Overview:
Palau senators are pushing back against blanket approval of incoming grants, citing the Constitution’s call for fair and equitable distribution between the national government and states. They say legislative oversight ensures transparency and accountability.
By: Eoghan Olkeriil Ngirudelsang
Koror, Palau (December 8, 2025) — While the majority of the Olbiil Era Kelulau (OEK) approved the FY 2026 budget containing language that allows blanket appropriation of incoming grants, several senators voted against it, citing the Palau Constitution’s mandate that all grants be fairly and equitably shared between the national government and the states.
At a radio talk show yesterday, Senators Nakamura, Melairei, and Rudimch said their opposition to blanket grant approval is rooted in Article XII, Section 5, which requires that block grants and foreign aid be shared fairly among the national government and states.
“The constitution makes it clear that unless a grant comes with specific distribution requirements, Congress has a duty to ensure funds are allocated fairly across the states,” Nakamura said. “While the unified budget grants blanket approval to the president to appropriate incoming funds, we cannot simply hand over future grants without oversight.”
The CD1 amendment would have required that any grant funding received after Oct. 31, 2025, be expended only following a joint resolution of OEK, giving Congress a role in approving allocations. Nakamura emphasized that the process need not be cumbersome. “The government already knows what federal grants and other foreign aid will be received. One resolution could cover federal grants, another could cover Japan or other donor funds,” he said.
Sen. Melairei echoed the call for transparency, citing experience with Taiwan stimulus grants, which often had no specific distribution terms. “The president selects how these grants are distributed with very few people involved, and state governors or Congress have no say. We only ask that the same process required for infrastructure and CIP projects be applied to all grants,” she said.
President Surangel Whipps Jr., whose preferred budget language granting blanket authority was passed by the majority of OEK, warned that requiring legislative approval for grants could slow implementation and “cause Palau to lose opportunities.” He described the CD1 provision as “a red line,” emphasizing that timely appropriation and use of incoming funds are critical for program continuity.
The debate highlights the tension between executive flexibility in managing incoming grants and the constitutional mandate for fair and equitable allocation among national and state governments. Senators argue that Article XII, Section 5 provides clear guidance for ensuring that all Palauan communities benefit from block grants and foreign aid.
Members of Olbiil Era Kelulau, both House and Senate, approved the FY 2026 Budget version, HB 12-23-3, HD2, SD3,CD1, PD1, with the President Whipps proposal restoring the language on Section 20, on grants that authorize and appropriates all grants coming received by the government. Many of them, approved the budget citing the need to pass the budget to avoid government employees going into an 80-hour work /72-hour pay as warned in a memorandum issued by President Whipps Jr.