Overview:
Senate President Hokkons Baules has voiced frustration over continued delays by the House of Delegates in passing Palau’s FY 2026 national budget, warning that another government shutdown could occur if action isn’t taken soon.
By: L.N. Reklai
KOROR, Palau — “We can’t do anything except wait for them,” Senate President Hokkons Baules said this week, voicing growing frustration over what he described as repeated delays by the House of Delegates in acting on Palau’s Fiscal Year 2026 national budget bill.
With just six weeks left before the Continuing Budget Authority (CBA) expires, Baules warned that the lack of progress could push the government toward another potential shutdown. “We met on Monday, and they didn’t have a quorum. We were supposed to meet on Wednesday, and they said they were not ready,” Baules said. “They are in charge of the budget now, so they call the meetings. We can’t do anything except wait.”
The FY 2026 budget bill, submitted by President Surangel Whipps Jr. in July, has bounced between the two chambers of the Olbiil Era Kelulau (OEK) for months. The House of Delegates first amended and sent the bill to the Senate in August. The Senate returned it with its own amendments on September 19, but the House rejected those changes, prompting the creation of a conference committee to reconcile differences.
However, soon after forming the committee, most House members, including the conferees, departed the country for a week, returning with only three days left before the fiscal year ended on September 30. In the final hours, a major technical error in the House version of the bill stalled its passage. Facing a possible government shutdown, President Whipps convened both chambers to resolve the impasse, while also issuing a notice of government closure in anticipation of inaction.
Both houses ultimately reached a last-minute compromise, approving a Continuing Budget Authority that Whipps signed into law early on October 1, narrowly averting a shutdown. The CBA allows only 25% of the previous fiscal year’s budget to be used and is valid for three months.
With the CBA set to expire soon, Baules said the Senate’s hands are tied until the House convenes to move the bill forward. The continued delay, he cautioned, heightens the risk of another government funding lapse.
“We are running out of time,” Baules said, urging the House to act swiftly to prevent another budget crisis.