The United States on Tuesday pledged $500 million in funding for the Philippines’ military and coast guard, marking a significant show of support for Manila as it confronts Chinese actions in the contested waters of the South China Sea. This announcement comes as Secretary of State Antony Blinken and Defense Secretary Lloyd Austin met with their Philippine counterparts in Manila to reaffirm Washington’s unwavering commitment to its oldest treaty ally in Asia.

“This level of funding is unprecedented, and it sends a clear message of support for the Philippines, from the Biden-Harris administration, the U.S. Congress, and the American people,” Austin stated during a joint press conference following security talks. The substantial financial commitment underscores the strategic importance of the Philippines in the region and the U.S.’s dedication to bolstering its ally’s defense capabilities.

Prior to the security talks, Blinken and Austin had a meeting with President Ferdinand Marcos Jr., who has notably strengthened the Philippines’ ties with Washington since taking office. His predecessor, Rodrigo Duterte, was known for his hostility towards the U.S. and for pursuing closer relations with China. Marcos expressed his satisfaction with the ongoing dialogue between the two nations, stating, “I’m always very happy that these communication lines are very open so that all the things that we are doing together… are continuously examined and re-examined so we are agile in terms of our responses.”

The Philippines is embroiled in territorial disputes with China over the South China Sea, a region where China claims 90% of the waters as its sovereign territory. Tensions have escalated recently, particularly after a Filipino sailor lost a finger during a June 17 mission to resupply troops at a contested shoal. Manila described the incident as “intentional high-speed ramming” by the Chinese coast guard, highlighting the volatile nature of the disputes.

The U.S. funding aims to enhance the Philippines’ defensive posture and ensure its readiness in the face of increasing Chinese assertiveness in the region. This move is expected to not only boost the Philippines’ military and coast guard capabilities but also signal a broader commitment to maintaining stability and upholding international law in the South China Sea.

The enhanced cooperation between the U.S. and the Philippines is seen as a strategic counterbalance to China’s growing influence and actions in the region. As both nations continue to navigate the complexities of their bilateral relations and regional security dynamics, this significant funding pledge underscores a renewed and strengthened alliance in the face of common challenges.