By Michael Martina and David Brunnstrom
WASHINGTON (Reuters) – U.S. budget wrangling could further delay funding approval for new agreements with Pacific island nations meant to counter Chinese influence, creating an opportunity for Beijing in the strategically vital region, congressional and other sources say.
After years of painstaking negotiations, the Biden administration signed new 20-year funding programs this year for the Federated States of Micronesia (FSM), the Marshall Islands (RMI) and Palau under which Washington is responsible for their defense and provides economic assistance, while gaining exclusive military access to strategic swathes of the Pacific.
After failing to secure funding earlier this year, lawmakers proposed including $2.3 billion for those programs, called the Compacts of Free Association (COFA), in the National Defense Authorization Act (NDAA), which is currently being negotiated.
But congressional sources say this looks impossible as lawmakers argue over spending priorities, raising concerns that a further delay could create an opening for China, which has been wooing financially strapped Pacific economies.
A congressional staffer familiar…
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