PALAU — A new security report warns that an accelerated U.S. military buildup in Palau is eroding local safeguards intended to protect the island nation’s environment and sovereignty, a finding that arrives as Palau’s leader makes a historic first state visit to New Zealand.
The Guam-based Pacific Centre for Island Security released the Micronesia Security Outlook 2025, which says the “guardrails” built into U.S.–Palau agreements are being circumvented as military activity intensifies. The Palau chapter was authored by Jodean Remengesau, director of the Bureau of Agriculture in Palau’s Ministry of Agriculture, Fisheries and the Environment, who says the Compact of Free Association’s environmental requirements are not being met in practice.
Remengesau’s section highlights a series of incidents that have fuelled local dissatisfaction. The report says U.S. forces cleared land in the state of Angaur to site a tactical mobile over-the-horizon radar without obtaining an environmental earthmoving permit or holding community consultations mandated by Palauan law. It also alleges that shredded tree debris from the clearing created an infestation risk for the invasive coconut rhinoceros beetle and, in a rushed response, was dumped on residents’ yards — outcomes the report says the compact’s environmental stipulations were designed to prevent.
The clearance in Angaur prompted legal action in 2023. Angaur Governor Steven Salii sued Palau’s national government, the Palau Environmental Quality Protection Board, the U.S. government and U.S. military contractors, alleging that some 271,807 square metres of land were disturbed without an environmental impact assessment or the required permits. The lawsuit, cited in the report, remains a key example of local pushback against projects undertaken under the compact.
Under a renegotiated Compact of Free Association, the United States pledged an US$890 million assistance package to Palau over 20 years, a cycle that began on October 1, 2023. The report notes the dual pressures this creates: a large share of Palau’s national budget comes from compact funds and foreign aid, increasing the country’s economic stakes in the U.S. security relationship even as communities question the local costs of militarisation.
Geopolitical tensions between the United States and China are identified as the broader driver behind new installations and activity in Palau. The report points to a US$118 million U.S. radar project in Palau that is expected to be operational this year and raises concerns about transparency and the scope of infrastructure placed on Palauan soil. It also notes that an installation initially presented as a single shoreline radar system for mutual use later emerged as multiple, distinct installations — a development the report frames as indicative of a pattern of limited community engagement.
Palau’s state visit to New Zealand by President Surangel Whipps Jr. — described in official bulletins as a historic first such visit — coincides with increased regional diplomatic activity around security arrangements in the western Pacific. The timing underscores the sensitivity of Palau’s position: balancing strategic relationships and development assistance while responding to growing domestic unease over environmental impacts and the perceived erosion of decision-making autonomy.
The Pacific Centre for Island Security’s findings add to an ongoing debate in the region about how small island states can preserve environmental protections and sovereign control while hosting larger powers’ strategic assets. The report calls for stronger enforcement of compact provisions and greater transparency and consultation with Palauan communities as military projects proceed.
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