By L.N. Reklai
KOROR, Palau (September 26, 2025) — Palau’s lawmakers say they will not allow the government to shut down as the Senate advances a stopgap budget plan, even as House negotiations remain stalled with key members off-island just days before the new fiscal year begins.
On Sept. 19, the House rejected the Senate’s version of the fiscal year 2026 budget and formed a conference committee led by Ways and Means Chairman Delegate Mengkur W. Rechelulk. Members included Delegates Stephanie Ngirchoimei, Warren Umetaro, Yutaka Gibbons Jr., Sebastian Marino, Francesca Otong, Blesoch Aderkeroi, Nace Soalablai and Silverius Tellei.
However, shortly after the session, most House conferees—including Rechelulk, Ngirchoimei, Gibbons Jr., Marino, Otong, Aderkeroi and Tellei—traveled abroad. Speaker Gibson Kanai also left the country, while Delegate Portia Franz-Kesolei remains in the Philippines with her husband for medical treatment. Their absence leaves too few members to reach the quorum required to convene a session.
Vice Speaker Mario Gulibert, one of the few leaders still in Palau, said he is in close contact with those overseas. “We don’t want the government to shut down and we will do everything we can to ensure that the government does not shut down,” Gulibert said. He added that Rechelulk is expected back Saturday, with other members due Sunday.
Gulibert acknowledged the tight timeline for compromise. “We will do our best in those 2 to 3 days to iron out the differences and come to an agreed budget. I do know that it is not an easy task, given the number of policy proposals and changes made by the House and the Senate,” he said. “But I know for sure we will all agree, both House and Senate, that we will not allow the government to shut down.”
Senate Pushes for Stopgap Funding
While the House waits for its members to return, the Senate has already named its conferees—all senators except the Senate president—and signaled readiness to meet since Sept. 19. But after days of inaction from the House side, the Senate passed a continuing budget authorization bill to prevent a shutdown when the fiscal year ends Sept. 30. Still the bill too has to pass the House and the President to prevent shutdown.
Senate Ways and Means Chairman Mark Rudimch, in a letter to House Chairman Rechelulk, said the Senate committee “was ready to meet the House Conference Committee on September 19” and remains prepared to finalize a draft. However, with no clear schedule from the House, “the Senate Conference Committee is now on hold, subject to the call of Senate President Hokkons Baules.”
Rudimch assured that the Senate is ready to continue discussions. “The Senate President intends to consult with Speaker Kanai upon his return to discuss the appropriate way forward,” Rudimch wrote.
Balancing Urgency with Policy
Gulibert cautioned that rushing a budget just to meet the deadline could harm essential programs. He noted that the Senate’s proposed six-month continuing authority does not mean lawmakers must wait that long. “If we can reach a compromise in two weeks, that would end the continuing authorization,” he said. “The important priority is to ensure that the government does not shut down and that the budget is not rushed for the sake of the deadline.”
Budget Process in Palau
Each year, either the House of Delegates or the Senate takes the lead on the national budget. This year, the House has the lead role. The process begins with both chambers introducing the bill simultaneously. The lead chamber drafts amendments before sending the bill to the other chamber for review and changes.
If disagreements persist, a conference committee of House and Senate members negotiates a compromise version. Both chambers must then approve the final draft before it is sent to the President, who can sign it into law, veto specific items, or reject it entirely. The bill may then be reconsidered by both houses of Congress.
Delays in passing the budget are not uncommon in Palau. Last year, the budget was signed into law on Sept. 30, hours before a shutdown. In 2020 and 2016, debates also stretched into the final hours, with either a continuing budget authorization or a full budget passed just before the fiscal year ended. What is unusual this year is that several key lawmakers left the country at such a critical time.
With only days left before the deadline, the question remains whether the two houses—and the President—can reconcile differences in time to avoid a lapse in funding.