US pledges $3.5 billion in military aid to Philippines amid rising China threats

WASHINGTON/MANILA: The United States is preparing to give the Philippines a major boost in defence support, approving billions of dollars in loans and grants as worries mount over China’s growing presence in the region.

Lawmakers in Washington have signed off on a package that includes a US$1 billion loan—spread over 17 years—and up to US$2.5 billion in grants to be released over five years. The funding is part of the US National Defence Authorisation Act and now awaits President Donald Trump’s signature.

In Manila, defence officials see the move as a reassuring sign that Washington remains committed to its long-standing alliance with the Philippines. Nonetheless, political analysts say that while the backing is welcome, it may not be sufficient to provide the country the type of military strength necessary to endure, survive, and defy China in the South China Sea.

US Senator Roger Wicker, who chairs the Senate Armed Services Committee, described the funding as a response to rising security risks in the region. Quoted by congressional news outlet Roll Call, Wicker said the assistance reflects “serious threats” posed by China and its partners.

The bill does not focus on the Philippines alone. It also sets aside defence support for allies such as Japan and Australia, aimed at expanding joint military exercises, patrols, information-sharing and broader security cooperation. Singapore and Thailand are mentioned as partners too, though neither was allocated loans or direct aid.

Philippine defence officials say the funds could make a real difference on the ground. Department of National Defence spokesman Arsenio Andolong said the money could go toward practical needs such as drones, ammunition components, logistics, ship and aircraft repairs, spare parts production, and even refining critical minerals.

Even so, Andolong stressed that the Philippines cannot rely on US help alone. The government, he said, is still searching for other ways to fund its goal of building a “credible deterrence” capability, despite tight budgets and long-standing constraints.

For analysts like Victor “Dindo” Manhit of the Stratbase Group, the US support comes at a crucial time. He said the Philippine military has spent years struggling with limited resources and is now racing to catch up.

“The Philippines is trying to build a more credible deterrence as it faces increasingly frequent pressure—at sea, in the air and even in cyberspace,” Manhit said. In that context, US assistance is especially valuable.

Not everyone is convinced the funding shows an iron-clad US commitment. Veteran defence journalist Manuel Mogato pointed out that Washington provides far more generous grants to other allies.

“Israel and Egypt each get at least US$1 billion a year in grants,” Mogato said. “The Philippines, by comparison, is being offered a loan. The US has long neglected the Philippines.”

Mogato noted that President Ferdinand Marcos Jr has said the country would need around two trillion pesos (US$34 billion) to build even a basic, credible defence capability. While the new US support will help, it is nowhere near enough to close that gap, he said.

Still, Mogato acknowledged why Washington is paying closer attention to Manila. “The Philippines is the weakest link in the first island chain,” he said, referring to a key stretch of territory in US defence planning.

That strategy, announced earlier this month, focuses on countering potential aggression along a chain of Pacific islands running from Japan and Taiwan through the northern Philippines and down to Borneo.

Chester Cabalza, head of the International Development and Security Cooperation think tank, also welcomed the funding, saying it could help the Philippines afford modern—and costly—defence systems. He cautioned, however, that the money may be tied to buying US-made weapons.

The long repayment period on the loan could ease the strain on Manila’s finances, Cabalza added, especially for big-ticket items such as F-16 fighter jets.

The timing is delicate. The Philippines’ 2026 national budget has yet to be approved, and while the military has secured 65 billion pesos in guaranteed funding for modernisation, another 25 billion pesos remains conditional on finding new sources of money.

As tensions continue to simmer in the region, Washington’s latest move highlights the Philippines’ growing strategic importance—while leaving open the question of whether the support will be enough in one of Asia’s most hotly contested arenas.