The U.S. Senate has allocated $7.1 billion to finance a the Compacts of Free Association (Cofa) — an agreement that provides the US with exclusive military access to Palau, the Marshall Islands and Micronesia in exchange for economic support for a period of 20 years. The Financial Times newspaper reported on the Senate's decision.
The FT publication notes that the adoption of a bill on further financing of the agreement was excluded from the agenda some time ago, which raised concerns about the US intentions to reduce partnership with the countries of the Indo-Pacific region. The Financial Times reports that despite the small size of the area of the member states of Cofa, they are of strategic importance to the United States, since, taking into their territorial waters, they extend over a distance of about 4,000 km across the Pacific Ocean. This provides the United States with access to the Indo-Pacific region. The Financial Times also notes that the US armed forces can deploy missiles and long-range radar stations in these territories and have a test site for intercontinental ballistic missiles.
Compacts of Free Association were signed in 2004. The extension of the agreement is associated with the aggravation of relations between the United States and China, which is building up military power and strengthening influence in the region. Beijing's growing presence in the region, primarily economic, is causing concern to the United States and its partners in the region. One of the key triggers for the United States and its allies was the actions of the Solomon Islands and Kiribati, which shifted to Beijing, resulting in economic and political cooperation. So, in 2022, China signed a security agreement with the Solomon Islands.
In response to China's actions in the region, the United States has started to actively strengthen relations with allies in the region. The United States held a first-ever summit with Pacific Island leaders and adopted the Pacific Partnership Strategy. In addition to the United States, Australia is actively investing in cooperation with the countries of the region, which has been increasing support for its neighbors in the Indo-Pacific region since 2018, and New Zealand, which has launched the "Pacific reset" aimed at strengthening its own security by helping "developing neighbors".
Source - The Financial Times
