A new report by a Guam-based security think tank says growing U.S. military activity in Palau is outstripping the legal and environmental safeguards meant to protect the Pacific nation, a finding that comes as Palau’s leader makes a historic first State visit to New Zealand. The Micronesia Security Outlook 2025, published by the Pacific Centre for Island Security, warns that guardrails built into bilateral agreements are being rendered ineffective by an “accelerated militarization” that has left many Palauans excluded from decision-making.
Jodean Remengesau, director of the Bureau of Agriculture in Palau’s Ministry of Agriculture, Fisheries and the Environment, authored the Palau section of the report. He argues the Compact of Free Association — which grants the United States exclusive defence rights and the use of Palauan land, waters and airspace while obliging it to meet environmental standards — has not been fully honoured. “The U.S military had missed and fell short of fulfilling its duties and responsibilities under the compact of the U.S with Palau,” Remengesau writes, citing specific breaches and procedural lapses.
One of the clearest flashpoints detailed in the report concerns the clearing of land on Angaur, one of Palau’s 16 states, for a U.S. tactical mobile over-the-horizon radar system. The report says that earthmoving began without an environmental permit or required community consultations, and that the disposal of shredded tree debris created conditions inviting invasive coconut rhinoceros beetle infestation. Angaur Governor Steven Salii sued Palau’s central government, the Palau Environmental Quality Protection Board, the U.S. government and its contractors in 2023, alleging the clearing of 271,807 square metres was carried out without the required environmental impact assessment and permits.
The report also places the military build-up in the broader context of U.S.-China strategic competition in the region and Palau’s increasing role in international security objectives. Under the renegotiated compact, the United States pledged US$890 million to Palau over 20 years, a package that began its cycle on October 1, 2023. The think tank notes that a substantial portion of Palau’s national budget comes from compact funds and other foreign aid, making the nation more financially tied to partners whose strategic priorities may call for greater military use of Palauan territory.
Operational timelines in the report are consequential. It states that the U.S. Department of Defense’s US$118 million radar project is expected to be operational in 2026, a development that the report and local critics say intensifies urgency over unresolved environmental and sovereignty concerns. The paper further raises questions about transparency after projects initially described as joint-use infrastructure were later revealed to include separate U.S. military installations — a point that has increased unease among local leaders.
The release of the report coincides with President Surangel Whipps Jr.’s State visit to New Zealand on April 13, the first such visit by a Palauan head of state. The scheduling underscores Palau’s dual thrust: pursuing broader diplomatic ties even as domestic and legal disputes over military projects and environmental protections continue at home. For Palauan officials and civil society groups who have raised alarms, the report provides a new, detailed account that amplifies their calls for stronger enforcement of environmental laws, transparent consultations and clearer limits on foreign military activity.
The Pacific Centre for Island Security report does concede that Palau’s strategic position increases the likelihood of greater involvement in U.S. and allied security initiatives. Still, it frames the current trajectory as one in which the nation’s peace and sovereignty are changing in ways many Palauans did not anticipate, and stresses the need for mechanisms that better reconcile defence arrangements with local law and environmental stewardship.
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