The Biden Administration continues to push for funding to support the Pacific Islands amidst escalating tensions with China. A recent economic aid package of $95 billion was approved to bolster Ukraine, Israel, and Taiwan. However, the Marshall Islands and other Indo-Pacific region islands were excluded.
According to an MSN news article, the Administration aims to maintain relationships with the Marshall Islands, Micronesia, and Palau through the Compact of Free Association pact (COFA). This pact has been operational for decades since its signing in 1986. It provides the United States military with access to all aspects of these Pacific island nations in exchange for financial aid and opportunities for their citizens to work and study in the United States. Additionally, it allows the US military to establish base locations on these islands.
A South China Morning Post news article indicates that these three island nations heavily rely on American subsidies and influence. American subsidies constitute 70 percent of the Marshall Island's GDP and 40 percent of Micronesia's GDP. Without additional support from the United States, it would be challenging for these islands' economies to sustain their current levels. The COFA programs between the Marshall Islands and Micronesia expired last year but were subsequently renewed. Biden has committed $7.1 billion over 20 years to these three countries. There is robust bipartisan support for this funding due to concerns about Beijing's attempts to sway the Indo-Pacific region. It is imperative for the US to maintain a strong presence in this region to mitigate China's influence.
Camille Dawson, a deputy assistant secretary at the US State Department, emphasized this point saying: "At the State Department, the White House, we continue to advocate for the authorization and appropriation of funds. We feel it’s critically important to continue to work in close concert and in support of the freely associated states". Dawson was referring specifically to these three island nations.
