Fiscal Year 2010 assistance for Palau at FY2009 levels was included in the FY2010 Interior Appropriations bill agreed upon by the U.S. House and Senate negotiators.
Toribiong said that U.S. President Barack Obama signed the measure making appropriations for the Department of Interior, environment and related agencies.
Palau’s extension is Section 117 of the law which provides for FY2010 assistance levels to Palau.
The section also limits assistance to FY2009 levels.
The section stated that it will also withhold such assistance if trust fund withdrawals exceed
Palau gets at least $13 million in direct assistance from the U.S., under the Compact the country is allowed to withdraw up to $5 million from its Trust Fund.
The issue of extension is separate from the ongoing review of the Compact.
Palau and U.S. are still on loggerheads regarding the issue of the Compact assistance for the next years.
The U.S. has not responded to the letter of Chief Compact Representative Joshua Koshiba pertaining to the U.S. offer of $156 million.
The US has offered a financial package of $178.5 million which includes over $22 million which is intended to support the United States Postal Service to all Freely Associated States.
Palau wants a financial assistance on the same level in has been receiving all this years. Palau is receiving at least $15 million in direct assistance, that amounts to $225 million for the next 15 years.
The amount minus the postal service money, will only be at $156 million.
The Palau government has said that the US offer of $156 million are inadequate and it will result to lowering of per capita income of Palau by 23 percent in the next six years and 14 percent in the next 15 years.
The offer will zero out Palau’s Trust Fund by 2028, well before the 50th anniversary of the Compact in 2044.
The positive offer by the US is the continuance of programs such as postal, Federal Aviation Administration, education, health, national weather service and agriculture.
