Compact Impact Fairness Act of 2023

S 792, the Compact Impact Fairness Act of 2023, modifies federal benefit eligibility rules for citizens of the Freely Associated States (Federated States of Micronesia, Marshall Islands, and Palau). It directly affects these citizens who legally reside in the U.S. under the Compacts of Free Association by removing a 5-year residency wait for all federal public benefits. The bill adds an exception to Section 402 of the 1996 welfare law, ensuring these individuals are not subject to the general 5-year wait period for benefits like food assistance or housing aid. It also removes Medicaid-specific language from related provisions to apply this exception broadly across all federal benefit programs. This is a concrete policy change that expands access to federal benefits for a specific group of legal residents.