U.S. funding delay could create opening for China, Pacific Island nations warn

The budget impasse in Congress has further delayed crucial funding for Palau, the Marshall Islands and the Federated States of Micronesia, which are also being courted by China.

The budget impasse in Congress has further delayed crucial funding for three U.S.-allied Pacific Island nations, potentially making them more susceptible to influence by China, including over Taiwan, their leaders have warned.

Palau, the Marshall Islands and the Federated States of Micronesia are former U.S.-administered trust territories that are now independent states and maintain close U.S. ties through agreements known as Compacts of Free Association (COFA).

In exchange for economic assistance and defense guarantees, the three countries give Washington exclusive military access to an area of the Pacific that is bigger than the continental United States, at a time when the U.S. and China are competing for dominance in the strategically vital region.

The security agreements were renewed for another 20 years last May and were supposed to be implemented Oct. 1. But, months later, despite bipartisan support, the $7.1 billion in funding has yet to be approved by Congress.

The delay “has generated uncertainty among our peoples,” the leaders of Palau, the Marshall Islands and the Federated States of Micronesia said in a joint letter this month that was sent to multiple senators, and “resulted in undesirable opportunities for economic exploitation by competitive political actors active in the Pacific.”

Congress has been mired in disputes over an emergency supplemental budget request that includes assistance for Israel, Ukraine and the Beijing-claimed island of Taiwan. Its approval has been blocked by Republicans who insist it must also address security at the U.S. border with Mexico.Funding for the three Pacific Island nations had been included in earlier drafts of the budget request but was removed at the last minute.

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