Overview:
President Surangel Whipps Jr. has signed Palau’s fiscal year 2026 supplemental budget into law, funding the upcoming Belau Games and government loan payments while cutting proposed increases to congressional funding and rejecting new money for PPUC subsidy programs — the second such reduction under his line-item authority.
By: Eoghan Olkeriil Ngirudelsang
KOROR, Palau — President Surangel Whipps Jr. signed RPPL 12-7, the fiscal year 2026 supplemental budget, into law Friday, July 3, approving funding for the upcoming Belau Games, several government loan payments and additional money for essential government agencies, while trimming other requested funds.
Whipps used his line-item reduction authority to cut proposed funding increases for both houses of the Olbiil er a Kelulau, particularly for their joint staff and legal counsel, after Congress did not approve a funding increase for his own office.
“I have further decided to exercise my line-item reduction authority to reduce the supplemental appropriations provided to the Olbiil er a Kelulau, similar to the reductions made to supplemental appropriations for the Office of the President,” Whipps wrote in his transmittal letter to Congress.
The president also declined to add funding for the Palau Public Utilities Corp.’s Lifeline Subsidy Program and its Residential Water & Wastewater and Residential Electricity Program. Congress had proposed $1.7 million for PPUC subsidy programs, but Whipps reduced the line item back to the original $425,000 included in the initial budget. It marks the second time Whipps has significantly cut funding for the PPUC subsidy.
Whipps wrote that the OEK should “address the financial challenges facing the Palau Public Utilities Corporation through a separate standalone legislation rather than through the supplemental budget.”
Island Times asked Sen. Rudimch to comment on the lack of additional funding for PPUC subsidies. Rudimch said it was the president’s prerogative, adding that although fuel prices have risen, the public’s electricity costs were largely unaffected because electricity rates were not raised this time.
Lawmakers moved the supplemental budget quickly to ensure states would receive funding in time to support the much-anticipated Belau Games. The measure also covers several government loan obligations and provides operating funds intended to keep essential services running.
In his transmittal letter, Whipps also stressed the importance of securing appropriations for the newly established Compact of Free Association Management Office, which he said works to “manage major Compact implementation efforts, coordinate with the United States Government, oversee consultants and lobbyists, pursue Compact-funded projects, and ensure that Palau fully realizes the benefits negotiated under the Agreement.” He added that appropriation issues for the office “should be addressed as riders to upcoming legislation so that unnecessary delays can be avoided.”
