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The United States government shutdown will have a ripple effect in the Pacific particularly for federally funded projects and programs.
The shutdown, which started on October 1st, the first day of the new fiscal year, have caused major problems in the United States as thousands of people are without jobs and many more working without pay.
The deadlock will be felt in Palau in several ways says Presidential Press Secretary Keobel Sakuma, who was asked if Palau would be affected. Sakuma revealed that Palau’s Compact Agreement pending in the Congress would be delayed.
He further stated that the shutdown means nothing will get funded including Palau’s Compact of Free Association (or COFA).
Additionally, the Congress before the shutdown did not pass the latest Continuing Resolution that included Palau’s $13 million dollar annual direct assistance.
Sakuma further expressed that programs and projects with funding from the U.S. Federal government such as those in the Ministry of Education and the Ministry of Health may have more immediate effects.
In Guam, departments and agencies such as the Federal Public Defender’s Office and the District Court of Guam are preparing for the impact.
Guam PDN reports that both offices have enough cash reserve to operate for 10 business days after the shutdown, but thereafter, agencies will have difficulties.
Other island nations such the FSM and the Marshall Islands may also feel the impact particularly on federally funded projects and programs.