PALAU — A new report by the Guam-based Pacific Centre for Island Security (PCIS) has intensified scrutiny of the United States’ military expansion in Palau, saying environmental protections and local participation have been sidelined as strategic infrastructure is rushed into place. The findings arrive as Palauan leader Whipps made a historic first State visit to New Zealand this month, underscoring Palau’s rising diplomatic profile even as domestic unease grows over security arrangements.
The Micronesia Security Outlook 2025, to which Jodean Remengesau — director of the Bureau of Agriculture at Palau’s Ministry of Agriculture, Fisheries and the Environment — contributed the Palau chapter, argues that safeguards built into the Compact of Free Association are “rendered ineffective” by accelerated militarisation. “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, faulting a lack of environmental assessments and meaningful community consultation on key projects.
The report highlights a specific controversy on the island of Angaur, where the U.S. military cleared 271,807 square metres of land for a radar site without an environmental earthmoving permit or the statutory consultations required by Palauan law, the report says. It adds that shredded tree debris from the clearance created conditions ripe for infestation by invasive coconut rhinoceros beetles and that some of that debris was dumped on residents’ properties in a hurried attempt to address the problem. Angaur Governor Steven Salii filed a lawsuit in 2023 against Palau’s central government, the Palau Environmental Quality Protection Board, the U.S. government and its military contractors alleging violations of environmental laws and the compact.
The PCIS report concedes that Palau’s strategic location amid U.S.-China tensions makes deeper involvement in international security likely. Under the renegotiated compact that took effect on October 1, 2023, the United States pledged an US$890 million package to Palau over 20 years and affirmed U.S. responsibility for Palau’s defence. Much of Palau’s national budget relies on compact funds and foreign aid, the report notes, increasing pressure on the government to accommodate U.S. security needs even as domestic concerns mount.
A central piece of the current build-up is a US$118 million radar project the U.S. military is installing in Palau; the PCIS report and local coverage say the system is expected to be operational in 2026. The installation — described by Palauan officials at different stages as a shoreline radar system for shared use — has since been presented in ways that some critics say obscure the extent of U.S.-only infrastructure being placed on Palauan land.
The report’s authors and local officials warn that the “guardrails” intended to protect Palau’s environment and sovereignty are being weakened in practice. For residents and state leaders such as Governor Salii, the dispute centres on whether legal and environmental obligations tied to the compact are being respected. The PCIS analysis calls for greater transparency, stricter adherence to Palauan permitting and impact-assessment processes, and more inclusive consultation if the projects are to proceed without eroding public trust.
Whipps’ State visit to New Zealand — a first for a Palauan head of state — highlights the diplomatic balancing act Palau now faces: deepening security ties with the United States while seeking regional partners and international support amid rising domestic concern about the social and environmental costs of strategic projects.
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