There was also considerable discussion of the Extraordinary Needs Distribution (END) program and concerns about implementation during last Thursday’s Appropriations Committee hearing on the Ministry of Finance’s FY2027 budget.
END has been the subject of widespread complaints from many of the 11 local governments receiving funds under the program that started issuing funding at the start of the current fiscal year.
Responding to Ailuk Nitijela Member David Anitok, who co-chairs the END Committee, Finance Minister David Paul emphasized that this is the first year of END implementation and that Finance is proceeding cautiously because expenditures that do not comply with negotiated agreements could later be classified as disallowed costs and require repayment.
He acknowledged that mistakes and implementation challenges are expected during the first year but said Finance is committed to improving the process.
Finance Secretary Ayako Yamaguchi-Eliou explained that approximately $1 million is allocated to the Evaluation and Monitoring Unit, including roughly $400,000 for audits and support for positions within Finance, Ministry of Foreign Affairs and Trade, and Public Works.
Nitijela Committee Chairman Jack Ading stated bluntly: “Elukun bwijin ao kajitok nan END. Ijab monono kon jerbal ko an END” (I have many questions for END. I am not happy with the END work) and said he was looking forward to the separate END meeting scheduled after the hearing.
His comments reflected broader concern regarding the administration, oversight, and progress of END activities to date.