Under Public Law No. 10-11, the FSM Congress mandated that the Joint Committee on Compact Economic Negotiations shall carry out the following responsibilities and obligations:

1. In consultation with the Congress, set goals and objectives for the Compact of Free Association negotiations;
2. Conduct a thorough analysis of all factors relating to the Compact of Free Association negotiations;
3. Develop all necessary strategies and approaches to enable the Federated States of Micronesia to commence negotiating with the United States in November 1999;
4. Direct its Secretariat in preparing the documentation necessary to accomplish its responsibilities hereunder;
5. Analyze all economic information available on the Federated States of Micronesia, with the aim of identifying the FSM's continuing requirement for reasonable, fair, and effective financial assistance from the United States of America from the year 2001 onward;
6. Provide reports periodically to the Congress at each regular session, and to the Office of the President, on all developments, actual or potential, positive or negative, that may be related to the renegotiation of the Compact of Free Association, including but not limited to new information, actions, communications, domestic and foreign policies, bilateral and multilateral plans, as well as periodic surveys exploring the value of net benefits to a foreign nation from an exclusive security prerogative;
7. Collaborate with the State Governments, the Department of External Affairs, the Congress, and the Office of the President in identifying the nominees for the team of negotiators whose selection will be subject to Congress' express approval; approved nominees will represent the FSM in the bilateral Compact of Free Association negotiations;
8. Use funds for each separate category of expense only up to the aggregate amount of the line-items of the corresponding expense category set out in the associated appropriations bill or bills approved by Congress, and select and hire the personnel needed to staff the Secretariat; and
9. Manage its own funds, in accordance with procedures established by the Secretary of the Department of Finance, and to have the authority to administer the JCN Fund.