The Biden administration had hoped to see Congress endorse by Sept. 30 new 20-year funding programs for Micronesia, the Marshall Islands and Palau, which after decades of relative neglect now find themselves at the center of a U.S. battle for influence with China in the Northern Pacific. The stopgap "continuing resolution" (CR) that prevented a federal government shutdown does not include approval for this new program, however, and while it maintains federal services to the COFA states, it leaves holes in other parts of their budgets. "Both are countries that recognize Taiwan and are key components of U.S. defense architecture in the Pacific," she said. Paskal said Palau's funding under its existing COFA had dwindled as it approached its final year and it had been banking on funds from the new package to help cover budget deficits. The Washington embassies of Palau and the Marshall islands did not immediately respond to requests for comment.

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Persons: David Brunnstrom WASHINGTON, Biden, Cleo Paskal, Paskal, Kaleb Udui, Marshall, Washington, David Brunnstrom, Don Durfee, Josie Kao Organizations: U.S, Congress, Marshall, Northern Pacific, Free Association, Washington, Foundation for Defense, Democracies, U.S . Congress, Palau's Finance, Howard, COFA, . State Department, State Department, Pacific, Forum Summit Locations: U.S, Micronesia, Palau, China, Northern, Marshall Islands, Taiwan, Beijing, Washington