The Republic of the Marshall Islands (RMI) and the Federated States of Micronesia (FSM) are located in the Pacific Ocean just north of the equator, about 3, 000 miles southwest of Hawaii and about 2, 500 miles southeast of Japan. The FSM is a federation of four semiautonomous states and has a population of approximately 103, 000 (as of 2010) scattered over many small islands and atolls. The FSM states maintain considerable power, relative to the FSM National Government, to allocate U.S. assistance and implement budgetary policies. This book examines (1) the FSM’s and RMI’s use of compact funds in the education and health sectors; (2) the extent to which the FSM and RMI have made progress toward stated goals in education and health; and (3) the extent to which oversight activities by the FSM, RMI, and U.S. governments ensure accountability for compact funding and information on infrastructure spending.