US, Australia Pledge $580 Million for Pacific Islands

The United States and Australia announced a combined $580 million funding package for Pacific Island nations on Wednesday, stepping up regional support as competition with China for influence across the Pacific intensifies.

Australia will provide A$600 million ($430 million) to strengthen efforts against drug smuggling and organised crime. The package was announced during the Pacific Islands Forum in Palau and includes funding for expanded aerial surveillance as well as additional training for police and border officials.

Australian Prime Minister Anthony Albanese said greater regional cooperation was essential to tackling the illicit drug trade.

“The Pacific is our home and our family. That’s why it’s in Australia’s interests to work with our Pacific partners to combat organised crime,” Albanese said in a statement.

“For the good of every country in the region, including our own – we need to work together to stamp out the illicit drug trade.”

Separately, the U.S. State Department announced $150 million in new funding for Pacific Island countries. Deputy Secretary of State Christopher Landau unveiled the package at the regional forum.

Of the U.S. commitment, $60 million will be directed toward helping Pacific nations respond to the global energy crisis. The funding will support expanded fuel storage capacity and efforts to improve electricity grid stability.

The announcements come as Washington and Canberra seek to strengthen ties with Pacific Island countries amid growing Chinese diplomatic and economic engagement in the region.

This year’s Pacific Islands Forum has also been overshadowed by disagreement over Taiwan’s participation. China, which considers democratically governed Taiwan part of its territory, has objected to the island’s presence at the annual gathering.

Australia and New Zealand said Tuesday that the forum’s members would determine who is invited to participate.

Palau, the host of this year’s summit, is one of three Pacific nations that continue to maintain diplomatic relations with Taiwan.

The 18-member Pacific Islands Forum began its annual meeting on August 30 and is scheduled to conclude on September 4.