U.S. to Fund Philippine Coast Guard Base Expansion Near South China Sea
MANILA, PHILIPPINES – The U.S. pledged to fund the expansion of a Coast Guard base used for operations in the South China Sea and increase foreign military financing for Manila last week.
The Philippines will receive up to $9 million for the expansion of a pier in the western province of Palawan to enhance “maritime law enforcement presence and sustain operations in the South China Sea,” according to a Department of State fact sheet covering U.S. initiatives in Southeast Asia released July 22.
While the State Department fact sheet does not specify where the Palawan pier expansion project will take place, a solicitation released in May highlights U.S. interest in developing an intermediate logistics center at Buliluyan Port. Located in the southeast of the island, the Philippine Coast Guard frequently stages from the pier for operations in the South China Sea.
Manila’s fleet of 13 cutters has struggled to maintain a presence in the disputed waters against their Chinese counterparts, which has a larger and more capable fleet. Compounding these difficulties is the lack of forward basing and infrastructure. Philippine patrol vessels rely on civilian piers and ports throughout Palawan, competing with civilian bulk carriers and tankers for space.
American investments into PCG maintenance infrastructure in Palawan also comes amid a significant fleet expansion effort. In the coming years, the maritime security agency will receive up to 45 patrol vessels from France and Japan.
Recent American security assistance measures are bolstering PCG and Armed Forces of the Philippines force projection capabilities from Palawan. Projects across the province’s western coast plan to enhance fast boat and unmanned surface vessel (USV) deployment from three sites, including two close to the Spratly Islands.
From these western Palawan facilities, Washington and Manila plan to deploy drone boats and other small craft to counter China’s regional overmatch. American foreign military financing has transferred at least nine USVs to the Philippine Navy since 2024. Additional American drones for the Philippine Marine Corps, and potentially the Philippine Army, are in the pipeline.
The U.S. will begin transfers of armed drones to the Philippines by 2027, a source close to the matter told USNI News.
The State Department fact sheet also highlights an increase of grant assistance to the Philippines, stating that the aid will “enhance the Philippines’ ability to defend its sovereignty and deter conflict.”
By the end of Fiscal Year 2026, $100 million will be allocated for Manila to procure military equipment and services. According to the fact sheet, this amount represents a $60 million increase from historical annual levels.
The Philippines is concerned with China on two fronts – with coercive measures in the South China Sea and the potential threat of an armed spillover during a Taiwan contingency. As a result of these tensions, Manila has turned to Washington, its only defense treaty ally.
Alongside tranches of defense packages and infrastructure investments, American cutters and carriers compose Washington’s commitment to the Philippines.
Within the last month, the U.S. Coast Guard and Navy have deployed a significant presence to the disputed waters to showcase American resolve against China. A squadron of cutters now operate out of Subic Bay and Singapore, having been moved from Bahrain and ending a 20-year Middle East mission. This week, the George Washington carrier strike group is sailing west of Luzon, USNI News reported Monday.
