A new report by Guam-based think tank the Pacific Centre for Island Security has raised fresh alarm over the pace and handling of the United States’ military build-up in Palau, saying environmental safeguards written into the Compact of Free Association have been rendered ineffective and that Palauans have been sidelined. The Micronesia Security Outlook 2025, published this month, signals growing local dissatisfaction and escalates pressure on both Palauan and U.S. authorities to address alleged breaches and lapses in consultation.
Jodean Remengesau, director of the Bureau of Agriculture in Palau’s Ministry of Agriculture, Fisheries and the Environment, authored the Palau chapter of the report and is quoted as sharply critical of U.S. compliance with environmental obligations under the Compact. Remengesau documents instances where U.S. military activity proceeded without required permits or community engagement, and points to the clearing of large tracts of land on Angaur for a tactical, mobile over‑the‑horizon radar site as a case study. The report says no environmental earthmoving permit was obtained and that shredded tree debris from the clearance invited invasive coconut rhinoceros beetles and was later dumped on residents’ yards in a chaotic bid to deal with the problem.
Remengesau’s account supplements a legal challenge that Angaur’s governor, Steven Salii, filed in 2023. That suit names Palau’s central government, the Palau Environmental Quality Protection Board, the U.S. government and U.S. military contractors, alleging the clearance of 271,807 square metres on Angaur without an environmental impact assessment or the necessary permits — a dispute that remains a central reference point in the report’s critique of implementation and oversight.
The Micronesia Security Outlook acknowledges the strategic drivers behind increased U.S. activity — chiefly heightened U.S.–China rivalry in the region — and notes that the renegotiated Compact which came into force on 1 October 2023 included an US$890 million package for Palau over 20 years as well as U.S. defence commitments. The report warns that heavy reliance on Compact funds, which make up a large portion of Palau’s national budget, increases the likelihood the islands will be drawn deeper into U.S. and allied security architectures and that rapid militarisation risks eroding the nation’s peace and sovereignty as experienced by its people.
Military infrastructure under construction includes a U.S. radar project valued at about US$118 million, which the report and officials expect to be operational this year, 2026. The analysis also highlights confusion over an earlier shoreline radar proposal: infrastructure initially presented as a single mutual‑use facility later emerged as two separate installations, a development the report says underlines problems of transparency and clarity about operational control and community benefits.
The publication of the report coincided with a diplomatic milestone: Palau’s President Surangel Whipps Jr. made a historic first State visit to New Zealand this month, a move that analysts say underscores Palau’s efforts to broaden regional ties even as it navigates competing great‑power pressures. For Palauans and regional observers, the report and the legal and political developments it catalogues crystallise a central dilemma — how to balance security partnerships and development assistance with environmental protection, local law, and sovereign decision‑making.
The report calls for stronger environmental oversight, meaningful community consultation, and clearer accountability mechanisms within the Compact’s implementation to prevent further incidents. With installations due to come online and legal disputes already in motion, the findings are likely to shape diplomatic and domestic debate in Palau and among its partners through the rest of 2026.
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