To enact a budget law for FY 2026 through the authorization of the sum of $152,466,000 and appropriation of the amount of $152,416,000 from the National Treasury for the annual general operations, special revenue, and debt service budget of the Republic of Palau for the Fiscal Year ending September 30, 2026, and for other related purposes.

Key Provisions of RPPL No. 12-3 (Fiscal Year 2026 Budget Act)

1. Authorizes and appropriates funding for the Fiscal Year 2026 National Government Budget.
2. Provides operational funding for the Executive, Judicial, and Legislative Branches of the National Government.
3. Allocates funding for all national ministries, bureaus, offices, and state governments.
4. Provides appropriations for education programs, public schools, scholarships, and Palau Community College.
5. Funds public health services, hospital operations, disability assistance, and hemodialysis services.
6. Authorizes supplemental Social Security payments for eligible elderly and disabled individuals.
7. Establishes and funds senior citizen assistance and social welfare programs.
8. Provides block grants and capital improvement funding for all sixteen states.
9. Funds independent agencies, authorities, boards, and commissions of the National Government.
10. Appropriates funding for national security, cybersecurity, border protection, and law enforcement operations.
11. Earmarks funding for advanced counter-narcotics equipment and drug enforcement support.
12. Provides funding for maritime security and safety protection operations.
13. Funds environmental protection and conservation programs through the Protected Areas Network (PAN) Fund.
14. Authorizes appropriations for road maintenance, infrastructure repair, and utility maintenance programs.
15. Provides funding for infrastructure loan repayments and international financing obligations.
16. Supports housing programs under the Palau Housing Authority.
17. Establishes residential utility subsidy programs for water, wastewater, and electricity assistance.
18. Provides utility lifeline subsidies and residential electricity rate offsets for consumers.
19. Establishes disaster contingency funding for natural disasters, health emergencies, and economic crises.
20. Exempts emergency disaster expenditures from competitive procurement requirements under certain conditions.
21. Requires monthly and quarterly financial reporting on outside grants and development assistance.
22. Funds annual national audits required under the Compact Review Agreement.
23. Authorizes reprogramming of certain appropriated funds in accordance with Palau law.
24. Amends provisions relating to vehicle registration fees and learner’s permit fees.
25. Expands and clarifies the authority of the Palau National Code Commission to revise and correct laws.
26. Requires review and legal examination of tax exemptions granted in prior taxable years.
27. Provides authority to recover unjustified or unlawful tax exemptions.
28. Includes severability provisions to preserve the validity of remaining sections if part of the Act is invalidated.
29. Establishes the effective date of the Act upon approval by the President or becoming law without approval.