The effect of the announcement that President Donald Trump has suspended all U.S. foreign assistance program for 90 days is as yet unknown for programs in Micronesia.
Whether funds already obligated are safe remains to be seen.
Palau, the Federated States of Micronesia and the Marshall Islands all receive significant funding from USAID – the U.S. Agency for International Development – one of the agencies that spearheads foreign assistance, together with the U.S. Department of State. USAID, along with Japan and Australia, is supporting Palau’s $30 million second undersea cable spur, which will connect Palau to the world’s longest undersea cable.
According to Journal files, the completion date of the spur connecting the Echo cable to Palau was delayed. The operational date of the spur has been scheduled for the first quarter of 2025 and there’s no word on whether that has been pushed back. Palau officials said while they hope to push the project forward, it’s a private company laying the cable.
USAID also works with Australia and Japan to improve internet connectivity by providing funding to build the new East Micronesia undersea cable that will connect Kosrae in FSM, Nauru, and Tarawa in Kiribati with the existing HANTRU-1 cable at Pohnpei, providing internet connectivity through a submarine cable for the first time. With an estimated cost of $95 million, inclusive of capital works, project management, and technical assistance, the proposed undersea cable will provide faster, higher quality, and more reliable and secure communications to approximately 100,000 people across the FSM, Kiribati, and Nauru, USAID said.
The project is scheduled for completion by December 2025, according to a November update on the project site.
“USAID – along with international partners – is supporting the economic growth in the Marshalls through technical assistance for the country's program to liberalize and modernize its telecommunications sector. Through this initiative, USAID is working toward increasing the RMI’s digital connectivity with faster, more reliable, and secure internet, bringing internet to some remote areas for the first time and providing the entire country with a stronger economic future,” the agency said.
Other listed projects in the Marshalls have included election preparation assistance and human trafficking.
During the COP29 U.N. Climate Change Conference in November, the White House announced that it had met its adaptation finance pledge for the first time in fiscal 2023, reaching more than $3 billion.
“Co-led by the U.S. Department of State and USAID, and bringing together 20 departments and agencies, PREPARE is the cornerstone of the U.S. government’s approach to help more than half a billion people in developing countries adapt to and manage the impacts of climate change by 2030,” a statement said.
At COP29, USAID highlighted nearly $61 million in investments under PREPARE to improve resilience and security against environmental threats.
Specifically for the three Freely Associated States, On Oct. 1 USAID announced $1.5 million in humanitarian assistance for the American Red Cross to work with national Red Cross Societies in the three countries “to bolster disaster preparedness in countries already experiencing the impacts of the climate crisis.”
In August last year at the 53rd gathering of the Pacific Islands Forum, the U.S., through USAID, announced that it intends” to work with Congress to provide more than $10 million in additional funding to support Pacific Island countries’ ability to adapt to climate change, strengthen disaster resilience, and achieve their goals in advancing good governance.” mbj