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Reuters (2 September 2026)

Alasdair Pal and Kanishka Singh

Australia and the United States on Wednesday announced a combined $580 million ‌in funding for the Pacific Islands as they battle China for influence in the region.

The U.S. contribution, while smaller at $150 million, is one of the most public signals from the Trump administration that it is still engaged in the Pacific ​after it dismantled the U.S. Agency for International Development last year.

The funding, announced by Deputy Secretary of ​State Christopher Landau at this year's meeting of the Pacific Islands Forum in Palau, ⁠follows an increase in China's influence in recent years via grants, infrastructure projects and donations.

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