Palau will receive $890 million under the new Compact Review Agreement if the United States Congress approves U.S. President Biden’s budget proposal of $7.1 billion for the three Compact-associated countries, Palau, Federated States of Micronesia, and the Republic of the Marshall Islands.
The budget allocation of $7.1 billion submitted to the US Congress is $890 million for Palau, $3.3 billion for FSM and $2.3 billion for the Marshall Islands. Palau’s allocation is 13% of the total budget and will fund fiscal years 2024 to 2044 or 20 years.
Additional funding outside of this allocation goes to fund U.S. Postal Service continued service within the three countries.
It is still unclear if the budget will pass in the US congress with the Republic-led House, but with congress’s bi-partisan support of containing China’s expansion into the region, there’s optimism that it may pass. (By: L.N. Reklai)