The United States and Australia on Wednesday ​announced a combined $580 million in funding for the Pacific Islands, ‌as both nations battle China for influence in the region.

Australia will offer a A$600 million ($430 million) package to combat drug smuggling in the region at a ​meeting of the Pacific Islands Forum in Palau, including funds for ​enhanced aerial surveillance and more training for police and border ⁠officials.

– “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,” Australian Prime Minister Anthony 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.”

– In a separate announcement, the U.S. State ​Department said it will provide $150 million in funding to the region, including $60 million to ‌help ⁠Pacific Islands countries address the global energy crisis by expanding fuel storage capacity and supporting grid stability.

– Deputy Secretary of State Christopher Landau announced the funding at the forum that has so far been dominated by ​a spat over Taiwan’s participation.

– China, ​a major ⁠donor to the Pacific that views Taiwan as its own territory, has objected to the democratically run island’s ​presence at the annual meeting of the 18-member forum.

​Members Australia ⁠and New Zealand said on Tuesday the bloc would decide the guest list.

– Palau, which is hosting this year’s meeting, is among three Pacific nations ⁠that have ​maintained diplomatic ties with Taiwan. The meeting, ​which began on August 30, will run to September 4.

https://www.reuters.com/world/china/us-australia-commit-580-million-support-pacific-islands-2026-09-02

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