FSMIS (October 8, 2014): The Federated States of Micronesia President Manny Mori signed into law on October 6th a legislation that provides $5,200,000 for the remaining construction of the unfinished Weno Road Project in Chuuk State and $221,600 for Hospital Redesign in Kosrae State.
The funding for these projects is provided under the infrastructure development sector pursuant to the Compact of Free Association, as amended, between the FSM and United States.
At the start of the recently concluded Fifth Regular Session, the FSM Congress was ready to defer to the legislatures of Chuuk State and Kosrae State to appropriate the money, claiming the Congress should not appropriate the funding since it belongs to the State governments.
However, the Department of Justice came out with a legal opinion on September 22, 2014, citing specific provisions of the FSM Constitution and the Financial Management Act of 1979, which define the "general fund", explain which money is deposited in the fund, and expressly give Congress the role to withdraw money out of the General Fund or any special fund within the FSM Treasury by appropriation law.
After passing the appropriation bill for the two fundings, Congress stressed that it did so based on the urgency of the two projects, but that it does not see fit for the FSM Congress to appropriate money for infrastructure projects that belong to the State governments.