This article was first published by RNZ
US Pacific territories and affiliated states are watching Washington D.C. closely after the US government entered shutdown.
The US government began shutting down after midnight Wednesday (local time) as lawmakers and President Donald Trump failed to break a budget impasse.
The measure will stop work at multiple federal departments and agencies, affecting hundreds of thousands of government workers.
The developments in Washington D.C. has dealt a financial blow to the Commonwealth of the Northern Marianas where the administration has informed cabinet officials about austerity measures that will go into effect next week amid the Commonwealth’s revised budget forecast.
The economy of the Commonwealth benefits substantially from financial assistance from the United States and tourism.
RNZ Pacific’s Northern Marianas correspondent Mark Rabago said the first austerity measures announced are in the form of work hour cuts for Executive Branch employees.
He said the measures were announced, then news of the US federal shutdown, describing both as “a double whammy”.
“The federal employees not only expect delay in payments, but they also have to endure work hour cuts.” Rabago went on to say that on top of the federal shutdown, the CNMI had also been facing a budget crunch.
“Our budget for 2026 is US$23 million less,” Rabago said.
Guam and American Samoa are also on alert after the news out of Capitol Hill, Washington
American Samoa’s representative in Congress, Uifa’atali Aumua Amata Coleman Radewagen took to social media following the shutdown.
“First of all, I absolutely opposed this needless government shutdown. The best scenario for American Samoa is steady, secure federal funding that preserves our services. That said, I am always optimistic, and I remain optimistic that this interruption will not last long. Negotiators will continue to work, and I will monitor closely and keep our people informed.
“It’s important to remember that we’ve endured these partial shutdowns before, and we live by faith. The good news is critical services continue, including Social Security, Medicare, Medicaid, Veterans’ services, national security, weather forecasts, and disaster aid. However, delays can affect our grants, passports and visas, and long-term projects.”
In Guam, Governor Lou Leon Guerrero issued the following statement regarding the federal government shutdown:
“The scope and severity of the impact on Guam’s local government and our community will depend on both the length of the shutdown and the availability of prior-year funding that allows some federal programs to continue operating as normal.
“In anticipation of this shutdown, I instructed all line agencies to review and prepare contingency plans to ensure the continuity of critical government functions and minimize disruptions to our personnel. As we receive clearer guidance from our federal partners, we will provide timely updates to the people of Guam. At this stage, the situation remains fluid.”
The Republic of Palau, the Federated States of Micronesia (FSM) and the Republic of the Marshall Islands (RMI) have Compacts of Free Association with the US, international agreements.
Under the agreements, the US government provides guaranteed financial assistance over a 15-year period administered through its Office of Insular Affairs.
Marshall Islands correspondent Giff Johnson said he’s been told by the US Ambassador in Majuro there will be no disruption to compact funding.
“So, on the assumption that that’s correct, then that’s literally hundreds of millions of dollars that are being transferred into the Marshall Islands, FSM and Palau now, or certainly within the next, next couple of days,” Johnson said.
There could still be issues though, with eyes peeled for any shut down of federal agencies or moving to a skeleton staffing situation which may affect some federal programs.
The ABC reported Trump saying he and his budget director will look at which Democrat agencies to cut as the government shutdown goes into a third day.
Republicans and Democrats are continuing to blame each other for the shutdown which came after Congress failed to reach a a deal on a new spending bill.
Trump has told the American One News Network that federal workers could be fired and projects cut if the shutdown continues.
The last US federal shutdown, during Trump’s first presidential term, lasted a month.
Is the US a reliable partner?
Giff Johnson said a wider issue is the Trump administration’s actions and policies.
“The real challenge is that the United States has made a very strong pitch about security, defense and stability in the region,” Johnson said.
But when it comes to the Trump administrations actions and policies, Johnson said that is where questions loom.
“[Its] Policies have really undermined its [the US] relations in the region. And, you know, you just can’t see the US as a reliable partner in the way.
“Everything about Washington’s policy toward the Pacific Islands is based on its competition and relationship with China and that’s not a nuanced policy position.”
He said it does not take into account concerns of the Pacific.
“The Trump administration, for example, has simply flicked off climate change off its agenda when that’s the primary security issue in the Pacific,” Johnson said.
“They have their own interests. They’re sovereign countries, and you know, they’re not just going to salute to Washington.
“This kind of monolithic attitude towards China as the sole concern of the US and the Pacific really undermines its ability to to have nuanced relationships in the [Pacific] region.”
By Lydia Lewis of RNZ.
