US and Australia Announce Pacific Islands Funding Package

On 2 September 2026, the United States and Australia announced a combined $580 million package for Pacific Island countries amid growing regional competition with China.

Key Points

Australian Package: Australia announced a A$600 million package to combat drug smuggling and organised crime.
Maritime Security: Funding will support enhanced aerial surveillance and stronger regional security capabilities.
Capacity Building: Australia will provide additional training for police and border officials.
US Funding: The United States announced $150 million for development and energy-related support.
Energy Security: $60 million will expand fuel storage and strengthen electricity-grid stability.
Strategic Competition: The funding reflects growing US-Australian efforts to counter China’s influence in the Pacific.
China’s Role: China remains a major donor to Pacific Island countries and seeks greater regional influence.