1. Short title This Act may be cited as the Compact Impact Fairness Act of 2023 . 2. Provision of Federal public benefit eligibility for citizens of Freely Associated States (a) In general Section 402 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1612 ) is amended— (1) in subsection (a)(2), by adding at the end the following: (N) Exception for citizens of freely associated states With respect to eligibility for benefits for any specified Federal program, paragraph (1) shall not apply to any individual who lawfully resides in the United States in accordance with section 141 of the Compacts of Free Association between the Government of the United States and the Governments of the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau, and who is a citizen of one of those three nations. ; and (2) in subsection (b)(2)(G)— (A) in the subparagraph heading, by striking Medicaid exception for and inserting Exception for ; and (B) by striking the designated Federal program defined in paragraph (3)(C) (relating to the Medicaid program) and inserting any designated Federal program . (b) Exception to 5-Year wait requirement Section 403(b)(3) of such Act ( 8 U.S.C. 1613(b)(3) ) is amended by striking , but only with respect to the designated Federal program defined in section 402(b)(3)(C) . (c) Definition of qualified alien Section 431(b)(8) of such Act ( 8 U.S.C. 1641(b)(8) ) is amended by striking , but only with respect to the designated Federal program defined in section 402(b)(3)(C) (relating to the Medicaid program) .