OIA Announces $80 Million in Compact of Free Association Funds for the Republic of Palau

KOROR – The U.S. Department of the Interior’s Assistant Secretary for Insular and International Affairs Carmen G. Cantor today announced $80,400,000 in grant awards to the Republic of Palau for Fiscal Year (FY) 2025 as provided for under the Compact of Free Association (Compact) Section 432 Review, Public Law 118-42. Assistant Secretary Cantor announced the award of funds while she was in Koror to join in the celebration of Palau’s 30th anniversary of independence.

“The United States Government congratulates Palau on the 30th anniversary of its independence and is honored to award these funds under the new 20-year Compact Review Agreement between our two countries,” said Carmen G. Cantor, Assistant Secretary for Insular and International Affairs. “We are proud of the strong relationship that we share with Palau.”  

Today’s funding announcement includes $50 million for the United States’ second and final contribution to the Palau Compact Trust Fund as provided for under the Compact Section 432 Review signed in 2023. Economic assistance grants to support and strengthen the Republic of Palau’s health and education systems total $20,400,000 and, lastly, the amount of $10,000,000 represents the second of six annual payments from the United States to support the reduction of Palau’s public debt.  

As negotiated between the United States and the Republic of Palau Governments in 2023, the Compact Section 432 Review extended annual funding assistance for the Republic of Palau from FY 2024 to the end of FY 2043. More information about Compact and other funding provided to the Insular Areas may be found in the OIA Budget.

The Assistant Secretary for Insular and International Affairs and the Office of Insular Affairs (OIA) carry out the Secretary of the Interior’s responsibilities for the U.S. territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. Additionally, OIA administers and oversees federal assistance under the Compacts of Free Association to the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau. OIA also administers a discretionary Technical Assistance Program for all the Insular Areas. 

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