Overview:
Palau’s Senate unanimously rejected a bill aimed at modernizing the country’s elite residency visa program after lawmakers raised concerns over millions of dollars in budget rider amendments added by the House of Delegates. The move now sends the measure to a conference committee for further negotiations.
Senators oppose multimillion-dollar amendments tied to the Elite Visa bill, triggering conference committee negotiations.
By: Eoghan Olkeriil Ngirudelsang
Ngerulmud, Palau (May 11, 2026) – The Senate unanimously rejected the long-awaited Senate Bill No. 12-41 HD3, which sought to modernize Palau’s elite residency visa program, citing concerns over rider amendments imposed by the House of Delegates (HOD).
While senators expressed support for the original version of the bill—designed to expand the existing elite visa program allowing high-value foreign individuals to reside long-term in Palau—they ultimately voted against it due to the House’s additions.
During deliberations, delegates introduced numerous amendments tied to the FY2026 national budget, aiming to allocate additional funding to various government agencies. The proposed changes would increase the authorized budget from $152,588,560 to $160,636,366 and the appropriation amount from $149,658,560 to $158,005,366.
The rider amendments sought to distribute funds to approximately 24 government agencies, including Micronesian Legal Services, the Palau Public Utilities Corporation (PPUC), Angaur State, and the Palau National Olympic Committee (PNOC). Among the proposed allocations were $350,000 to the Belau National Museum, an additional $30,000 to Micronesian Legal Services, and $2,107,000 to PNOC and other sports organizations—of which $510,000 was earmarked for the Belau Games.
Additional funding proposals included $100,000 for the Office of the President, $400,000 for the Compact Review Advisory Group, $100,000 for the Bureau of School Operations, $300,000 for the Attorney General’s Office, and $100,000 for the Bureau of Public Safety.
Ministry of Health and Human Services also saw significant proposed increases, including $870,760 for the Bureau of Public Health, $1,805,993 for the Bureau of Hospital and Clinical Services, $100,000 for the Palau Severe Disabled Assistance Fund, $649,000 for hemodialysis services, and $450,000 and $900,000 for the newly established Bureau of Behavioral Health and Bureau of Human Services, respectively.
An additional $140,000 was allocated to the Bureau of Marine Transportation under the Ministry of Public Infrastructure and Industries.
The House also proposed increasing its own budget, including $300,000 for the House of Delegates, $100,000 for HOD legal counsel, $10,000 for the OEK Koror office, and $240,000 for joint staff. Of this amount, $20,000 was earmarked for a new truck and $100,000 for new copier machines.
Further amendments included $2,230,000 authorized for servicing Palau’s various debts, $1,275,000 to PPUC for the Lifeline Subsidy Program, $415,000 to the Ministry of Finance to cover costs associated with the FY2023 national audit required under the 2023 Compact Review Agreement, and $175,000 for expenses related to the Angaur state boat.
Several senators raised concerns that ultimately led to the bill’s rejection. Senator Inabo questioned inconsistencies in the financial figures presented by the House, stating, “I ask that the committee who will be assigned to the conferee to verify the numbers as there are many inconsistencies. Let’s make sure all the numbers are accurate”.
Senator Eldebechel emphasized procedural issues, saying, “these changes made by the HOD show a significant amount of money which we will essentially appropriate as a rider of this bill”. He added, “we should know that there is a clear budgeting act that show us the process and guidelines when making appropriations. I ask that we follow the intent and requirement of the Fiscal Responsibility and Debt Management Act passed by the last congress which gives us the guidelines and principles when appropriating public funds”.
Reporting on the amendments, Judiciary and Governmental Affairs (JGA) Committee, Chairman Nakamura recommended that the Senate reject the House amendments in order to trigger a conference committee. The move aims to address what he described as major supplemental funding proposals introduced by the HOD.
All 15 senators were present and voted to reject the bill.
Speaker Kanai has appointed members of the House JGA, led by Delegate Gibbons, to represent the House in the conference committee. Senate President Baules has assigned Senator Nakamura, along with additional senators to be selected by him, to represent the Senate in the upcoming negotiations.
