Renewal measures for Compacts of Free Association states have been omitted from the Senate's latest budget proposal.
This development is unexpected, given that negotiations with Palau, the Marshall Islands, and the Federated States of Micronesia (FSM) under COFA had been finalized.
The Senate's recent budget allocates billions for aid to Ukraine and Israel. However, noticeably absent is the $7.1 billion pledged to the Freely Associated States: Palau, the Republic of Marshall Islands, and the FSM.
According to the Island Times, the rationale behind this omission remains unclear. Speculation suggests it may be linked to demands for "offsets," indicating the Senate's intention to reduce spending in other areas to finance these renewals.
Michael Walsh, an affiliate researcher for Georgetown University's Center for Australian, New Zealand, and Pacific Studies, believes the lack of urgency in addressing COFA renewals underscores the low priority the Pacific region holds in U.S. foreign policy.
"That's why China is so effective at competing with us in the Pacific right now," Walsh said. "Because we continue to approach the Pacific in that way."
This delay could adversely impact Palau's fiscal recovery efforts, as the island nation seeks to utilize COFA funding to rebound economically from COVID-19.
Although both Democrats and Republicans in Congress express support for these agreements, it remains uncertain when or how this issue will be resolved.
