Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In Palau, education funding is primarily managed and distributed by the central government through the Ministry of Education (MOE). The overall education budget is determined at the national level.
1. Education resources to subnational governments
Palau does not have subnational governments with independent authority over education; instead, the education system is highly centralised and managed at the national level by the Ministry of Education (MOE). The MOE is responsible for the allocation and management of education funds, including those from both domestic sources and international grants. There is no evidence of per-capita or formula-based transfers that account for local poverty or geographic factors; rather, budget decisions and disbursements are made centrally and tracked through national financial management systems.
2. Education resources to schools
Palau is eligible for USD 1,000,000 in funding each fiscal year under Section 1121(b)(1)(A) of the 1965 Elementary and Secondary Education Act (ESEA) of the United States. The reserved funds must be used exclusively for educational purposes as outlined in the ESEA. Specifically, Palau may spend the money on programmes such as teacher training, curriculum development, instructional materials, general school improvement and reform, and direct educational services that help all students meet challenging academic standards. The funds cannot be consolidated with other grants.
3. Education resources to students and families
In 2024, the U.S. Department of Education formally approved Palau’s application for funding under Part B of the Individuals with Disabilities Education Act (IDEA). This approval enables Palau to access federal resources aimed at advancing two key objectives: ensuring the provision of a Free Appropriate Public Education (FAPE) to children with disabilities. Notably, the scope of these services has been broadened through provisions in the Compact of Free Association Amendments Act. However, the specific funding amount allocated to Palau is not available.
4. Social policies and family support programmes
The Palau government provides a significant social assistance programme in the form of an annual child-raising subsidy. In 2025, this subsidy increased from USD 100 to USD 200 per child, with more than 3,000 children approved to receive the benefit, amounting to a total government outlay of approximately USD 610,000. Eligibility for this subsidy is based on income criteria, and parents must apply through the Ministry of Health and Human Services for each child to be certified. However, there are no conditions that these subsidies must be used for educational purposes, nor is the subsidy linked to school attendance or educational performance.
5. School meal programmes
The School Feeding Programme in Palau, officially known as the Food Service Programme, is administered by the Ministry of Education and operates in all 18 public schools. The programme traces its origins back to the Trust Territory era, beginning in 1947. It is a universal programme that provides in-school meals five days a week during the academic year. The programme is designed not only to support educational outcomes but also to improve health and nutrition among students, act as a social safety net, and support the country’s agricultural sector. The programme is funded by the government of Palau, with no financial contributions from international donors, the private sector, or other sources.
In 2024, a new cafeteria was officially handed over to Meyuns Elementary School under Japan’s Grant Assistance for Grassroots Human Security Project (GGP). The project was a direct response to the destruction caused by Typhoon Surigae in 2021, which had forced the school to rely on meal deliveries from the nearby Palau High School.
