Overview:
President Surangel Whipps Jr. has returned the FY 2026 budget to the OEK, rejecting a grant approval requirement he calls a “red line” that could cost Palau key funding opportunities.
By: L.N. Reklai
Koror, Palau (December 3, 2025) President Surangel Whipps Jr. announced today he is sending the FY 2026 Unified Budget bill back to the Olbiil Era Kelulau for reconsideration, objecting to a rider that would restrict the use of grants received after Oct. 31, 2025, without a separate law or joint resolution from the national legislature.
Whipps called the provision “a red line,” saying he will not sign the bill as written. He said the proposed requirement for OEK authorization could hinder many programs and “cause Palau to lose opportunities” if grant-funded initiatives are delayed or blocked.
The president said he has spoken with Senate President Hokkons Baules and House Speaker Gibson Kanai and hopes lawmakers will act quickly to restore the original language. The initial version of the bill authorized and appropriated all incoming grants for the purposes they were awarded.
If the budget is not enacted soon, he said, the 72-hour pay directive will apply to the next pay period.