The Philippines: Background and U.S. Relations

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The Philippines:

Background and U.S. Relations

Updated March 26, 2026

Congressional Research Service

https://crsreports.congress.gov

R47055

SUMMARY

The Philippines: Background and U.S. Relations

The United States and the Republic of the Philippines have a deep relationship that includes a

bilateral security alliance, extensive military cooperation, close people-to-people ties, and many

shared strategic and economic interests. The Philippines, a diverse and democratic island nation

situated east of the South China Sea and south of Taiwan, has long played an important role in

U.S. Asia policy as a willing security and counterterrorism partner. Popular support in the

Philippines for the U.S.-Philippines bilateral relationship and alliance has remained strong over

the past several decades, but historically has fluctuated in response to domestic concerns and

international events.

R47055

March 26, 2026

William Piekos

Analyst in Foreign Affairs

Current Philippine President Ferdinand Marcos Jr. assumed office in 2022. Marcos is the son of Ferdinand Marcos Sr., who

ruled the country from 1965 until he was ousted in 1986. Sara Duterte-Carpio, daughter of former President Rodrigo Duterte

(2016–2022), is vice president. Both the president and vice president, who are elected on separate tickets, are constitutionally

limited to one six-year term. Observers maintain political groupings in the Philippines tend to be fluid, driven more by

personalities and interests than by ideologies and policy platforms.

Though Marcos and Sara Duterte allied their tickets for the election, they have disagreed on policy and personal issues. In

February 2025, the Philippines’ House of Representatives impeached Vice President Duterte on corruption charges and for

voicing threats against the president. In July 2025, the Supreme Court unanimously declared the impeachment proceedings to

be unconstitutional for a lack of due process; new proceedings were initiated in February 2026. The extradition of former

President Duterte to The Hague in March 2025, where he faces charges before the International Criminal Court for “crimes

against humanity” during his self-declared “war on drugs,” has further riled Philippine politics. The Marcos administration

faces popular pressure over corruption allegations related to substandard or nonexistent flood control projects, which came to

light following a series of typhoons in 2025.

The Philippines is one of the United States’ five treaty allies in the Indo-Pacific going back to the 1951 Mutual Defense

Treaty. In 2023, the two countries increased the number of AFP sites at which U.S. forces are permitted to operate on a

rotational basis under the 2014 U.S.-Philippines Enhanced Defense Cooperation Agreement and signed Bilateral Defense

Guidelines to clarify the conditions under which the 1951 treaty is operational. U.S. military personnel and the Armed Forces

of the Philippines (AFP) hold regular bilateral military exercises and maritime patrols, collaborate on counterterrorism

efforts, and conduct joint humanitarian activities. The Philippines is one of the largest recipients of U.S. military assistance in

the East Asia-Pacific region, which includes foreign military financing (FMF) and assistance under the Department of

Defense (DOD) Indo-Pacific Maritime Security Initiative. DOD is “using a secondary Department of War designation,”

under Executive Order 14347 dated September 5, 2025. During his tenure, President Marcos has supported deeper U.S.Philippine security ties. The Trump Administration has affirmed an “ironclad” commitment to the Philippines, continued

providing FMF funds to the country, and approved some new U.S. assistance programs, including related to economic

development and public health.

The Philippines and the People’s Republic of China (PRC, or China) have long-standing disputes over waters and land

features in the South China Sea. In 2016, an arbitral tribunal established under the United Nations Convention on the Law of

the Sea (UNCLOS) concluded that China’s “dashed line” territorial claims have no legal basis. PRC naval, coast guard, and

maritime militia vessels repeatedly have contested the Philippines’ ability to operate in the South China Sea. The Philippine

government has sought to shift the AFP’s defense posture away from internal security issues and toward external threats—

including PRC harassment and interference in the South China Sea. Marcos has continued the government’s focus on

external threats through an updated military modernization program and a more visible presence in the Philippines’ exclusive

economic zone.

Though the Philippines has been one of the region’s most vibrant democracies, the State Department has emphasized

continuing and significant human rights issues, including arbitrary or unlawful killings, police impunity, restrictions on

freedom of expression and the media, and threats and violence against labor activists. From 2016 to 2022, former President

Duterte’s “war on drugs” resulted in thousands of extrajudicial killings, with estimated deaths related to the campaign

ranging from 6,252, according to the Philippine government, to 30,000, as reported by human rights organizations. Since the

campaign launched in 2016, the U.S. government has suspended some counternarcotics assistance to the Philippine National

Police. Under the Marcos administration, Philippine officials have stated that the government will continue the drug war,

though it will target large illegal drug operators rather than petty offenders and focus on drug rehabilitation.

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The Philippines: Background and U.S. Relations

Contents

Overview ......................................................................................................................................... 1

Congressional Interests.................................................................................................................... 2

Philippine Politics............................................................................................................................ 4

U.S.-Philippine Relations .......................................................................................................... 5

U.S. Foreign Assistance ............................................................................................................ 7

The Philippines’ Defense Posture .................................................................................................... 9

U.S.-Philippines Defense Ties.................................................................................................. 11

Defense Agreements .......................................................................................................... 11

U.S. Security Cooperation ................................................................................................ 14

Military Exercises ............................................................................................................. 15

Counterterrorism Operations ............................................................................................ 16

U.S. Arms Transfers .......................................................................................................... 17

The Philippine Economy ............................................................................................................... 18

U.S.-Philippines Economic Relations ..................................................................................... 18

Philippines-China Relations .......................................................................................................... 19

Tensions in the South China Sea ............................................................................................. 20

The Philippines and Taiwan .......................................................................................................... 22

Human Rights Concerns in the Philippines ................................................................................... 23

Considerations for Congress.......................................................................................................... 24

Strategic Interests .............................................................................................................. 24

The South China Sea Disputes and Maritime Domain Awareness ................................... 24

Human Rights Concerns ................................................................................................... 25

Counterterrorism Efforts ................................................................................................... 25

U.S.-Philippines Economic Relations ............................................................................... 25

Selected Legislation in the 118th and 119th Congresses ................................................................. 26

Figures

Figure 1. Philippines at a Glance ..................................................................................................... 2

Figure 2. South China Sea, Disputed Features, and EDCA Sites .................................................. 21

Tables

Table 1. U.S. Foreign Assistance Obligation to the Philippines, FY2018-FY2024 ........................ 7

Contacts

Author Information........................................................................................................................ 27

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The Philippines: Background and U.S. Relations

Overview

The Republic of the Philippines has been an important part of U.S. strategy in East Asia for

decades. The country’s strategic location, its security alliance and people-to-people ties with the

United States, and its democratic and economic development have shaped close bilateral ties.1

The U.S. administration of the Philippines as a colonial territory (1898-1946) also has shaped the

relationship, with the sometimes-contradictory effects of forging bonds and instilling a wariness

of drawing too close to the United States. Filipino-Americans constitute the third-largest Asian

origin population living in the United States, with an estimated 4.6 million people in the United

States identifying as Filipino in 2023, and comprised the second largest group of foreign-born

veterans in the United States in 2022.2

Colonial History

The Philippines, situated east of the South China Sea and

The archipelago now known as the

south of Taiwan, has long played an important role in U.S.

Philippines was colonized by Spain

Asia policy and is one of five treaty allies in the Indostarting in 1565. In 1896, the

Philippine Revolution sought

Pacific. The Philippines has been a treaty ally since 1951

independence from Spain; the United

3

and a major non-NATO ally since 2003. It is one of the

States purchased the territory from

largest recipients of U.S. military assistance, equipment, and

Spain in the 1898 Treaty of Paris

training in the region. The country holds strategic

following the Spanish-American War,

but did not recognize the Philippines’

importance as a part of what some experts refer to as the

independence. U.S. forces battled

“first island chain” in the Pacific, and its maritime territorial

Filipino resistance fighters in the

disputes with People’s Republic of China (PRC, or China)

Philippine-American War (1899-1902)

4

are a potential flashpoint in the South China Sea. The

until the Philippines was subdued in

Philippines also serves as an important U.S.

1902. The Philippines gained

independence in 1946.

counterterrorism partner in Southeast Asia.

Since the 1986 People Power Revolution that deposed

former authoritarian President Ferdinand Marcos Sr., the Philippines has experienced peaceful

transitions of power and has a dynamic political landscape, although corruption and human rights

issues persist.5 Ties between the United States and the Philippines were strained under former

President Rodrigo Duterte (2016–2022). Current President Ferdinand Marcos Jr., also known by

1 This report does not cover congressional issues related to WWII Filipino veterans who fought under U.S. military

command during World War II.

2 Carolyne Im, “Facts About Filipinos in the U.S.,” Pew Research Center, May 1, 2025; Jeanne Batalova, “Immigrant

Veterans in the United States,” Migration Policy Institute, May 9, 2024.

3 Designation of the Philippines as a Major Non-NATO Ally, Presidential Determination No. 2004-02 of October 6,

2003, 68 Federal Register 59855. For further information, see Department of State, “Major Non-NATO Ally Status,”

fact sheet, January 20, 2025.

4 The so-called first island chain extends from southern Japan, down past Taiwan and the Philippines, and to Indonesia,

enclosing the sea areas closest to China. The second island chain also starts in Japan, but extends further out into the

Pacific, enclosing the Philippine Sea that separates the Philippines from Guam. In discussions of China’s military

capabilities and foreign policy goals for the Western Pacific, some security and foreign policy experts assert that China

seeks to influence or eventually dominate the first and second island chains, and conversely perceive the areas as

locations for the United States, its allies, and partners to counter or contain PRC military ambitions. See, for examples,

Andrew S. Erickson and Joel Wuthnow, “Why Islands Still Matter in Asia: The Enduring Significance of the Pacific

‘Island Chains,’” The National Interest, February 6, 2016; Thomas Mahnken et al., “Tightening the Chain:

Implementing a Strategy of Maritime Pressure in the Western Pacific,” Center for Strategic and Budgetary Analysis,

2019; Andrew Yeo and Michael O’Hanlon, “Geostrategic Competition and Overseas Basing in East Asia and the First

Island Chain,” Brookings Institution, February 2023.

5 “Freedom in the World 2025: Philippines,” Freedom House, https://freedomhouse.org/country/philippines/freedomworld/2025; Department of State, 2024 Country Reports on Human Rights Practices: Philippines, August 12, 2025.

For more, see “Philippine Politics.”

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his nickname “Bongbong,” has been a proponent of deepening U.S.-Philippine security and

economic ties.6

Figure 1. Philippines at a Glance

Geography

Land area—298,000 square kilometers (slightly larger

than Arizona); over 7,000 islands

People

Population: 118.3 million (2024 est.)

Ethnic Groups: Tagalog (26%); Bisaya/Binisaya (14.3%);

Ilocano (8%); Cebuano (8%); Illonggo (7.9%); Bikol/Bicol

(6.5%); Waray (3.8%); Kapampangan (3%); Maguindanao

(1.9%); Pangasinan (1.9%); other local ethnicities (18.5%);

foreign ethnicities (0.2%) (2020 est.)

Religious Affiliations: Roman Catholic (78.8%); Muslim

(6.4%); other Christian (6.5%); other (8.2%) (2020 est.)

Economy

Real Gross Domestic Product (GDP): $1.138 trillion

(purchasing power parity, 2023 est.; in 2021 dollars)

Per Capita GDP: $9,900 (2023 est.; in 2021 dollars); global

ranking: 148

GDP Composition by Sector: Services (62.4%); industry

(28.2%); agriculture (9.4%) (2023 est.)

Source: Map created by CRS using data from the Department of State, Global Admin, and ESRI. Information

from Central Intelligence Agency, The World Factbook, 2025.

Congressional Interests

Members of Congress have shown interest in the Philippines in several policy areas over which

Congress has provided oversight, policy direction, and funding. For a longer discussion of these

interests and Congressional action, see “Considerations for Congress” near the end of this report.

•

Strategic Interests. The Philippines has held strategic importance for the United

States for decades.7 Trump Administration officials have expressed support for an

“ironclad” U.S. commitment to the Philippines, and Secretary of Defense Pete

Hegseth has pledged to “work relentlessly to reestablish deterrence in the South

China Sea and advance the [U.S.-Philippine] alliance.”8 Some experts contend

that the Philippines could play a key role in a contingency with China in the

region, though Philippine officials and commentators have expressed mixed

6 Richard Javad Heydarian, “US Outlasts Duterte’s Failing Dalliance with China,” Asia Times, May 19, 2021; Ruth

Abbey Gita-Carlos, “PBBM: PH-US Relations Reach New Height, Remain a ‘Beacon of Stability,’” Philippine News

Agency, September 10, 2025.

7 Lee Gim Siong, “In Focus: What Is the Second Island Chain and How Does It Shape US-China’s ‘Geostrategic Wei

Qi’?” Channel News Asia, June 4, 2025.

8 Department of State, “Secretary Rubio’s Meeting with Philippine President Marcos, Jr.,” July 21, 2025; Secretary of

Defense Pete Hegseth (@SecWar), “We will work relentlessly to reestablish deterrence in the South China Sea and

advance our alliance,” X post, October 31, 2025, https://x.com/SecWar/status/1984160977789841699. The Secretary of

Defense is using “Secretary of War” as a “secondary title” under Executive Order 14347 dated September 5, 2025. See

Executive Order 14347 of September 5, 2025, “Restoring the United States Department of War,” 90 Federal Register

43893, https://www.federalregister.gov/executive-order/14347.

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•

•

•

views of the country’s willingness and ability to participate in a regional conflict,

particularly one related to Taiwan.9

South China Sea Disputes. The United States has aimed to partner with the

Philippines in countering PRC gray-zone tactics in the South China Sea and to

“reestablish deterrence” in the region.10 Multiple Asian governments—including

that of the Philippines—assert sovereignty over rocks, reefs, and other

geographic features in the heavily trafficked South China Sea (SCS), with the

government of China arguably making the most assertive claims. Among the

claimants, only the Philippines has challenged China’s maritime territorial claims

and behavior under the United Nations Convention on the Law of the Sea

(UNCLOS), including by filing a complaint in 2013 against the PRC under the

UNCLOS arbitration process.11

Human Rights Concerns. Congress has long-demonstrated concerns regarding

human rights violations in the Philippines, including extra-judicial killings. Most

prominently, former President Rodrigo Duterte’s “war on drugs” resulted in as

many as 30,000 deaths. At various times during the past decade and a half,

Congress has restricted U.S. security assistance to the Philippines in order to

encourage improvements in human rights practices of the Philippine military,

police, and government.

Counterterrorism Efforts. Since the 1970s, Philippine governments have

battled Muslim armed separatist and terrorist movements on the southern island

of Mindanao and the Sulu archipelago.12 The Philippines has been a close

counterterrorism partner with the United States, particularly following the attacks

of September 11, 2001, and has “continued to dedicate significant resources to

countering threats from terrorist groups,” according to the Department of State’s

2023 report on terrorism.13 The AFP has restricted terrorist groups’ ability to

operate, though various groups remain an ongoing, if diminished, threat.14

9 Michael J. Green and Gregory B. Poling, “The U.S. Alliance with the Philippines,” Center for Strategic and

International Studies,” December 3, 2020; Edcel John A. Ibarra, “Entangled Fronts: The Philippines’ Anxiety Over a

Taiwan Crisis,” National Bureau of Asian Research, June 23, 2025.

10 Department of Defense, “Readout of Secretary of War Pete Hegseth’s Meeting with Philippine Secretary of National

Defense,” October 31, 2025. For more on the PRC’s maritime gray-zone operations, see Todd C. Helmus et al.,

“Understanding and Countering China’s Maritime Gray Zone Operations,” RAND Corporation, November 2024.

11 See “Tensions in the South China Sea” for details on the UNCLOS arbitral ruling.

12 Successive Philippine governments, as well as Spanish and American colonial administrators, have struggled to

govern—and were perceived as neglecting—the southern provinces of the Philippines, where Muslim populations

retained political and demographic advantages until the 20th century. Thomas M. McKenna, “The Origins of the

Muslim Separatist Movement in the Philippines,” Asia Society, accessed on February 19, 2026; Amina Rasul,

“Radicalization of Muslims in Mindanao: The Philippines in Southeast Asian Context,” in Islam and Politics: Renewal

and Resistance in the Muslim World, eds. Amit Pandya and Ellen Laipson (Stimson Center, January 1, 2009). In 2014,

the Philippine government and the Moro Islamic Liberation Front signed a peace agreement that has precipitated an

ongoing and delicate transition of political power to a new entity, the Bangsamoro Autonomous Region in Muslim

Mindanao (BARMM), in some parts of Mindanao and the Sulu archipelago. For more on the peace process and

BARMM, see Haironesah Domado, “Election Delays and the Crisis of Confidence in the Bangsamoro Peace Process,”

The Diplomat, October 16, 2025; International Crisis Group, “The Philippines: Keeping the Bangsamoro Peace Process

on Track,” January 30, 2024.

13 Department of State, Country Reports on Terrorism 2023: Philippines, December 12, 2024.

14 Julie Chernov Hwang, “Demobilization and Disengagement: Lessons from the Philippines,” Soufan Center, May 30,

2025.

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Philippine Politics

Since former President Marcos Sr. was ousted in 1986, the Philippines has experienced peaceful

transitions of power and hosts a dynamic and contentious political landscape, although

corruption, political intimidation, and human rights issues present ongoing challenges to

Philippine democracy.15 Ferdinand Marcos Jr., son of the former president, won the 2022

presidential election, receiving more than 31 million out of 55 million votes cast.16 Sara Duterte,

daughter of former President Rodrigo Duterte (in office 2016–2022), won the election for vice

president. The Philippine constitution limits both the president and vice president, who are

elected on separate tickets, to one six-year term. Though Marcos and Sara Duterte allied their

tickets for the election, they have disagreed on policy and personal issues. In February 2025, the

Philippines’ House of Representatives impeached the vice president on corruption charges and for

voicing threats against the president.17 In July 2025, the Supreme Court unanimously declared the

impeachment proceedings—which had been the subject of delays in the Senate—to be

unconstitutional for a lack of due process; according to the court’s judgement, an impeachment

complaint could be refiled one year after February 6, 2025, when the original complaint was

submitted.18 In February 2026, several members of the House filed a new impeachment

complaint, restarting the process.19 Conviction in the Senate would preclude Sara Duterte from

running for public office; she is seen as a strong contender in 2028 presidential elections.20

The extradition of former President Duterte to The Hague in March 2025 generated additional

controversy ahead of the midterm elections.21 Rodrigo Duterte faces charges before the

International Criminal Court (ICC) for “crimes against humanity” during his “war on drugs”

while in office (see “Human Rights Concerns in the Philippines,” below). The Duterte family

commands significant political support in the Philippines, particularly in their home island of

Mindanao; in 2025, former President Duterte won his race for the mayorship of Mindanao’s

Davao City while in detention. As of February 2026, the Trump Administration has not

commented on Duterte’s extradition and ICC trial.

The Marcos administration faces popular pressure over corruption allegations and accusations of

misappropriated funds related to substandard or nonexistent flood control projects, which came to

light following a series of typhoons in 2025. Several Marcos-aligned policymakers, including

Cabinet members and the speaker of the House, have resigned as a result of the scandal.22

15 “Freedom in the World 2025: Philippines,” Freedom House, https://freedomhouse.org/country/philippines/freedom-

world/2025.

16 Jim Gomez, “Marcos Jr. Proclaimed Next Philippine President with Huge Win,” Associated Press, May 25, 2022;

Republic of the Philippines Commission on Elections, “Report to the President and the Congress on the May 9, 2022,

National and Local Elections,” May 15, 2024.

17 James Patrick Cruz, “Timeline: Sara Duterte Impeachment,” Rappler, February 10, 2025. The “Verified Complaint

for Impeachment can be viewed at https://www.congress.gov.ph/impeachment/.

18 Supreme Court of the Republic of the Philippines, “SC: House Impeachment Complaint vs VP Duterte Barred by 1year Rule, Due Process or Fairness Applies During All Stages of Impeachment Process,” July 25, 2025; Jairo Bolledo

and Lian Buan, “Supreme Court Bars Sara Impeachment, Can Be Refiled Next Year,” Rappler, July 25, 2025.

19 Dwight De Leon, “VP Sara Duterte Slapped with 4th Impeachment Complaint,” Rappler, February 18, 2026.

20 Mong Palatino, “Why Did Philippine VP Sara Duterte Declare Her Presidential Candidacy?” The Diplomat,

February 19, 2026.

21 International Criminal Court, “Situation in the Philippines: Rodrigo Roa Duterte in ICC Custody,” March 12, 2025.

22 Mong Palatino, “Corruption Allegations and Family Drama Hound Philippine President Marcos,” The Diplomat,

December 3, 2025; Raissa Robles, “2 Top Philippine Officials in Marcos’ Cabinet Quit Amid Flood Control Scandal,”

South China Morning Post, November 17, 2025.

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The Department of State reported that the 2013 and 2019 midterm elections and the 2016 and

2022 national elections were “generally free and fair,” although there were reports of vote-buying

and some incidents of violence.23 During the democratic era, which began in 1986, the legislative

branch and Supreme Court have not served as strong checks on presidential power.24 Observers

note political parties and groupings have tended to be fluid and shifting, driven more by

individual personalities, interests, and loyalties than by unifying ideologies, policy platforms, and

goals.25

Philippine citizens generally can exercise political and civil rights with few restrictions, openly

criticize national leaders, and enjoy academic freedom and religious liberties, though criminal

complaints and libel laws have been used to attempt to silence government critics, particularly

during the Duterte administration.26 Some aspects of Philippine politics have undermined

democratic institutions and government effectiveness and led to human rights abuses. These

include corruption; concentrations of power among socioeconomic elites and local clans;

persistent concerns about the suppression of opposition figures and the media; and a weak judicial

system and culture of impunity.27 According to Freedom House, the practice of “red-tagging”—

defined as “a form of harassment whereby targets are accused of having links with local

communist groups”—physical assaults, and politicized lawsuits have continued to impact media

workers and activists.28

U.S.-Philippine Relations

During the administrations of current President Marcos and one of his predecessors, Benigno

Aquino III (2010–2016), the Philippines has deepened security relations with the United States,

including by expanding U.S. access to Philippine military facilities and agreeing to new Bilateral

Defense Guidelines (BDG) in 2023. Both the Biden and Trump Administrations have supported

the Philippines through military support and cooperation, economic assistance and agreements,

and inclusion in regional initiatives. The Philippines remains an important component of U.S.

strategy in the Indo-Pacific region.

In contrast to the U.S.-Philippines relationship under Marcos Jr. and Aquino, relations under

former President Duterte were strained. Duterte, who hails from the southern island of Mindanao

23 Department of State, 2020 Country Reports on Human Rights Practices: Philippines, March 30, 2021; Department of

State, 2016 Country Reports on Human Rights Practices: Philippines, May 3, 2017; Department of State, 2022 Country

Reports on Human Rights Practices: Philippines, March 20, 2023. International election observers were critical of the

2022 national elections, asserting there were instances of vote-buying, intimidation, disinformation, and violence.

Sebastian Strangio, “Philippine Election Marred by Violence, Vote-Buying: Monitoring Mission,” The Diplomat, May

20, 2022; International Observers Mission, “Interim Report of the Philippine Elections 2022,” May 19, 2022.

24 Mark R. Thompson, “The Philippine Presidency in Southeast Asian Perspective: Imperiled and Imperious Presidents

but not Perilous Presidentialism,” Contemporary Politics, vol. 24 (December 11, 2017).

25 Paul D. Kenny, “Why Is There No Political Polarization in the Philippines?” Carnegie Endowment for International

Peace, August 18, 2020; Paul Hutchcroft, Strong Patronage, Weak Parties: The Case for Electoral System Redesign in

the Philippines (World Scientific, 2020).

26 Prominent examples include the several cases against Maria Ressa, a journalist and Nobel Peace Prize winner, and

her media site Rappler, and Leila de Lima, a former senator and vocal critic of Duterte who was detained for over six

years on charges widely viewed as politically motivated. Jairo Bolledo, “Rappler Again Wins Shutdown Case at Court

of Appeals,” Rappler, August 8, 2025; Tetch Torres-Tupas, “Leila de Lima Case: 2024 Brings Justice, Freedom,”

Philippine Inquirer, December 27, 2024.

27 Nicole Curato, “Democratic Expressions Amidst Fragile Institutions: Possibilities for Reform in Duterte’s

Philippines,” Brookings Institution, January 22, 2021; Christia Marie Ramos, “‘Culture of Impunity’ Made Filipinos

Afraid of Voicing Criticism vs. Admin—Pangilinan,” Philippine Daily Inquirer, March 19, 2021.

28 Freedom House, “Freedom on the Net 2024: Key Developments, June 1, 2023–May 31, 2024,”

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and has long-held distrust of the United States, sought to strengthen ties with China, which he

viewed as a potentially large source of foreign investment.29 Duterte also challenged aspects of

the U.S.-Philippines alliance, including by calling for the reassessment of 2014 U.S.-Philippines

Enhanced Defense Cooperation Agreement (EDCA), reducing the number of combined military

exercises in the Philippines, and threatening to terminate the Philippines-U.S. Visiting Forces

Agreement (VFA).30 As tensions between the Philippines and China over disputes in the South

China Sea continued to fester, however, the Duterte government sought closer security

cooperation with the United States.31

Trump Administration officials, including Secretary Hegseth and Secretary of State and Acting

National Security Advisor Marco Rubio, have reaffirmed the United States’ “ironclad alliance”

with the Philippines.32 The United States has continued some existing assistance and promised

new funding for FMF and other security programs in support of the Philippines’ military

modernization, and the Trump Administration has announced several new foreign assistance

projects for the Philippines.33 Several high-level engagements—including visits by Secretary of

Defense Pete Hegseth to the Philippines in March 2025 and by President Marcos to Washington

in July 2025—have reinforced bilateral ties.34 Marcos’ visit to Washington, DC, included

meetings with President Donald Trump, Secretary Hegseth, and Secretary Rubio. These meetings

yielded a trade framework agreement that reduced tariffs on some U.S. imports from the

Philippines to 19% (from 20%) and the announcement of $60 million in U.S. foreign assistance.35

In return, the Philippines agreed to zero tariffs on some U.S. exports to the Philippines.36

Among Filipinos, popular support for the U.S.-Philippines relationship is strong. According to

“The State of Southeast Asia 2025 Survey Report” conducting by the ISEAS-Yusof Ishak

Institute, a majority of Filipino respondents (66.5%) were “confident” or “very confident” that the

United States “will ‘do the right thing’ to contribute to global peace, security, prosperity, and

governance.” By contrast, only 16% of respondents expressed confidence in the PRC.37 Still,

specific aspects of the relationship—particularly related to U.S. military access to the country—

29 Derek Grossman, “Duterte’s Dalliance with China Is Over,” The RAND Blog, November 2, 2021; Prashanth

Parameswaran, “Why the Philippines’ Rodrigo Duterte Hates America,” The Diplomat, November 1, 2016.

30 John Schaus, “What Is the Philippines-United States Visiting Forces Agreement, and Why Does It Matter?” Center

for Strategic and International Studies, February 12, 2020.

31 “US-Philippines Alliance Back on Track as Duterte’s China Charm Offensive Crumbles,” South China Morning

Post, October 23, 2021.

32 Department of State, “Secretary Rubio’s Meeting with Philippine President Marcos, Jr.,” July 21, 2025; Department

of Defense, “Defense Secretary Pete Hegseth and Philippine Secretary of National Defense Gilberto Teodoro Hold

Joint Media Availability,” March 28, 2025.

33 U.S. Embassy in the Philippines, “U.S. Announces PHP3 Billion in Foreign Assistance for the Philippines,” July 23,

2025; U.S. Embassy in the Philippines, “U.S. Announces PHP13.8 Billion in Health Assistance to the Philippines,”

September 12, 2025.

34 Jim Gomez, “Hegseth Tells Philippines the Trump Administration Will Ramp Up Deterrence Against China Threat,”

Associated Press, March 28, 2025; Department of Defense, “United States–Philippines Joint Statement on Secretary

Hegseth’s Inaugural Visit to the Philippines,” March 28, 2025; U.S. Embassy in the Philippines, “U.S. Announces

PHP3 Billion in Foreign Assistance for the Philippines,” July 23, 2025.

35 U.S. Embassy in the Philippines, “U.S. Announces PHP3 Billion in Foreign Assistance for the Philippines,” July 23,

2025.

36 “President Trump Sets 19% Tariff on Philippines in New Trade Deal,” Reuters, July 22, 2025. The status of this

agreement is uncertain following the February 2026 U.S. Supreme Court ruling that the President does not have the

authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). See CRS Legal Sidebar

LSB11398, Supreme Court Rules Against Tariffs Imposed Under the International Emergency Economic Powers Act

(IEEPA), by Christopher T. Zirpoli.

37 Sharon Seah et al., “The State of Southeast Asia 2025 Survey Report,” ISEAS-Yusof Ishak Institute, 2025.

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have been and remain sensitive. In 1992—in the face of nationalist Philippine opposition to U.S.

military bases and during a period of relative peace and stability following the fall of the Soviet

Union—the U.S. military withdrew from Naval Base Subic Bay and Clark Air Base after the

Philippine Senate rejected the renewal of the 1947 Military Bases Agreement.38 More recently,

several high-profile incidents in 2005 and 2014—in which U.S. servicemembers have been

accused of serious crimes—have rekindled concerns about the U.S. military presence in the

Philippines.39

U.S. Foreign Assistance

According to foreignassistance.gov, the United States provided nearly $720 million in foreign

assistance to the Philippines in FY2024, including Development Assistance (DA), Global Health

Programs (GHP), and FMF. The majority of this funding—$500 million—took the form of FMF,

allocated through emergency supplemental appropriation in 2024 (P.L. 118-50).40 In recent years,

FMF and development and global health assistance administered by the U.S. Agency for

International Development (USAID) have comprised the largest share of U.S assistance to the

country (see Table 1). Aid programs supported by these accounts aimed at promoting economic

development, the rule of law, human rights, health, education, and environmental management, as

well as military assistance administered by the Departments of State and Defense in support of

the Philippines’ military modernization.41 Comprehensive FY2025 aid data by country are not yet

available. The Trump Administration’s review and restructuring of foreign assistance in 2025—

which resulted in the reported cancellation of 83% of U.S. Agency for International Development

(USAID)-managed foreign aid programs, and the transfer of remaining programs to the State

Department—may have affected 95% of U.S. assistance to the Philippines managed by USAID,

according to a March 2025 analysis by the Center for Global Development.42

Table 1. U.S. Foreign Assistance Obligation to the Philippines, FY2018-FY2024

Current $ in millions

Account

FY2018

FY2019

FY2020

FY2021

FY2022

FY2023

FY2024

Foreign Military Financing

(FMF)

40.00

65.82

129.16

176.50

120.00

40.00

540.00

Development Assistance

(DA)

40.66

68.77

93.09

63.55

79.61

111.57

68.15

Global Health Programs

(GHP)

36.15

35.16

21.22

47.31

42.44

47.60

37.37

38 Shawn D. Harding, “There and Back and There Again: U.S. Military Bases in the Philippines,” Proceedings, vol.

150, no. 5 (May 2024).

39 Reynaldo Santos Jr., “LOOKING BACK: Daniel Smith and the Subic Rape Case,” Rappler, December 1, 2015; Julie

McCarthy, “Philippines Pardons U.S. Marine in Killing of Transgender Woman,” NPR, September 7, 2020.

40 Department of Defense, “Joint Statement on the Philippines-United States Fourth 2+2 Ministerial Dialogue,” July 30,

2024.

41 Department of State, Congressional Budget Justification, Foreign Operations, Appendix 2, FY2025.

42 Justin Sandefur and Charles Kenny, “USAID Cuts: New Estimates at the Country Level,” Center for Global

Development, March 26, 2025. For more on the Trump Administration’s approach to foreign aid and USAID, see

Executive Order 14169 of January 20, 2025, “Reevaluating and Realigning United States Foreign Aid,” 90 Federal

Register 8619, https://www.federalregister.gov/executive-order/14169; CRS In Focus IF10261, U.S. Agency for

International Development: An Overview, by Emily M. McCabe.

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Account

FY2018

FY2019

FY2020

FY2021

FY2022

FY2023

FY2024

International Disaster

Assistance

14.73

10.61

15.62

7.52

34.39

9.39

17.57

Agency for International

Development, Operating

Expenses

10.34

10.63

11.72

11.34

12.02

15.21

17.12

Nonproliferation, AntiTerrorism, Demining and

Related Programs

32.98

20.80

18.11

9.00

16.41

7.89

16.51

Economic Support Fund (ESF)

12.29

22.12

33.34

33.14

16.57

8.97

8.33

Peace Corps

3.60

3.39

2.36

2.22

2.44

3.67

3.80

Trade and Development

Agency

—

1.44

1.00

0.53

3.09

1.54

3.62

International Military

Education and Training

(IMET)

2.07

2.06

2.12

1.74

1.90

2.37

2.40

International Narcotics

Control and Law

Enforcement (INCLE)

6.96

7.26

6.97

9.75

8.83

7.96

2.38

Other

143.15

166.07

36.80

23.156

3.60

9.66

2.63

TOTAL

342.93

414.14

371.52

385.75

341.31

265.83

719.86

Source: ForeignAssistance.Gov, accessed January 23, 2026.

Notes: The relatively high amounts under “Other” in FY2018 and FY2019 reflect Department of Defense

Operation and Maintenance obligations in those years. The DA, GHP, and ESF accounts have historically been

implemented primarily by USAID. FMF and IMET are implemented by the Defense Department through the

Defense Security Cooperation Agency (DSCA).

Despite these changes, the Trump Administration has continued some foreign assistance,

including FMF, and announced new programs for the Philippines. In July 2025, for example, the

Administration announced foreign assistance funding pledges totaling at least $60 million to

support energy, maritime, and economic growth programs in the Philippines, including $15

million for private sector development in the Luzon Economic Corridor; according to the U.S.

Embassy in the Philippines, this was the “first announcement of new foreign assistance for any

country” since the pause in foreign assistance began.43 In August 2025, the State Department

announced $500,000 in foreign assistance to the Philippines in response to flooding.44 In

September 2025, Secretary Rubio announced $250 million in assistance to address public health

challenges.45

In the past decade, some appropriations legislation has restricted U.S. assistance to the

Philippines due to human rights concerns. The Consolidated Appropriations Act, 2018 (P.L. 115141) allowed International Narcotics Control and Law Enforcement (INCLE) assistance to PNP

units only if the Secretary of State certified that the Philippine government “has adopted and is

implementing a counternarcotics strategy that is consistent with international human rights

43 U.S. Embassy in the Philippines, “U.S. Announces Php3 Billion in Foreign Assistance for the Philippines,” July 23,

2025; Tammy Bruce, “Department Press Briefing—July 22, 2025,” Department of State, July 22, 2025.

44 Department of State, “Update on U.S. Foreign Assistance to the Philippines in Response to Recent Flooding,” media

note, August 12, 2025.

45 Department of State, “U.S. Announces New Health Sector Assistance for the Philippines,” press statement,

September 11, 2025.

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standards.”46 Similar language was included in the Asia Reassurance Initiative Act of 2018 (P.L.

115-409), which expired in 2023. Appropriations legislation for FY2022 mandated reporting on

Philippine security forces related to human rights violations.47 The Consolidated Appropriations

Act, 2026 (Division F of P.L. 119-75, §7043(h)) prohibits funding for “counternarcotics

assistance for the Philippines, except for drug demand reduction, maritime law enforcement, or

transnational interdiction.”

The Philippines’ Defense Posture

The AFP traditionally focused on internal security and counterinsurgency. Since the early 2010s,

however, the AFP has increased its orientation toward external threats, including through a

planned 15-year, $40 billion military modernization plan started in 2012. The three-phase plan

encountered funding and procurement difficulties throughout its implementation, and dozens of

projects that were to be conducted in the first two five-year phases (called “horizons”) remain

incomplete.48 In January 2024, the Marcos administration announced a revamped third phase,

rebranded as “Re-Horizon 3,” which committed $35 billion over 10 years to a procurement

program aimed at territorial defense.49 Marcos initiated a 2024 “Comprehensive Archipelagic

Defense Concept,” which seeks to project AFP capabilities throughout the Philippines’ EEZ and

expand the AFP’s ability to defend the entire archipelago.50 His administration also has pursued a

“transparency initiative” in the South China Sea, seeking to expose and publicize China’s “illegal,

coercive, aggressive, and deceptive” actions to garner domestic and international support for the

Philippines.51

Since 2012, the PRC has used military, paramilitary, and civilian vessels to assert its claims over

disputed maritime territory near the Philippines, creating a potential flashpoint in the South China

Sea that could trigger U.S. security commitments. Some experts have raised concerns about

whether and how the Philippines might play a role in a potential U.S. response to a conflict in the

Taiwan Strait.52 China has responded to the Philippines’ efforts to acquire more advanced

46 INCLE assistance is provided through the State Department’s Bureau of International Narcotics and Law

Enforcement Affairs (INL).

47 Consolidated Appropriations Act, FY2022 (P.L. 117-103).

48 Alan Robles and Raissa Robles, “The China Threat Is Finally Prompting the Philippines to Step Up Military

Modernisation. Will It Succeed?” South China Morning Post, May 12, 2024; Renato Cruz De Castro, “Exploring the

Philippines’ Evolving Grand Strategy in the Face of China’s Maritime Expansion: From the Aquino Administration to

the Marcos Administration,” Journal of Current Southeast Asian Affairs 43(1), 2024; Haena Jo, “Philippines Military

Modernization: Revamped but Not Resolved,” International Institute of Strategic Studies, June 23, 2026.

49 Frances Mangosing, “Marcos OKs Military’s P2-Trillion Wish List for Weapons, Equipment,” Philippine Daily

Inquirer, January 29, 2024; Jo, “Philippines Military Modernization”; Presidential Communications Office, “Keynote

Speech by President Ferdinand R. Marcos Jr. at the Lowy Institute Peace and Resilience Amidst Great Power Rivalries:

The Philippine Perspective,” March 4, 2024.

50 Renato Cruz De Castro, “Supporting the Philippines in Kickstarting the Comprehensive Archipelagic Defense

Concept (CADC): The Role of the US-Australian Alliance,” Asia Pacific Bulletin 691, September 30, 2024.

51 Richard Javad Heydarian, “South China Sea: The ‘Transparency Initiative’ Success Is Plain to See,” The Interpreter

(Lowy Institute), September 9, 2024; Priam Nepomuceno, “PH to Continue Using Transparency Policy vs. China’s

Gray-zone Tactics,” Philippine News Agency, March 2, 2026.

52 Edcel John A. Ibarra, “Entangled Fronts: The Philippines’ Anxiety over a Taiwan Crisis,” National Bureau of Asian

Research, June 23, 2025; Derek Grossman, “The Philippines Is Ever More Focused on Taiwan,” Foreign Policy,

January 29, 2025.

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weaponry by accusing the Philippines of provoking a regional “arms race” and “fuel[ing] tensions

in the region.”53

In addition to deepening defense ties with the United States, Marcos also has pursued

“minilateral” and bilateral security relationships with other partners in the region, including Japan

and Australia. Under Marcos, the Philippine government has expressed an interest in playing a

greater role in regional security as part of its strategy to defend Philippine interests in the South

China Sea. Some analysts warn that the Philippines’ small military expenditure—estimated by the

Stockholm International Peace Research Institute at 1.3% of GDP, or $6.1 billion, in 2024—and

volatile political environment could restrict the country’s ability to play such a role.54 Following a

U.S.-Japan-Philippines summit in 2024, the three countries deepened cooperation between their

coast guards and announced a trilateral maritime exercise that took place in 2025, among

numerous other joint initiatives on a range of economic, defense, and climate issues.55 The

Philippines has visiting forces agreements—which, among other possible outcomes, allow the

countries’ armed forces to train and operate on each other’s territory—with Australia, Japan, New

Zealand, and Canada, and is negotiating similar agreements with France and the United

Kingdom.56 In August 2025, Marcos made a state visit to India, during which the two sides agreed

to elevated their ties to a “strategic partnership,” and after which the Philippine and Indian navies

conducted a joint exercise in the South China Sea.57 In November 2025, the Philippines deployed

the first of three India-made BrahMos anti-ship missile batteries.58

53 Raissa Robles, “Philippines Offered 20 US F-16 Fighter Jets in Major Defense Upgrade, Amid China Tensions,”

South China Morning Post, April 4, 2025; Congyi Lin, “Regular Press Conference of the Ministry of National Defense

on December 26, 2024,” PRC Ministry of National Defense, December 31, 2024. On April 1, the State Department

approved the possible sale of 20 F-16 fighter aircraft to the Philippines, at an estimated cost of $5.58 billion; Philippine

officials have indicated they have yet to receive a formal offer and are uncertain if the Philippines can afford such an

expensive acquisition. Maya Carlin, “Philippines Considers Nixing Its Purchase of F-16 Fighters,” The National

Interest, June 3, 2025.

54 International Crisis Group, “Riding Unruly Waves: The Philippines’ Military Modernisation Effort,” International

Crisis Group, August 12, 2025; Stockholm International Peace Research Institute, “SIPRI Military Expenditure

Database,” accessed on January 19, 2026, https://milex.sipri.org/sipri.

55 White House, “Joint Visions Statement from the Leaders of Japan, the Philippines, and the United States,” April 11,

2024; Sebatian Strangio, “Philippines, Japan, US Hold Second Round of Joint Coast Guard Exercises,” The Diplomat,

June 18, 2025.

56 Mikhail Flores and Karen Lema, “Philippines Says Pact with Japan Takes Defence Ties to Unprecedented High,”

Reuters, July 8, 2024; Euan Graham, “Allies Entwined: Australia’s Strategic Convergence with the Philippines,”

Australia Strategic Policy Institute, November 2025; Richard Javad Heydarian, “Philippines Hopeful but Openly

Hedging on Trump,” Asia Times, February 26, 2025. While the details vary, broadly these agreements provide the legal

basis to allow for mutual military rights and access in each other’s country and facilitate interoperability, military

exchanges, and exercises, among other things. The Philippine Senate has yet to ratify the agreements with New Zealand

and Canada. Jim Gomez, “Philippines Signs Military Pact with New Zealand to Widen Alliances While Facing an

Assertive China,” Associated Press, April 30, 2025; Job Manahan, “Philippines, Canada Ink Landmark Visiting Forces

Deal,” ABS-CBN News, November 2, 2025.

57 Rahul Mishra, “India-Philippines Ties Now Strategic Partnership on Upward Trajectory,” The Diplomat, August 12,

2025; Presidential Communications Office, “Fruitful Week: President Marcos Wraps Up Landmark India Visit with

Strategic Partnership, $5.8B Investment Pledges,” August 9, 2025.

58 Aaron-Matthew Lariosa, “Philippine Marine Corps Unveils First BrahMos Anti-Ship Missile Battery,” USNI News,

November 7, 2025.

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U.S.-Philippines Defense Ties59

The U.S.-Philippines defense relationship is rooted in a history of shared security interests and

priorities. During World War II, during which the Philippines was a commonwealth of the United

States, over 250,000 Filipino soldiers fought under the American flag.60 The military alliance

dates back to the 1951 Mutual Defense Treaty, and has continuously evolved to address new and

developing threats. Between FY2015 to FY2022, the Philippines received over $1 billion in U.S.

military assistance, making it the largest recipient of such assistance in the Indo-Pacific during

that period.61 Security cooperation has expanded since 2012 from a longstanding emphasis on

counterterrorism to a broader focus on maritime security, territorial defense, and combined

deterrence, alongside continued humanitarian assistance and disaster response preparedness. Both

governments have taken steps to operationalize and deepen cooperation though expanded access

for U.S. forces, high-level engagements, increasingly large and complex exercises, and the

exploration of defense industrial base cooperation.62 The United States also transfers U.S. defense

articles to the Philippines through the Foreign Military Sales (FMS), Direct Commercial Sales

(DCS), and Excess Defense Articles (EDA) programs.63

Defense Agreements

The 1951 Mutual Defense Treaty (MDT) commits the United States and the Philippines to help

defend each other against external armed attack.64 Article IV of the Treaty states: “Each Party

recognizes an armed attack in the Pacific Area on either of the Parties would be dangerous to its

own peace and safety and declares that it would act to meet the common dangers in accordance

with its constitutional processes.” Article V defines an “armed attack” as one on the “metropolitan

territory of either of the Parties,” the “island territories under its jurisdiction in the Pacific

Ocean,” or its “armed forces, public vessels, or aircraft in the Pacific.”

The 1999 Visiting Forces Agreement governs the legal status of U.S. military forces operating in

the Philippines.65 The VFA creates rules by which U.S. troops, vessels, and aircraft may enter the

country and establishes criminal jurisdiction over U.S. military personnel.66 In 1991, the

59 This section was coauthored with Christina L. Arabia, Analyst in Security Assistance, Security Cooperation and the

Global Arms Trade.

60 Ron Sagudan and D’Andrea Jacobs, “The Congressional Gold Medal Tribute to Filipino WWII Veterans,” VA News,

October 4, 2024.

61 U.S. Embassy in the Philippines, “U.S. Military Delivers Advanced Unmanned Aerial System to Philippine Air

Force,” press release, October 14, 2021; U.S. Embassy in the Philippines, “U.S. Delivers Php48.5 Million in Weapons

and Munitions to AFP,” press release, July 8, 2021.

62 Defense industrial cooperation was one of the new joint initiatives announced during Secretary Hegseth’s March

2025 visit to the Philippines. Department of Defense, “United States–Philippines Joint Statement on Secretary

Hegseth’s Inaugural Visit to the Philippines,” March 28, 2025; Department of Defense, “Joint Vision Statement on

U.S.-Philippine Defense Industrial Cooperation,” March 28, 2025.

63 The Philippines was designated a major non-NATO ally in 2003, which allows the country certain defense trade and

security cooperation privileges. Designation of the Philippines as a Major Non-NATO Ally, Presidential Determination

No. 2004-02 of October 6, 2003, 68 Federal Register 59855; Department of State, “Major Non-NATO Ally Status,”

fact sheet, January 20, 2025.

64 The MDT can be found at https://avalon.law.yale.edu/20th_century/phil001.asp.

65 For the text of the Visiting Forces Agreement, see Department of State, “Agreement Between the Government of the

United States of America and the Government of the Republic of the Philippines Regarding the Treatment of United

States Armed Forces Visiting the Philippines,” Treaties and Other International Acts Series 12931, October 9, 1998,

https://www.state.gov/wp-content/uploads/2019/02/12931-Philippines-Defense-Status-of-Forces-10.9.1998.pdf.

66 John Schaus, “What Is the Philippines-United States Visiting Forces Agreement, and Why Does It Matter?” Center

for Strategic and International Studies, February 12, 2020.

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Philippines rejected the renewal of the 1947 Military Bases Agreement, which would have

extended the U.S. lease of Clark Air Base and Subic Bay Naval Base, resulting in the withdrawal

of all U.S. troops from the Philippines.67 Though former President Duterte submitted a “notice of

termination” to the U.S. Embassy in Manila in February 2020, his administration eventually

recommitted to the VFA in July 2021, citing U.S. donations of over 3 million doses of the

COVID-19 vaccine.68

In 2014, the U.S. and Philippine governments signed the U.S.-Philippines Enhanced Defense

Cooperation Agreement.69 Under the EDCA, U.S. military personnel may be deployed on a

rotational or non-permanent basis to Philippine military bases, including U.S.-built and -improved

facilities, which are to be utilized rent-free by the U.S. military but owned by the Philippines. The

agreement aims to “facilitate humanitarian assistance and disaster relief in the Philippines and the

region; improve opportunities for bilateral training; and support the long-term modernization of

the [AFP] as it works to establish a minimum credible defense.”70 In 2023, the United States and

the Philippines agreed to increase the number of Philippine bases open to U.S. forces from five to

nine.71 The United States also has invested in Philippine facilities outside the EDCA sites,

including two boat repair and maintenance facilities in Palawan Province and a warehouse in

Subic Bay for humanitarian assistance and disaster relief equipment.72 In July 2025, the two

countries announced they would construct a U.S.-funded ammunitions manufacturing facility in

Subic Bay for joint use.73

Some observers suggest the northern EDCA bases could be used as staging grounds for U.S.

forces in a potential conflict with the PRC over Taiwan—the northernmost site is 500 kilometers

(310 miles) from the city of Kaohsiung in Taiwan’s south—or as a “rear access area” for U.S.

67 The Military Bases Agreement also established the legal status of U.S. forces in the Philippines. The original

agreement established 99-year usage rights for various military bases, which was amended in 1966 to 25 years. The

Philippine Senate narrowly voted against renewing the treaty in 1991. Katerina Francisco, “LOOK BACK: When the

Senate Said ‘No’ to US Bases Renewal,” Rappler, September 16, 2016; Department of State, “Agreement Concerning

Military Bases, Manila, 14 March 1947.”

68 On February 10, 2020, the Government of the Philippines submitted to the U.S. Embassy in Manila a “notice of

termination” of the Philippines-U.S. Visiting Forces Agreement. The Philippine government suspended the termination

three times (for six months each), in June 2020, November 2020, and June 2021. Richard Javad Heydarian, “US

Outlasts Duterte’s Failing Dalliance with China,” Asia Times, May 19, 2021; Andrea Chloe Wong, “Duterte’s BackDown on US Forces in Philippines,” The Interpreter, Lowy Institute, August 24, 2021; Grossman, “Duterte’s Dalliance

with China Is Over.”

69 For the text of the Enhanced Defense Cooperation Agreement, see Department of State, “Defense Cooperation

Agreement Between the United States of America and the Philippines,” Treaties and Other International Acts Series

14-625, April 28, 2014, https://www.state.gov/wp-content/uploads/2019/02/14-625-Philippines-DefenseCooperation.pdf.

70 White House, “FACT SHEET: United States-Philippines Bilateral Relations,” April 28, 2014.

71 Department of Defense, “Philippines, U.S. Announce Locations of Four New EDCA Sites,” April 3, 2023. In the

announcement, the Department of Defense publicized it had invested $82 million in infrastructure for the original five

EDCA sites. In July 2024, the Department of Defense stated that the Philippines had invested an estimated $88.6

million at EDCA locations. Department of Defense, “Joint Statement on the Philippines-United States Fourth 2+2

Ministerial Dialogue,” July 30, 2024.

72 “US Will Build Repair Facilities for the Philippine Navy Near the Disputed South China Sea,” AP, July 16, 2025;

Joanna Rose Aglibot, “US Marine Corps Opens Warehouse for Aid, Relief in Subic Freeport,” Philippine Inquirer,

February 6, 2025.

73 Christina Chi, “US Ammo Facility in Subic Bay Could Build World’s Largest Stockpile, Says Trump,” Philippine

Star, July 23, 2025; CQ Newsmaker Transcripts, “President Trump Participates in a Bilateral Meeting with the

President of the Republic of the Philippines,” July 22, 2025.

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logistics and military operations.74 Philippine officials have expressed caution related to possible

crisis-related commitments under EDCA, emphasizing the agreement aims to boost Philippine

military modernization, and, in a possible cross-Strait conflict, may help facilitate the evacuation

of overseas Filipino workers in Taiwan, who number over 150,000.75

In 2023, the Biden and Marcos administrations signed new Bilateral Defense Guidelines aimed

at modernizing Philippine defense capabilities, deepening interoperability with the United States,

enhancing bilateral planning and information-sharing, and combating transnational and

nonconventional threats.76 The guidelines clarify the conditions under which the MDT can be

triggered and state that “an armed attack in the Pacific, to include anywhere in the South China

Sea, on either Philippine or U.S. armed forces—which includes both nations’ coast guards—

aircraft, or public vessels, would invoke mutual defense commitments under Article IV and

Article V of the MDT.”77

The BDG laid out several core lines of efforts, and subsequent bilateral meetings tied them to

concrete implementation steps and resourcing, which included a commitment by the United

States to allocate $500 million in FMF to support the AFP and an agreement by both parties to

jointly fund the Philippines-Security Sector Assistance Roadmap (P-SSAR), which will guide

shared modernization planning, investments, and priority equipment delivery over the next 5 to

10 years. According to U.S. documents, the P-SSAR was finalized on July 29, 2024.78 The two

governments also announced the establishment of a Roles, Missions, and Capabilities (RMC)

Working Group to provide policy guidance for joint operations, activities, and investments as well

as plans to operationalize the newly agreed on EDCA locations. The United States and the

Philippines further tied BDG information-sharing priorities to “concluding” key agreements: the

Philippines-U.S. Communications and Information Security Memorandum of Agreement

(CISMOA), extended in June 2024, and a General Security of Military Information Agreement

(GSOMIA).79 In the same meetings, the two governments tied the BDG cyber priorities to the

U.S. providing on-demand cyber training to support a new AFP Cyber Command.80

74 Derek Grossman, “The Philippines Is Ever More Focused on Taiwan,” RAND Corporation, February 1, 2025; Rupert

Wingfield-Hayes, “US Secures Deal on Philippines Bases to Complete Arc Around China,” BBC, February 2, 2023;

David Brunnstrom and Karen Lema, “Explainer: Why U.S. Seeks Closer Security Cooperation with the Philippines,”

Reuters, February 2, 2023; Brad Lendon, “US Gains Military Access to Philippine Bases Close to Taiwan and South

China Sea,” CNN, April 4, 2023.

75 Michael Martina, Don Durfee, and David Brunnstrom, “Marcos Says Philippines Bases Could Be ‘Useful’ If Taiwan

Attacked,” Reuters, May 5, 2023; Renato Cruz De Castro, “The Philippines’ Evolving View on Taiwan: From Passivity

to Active Involvement,” Brookings Institution, March 9, 2023; Grossman, “The Philippines Is Ever More Focused on

Taiwan”; Priam Nepomuceno, “DND Chief Welcomes Cagayan Mayors Support for EDCA” Philippine News Agency,

April 21, 2023.

76 Department of Defense, “The United States and the Republic of the Philippines Bilateral Defense Guidelines,” May

3, 2023.

77 Department of Defense, “The United States and the Republic of the Philippines Bilateral Defense Guidelines.”

78 Department of Defense, “Joint Statement on the Philippines-United States Fourth 2+2 Ministerial Dialogue,” July 30,

2024; DOD, “Fact Sheet: U.S.-Philippines 2+2 Ministerial Dialogue,” July 30, 2024.

79 CISMOA document available at Department of State, Agreement Between the United States of America and the

Philippines Concerning Communications Interoperability and Security, entered into force June 7, 2024. For details on

the GSOMIA, see Sebastian Strangio, “Philippines, US Sign Military Intelligence Sharing Agreement,” The Diplomat,

November 19, 2024.

80 Department of Defense, “Joint Statement on the Philippines-United States Fourth 2+2 Ministerial Dialogue,” July 30,

2024; DOD, “Fact Sheet: U.S.-Philippines 2+2 Ministerial Dialogue,” July 30, 2024.

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In 2025, Secretary Hegseth publicly described these priorities as ongoing—announcing a new

Task Force-Philippines and completion of a two-year action plan to accelerate progress on “major

priorities,” while also pointing to advances in defense industrial cooperation.81

U.S. Security Cooperation

U.S. security cooperation with the Philippines combines State Department-funded assistance with

Department of Defense (DOD)-funded capacity building to support Philippine deterrence,

maritime domain awareness and security, and defense professionalization capabilities. State

Department programs include FMF and International Military Education and Training (IMET).82

In July 2024, the United States announced $500 million in FMF in FY2024 supplemental funds

intended to help the Philippines modernize its military and coast guard for external defense;

following the Trump Administration’s pause in foreign assistance, Secretary Hegseth announced

the release of some of these funds in March 2025.83 DOD’s capacity-building efforts have focused

on the development and enhancement of AFP capabilities including intelligence, maritime and

border security operations, counterterrorism, and counter-proliferation initiatives. These efforts

have occurred under DOD security cooperation authorities, including Section 333 Building

Partner Capacity, Section 332 Institutional Capacity Building, and the Indo-Pacific Maritime

Security Initiative.84

The NDAA for FY2026 (P.L. 119-60) requires annual reports on the U.S. government’s efforts to

enhance the U.S. defense relationship with the Philippines, annual U.S. spending on security

assistance to the Philippines, specific capabilities needed to modernize the defense capabilities of

the Armed Forces of the Philippines (AFP), and the AFP’s absorptive capacity for additional

security assistance. The FY2026 NDAA also authorized direct loans of up to $1 billion through

the Foreign Military Financing (FMF) loan program and annual grant assistance of not more than

$500 million each year through FY2030 for the Philippines through the Foreign Military

81 Department of Defense, “Readout of Secretary of War Pete Hegseth’s Meeting with Philippine Secretary of National

Defense,” October 31, 2025; Seth Robson, “US Military Task Force at Work in the Philippines,” Stars and Stripes,

November 28, 2025; DOD, “United States–Philippines Joint Statement on Secretary Hegseth's Inaugural Visit to the

Philippines,” March 28, 2025; DOD, “Joint Vision Statement on U.S.-Philippine Defense Industrial Cooperation,”

March 28, 2025. In his March 2025 visit to Manila, Secretary Hegseth announced the deployment of an anti-ship

missile launcher and unmanned surface vessels during the Balikatan exercises, as well as several new joint initiatives

including plans to deploy more advanced U.S. military assets to the Philippines, conduct advanced Special Operations

Forces training, improve defense industrial cooperation, and launch a cybersecurity campaign. Jim Gomez, “Hegseth

Tells Philippines the Trump Administration Will Ramp Up Deterrence Against China Threat,” Associated Press, March

28, 2025; Department of Defense, “Defense Secretary Pete Hegseth and Philippine Secretary of National Defense

Gilberto Teodoro Hold Joint Media Availability,” March 28, 2025.

82 The Department of Defense is “using a secondary Department of War designation,” under Executive Order 14347

dated September 5, 2025.

83 Department of Defense, “Defense Secretary Pete Hegseth and Philippine Secretary of National Defense Gilberto

Teodoro Hold Joint Media Availability,” transcript, March 28, 2025; Ramon Rayondoyan, “U.S. Unfreezes Military

Aid to Philippines to Bolster China Deterrence,” Nikkei Asia, March 28, 2025. According to Philippine officials, at

least a portion of the $500 million in FMF was exempted in February 2025; Hegseth’s announcement was the first

public confirmation from a U.S. official that the FMF funding would continue. See Sam Beltran, “Philippines’

Exemption from US Foreign Aid Freeze Reaffirms ‘First-in-Line’ Status: Analysts,” South China Morning Post, March

2, 2025.

84 Department of State, “Fact Sheet: U.S. Security Cooperation with the Philippines,” January 20, 2025; U.S. Embassy

in the Philippines, “Fact Sheet: U.S.-Philippines Defense and Security Partnership,” February 11, 2022. Section 333

Building Partner Capacity is authorized under 10 U.S.C. §333. The Indo-Pacific Maritime Security Initiative (MSI) was

authorized by Section 1263 of the National Defense Authorization Act for FY2016 (P.L. 114-92; last amended and

extended in the FY2022 NDAA, P.L. 117-81). Note: DOD security cooperation program details are not made publicly

available in a consistent or comprehensive manner; such activities provided in this report are not meant to be an

exhaustive list.

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Financing (FMF) security assistance program.85 The Consolidated Appropriations Act, 2026 (P.L.

119-75) appropriated not less than $100 million for FMF grant assistance to Philippines in

FY2026.

The Philippines participates in the State Partnership Program (SPP) through partnerships with the

Hawaii National Guard and Guam National Guard, both of which were established in 2000.86

Over the past 25 years, hundreds of SPP engagements have been carried out, spanning air

defense, cyber defense, medical readiness, and disaster response, among other areas.87 In recent

years, SPP engagements have aligned with broader U.S.-Philippines defense planning cycles,

including a year-long agenda of over 500 joint planning and training initiatives linked to the

Mutual Defense Board and Security Engagement Board processes.88 Recent examples of SPP

activities include recurring aviation engagements, casualty training exercises, and U.S.

participation in a Philippine reservist convention.89

Military Exercises

Military exercises are a central feature of U.S.-Philippine security cooperation, with recent

iterations increasingly oriented toward multi-domain operations and more demanding, combatrelevant scenarios. Balikatan (“shoulder-to-shoulder” in Tagalog) is an annual large-scale

combined exercise, typically integrating U.S. and Philippine Army, Marine, Navy, and Air Force

elements (often alongside other partners) to rehearse combined operations across land, sea, and

air. Balikatan 2024 included military personnel from France and Australia and focused on

complex training and coordination in air and maritime domain awareness, cyber operations, and

territorial defense activities, among other activities.90 Balikatan 2025, the 40th iteration of the

annual exercise, featured a “full battle test,” which included the deployment of the U.S. NavyMarine Expeditionary Ship Interdiction System (NMESIS); the exercise also included live-fire

85 National Defense Authorization Act of Fiscal Year 2026 (P.L. 119-60, §1269 and §1270). Foreign Military

Financing (FMF) is implemented by the Defense Department through the Defense Security Cooperation Agency

(DSCA). See 22 U.S.C. §2763.

86 For more information, see State Partnership Program, U.S. National Guard, at https://www.nationalguard.mil/

Leadership/Joint-Staff/J-5/International-Affairs-Division/State-Partnership-Program/.

87 Mysti Bicoy, “25 Years Strong: Hawai‘i Guard and Philippines Celebrate Enduring Partnership,” Hawaii National

Guard, September 30, 2025.

88 John Linzmeier, “Hawaii, Guam National Guard Strengthen U.S.-Philippines Ties,” Hawaii Air National Guard,

March 31, 2025; U.S. Indo-Pacific Command, “Philippines and U.S. Hold Annual Mutual Defense and Security

Engagement Boards,” September 16, 2023. According to U.S. Indo-Pacific Command, “The Mutual Defense Board

was established in 1958, and the Security Engagement Board was established in 2006. Together, the two boards form

the framework that directs and enables defense and security cooperation between the U.S. and Philippine militaries.”

U.S. Indo-Pacific Command, “USINDOPACOM Hosts Philippines for Mutual Defense Board and Security

Engagement Board,” August 18, 2025.

89 Josen Christian Munoz Pascual, “Guam and Hawaii Guards Strengthen Ties at Philippine Reservist Convention,”

Guam National Guard, December 17, 2025; Roann Gatdula, “Hawaii Guard, Filipino Military Conduct Expert

Exchange,” Hawaii Air National Guard, September 30, 2024.

90 U.S. Indo-Pacific Command, “Philippines and U.S. Conclude Balikatan Exercises, Shoulder-to-Shoulder,” May 10,

2024; U.S. Naval Institute, “Balikatan 2024,” June 2024.

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drills with the M142 High Mobility Artillery Rocket System (HIMARS).91 Smaller contingents of

Japanese and Australian troops also participated.92

Other notable annual exercises include Sama Sama (“Together”), which primarily involves U.S.

and Philippine naval forces, often with supporting maritime aviation forces; Kamandag

(“Cooperation of Warriors of the Sea”), which involves the U.S. Marine Corps and Philippine

Marine Corps and other AFP elements; and Salaknib (“Resist”), which primarily involves U.S.

and Philippine Army units.93

In April 2024, U.S. forces deployed a mid-range Typhon missile system to the northern

Philippines as part of Salaknib 2024.94 The system’s range encompasses the South China Sea and

the Taiwan Strait, and the PRC has criticized the system’s presence in the Philippines. The AFP

has since announced that it was in negotiations to purchase the system.95 The U.S. and Philippines

also routinely conduct Maritime Cooperative Activities (MCAs), which are typically short, at-sea

events often aimed at enhancing interoperability and combined maritime capabilities outside the

large annual exercises.96

Counterterrorism Operations

U.S-Philippine counterterrorism cooperation expanded markedly after 9/11 through Operation

Enduring Freedom–Philippines (OEF–P), a roughly 14-year effort in which a Joint Special

Operations Task Force maintained a continuous presence of approximately 500 to 600 troops to

advise and assist Philippine forces against the Abu Sayyaf Group and other transnational terrorist

threats in the southern Philippines.97 U.S. activities during this period centered on operational

advice and support to Philippine counterterrorism operations, training and equipping Philippine

units, and combined U.S.-Philippine civil-military and information activities to reduce extremist

safe havens and improve government legitimacy.98

U.S.-Philippine counterterrorism cooperation deepened after the 2017 siege of Marawi by a

coalition of Filipino Islamist extremist groups that had pledged allegiance to the Islamic State (IS,

91 U.S. Indo-Pacific Command, “Philippines, U.S. Conclude Exercise Balikatan 25,” May 9, 2025; Mikhail Flores,

“Philippines, US Launch Joint Combat Drills in ‘Full Battle Test,’” Reuters, April 21, 2025; U.S. Marine Corps,

“Philippine, U.S. Troops Kick Off Exercise Balikatan,” April 10, 2025; Jeoffrey Maitem, “US, Philippines Flex

Military Muscle with Himars Live-Fire Drills Near South China Sea,” South China Morning Post, April 30, 2025.

92 U.S. Pacific Fleet, “Exercise Balikatan 2025 Kicks Off with Opening Ceremony Highlighting Ironclad Alliance,”

April 21, 2025.

93 Joshua Brandenburg, “Salaknib 2025: Combined Joint Force Executes Logistics Over-the-Shore Operation in the

Philippines,” May 4, 2025; Aaron-Matthew Lariosa, “Philippine, Allied Warships Hold Combat Drills in the South

China Sea,” USNI News, October 16, 2025; John Fischer, “Multinational Forces Set to Launch KAMANDAG 9 in the

Philippines,” INDOPACOM, May 5, 2025.

94 See CRS In Focus IF12135, The U.S. Army’s Typhon Mid-Range Capability (MRC) System, by Andrew Feickert.

95 Ryan Chan, “US Missiles Stationed in Philippines Can Reach China: Official,” Newsweek, October 28, 2025;

Sebastian Strangio, “Philippines Defends Plan to Acquire Typhon Missile System from US,” Diplomat, December 30,

2024.

96 See, for example, U.S. Indo-Pacific Command, “Philippines, U.S. Conduct Bilateral Maritime Cooperative Activity,”

January 27, 2026; Priam Nepomuceno, “PH, US Forces Hold 10th Bilateral Exercise in WPS,” Philippine News Agency,

December 16, 2025; U.S. Indo-Pacific Command, “U.S., Philippine Coast Guards Conduct Maritime Cooperative

Activity,” May 21, 2025; U.S. Indo-Pacific Command, “Australia, Japan, Philippines, and United States Conduct

Multilateral Maritime Cooperative Activity,” February 5, 2025.

97 The United States designated the Abu Sayyaf Group as a foreign terrorist organization (FTO) in 1997.

98 Linda Robinson et al., “U.S. Special Operations Forces in the Philippines, 2001-2014,” RAND, April 6, 2016.

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alt. ISIS/ISIL) and the emergence of ISIS-linked elements in the Philippines.99 In September

2017, the Secretary of Defense designated Operation Pacific Eagle–Philippines (OPE–P) as an

overseas contingency operation (OCO) to support Philippine efforts to “isolate, degrade, and

defeat” ISIS affiliates and other terrorist organizations in the Philippines.100 Through OPE, U.S.

forces combined field advising and enabling support, such as logistical support, intelligence

sharing, operational planning, and the integration of intelligence, surveillance, and reconnaissance

capabilities overcome counterterrorism capability gaps in the AFP.101 The DOD rescinded the

OCO designation in 2019, and the Lead Inspector General’s (IG) special quarterly reporting

sunset at the end of FY2020. The final IG report noted that DOD had committed $85.4 million for

OPE-P, in which approximately 200 U.S. military personnel served in advisory roles.102 The final

report also noted that the United States’ broader counterterrorism mission and related security

assistance would continue under existing authorities.103

U.S.-Philippine counterterrorism cooperation today appears to persist through U.S. training and

advising as well as bilateral counterterrorism crisis-response activities.104 In February 2023, DOD

described U.S. forces as working closely with Philippine forces through training, advising, and

assisting while the Philippines leads and conducts the counterterrorism operations.105

U.S. Arms Transfers

In addition to receiving military equipment through the U.S. FMF program, the Philippines is

eligible to purchase U.S. defense articles at discounted rates through the EDA grant program.106

The Philippines is among a group of countries that receives priority EDA grant transfers.107 In

some cases, the Philippines supplements U.S. grant assistance with its national funds. Between

2020 and 2024, the Philippines was among the top recipients of EDA in the INDOPACOM area

of responsibility.108 In 2025, the State Department notified Congress of two potential FMS cases

for the Philippines: a proposed F-16 Block 70/72 aircraft package (with an estimated cost of

99 The conflict in Marawi—a city in the southern province of Mindanao—resulted in the deaths of over 900 militants,

over 165 AFP troops, and roughly 50 civilians, as well as the destruction of much of the city. With U.S. noncombat and

other foreign military assistance, the AFP retook the city in October 2017.

100 Department of Defense Office of Inspector General, “Lead Inspector General for Operation Inherent Resolve and

Operation Pacific Eagle-Philippines, Quarterly Report to the United States Congress, October 1, 2017–December 31,

2017.”

101 Ibid.

102 By comparison, funding for OPE-P was $108 million in 2019 and $100 million in 2018. Lead Inspector General

reporting responsibilities terminated at the end of FY2020 since none of the appropriated funding for OPE-P was

associated with an Overseas Contingency Operation (OCO). See the 12 th and final quarterly IG report for OPE-P:

Department of Defense Office of Inspector General, “Operation Pacific Eagle-Philippines: Lead Inspector General

Report to the United States Congress, July 1, 2020–September 30, 2020.”

103 Ibid.

104 U.S. Indo-Pacific Command, “Philippines, U.S. Complete Tempest Wind 2024,” September 7, 2024; U.S. IndoPacific Command, “USINDOPACOM Commander Travels to the Philippines, Commemorates 80 th Anniversary of the

Liberation of Manila,” February 23, 2025.

105 U.S. Indo-Pacific Command, “Austin Visit to Philippine Base Highlights Benefits of U.S-Philippine Alliance,”

February 2, 2023.

106 U.S. Indo-Pacific Command, “U.S. Military Delivers Php183 Million in New Weapons and Equipment to AFP,”

press release, June 22, 2021. See also U.S. Embassy in the Philippines, “U.S. Military Delivers Advanced Unmanned

Aerial System to Philippine Air Force”; U.S. Embassy in the Philippines, “U.S. Delivers Php48.5 Million in Weapons

and Munitions to AFP.”

107 22 U.S.C. §2321j(c)(2).

108 Government Accountability Office, Excess Defense Articles: DOD Needs to Better Assess the Program, GAO-26107627, December 2025.

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$5.58 billion) and a proposed TH-73A training helicopter package (estimated cost of $120

million).109 (In September 2025, the Philippine ambassador to the United States indicated that the

approved purchase of 20 F-16s had been suspended due to budgetary limitations.110) The

Philippines also purchases U.S. defense articles and services through the DCS program.111

The Philippine Economy

The Philippines is a lower middle-income country with one of the fastest growing economies in

Southeast Asia. Poor infrastructure, high energy and logistics costs, regulatory inconsistencies, a

cumbersome bureaucracy, and corruption have hampered efforts to attract foreign investment,

according to the Department of State.112 The Philippines is home to the second-largest business

process outsourcing sector in the world, generating over $32.5 billion in revenue in 2022, and is a

major exporter of electronic components.113 Many Filipino workers emigrate for better-paying

jobs abroad, and the Central Bank of the Philippines reported remittances from overseas Filipinos

in 2024 reached $38.3 billion (estimated at 8.7% of GDP by the World Bank); official statistics do

not include funds sent through informal channels.114

U.S.-Philippines Economic Relations

The United States is the Philippines’ third-largest trading partner (after China and Japan) and

largest export market. Total goods trade between the two countries came to $23.5 billion in 2024:

$14.2 billion in U.S. imports from the Philippines and $9.3 billion in U.S. exports to the

Philippines.115 During Marcos’ visit to the United States in late July, the two countries announced

a trade framework agreement in which the Trump Administration would impose a countryspecific tariff of 19% on some Philippine goods imported into the United States; the Philippines

would allow some U.S. exports to the country to face no tariffs.116 Philippine officials have

109 Defense Security Cooperation Agency, Major Arms Sales: “Philippines—F-16 Aircraft,” April 1, 2025;

“Philippines—TH-73A Training Helicopters and Support,” April 15, 2025.

110 Reuters, “Philippines’ Potential Purchase of F-16 Jets on Hold Due to Budget Constraints, Envoy Says,” September

9, 2025.

111 Details about proposed DCS are confidential; however, the State Department mentions some DCS transfers in the

following fact sheet: Department of State, “Fact Sheet: U.S. Security Cooperation with the Philippines,” January 20,

2025.

112 Department of State, “2024 Investment Climate Statements: Philippines.”

113 Argyll Cyrus Geducos, “Investment in Education Was Able to Bolster PH Economy—Expert,” Manila Bulletin,

July 2, 2023; “Five-Year Forecast: Philippines,” Economist Intelligence Unit, February 24, 2025.

114 Central Bank of the Republic of the Philippines, “Personal Remittances Reach a Record High of US$3.7 Billion in

December 2024; Full-Year Level of US$38.3 Billion Highest to Date,” February 17, 2025; World Bank, “Personal

Remittances, Received (% of GDP)—Philippines.” The Department of Foreign Affairs estimated that 10.8 million

Filipinos lived overseas in 2024. According to the Philippine Statistics Authority, the number of Overseas Filipino

Workers was estimated at 2.19 million in 2024. Jiselle Anne C. Casucian, “DFA Records over 10.8 Million Overseas

Filipinos in 2024,” GMA Integrated News, August 27, 2025; Philippine Statistics Authority, “Results of the 2024

Overseas Filipino Workers: Number of Overseas Filipino Workers Grew,” December 16, 2025, accessed February 3,

2026, https://psa.gov.ph/statistics/survey/labor-and-employment/survey-overseas-filipinos.

115 For more information, see Office of the United States Trade Representative, “Philippines,” https://ustr.gov/

countries-regions/southeast-asia-pacific/philippines; Philippine Statistics Authority, “International Merchandise Trade

Statistics of the Philippines 2024,” March 26, 2025.

116 “Further Modifying the Reciprocal Tariff Rates,” 90 Federal Register 37963, July 31, 2025. See CRS Report

R48549, Presidential 2025 Tariff Actions: Timeline and Status, by Keigh E. Hammond and William F. Burkhart.

Previous orders and statements from the Trump Administration indicated that products from the Philippines would be

(continued...)

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indicated that negotiations are ongoing, and the Philippines will maintain tariffs on some products

to protect Philippine industries, including agriculture.117 The status of this agreement is uncertain

following the February 2026 U.S. Supreme Court ruling that the President does not have the

authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA).118

In April 2024, the United States, the Philippines, and Japan launched the Luzon Economic

Corridor (LEZ) at a trilateral summit in Washington, DC.119 Under the Group of 7’s 2022

Partnership for Global Infrastructure Investment, the LEZ aims to drive connectivity and

development on Luzon island through investment in railways, airports, port modernization,

semiconductors, agribusiness, and other sectors.120 On July 21, 2025, Secretary Rubio met with

Marcos and announced that the Department of State intends to work with Congress to allocate

$15 million to support private sector development in the LEZ.121

Philippines-China Relations

Although tensions between the Philippines and China over disputed waters and land features in

the South China Sea have risen since 2012, the Philippines and China are linked through

geographical proximity, extensive economic relations, and complex people-to-people ties. A 2024

Pew Research Center survey indicates that 34% of Philippine respondents held a favorable view

of China (compared with a 74% favorability rating for the United States).122 Philippine authorities

have arrested PRC and Philippine citizens for spying on China’s behalf on military sites and

critical infrastructure.123 China has denied the accusations and reportedly arrested three Philippine

nationals in China on suspicion of espionage against the PRC.124 As it has done elsewhere in

Southeast Asia and globally, China has sought to influence ethnic Chinese populations in the

Philippines.125 Neither government has been willing to significantly disrupt economic ties, though

between 2012 and 2016, China placed formal and informal restrictions on certain food imports

assessed a 17% and 20% tariff rate if the United States and the Philippines did not come to an agreement. Executive

Order 14266, “Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment,” 90 Federal

Register 15625, April 9, 2025; “Philippines to Face 20% US Tariff, Trump Says in Letter to Marcos,” Nikkei Asia, July

10, 2025.

117 Bea Cupin, “3 Months Later, US-Philippine Trade Negotiations Not Done Yet,” Rappler, October 27, 2025.

118 CRS Legal Sidebar LSB11398, Supreme Court Rules Against Tariffs Imposed Under the International Emergency

Economic Powers Act (IEEPA), by Christopher T. Zirpoli.

119 Department of State, “The United States, the Philippines, and Japan Launch the Partnership for Global Infrastructure

and Investment Luzon Economic Corridor,” media note, April 11, 2024.

120 Kevin Chen, “The Luzon Economic Corridor: A Badly-Needed Win for the US in Southeast Asia?” The Diplomat,

May 20, 2024; “US Finalizing Plans on Infra Project for Luzon Corridor,” Manila Standard, June 15, 2024.

121 U.S. Embassy in the Philippines, “U.S. Announces PHP3 Billion in Foreign Assistance for the Philippines,” July 23,

2025. CRS has not been able to independently verify the source of these funds.

122 Laura Silver, “More People View the U.S. Positively Than China Across 35 Surveyed Countries,” Pew Research

Center, July 9, 2024.

123 Republic of the Philippines National Bureau of Investigation, “NBI Arrests Five (5) for Espionage,” press release,

February 25, 2025; National Security Council of the Philippines, “Statement of the National Security Council,”

Facebook post and photo, March 4, 2026, https://www.facebook.com/photo?fbid=1377908564381238&set=

a.227251549446951; Don Mclain Gill, “Uncovering China’s Spying Game in the Philippines,” The Interpreter (Lowy

Institute), March 11, 2025.

124 Embassy of the People’s Republic of China in the Republic of the Philippines, “Statement of the Spokesperson of

the Chinese Embassy in the Philippines on the Philippines’ Announcement to Have Arrested a So-called ‘Chinese

Spy,’” January 25, 2025; “Philippines Alarmed Over China Arrest of Alleged Filipino Spies,” Reuters, April 5, 2025.

125 Teresita Ang See and Carmelea Ang See, “The Rise of China, New Immigrants and Changing Policies on Chinese

Overseas,” Southeast Asian Affairs, 2019.

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from the Philippines, most notably bananas, and on some tourism; some observers suggest this is

an attempt by the PRC to coerce the Philippines into accepting China’s position in the South

China Sea dispute (see next section).126 China is the Philippines’ largest trading partner, its largest

supplier of goods, and an important source of investment.127

Tensions in the South China Sea

China has constructed and expanded military assets on several disputed features in the Spratly

Island chain, including on land features within the Philippines’ EEZ (Figure 2), and interfered

with Philippine commercial and military activity in the Philippines’ EEZ.128 Since 2019, PRC

vessels occasionally have massed around Philippine-occupied land features and harassed fishing

and coastguard vessels operating within the country’s EEZ.129

In 2013, after China gained de facto control of Scarborough Shoal following a confrontation

between PRC and Philippine ships, the Philippines sought arbitration over PRC actions under the

UN Convention on the Law of the Sea (UNCLOS). In 2016, an UNCLOS arbitral tribunal ruled,

among other judgements, that China’s use of its “dashed-line” to assert maritime claims or

“historical rights” in the South China Sea had “no legal basis.” 130 The tribunal also ruled that

China violated the Philippines’ sovereign rights by interfering with Philippine vessels, damaging

the maritime environment, and engaging in reclamation work on a feature in the Philippines’

EEZ. The United States has urged both sides to abide by the ruling, which under UNCLOS is

binding on both parties. China declared the ruling “null and void.”131

The Philippines is chair of the Association of Southeast Asian Nations (ASEAN) in 2026, and the

Marcos administration has indicated that one of its priorities will be the completion of a South

China Sea Code of Conduct between ASEAN and China. Some analysts are skeptical that the

126 Matthew Reynolds and Matthew P. Goodman, “Deny, Deflect, Deter: Countering China’s Economic Coercion,”

Center for Strategic and International Studies, March 21, 2023; Gatra Prayandita, “Chinese Coercion in Southeast Asia:

Balancing Carrots and Sticks,” European Center of Excellence for Countering Hybrid Threats Working Paper, October

26, 2023.

127 Philippine Statistics Authority, “International Merchandise Trade Statistics of the Philippines 2024,” March 26,

2025; Ji Siqi and Ralph Jennings, “China, Philippines Cautiously Flip Trade Dip as ‘Hot Economics, Cold Politics’

Define Relations,” South China Morning Post, August 9, 2023; William Alan Reinsch and Reena Samuel, “Rocking

the Boat: The Philippines Trade Strategy Amid Rising Geoeconomic Tensions,” Center for Strategic and International

Studies, January 31, 2025.

128 The Philippines refers to the area of the South China Sea within its EEZ as the West Philippine Sea. Between 2013

and 2015, China undertook land reclamation in the Spratly Islands. According to DOD, the reclamation created around

five square miles of artificial landmasses on the seven disputed sites that China controls. Department of Defense,

Annual Report to Congress [on] Military and Security Developments Involving the People’s Republic of China 2017,

May 15, 2017.

129 For more, see CRS In Focus IF12550, China-Philippines Tensions in the South China Sea. Department of Defense,

Annual Report to Congress [on] Military and Security Developments Involving the People’s Republic of China 2025,

December 23, 2025.

130 Permanent Court Arbitration Case No. 2013-19, “In the Matter of the South China Sea Arbitration Before an

Arbitral Tribunal Constituted Under Annex VII to the 1982 United Nations Convention on the Law of the Sea Between

the Republic of the Philippines and The People’s Republic of China, Award of 12 July 2016.” Separately, in 2023,

China updated its “standard” map to include a 10-dash line, which has a dash off the eastern coast of Taiwan, to

demarcate its maritime claims. Council on Foreign Relations, “China’s Maritime Disputes: 1895-2024,”

https://www.cfr.org/timeline/chinas-maritime-disputes.

131 PRC Ministry of Foreign Affairs, “Statement of the Ministry of Foreign Affairs of the People’s Republic of China

on the Award of 12 July 2016 of the Arbitral Tribunal in the South China Sea Arbitration Established at the Request of

the Republic of the Philippines,” July 12, 2016.

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PRC will be willing to limit its freedom of action through any binding agreement, which has been

on ASEAN’s agenda since 2002.132

Figure 2. South China Sea, Disputed Features, and EDCA Sites

Source: CRS. Boundaries from the Department of State.

Since 2023, the China Coast Guard (CCG) and PRC maritime militia vessels have escalated their

interference with Philippine boats attempting to conduct resupply missions to Second Thomas

Shoal in the Spratly Islands chain. The Philippines posts a small cadre of its marines on a nowderelict Philippine Navy ship, the BRP Sierra Madre, which it grounded on the shoal in 1999 as

part of its efforts to assert its maritime claims. In 2023 and 2024, PRC harassment resulted in at

least three collisions between PRC and Philippine vessels, including one in which CCG personnel

boarded a Philippine boat.133 In July 2024, the two sides agreed to de-escalate tensions and allow

the resupply of the Sierra Madre.134 The Philippines has successfully resupplied the ship since

then, and the two countries reaffirmed the agreement in January 2025.135

132 Bianka Venkataramani, “With the Philippines as ASEAN Chair, a South China Sea Agreement Is Unlikely to Be

Concluded in 2026,” Chatham House, December 9, 2025; Monica Sato, “Rhetoric vs. Reality: The Philippines,

ASEAN, and the South China Sea,” Center for Strategic and International Studies, November 7, 2025.

133 Frances Mangosing, “China Ships Ram, Tow PH Vessels at Ayungin,” Philippine Daily Inquirer, June 18, 2024; “A

Timeline of Clashes Between China and the Philippines in South China Sea, Following Latest Ship Collision,”

Associated Press, June 17, 2024; Jim Gomez, “Philippines Says a Coast Guard Ship and Supply Boat Were Rammed

by Chinese Vessels at Disputed Shoal,” ABC News, October 21, 2023.

134 Carl Thayer, “The State of the South China Sea: Coercion at Sea, Slow Progress on a Code of Conduct,” The

Diplomat, January 27, 2025.

135 Carl Thayer, “The State of the South China Sea: Coercion at Sea, Slow Progress on a Code of Conduct,” The

Diplomat, January 27, 2025; Sam Beltran, “‘It’s a Win’: Philippines, China Uphold South China Sea Deal on Resupply

Missions,” South China Morning Post, January 21, 2025.

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In April 2024, the Philippines deployed its largest coast guard vessel, the BRP Teresa Magbanua,

to Sabina Shoal, an unoccupied feature in the Spratlys, responding to reports of crushed coral.136

China responded by sending CCG vessels, which later rammed Philippine Coast Guard boats and

prevented the resupply of the BRP Teresa Magbanua. The Philippine vessel withdrew in

September, citing bad weather, lack of supplies, and a sick crew.137

Since 2012, China has harassed and blocked Philippine fishing boats operating near Scarborough

Shoal, a traditional fishing area for both countries. On August 11, 2025, two PRC vessels—a navy

destroyer and a CCG cutter that was deploying a water cannon—collided while chasing a

Philippine Coast Guard ship. A U.S. Navy destroyer conducted a Freedom of Navigation

operation at the shoal two days later.138 In 2024, incidents near Scarborough Shoal included closeproximity aerial maneuvers by PRC fighter jets around Philippine military and civilian aircraft,

the deployment of China’s largest coast guard ship, and the use of a water cannon on Philippine

vessels delivering provisions to Philippine fishermen near the shoal.139

The Philippines and Taiwan

Concerns over the Philippines’ potential role in a Taiwan contingency—particularly given

geographic proximity—has driven the expansion of unofficial relations between the Philippines

and Taiwan under Marcos. The Philippines does not maintain official relations with Taiwan,

which formally calls itself the Republic of China (ROC); the Philippines adopted a “one-China”

policy in 1975.140

While military ties remain sensitive due to the unofficial nature of the relationship, reporting

indicates that security cooperation between Taiwan and the Philippines is increasing, including

closed-door forums, combined coast guard patrols, and Taiwan military observers attending a

U.S.-Philippine exercise.141 During a trip to India in August 2025, Marcos stated that there was

“no way that the Philippines can stay out of” a possible conflict between the PRC and the United

States over Taiwan, noting Taiwan’s geographical proximity and the presence of Filipino workers

in Taiwan.142 PRC media responded by warning the Philippines to avoid “playing with fire” and

interfering with China’s “internal affairs.”143 In recent years, Marcos and other Philippine officials

136 Meredith Chen, “China Says Its Ships Didn’t Damage South China Sea Reef, but Philippine Coastguard Did,” South

China Morning Post, August 30, 2024.

137 John Eric Mendoza, “‘Surprise of 2024’: Escoda Shoal in West PH Sea Is New Flashpoint,” Philippine Daily

Inquirer, December 27, 2024.

138 Jim Gomez, “US Briefly Deploys 2 Warships to a Disputed South China Sea Shoal After Chinese Collision,”

Associated Press, August 13, 2025.

139 Jennifer Jett, “U.S. Condemns ‘Dangerous’ Chinese Maneuvers After Close Encounter with Philippine Plane,” NBC

News, February 19, 2025; Jeoffrey Maitem, “China’s ‘Monster’ Coastguard Ship Tests Philippines’ South China Sea

Resolve,” South China Morning Post, January 7, 2025; Jim Gomez, “Philippines Says China’s Coast Guard Fired

Water Cannons and Sideswiped Its Patrol Vessel,” Associated Press, December 4, 2024.

140 In the 1975 Philippines-PRC Joint Communiqué, the Philippine government “recognizes the [PRC] as the sole legal

government of China” and “fully understands and respects the position of the Chinese Government that there is but one

China and that Taiwan is an integral part of Chinese territory.” The Marcos Administration reaffirmed the Philippines’

“one-China” policy in 2024. “Joint Communique of the Government of the People’s Republic of China and the

Government of the Republic of the Philippines (Peking, June 9, 1975),” November 15, 2000; Department of Foreign

Affairs of the Republic of the Philippines, “Statement on the Philippines’ One China Policy,” January 14, 2024.

141 Rebecca Tan, Frances Mangosing, and Pei-Lin Wu, “The Philippines Is Quietly Working with Taiwan to Counter

China,” Washington Post, July 14, 2025; Franco Jose C. Baroña, “PH Eyes Military Ties with Taiwan,” Manila Times,

May 1, 2025.

142 Firstpost, “War Over Taiwan and the Philippines: Firstpost Interview Continues to Make Waves,” August 11, 2025.

143 Li Yang, “Absurd Logic of Manila’s Game of Flames Belies Its Assigned Role,” China Daily, August 11, 2025.

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have been more willing to discuss publicly the possibility and implications of conflict in the

Taiwan Strait.144

In April 2025, the Philippines eased restrictions on official travel between Taiwan and the

Philippines to encourage economic, trade, and investment ties, though it continues to prohibit

high-level interactions.145 In the past decade, Taiwan has sought to expand relations with IndoPacific partners, including the Philippines, and these efforts have yielded deepening trade and

commercial ties and increasing people-to-people exchanges, including expanded tourism.146

Human Rights Concerns in the Philippines

According to the Department of State, human rights concerns in the Philippines include arbitrary

or unlawful killings, police impunity, serious restrictions on freedom of expression and media

freedom, and threats and violence against labor activists.147 Former President Duterte’s anti-drug

campaign resulted in thousands of extrajudicial killings between 2016 and 2022; estimates of

anti-drug campaign-related deaths during this period range from 6,252 (the official tally) to

30,000.148 While Marcos has touted his “bloodless war on dangerous drugs,” human rights groups

have documented continued abuses, including extrajudicial killings, and a lack of accountability

for former Duterte administration officials and police.149 In addition to the Duterte arrest, the ICC

is pursuing investigations against various officials from Duterte’s administration. Philippine

courts have convicted eight police officers for their actions in the drug war.150 In 2016, the State

Department shifted U.S. funding away from police drug control programs in response.151

Subsequent funds have been directed toward drug demand reduction, maritime law enforcement,

and transnational interdiction.152

144 Jing Bo-jiun, “Regional Economic Integration and Taiwan’s Unofficial Relations with the Philippines,” National

Bureau of Asian Research, June 23, 2025.

145 Office of the President of the Philippines, “Memorandum Circular No. 82,” April 15, 2025. For discussion of the

order, see Thomas Shattuck, “Signals from the South: An Opening for Stronger Philippines-Taiwan Ties,” Global

Taiwan Brief, vol. 10, no. 10 (May 2025).

146 Jing “Regional Economic Integration and Taiwan’s Unofficial Relations with the Philippines”; Reymund B. Flores,

“Strengthening the Fabric, Tightening the Bonds: Taiwan’s Soft Power in the Philippines,” National Bureau of Asian

Research, June 23, 2025.

147 Department of State, 2024 Country Reports on Human Rights Practices: Philippines, August 12, 2025; Freedom

House, “Freedom in the World 2024.”

148 Republic of the Philippines, Office of the President, Dangerous Drugs Board, “#RealNumbersPH Year 6,” at

https://ddb.gov.ph/realnumbersph/. The official tally of “persons who died during anti-drug operations” covers the time

period of July 1, 2016, to May 31, 2022. Ted Regencia, “Arrested on ICC Warrant: What Was Duterte’s ‘War on

Drugs’?” Al Jazeera, March 11, 2025.

149 Alexis Romero, “Marcos Touts ‘Bloodless’ Drug War, No Extermination,” The Philippine Star, July 23, 2024; Joel

F. Ariate Jr., Aidrielle Raymundo, and Vincent Halog, “The 2024 Dahas Report: More Reported Drug-Related Killings

in 2024 Than in 2023,” VERA Files, January 14, 2025; Human Rights Watch, “Philippines: Marcos Rights Gains Fall

Short,” January 16, 2025.

150 Republic of the Philippines Department of Justice, “Remulla Hails Conviction of 4 Killer Cops in 2016 Drug Bust,”

June 19, 2024; “Philippine Court Convicts 4 Police Officers for Killings in Duterte Drug War,” BenarNews, June 18,

2024.

151 Department of State, “Daily Press Briefing—November 28, 2016,” November 28, 2016.

152 “Leahy Laws” prohibit provision of U.S. security assistance to foreign security forces when there is credible

information that a recipient has committed “a gross violation of human rights.” See CRS In Focus IF10743, The

Philippines: War on Drugs and Human Rights Concerns, by Thomas Lum, Liana W. Rosen, and Ben Dolven.

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Considerations for Congress

Strategic Interests

Members of Congress have demonstrated support for bolstering security ties between the United

States and countries in the Indo-Pacific region, including the Philippines, by appropriating funds

for maritime domain awareness efforts and authorizing various initiatives in successive National

Defense Authorization Acts (NDAAs), such as the Pacific Deterrence Initiative and the IndoPacific Maritime Security Initiative (MSI).153

Given ongoing interest in the Philippines as it relates to U.S. strategic interests in the region,

Congress may evaluate U.S.-Philippines defense cooperation, including how U.S. funds are used

to address AFP capability gaps and shortfalls. Congress may consider, in particular, how U.S.

security assistance is apportioned between the AFP’s areas of need, including maritime domain

awareness, land-based capabilities, and counterterrorism.

The South China Sea Disputes and Maritime Domain Awareness

Through the MSI, the United States has sought to improve the ability of the Philippines, Vietnam,

and other Southeast and South Asian countries to maintain maritime domain awareness and patrol

their exclusive economic zones (EEZs).154 Some Members of Congress have sought to ensure

continued U.S. financial and military support for the AFP, the Philippine Coast Guard, and their

ability to respond to and defend against PRC armed aggression in the South China Sea.155

As the United States and the Philippines have expressed common interests in maintaining a “free

and open Indo-Pacific,” Congress may analyze the U.S. approach to supporting Philippine efforts

to protect its sovereignty and interests in its maritime domain. Congress may debate whether to

develop or wield policy tools, such as official statements, indicating their views on the 2016

UNCLOS tribunal decision that China’s territorial claims have no legal basis; whether and, if so,

how to support multilateral diplomatic efforts to counter PRC assertiveness in the South China

Sea; increasing, decreasing, or otherwise adjusting security assistance to the Philippines; or

ratifying UNCLOS.156

153 For more on the Pacific Deterrence Initiative (PDI), see CRS In Focus IF12303, The Pacific Deterrence Initiative,

by Luke A. Nicastro. The PDI was established in the National Defense Authorization Act (NDAA) for FY2021 (H.R.

6395, §1251) and extended in the NDAA for FY2026 (S. 1071, §1251). The Indo-Pacific Maritime Security Initiative

was redesignated as such (and expanded and extended) in the NDAA for FY2019 (H.R. 5515, §1252); previously, the

initiative was formerly the South China Sea Initiative in the NDAA for FY2016 (P.L. 114-92, §1263) and the Southeast

Asia Maritime Security Initiative in the NDAA for FY2017 (S. 2943, §1289). The NDAA for FY2022 (P.L. 117-81,

§1241) extended the MSI through 2027.

154 According to UNCLOS, an EEZ extends up to “200 nautical miles from the baselines from which the breadth of the

territorial sea is measured.” A territorial sea extends 12 nautical miles. An EEZ does not confer sovereign rights. The

text of the treaty can be found at https://www.un.org/depts/los/convention_agreements/texts/unclos/unclos_e.pdf.

155 See, for examples, S.Res. 834 and H.Res. 843 the 118th Congress and S.Res. 409 in the 119th Congress.

156 Some Members of Congress have sponsored legislation calling on the U.S. Senate to ratify UNLCOS, such as

S.Res. 331 in the 119th Congress and H.Res. 361 in the 117th Congress. Policymakers and experts have debated the

effectiveness of ratifying the agreement in furthering U.S. interests, including in the South China Sea. For various

perspectives on the value of U.S. ratification of UNCLOS, see James Kraska and Raul Pedrozo, “Up for Debate:

Should the U.S. Ratify UNCLOS?” Center for Maritime Strategy, December 26, 2023; Robert Beckman, “On the

United States, the UN Convention on the Law of the Sea and US Freedom of Navigation Operations,” ISEAS

Perspective 2002/73, July 18, 2022.

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Human Rights Concerns

The Asia Reassurance Initiative Act of 2018 (ARIA, P.L. 115-409; expired in 2023) supported a

multipronged U.S. strategy for advancing a “Free and Open Indo-Pacific,” including the

promotion of human rights in the Indo-Pacific region. Foreign assistance appropriations,

including legislation for FY2024 (P.L. 118-47), restricted counternarcotics assistance to the

Philippines “except for drug demand reduction, maritime law enforcement, or transnational

interdiction.”157 Pursuant to appropriations legislation, in November 2025 the State Department

submitted a report to the Committees on Appropriations assessing the extent to which the AFP

and the Philippine National Police (PNP) are respecting human rights and the rule of law.158

Congress may assess U.S. assistance for strengthening oversight of police and military forces and

enhancing the efficacy of the judicial system. Previous U.S. assistance, for example, have

included efforts to improve governance, strengthen the rule of law, and improve judicial

processes.159 Given past and ongoing congressional restrictions on U.S. security assistance to the

Philippines due to human rights concerns, Congress may consider the extent to which the

restrictions affected human rights conditions in the Philippines and on U.S.-Philippine relations,

and deliberate the merits of such restrictions.

Counterterrorism Efforts

Groups affiliated with the Islamic State (IS, alt. ISIS/ISIL), including ISIS-East Asia, remained

active in 2022, according to the U.S. Department of State, and in 2023, ISIS-affiliated militants

claimed responsibility for a bombing attack on a Catholic mass in Marawi.160 The blast, which

killed four worshippers, followed a series of Philippine military operations against ISIS-affiliated

groups in the region.161

Congress may assess the current status of terrorist threats to U.S. interests in the southern

Philippines and the appropriate type and extent of support for the AFP’s counterterrorism efforts,

the delicate political arrangement preserving some stability in Bangsamoro, conflict recovery

efforts, and/or long-term economic development in the region, if any.162

U.S.-Philippines Economic Relations

Given China’s economic engagement and influence in the region and Philippine interest in

strengthening economic ties with the United States, Congress may consider whether and to what

157 P.L. 118-47, §7043(h)(2), specifically limits counternarcotics assistance for the Philippines under the heading

“International Narcotics Control and Law Enforcement.” This language was carried over in FY2025 legislation via

continuing resolution (P.L. 119-4) and repeated in FY2026 appropriations legislation (H.R. 7006).

158 Department of State, “Report to Congress on Steps Taken by the Government of the Philippines During the

Preceding 12 Months to Document and Prosecute Human Rights Abuses Committed by the Philippines Police and

Military,” November 2025. This report is mandated in S.Rept. 118-71 through the Further Consolidated Appropriations

Act, 2024 (P.L. 118-47, §7019(e)) and the Full-Year Continuing Appropriations Act, 2025 (P.L. 119-4).

159 See, for example, USAID’s Judicial Strengthening to Improve Court Effectiveness (JUSTICE) Project, at

https://2012-2017.usaid.gov/philippines/partnership-growth-pfg/justice.

160 In 2018, the U.S. State Department added ISIS-Philippines (renamed ISIS-East Asia in 2020) to its foreign terrorist

organization (FTO) list. Department of State, Designated Foreign Terrorist Organizations, https://www.state.gov/

foreign-terrorist-organizations/.

161 Department of State, Country Reports on Terrorism 2023; Karen Lema and Neil Jerome Morales, “Islamic State

Claims Responsibility for Deadly Philippine Bombing,” Reuters, December 4, 2023.

162 For more on Bangsamoro and the Bangsamoro Autonomous Region in Muslim Mindanao, see footnote 12;

International Crisis Group, “Peace in the Philippines: The Bangsamoro’s Moment of Truth,” no. 355, March 10, 2026.

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extent to promote closer U.S.-Philippines economic ties and provide alternatives to PRC

infrastructure financing, including through bilateral trade arrangements, the U.S. International

Development Finance Corporation, initiatives to offset the effects of PRC economic coercion

attempts, or other programs and financial entities.

Selected Legislation in the 118th and 119th

Congresses

•

•

•

163

The National Defense Authorization Act for Fiscal Year 2026 (P.L. 119-60)

requires the Secretary of Defense, in coordination with the Secretary of State, to

submit annual reports on enhancing the U.S. defense relationship with the

Philippines, U.S. spending on assistance to the Philippines, and specific

capabilities needed to modernize the defense capabilities of the AFP and the

AFP’s absorptive capacity. The NDAA also authorizes direct loans of up to $1

billion for FMF loan programs through FY2030 and annual grant assistance to

the Philippines not more than $500 million each year through FY2030.163 Aspects

of this language stem from the Philippines Enhanced Resilience Act (PERA) Act

(S. 4097), introduced in the Senate in the 118th Congress. The Joint Explanatory

Statement for the FY2026 NDAA further directs the Secretary of State, in

coordination with the Secretary of Defense, “to develop and implement a

multiyear plan to provide for the acquisition of appropriate defensive capabilities

by the Philippines and to engage with the Philippines in a series of combined

training, exercises, and planning activities to enhance the United StatesPhilippines defense relationship.”164

The Consolidated Appropriations, 2026 (Division F of P.L. 119-75) would

make available for assistance for the Philippines not less than $100 million in

FMF and not less than $80.3 million under the heading National Security

Investment Programs. According to the House report (H.Rept. 119-217)

associated with the original State appropriations bill (H.R. 4779), these funds are

intended “to help modernize the alliance, strengthen deterrence, and continue to

support a prosperous, secure Philippines.” That report also states that “the

Committee notes the ongoing threat to the Philippines posed by the PRC’s

campaign of intimidation and maritime occupation in the South China Sea.”

The FY2026 Department of Defense Appropriations Act (Division A of P.L.

119-75) includes an increase of $40 million for the Philippines within the

Defense Security Cooperation Agency’s International Security Cooperation

Programs (ISCP) Account.165 The Joint Explanatory Statement further requires

the DOD to submit to Congress a spend plan, a report on PRC threats to the

security of the Philippines, and a plan for enhanced security cooperation.166

National Defense Authorization Act of Fiscal Year 2026 (P.L. 119-60, §1269 and §1270).

164 The “Joint Explanatory Statement to Accompany the National Defense Authorization Act for Fiscal Year 2026” can

be found at https://armedservices.house.gov/uploadedfiles/fy26_ndaa_joint_explanatory_statement.pdf.

165 The ISCP account is used to fund activities under 10 U.S.C. §332, §333 and Section 1263 (the Indo-Pacific

Maritime Security Initiative) of P.L. 114-92.

166 The Joint Explanatory Statement for FY2026 Defense appropriations can be found at

https://www.appropriations.senate.gov/imo/media/doc/fy26_def_jes.pdf.

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•

•

The Further Consolidated Appropriations Act, FY2024 (P.L. 118-47,

§7043(h)(2)), restricted funding under the heading “International Narcotics

Control and Law Enforcement” to the Philippines “except for drug demand

reduction, maritime law enforcement, or transnational interdiction.”167 This

wording was carried over into the Full-Year Continuing Appropriations and

Extensions Act, 2025 (P.L. 119-4) and is included in the Consolidated

Appropriations Act, 2026 (Division F of P.L. 119-75, §7043(h)).

Some Members of Congress have sought to express support for continued U.S.

financial and military assistance for the AFP, the Philippine Coast Guard, and

their ability to counter PRC vessels in the South China Sea. Examples include

S.Res. 834 and H.Res. 843 in the 118th Congress and S.Res. 409 in the 119th

Congress.

Author Information

William Piekos

Analyst in Foreign Affairs

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan

shared staff to congressional committees and Members of Congress. It operates solely at the behest of and

under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other

than public understanding of information that has been provided by CRS to Members of Congress in

connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not

subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in

its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or

material from a third party, you may need to obtain the permission of the copyright holder if you wish to

copy or otherwise use copyrighted material.

167 P.L. 118-47, §7043(h)(2), limits counternarcotics assistance for the Philippines under the heading “International

Narcotics Control and Law Enforcement.”

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R47055 · VERSION 6 · UPDATED

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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