ACF-OFA-PI-24-02: Changes to TANF law in treating citizens of countries governed by the Compacts of Free Association (COFA)

Historically, federal law did not permit Compacts of Free Association (COFA) citizens residing in the United States to receive Temporary Assistance for Needy Families (TANF). On March 9, 2024, President Biden signed the Consolidated Appropriations Act of 2024, Public Law 118-42. The law included a provision titled “Compact Impact Fairness,” which revised the eligibility of citizens of freely associated states (i.e., Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau) lawfully residing in the United States in accordance with the COFA with the freely associated states for certain federal benefits, including TANF. The change in law allows a state to use federal TANF funds to assist eligible COFA citizens residing in the state by making them qualified immigrants. In addition, the law exempts COFA citizens from the restriction on receiving TANF-funded assistance until they have lived in the country for five years, which does apply to many qualified immigrants.