Asia & Pacific

Pacific leaders attend the Leaders Plenary during the 55th Pacific Islands Forum Leaders Meeting in Koror, Palau, September 2, 2026. (Reuters/AAP Image/Mick Tsikas)

The United States and Australia on Wednesday announced a combined US$580 million in funding for the Pacific Islands, as both nations battle China for influence in the region.Australia will offer a A$600 million ($430 million) package to combat drug smuggling in the region at a meeting of the Pacific Islands Forum in Palau, including funds for enhanced aerial surveillance and more training for police and border officials.

"The Pacific is our home and our family. That’s why it’s in Australia’s interests to work with our Pacific partners to combat organized crime," Australian Prime Minister Anthony Albanese said in a statement.

"For the good of every country in the region, including our own – we need to work together to stamp out the illicit drug trade."