The United States did not want the previous revision of Palaus to be repeated in 2010, when it took eight years for the financial package to be properly approved. “I am very pleased that our governments have completed the exchange of diplomatic notes to sign and implement the agreement,” said Minister Zinke. “This is a historic day that fulfills the continued and ongoing commitment of the United States to Palau, an important partner in the government`s Indo-Pacific strategy. I welcome Palau`s significant progress in developing its economy and will continue to look for ways to support your efforts to bring prosperity to the people of Palau,” Zinke concluded. The U.S. government and Palau signed the agreement in 2010, which offered additional U.S. financial assistance totalling $229 million through 2024, the statement said. Under the agreement, the United States will provide decreasing amounts to Palau each year to develop other sources of local revenue. The United States has opened negotiations to renew agreements with its Pacific states, which is contrary to Chinese influence in the region. At the time, full funding for the pact was not approved.
Since fiscal 2010, subsequent internal and discretionary mandates have extended annual economic assistance to Palau by approximately $13.1 million per year, for a total of $105.2 million in discretionary funds. The agreement with the Marshall Islands and the Federated States of Micronesia provides decisive financial support and expires in 2024. In December 2017, the U.S. Congress approved the Palau Compact Agreement in the National Defense Authorization Act 2018, and President Donald J. Trump signed it into legislation that formally passed the strategic agreement signed for the first time in 2010 between the governments of the United States and Palau. On March 26, 2018, President Trump signed the 2018 omnibus funding agreement, which included $123 million until 2024 for the Stability Pact Review Agreement agreed in 2010 between the United States and the Republic of Palau. The United States and Palau signed the amended agreement following the Compact of Free Association Section 432 Review on September 19 in Koror, Palau. The United States and Palau also exchanged diplomatic notes by which the pact revision agreement, signed in 2010, came into force. The signing marks the conclusion of the first review and amendment process planned by the Compact of Free Association (the “Compact”), U.S.
Public Law 99-658. U.S. officials held discussions in Palau to renew the Free Association Agreement. WASHINGTON – The new 2018 omnibus funding agreement includes $123 million in funding through 2024 for the 2010 Palau Compact Review Agreement, as agreed between the United States and the Republic of Palau. The governments of the United States and Palau will have to meet to update the financing plan for the 2010 agreement, which required specific annual spending. President Trump has asked for $123.9 million to implement the agreement in his draft budget for the 2018 GJ.