Overview:
Lawmakers are in the final stretch of approving Palau’s FY 2026 budget, with debate heating up over which states received funding for capital improvement projects—and why some were left out.
By: Eoghan Olkeriil Ngirudelsang
Koror, Palau — Lawmakers are in the final phase of negotiating the FY 2026 Unified Budget bill, with attention turning to House-proposed amendments that would fund capital improvement projects (CIPs) for specific states. The changes have prompted public and Senate questions about why only some states secured allocations while others received none.
House Ways and Means Committee Chairman Mengkur Rechelulk said funding decisions were based on timely submissions.
“Those states who did not receive funding for their CIP did not submit their requests or submitted them late,” Rechelulk said.
During a conference committee meeting on Nov. 27, several senators raised concerns over the uneven distribution. Sen. Tabelual questioned the absence of some states in the budget discussion, noting their lack of representation in negotiations.
“Some states had no representatives present here to explain themselves or represent their state’s interest,” he said. “Those states are now punished and left out of the nation’s national budget.”
Rechelulk rejected the idea that states were excluded intentionally.
“No state is left out or punished,” he said. “A state must have a plan and submit their plan along with their funding request. It is not my place to make their plans or dictate their priorities.”
House Speaker Gibson Kanai reinforced that position, acknowledging his own state’s lapse in submitting requirements.
“No state is left behind. Even I am Speaker, but my state was late in fulfilling Ways and Means requirements, therefore my state did not receive CIP funding,” Kanai said.
He pointed to Ngeremlengui as an example of compliance despite challenges.
“The delegate was off-island, yet she communicated with her governor and submitted all documents on time — therefore Ngeremlengui will receive funding,” he said.
Kanai added that delays were procedural, not political.
“States without funding are not a sign of disunity, but the result of late submissions,” he said. “Efforts to unify all members of the House are ongoing.”
States awarded CIP funding under House amendments
Rechelulk said funding was allocated to states that submitted plans and cost estimates:
- Aimeliik — $125,000 for road improvement
- Airai — $88,000
- Koror — Continued support for solid waste management through the beverage container deposit fee
- Melekeok — $50,000 to improve the Senior Citizens Building, also serving as emergency housing
- Peleliu — $140,000
- Ngeremlengui — $35,000 for housing site planning/assessment
- Ngardmau — $77,000 for renovation of multi-purpose/state office/Bai
- Ngatpang — $100,000 to continue water pipe installation
Senate President Hokkons Baules urged broader inclusion, recommending that supplemental funding be considered for states that received no allocation.
He suggested that all states — or at least those left out in this round — be included when the supplemental budget is drafted.
The FY 2026 Unified Budget is expected to reflect most of House Bill 12-23-3, HD2, SD9, with Senate-House compromise language that incorporates the new CIP amendments and Senate’s COLA redistribution proposal. Both houses seek to reach agreed budget bill by today with passage by both houses on Wednesday.