President Surangel Whipps Jr. has signed into law the first supplemental budget for fiscal year 2025, approving nearly all of the funding he requested in the original proposal.
The bill, RPPL 12-1, allocates $7.035 million to fund 59 budget items, after a Conference Committee of the Olbiil Era Kelulau resolved differences between the Senate and House versions of the measure. The final version, SB 12-25-SD3, HD2, CD1, was passed after extended deliberations.
Among the key provisions in the new law is the long-awaited $480 social subsidy for retirees and individuals with disabilities. The measure also includes subsidies for residential electricity, water, wastewater, and the Lifeline program.
Funding for most of Palau’s embassies and consulates overseas was restored, with one major exception: a proposed $5.8 million allocation to purchase property for the Palau Embassy in Tokyo was not approved.
The law releases the entire authorized amount for the 2025 Mini Pacific Games and allocates additional funds to the Palau National Olympic Committee, ensuring support for the event scheduled to begin at the end of this month.
Key policy language was also included in the bill. Amendments were made to ensure compliance with the Compact of Free Association (COFA) and the Compact Review Agreement, specifically correcting the source of funds in the FY 2024 budget related to Debt Consolidation Funds. The bill also outlines a process for tariff approval by the Palau Energy and Water Authority (PEWA).
Additionally, the law transfers remaining state audit funds from the Ministry of Finance back to the Office of the Public Auditor, reversing a previous law that had assigned state audit responsibilities to the Ministry.
President Whipps signed the supplemental budget into law on Monday, June 1, 2025, coinciding with Palau’s President’s Day holiday.