.82 million of this year’s CIP grant to the closure of the Ordot Landfill and to the opening of a new municipal landfill. Other funded projects include renovation of the marina in Hagatna and the purchase of agricultural temperature treatment equipment.

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Contact:  Alicia Chon in Washington, D.C. at (202) 225-1188 or Joseph E. Duenas at (671) 477-4272/4.