Australia and the United States have announced a combined $580 million funding package for Pacific Island nations as both allies seek to strengthen their influence in a region where China has expanded its presence in recent years.
The announcement was made during this year’s Pacific Islands Forum in Palau, where officials discussed regional security, economic challenges and growing competition among major powers.
The United States will provide $150 million in funding, marking one of the most significant public signals from the Trump administration that Washington remains committed to the Pacific region.
The announcement comes after the administration dismantled the U.S. Agency for International Development (USAID) last year, raising concerns among regional partners over Washington’s long-term engagement.
U.S. Deputy Secretary of State Christopher Landau announced the funding at the forum, saying the investment would support Pacific countries facing economic and security challenges.
The package includes $60 million aimed at addressing energy security concerns by expanding fuel storage capacity and improving electricity grid stability.
The new funding comes as China continues to expand its influence across the Pacific through infrastructure projects, financial assistance and diplomatic partnerships.
Beijing has increased engagement with several island nations, including providing a presidential building complex to Vanuatu, signing a comprehensive strategic partnership with the Solomon Islands that includes policing cooperation, and developing closer ties with the Cook Islands.
“Chinese measures in the region are a forcing function for the U.S. to understand to be more deliberate in their engagement,” said Jared Mondschein, director of research at the United States Studies Centre.
Pacific nations have also faced increased pressure from rising energy costs and economic disruptions.
Oliver Nobetau, director of the Pacific Islands Program at the Lowy Institute, said the Iran war had worsened energy security concerns in the region.
The consequences included “slowing economies, prioritisation of essential services, all against the backdrop of a super El Niño”, he said, adding that support from international partners was needed.
Australia announced a larger contribution of A$600 million ($430 million) focused on combating drug smuggling and organised crime across the Pacific.
The funding will support expanded aerial surveillance, as well as increased training for police and border security officials.
“Australia’s interests are deeply connected to those of our Pacific partners. The Pacific is our home and our family,” Prime Minister Anthony Albanese said.
He added that cooperation was essential to counter organised crime networks operating across the region.
This year’s Pacific Islands Forum has also been dominated by tensions over Taiwan’s participation.
China, which considers Taiwan part of its territory, has opposed the self-governed island’s involvement in the annual gathering of the 18-member regional bloc.
Australia and New Zealand said on Tuesday that the forum itself would determine the guest list.
Palau, which is hosting this year’s meeting, is among three Pacific nations that maintain official diplomatic relations with Taiwan.
The forum began on 30 August and will continue until 4 September, with regional leaders expected to discuss security, climate challenges and economic cooperation.
Saudi Arabia has temporarily shut down its 1,200-kilometre East-West oil pipeline after it was hit by a drone attack, with Riyadh and Baghdad sayin...
Russia's Defence Ministry said its forces struck two cargo vessels overnight in the Ukrainian Black Sea port o...
Saudi Arabia is opening up to more international travellers as tourism expands beyond religious travel. In Riyadh, historic landmarks stand alongsi...
Overnight Iranian strikes on an air base in Jordan damaged multiple U.S. aircraft and left one without a wing, American media reported. Meanwhile, explosions were heard across parts of southern Iran according to local media reports.
Iranian President Masoud Pezeshkian arrived in New Delhi on Friday to attend the weekend BRICS summit, amid the ongoing U.S.-Iran conflict, joining a host of foreign dignitaries.
Ukrainian forces struck a Russian oil refinery in Siberia and a seaport in Dagestan in the past 24 hours, President Volodymyr Zelenskyy said. He will meet Canadian Prime Minister Mark Carney on Thursday to discuss air defences for Ukraine over winter.
A Russian strike on a gas station in Kyiv has killed two people, the city's Mayor Vitali Klitschko said in a statement on Telegram. In Russia, online marketplace Ozon has suspended operations in Saratov, southwestern Russia, following a drone strike on a warehouse in the region.
Mexico and the U.S. are racing to secure a trade deal before the U.S. midterm elections in less than eight weeks, according to six sources familiar with the talks, with failed negotiations between Washington and Canada adding urgency.
Russia's Defence Ministry said its forces struck two cargo vessels overnight in the Ukrainian Black Sea port of Chornomorsk, the Interfax news agency reported on Saturday.
Saudi Arabia has temporarily shut down its 1,200-kilometre East-West oil pipeline after it was hit by a drone attack, with Riyadh and Baghdad saying the strike originated from Iraq.
U.S. President Donald Trump arrived in Dublin on Saturday to meet Ireland’s leaders. He will also attend a golf tournament at one of his resorts, taking a brief detour from his focus on the Iran war and his party’s efforts to retain control of Congress in November’s midterm elections.
Dubai’s property market has spent years climbing. Now, for the first time since 2021, prices are moving in the opposite direction.
Colombian President Abelardo De La Espriella has formally ended all government peace negotiations with illegal armed groups, marking a dramatic shift in the country's security strategy and delivering on a central pledge from his election campaign.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment