U.S. Faces Criticism Over Delayed Veterans Benefits for Pacific Island Nations Amid China Rivalry

The Trump administration is facing renewed criticism from Democratic lawmakers and Pacific island leaders over delays in delivering veterans’ benefits promised under long-term agreements designed to strengthen U.S. influence in the Pacific and counter China’s growing presence in the region.

During a congressional hearing on Wednesday, ambassadors from Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia accused the U.S. Department of Veterans Affairs (VA) of failing to implement expanded healthcare benefits for veterans from the Freely Associated States (FAS). These benefits were authorized under 20-year Compacts of Free Association (COFA) agreements finalized during the Biden administration, which provide economic aid and other support to the island nations in exchange for exclusive U.S. military access to strategically important Pacific areas.

Under the COFA agreements, citizens of the Pacific island nations are allowed to live, work, study, and serve in the U.S. armed forces. Congressional legislation also granted the VA authority to extend enhanced healthcare services to FAS veterans, including telehealth access, beneficiary travel assistance, and mail-order pharmacy services. However, Micronesia’s ambassador to the U.S., Jackson Soram, testified that these measures have yet to be implemented, leaving many veterans struggling to access care.

Soram said returning veterans often face high costs and logistical barriers when seeking treatment, sometimes paying out of pocket for international travel with no guarantee of reimbursement. He noted that discussions with the VA following a September 2024 oversight hearing were productive but stalled in April 2025.

VA Press Secretary Pete Kasperowicz responded that while the legislation authorized expanded care, it did not include funding to fully support direct medical services. He added that the VA continues to provide standard benefits available to U.S. veterans living abroad and is working with Congress to explore improvements.

State Department officials emphasized the strategic importance of the Pacific island nations, with senior diplomat Michael DeSombre scheduled to visit the Marshall Islands and Micronesia to address implementation issues. Lawmakers from both parties warned that delays could undermine U.S. credibility as China seeks to expand its influence in the region.