KOROR, Palau — The House of Delegates has passed the proposed fiscal year 2026 national budget bill on third reading, removing nearly all policy riders that were originally tied to the legislation and adding new subsidies for household utilities.
The House-approved measure appropriates $152 million, up from the $152.5 million proposed by President Surangel Whipps Jr., and authorizes a total of $154 million. The revised bill includes $1.7 million for residential power subsidies and an additional $250,000 increase in water and wastewater assistance, totaling nearly $1.95 million in new support for household utilities.
The original budget proposal included major policy changes such as raising the retirement age, shifting procurement positions, redirecting funding from the Palau International Coral Reef Research Center to fisheries programs, and raising foreign worker permit fees. Those provisions were stripped from the House version.
The House also cut nearly $1 million from the executive branch and trimmed another $1 million from various budget items. State block grants were left unchanged, though several states gained new capital improvement projects.
The Senate has yet to deliberate on the bill as it awaits financial data from the Ministry of Finance. Lawmakers anticipate that differences between the two chambers may ultimately require a conference committee.