KOROR, Palau — Palau has secured more than $71 million in U.S. federal grants for ongoing projects as of December 31, 2024, according to a report submitted to the Senate of the 12th Olbiil Era Kelulau by the Ministry of Finance.
The grants, issued by various U.S. federal agencies, fund projects across multiple government ministries. Some of these projects date back to 2020 and remain in the implementation phase. The total amount of grants approved was $178.1 million, of which $106.3 million has been utilized, leaving a remaining balance of $71.8 million.
Breakdown of U.S. Federal Grant Allocations
The Ministry of Health and Human Services (MHHS) received the largest share of funding, with an initial allocation of $54 million, primarily from the U.S. Department of Health & Human Services. Of that amount, $25 million remains available for implementation.
The Workforce Innovation and Opportunity Act (WIOA) grants, mostly tied to COVID-19 pandemic unemployment assistance, received the second-largest share. The U.S. Department of Labor initially awarded $46 million, with $1.8 million still available.
The U.S. Department of Transportation provided $18 million, with $8.9 million remaining. Meanwhile, the Palau National Communications Corporation (PNCC) received $14.2 million from the U.S. Department of the Treasury for a mobile network upgrade, though only $21,000 has been spent so far.
The Ministry of Education secured $2.8 million in grants from the U.S. Department of Education. Of that amount, $524,000 has been used, leaving $2.3 million pending.
Other U.S. federal grants include funding from the U.S. Department of Commerce for weather observation services and offshore fishery support. The U.S. Department of the Interior supports various projects, including historical preservation, water quality monitoring, household income surveys, audits, and infrastructure maintenance.
Additionally, the Ministry of Fisheries and Agriculture received grants from the U.S. Department of Agriculture for fire assistance and forest monitoring programs.
Compact Funds and Infrastructure Projects
Grants under the Compact of Free Association (CRA) agreements are also included in the total, with an initial allocation of $32 million. As of December 31, 2024, $14 million remains. Compact-funded projects include $7 million for the second fiber optic cable, Angaur dock improvements, infrastructure upgrades in 2023 and 2024, the Koror-Airai Road Project, and the 2020 COFA infrastructure initiatives.
Impact of U.S. Foreign Aid Freeze
It remains unclear how many of these projects are affected by the U.S. freeze on foreign aid. President Surangel Whipps Jr. stated at a press conference earlier this month that his administration is still receiving notifications regarding which programs may be paused. Efforts are ongoing to assess the impact and ensure continued project implementation.