Insular Development Act of 1995

Limits appropriations to the Commonwealth of the Northern Mariana Islands (CNMI) for FY 1996 and thereafter to amounts set forth in the Agreement of the Special Representatives on Future Federal Financial Assistance of the Northern Mariana Islands executed on December 17, 1992.

Authorizes additional appropriations for FY 1996 and thereafter for: (1) capital infrastructure projects in Guam, the Virgin Islands, American Samoa, the CNMI, the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands (including resettlement of Rongelap Atoll); (2) the College of the Northern Marianas; and (3) Federal agencies or the CNMI for immigration, labor, and law enforcement activities.

Declares that Federal minimum wage requirements shall apply to the CNMI, with specified exceptions (including an increase from $2.75 to $3.05 per hour on January 1, 1996, with thirty cents per hour annual increases thereafter).

Directs the Secretary of the Interior to report annually to the Congress on the use of funds allocated to Federal agencies or CNMI for immigration, labor, or law enforcement activities.

Requires the CNMI and the Immigration and Naturalization Service to cooperate in the identification and, if necessary, exclusion or deportation from the CNMI of persons who represent security or law enforcement risks to the CNMI or to the United States.

Amends Federal shipping law to authorize legal aliens in the CNMI to serve as unlicensed seamen on certain fishing vessels that operate from a port within the CNMI and its surrounding waters.

Sets forth provisions declaring the CNMI's ownership of submerged lands.

Directs the Secretary of the Interior to submit annually to the Congress a "State of the Islands" report on American Samoa, Guam, the Virgin Islands, the CNMI, the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands.