MANILA – The United States announced on July 30 that it will provide the Philippines with $500 million in military aid to enhance Manila’s defense capabilities amidst increasing tensions with Beijing in the disputed South China Sea.
The announcement came following a meeting between US Secretary of State Antony Blinken, Defense Secretary Lloyd Austin, Philippine President Ferdinand Marcos Jr., and their Filipino counterparts, Foreign Secretary Enrique Manalo and Defense Secretary Gilberto Teodoro Jr.
Austin described the funding as a “once in a generation investment” aimed at modernizing the Armed Forces of the Philippines and the Philippine Coast Guard.
“This level of funding is unprecedented and sends a clear message of support for the Philippines from the Biden-Harris administration, the US Congress, and the American people,” Austin said during a press briefing.
The US officials’ visit is part of a 10-day Indo-Pacific tour intended to reassure allies and bolster support in the face of rising competition with China for regional influence. The tour includes stops in Tokyo, Vietnam, Laos, and Singapore.
The military financing is part of the national security supplemental budget recently approved by the US Congress. Philippine Ambassador to the US Jose Manuel Romualdez stated that the funds would be used to acquire assets for the navy. Additionally, $125 million will be allocated for the enhancement of nine Philippine military bases under the Enhanced Defense Cooperation Agreement (EDCA).
Signed in 2014, EDCA permits American forces to build facilities, bring in equipment, and conduct joint training exercises at agreed-upon bases in the Philippines. It also allows for the rotation of US troops for extended stays without granting permanent presence.
President Marcos expanded EDCA’s coverage in 2023 to strengthen defense ties amid increased Chinese assertiveness in the South China Sea. “I’m always very happy that these communication lines are very open so that all the things that we are doing together… are continuously examined and re-examined so we are agile in terms of our responses,” Marcos said.
The US military aid announcement follows a recent clash between Chinese and Philippine naval forces at the Second Thomas Shoal. The incident heightened tensions, but both nations have since reached a “provisional arrangement” regarding Manila’s resupply missions to the grounded naval ship in the area.
The US has reiterated its support for the Philippines in its territorial disputes with China, affirming its commitment to the 1951 Mutual Defense Treaty. Geopolitical analysts suggest the US may be encouraging Manila to de-escalate tensions with China as it manages other military conflicts in Ukraine and the Middle East.
Before arriving in Manila, Austin and Blinken were in Tokyo, where they, along with their Japanese counterparts, identified China as “the greatest strategic challenge in the Indo-Pacific region and beyond” in a joint statement.