Federal Formula Grant Award Summary

The U.S. Department of the Interior's Office of Insular Affairs awarded a formula grant totaling $2,000,000 to the Republic of the Marshall Islands Ministry of Finance under the Economic, Social, and Political Development of the Territories program (CFDA 15.875) effective October 1, 2025, through September 30, 2026. This award obligates $200,000 in federal funding to support public sector capacity building initiatives within the Marshall Islands government. The formula grant mechanism, which comprises approximately 25 percent of the CFDA 15.875 portfolio, provides flexible funding designed to strengthen governmental institutional capacity and administrative capabilities across the freely associated state.

As the primary financial administration entity for the Marshall Islands and a registered recipient of U.S. federal assistance under the Compacts of Free Association, the Ministry of Finance administers this funding to advance governmental operations and public sector development. The Ministry has demonstrated substantial experience managing federal assistance across infrastructure, healthcare, education, and economic development sectors, with recent portfolio management exceeding several hundred million dollars. This capacity-building allocation supports the Office of Insular Affairs' strategic objective to fill gaps in federal programming and respond to the specific governance and administrative needs of the freely associated states.