The Senate of the 12th Olbiil er a Kelulau (OEK) rejected the House of Delegates’ (HOD) continuing budget authority bill on first reading, then passed a separate bill on the extension of the Palau Livestock Fund with riders for continuing budget authority and the 2026 Olechotel Belau Fair.
The amended livestock fund bill passed third reading in the Senate on September 24 and was transmitted to the HOD on the same day.
The Senate added two floor amendments to the livestock fund measure. The first provides continuing budget authority for regular government budget items and additional support for the Palau Public Utilities Corporation (PPUC), the National Emergency Committee’s (NEC) drought preparedness efforts, and people receiving fixed-income and Social Security assistance.
“This bill will take care of all regular budget items, in addition to assisting PPUC with the cost of fuel prices, as well as supporting the NEC with drought preparedness, and continuing assistance to those receiving fixed income, Social Security,” said Senator Mark Rudimch, Chairman of the Ways and Means Committee.
The bill appropriates over $1.5 million towards the Drought Preparedness Fund, with $1 million going to the NEC and $35,000 allocated to each of the 16 states for mitigation of drought conditions.
$3 million is authorized and appropriated for PPUC to offset fuel prices that are higher than electricity rates under certain conditions.
The second amendment authorizes and appropriates $100,000 for the 2026 Olechotel Belau Fair (OBF), with $45,000 earmarked for the Independence Day Boat Race.
The vote shifted major spending provisions from a stand-alone CBA measure into a bill originally intended to extend the livestock fund, prompting senators to warn that the approach could weaken budget transparency and bypass the regular appropriations process.
“When we look at the amendments to the continuing budget authority (CBA), we authorized and appropriated an additional supplemental to the CBA in the total amount of almost $6 million,” remarked Senator Secilil Eldebechel.
Pointing to the fiscal policy the Senate recently passed as law, he added, “What we have done now undermines or weakens the fiscal policy we agreed on.”
While acknowledging the importance of the amendments, Eldebechel cautioned that continuing to add supplemental appropriations in this manner could reduce transparency in the use of public funds.
He urged lawmakers to maintain accountability and fiscal responsibility in the appropriations process.
Senate Vice President Stevenson Kuartei echoed Eldebechel’s sentiments, saying, “Personally, I do not support this process… We have to be disciplined, at the end of the day this (budget) is the constitutionally mandated work of the OEK, especially us in the Senate.”
Senator Andrew Tabelual emphasized that the process was due to unusual circumstances, pointing to drought conditions and the rising costs of fuel. “We have to prepare for this… We have done our very best,” said Tabelual.
Tabelual added, “It is difficult, but if we don’t complete this work, those who need assistance will be in a difficult position.”
Senate President Hokkons Baules, in an announcement at the end of the 5th day of the 8th special session, extended the special session by another five days.
The Palau Livestock Fund bill was initially introduced in the House of Delegates by Delegate Nace Soalablai on January 30, 2025. When the bill was introduced, the Palau Livestock Fund was set to expire on October 1, 2025.
The amended livestock fund bill now before the House of Delegates extends the Palau Livestock Fund for 6 years beginning on October 1, 2026.