Joe Biden’s budget aims at China with billions for Pacific islands
- The proposed spending plan includes funding for the Marshall Islands, Micronesia and Palau, as Washington seeks to keep the 3 nations in the US orbit
- With Republicans pushing deep cuts, it’s not clear if Congress will approve such aid. But US lawmakers have also shown rare bipartisan unity on countering China

Alarmed by China’s success in wooing Pacific island nations, the Biden administration is proposing to spend billions to keep three of those countries in the US orbit.
President Joe Biden’s proposed federal budget released on Thursday includes more than US$7.1 billion in funding for the Marshall Islands, Micronesia and Palau. The money is included in the US$63.1 billion request for the State Department and the US Agency for International Development.
It is unclear if Congress would approve such aid. The overall budget proposal faces certain opposition in the Republican-led House and some of the party’s lawmakers are pushing for severe foreign aid cuts as they look to slash federal spending.
But members of Congress have shown rare bipartisan unity on countering China, offering the prospect that the Pacific Island aid could be seen more favourably.
The money, to be paid out over 20 years, would extend agreements with the three states under which the US provides them with essential services and economic support in exchange for military basing rights and other preferential treatment.