To approve an agreement between the United States and the Republic of Palau, and for other purposes.

This bill approves, with specified exceptions, the agreement and appendices signed by the United States and the Republic of Palau on September 3, 2010, in connection with the Compact of Free Association between the United States and Palau.

If Palau withdraws more than $5 million from the trust fund set up by the Compact in FY2015, certain amounts will be withheld from Palau until it reimburses the fund for the total amounts withdrawn that exceeded $5 million in FY2015. Certain funds may be released to replenish that trust fund, however, if the United States and Palau have arranged to advance funds during FY2015 from the trust fund for specified allowable purposes.

The bill authorizes appropriations to: (1) subsidize postal services to Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia for FY2016-FY2024; and (2) carry out specified federal responsibilities under the Compact.

The bill also repeals specified offset requirements.

FY2016 funding is provided to reduce government arrears of Palau.

FY2016-FY2023 additional economic assistance, and FY2016 funding for infrastructure projects, are provided.

Specified passport requirements are revised.