Philippine Ambassador to the United States Jose Manuel “Babe” Romualdez expressed optimism on Tuesday that the Trump administration would allow more assistance to Manila amid its foreign aid freeze order.

In a television interview, Romualdez floated that the ongoing dispute in the South China Sea could have influenced the decision to release $336 million for the modernization of the Philippine security forces.

“It is in the interest of the United States that the Indo-Pacific Region, particularly in the South China Sea, remains free from any kind of domination by any country,” he said. 

“This is an important area where trillions of dollars pass through every year not only for the United States but for many countries, as well,” he added.

The Philippines, one of the US oldest allies in the Indo-Pacific Region, has been in a long-standing maritime dispute with China, which claims the vast South China Sea, including the West Philippine Sea, which is within Manila’s 200-nautical mile exclusive economic zone.                        

Beijing’s historic “nine-dash line claim,” however, was rejected by the Permanent Court of Arbitration in 2016 after it favored Manila’s sovereign rights in the area.

More aid expected

Romualdez noted that he is expecting President Trump to soon approve additional exemptions for aid intended for various projects in the Philippines.

“Definitely, not only in the military. We are also working with the Commerce Department. There is a new Commerce secretary in the United States. It is important to have strong economic ties,” he said when asked whether he believes more projects currently on pause will be exempted.

On Monday, Foreign Affairs spokesperson Teresita Daza confirmed that the Philippine government had been notified the Trump administration has exempted military assistance aimed at modernizing the Philippine military from its foreign aid freeze.

“The Philippines has been informed of the waiver issued to a portion of the US foreign military financing for the Philippines,” Daza said.

“Both countries are committed to the treaty alliance and to efforts to further strengthen our defense cooperation and interoperability,” she added.

Daza said that the Philippine government will continue to engage the US government on the “importance of our bilateral work in supporting our shared goals and priorities.”

According to a Reuters report, the Trump administration has authorized the release of $5.3 billion in previously frozen foreign aid, which includes $336 million for the modernization of the Armed Forces of the Philippines.

The US Congress approved a $500 million grant to support the modernization of the Armed Forces of the Philippines and the Philippine Coast Guard during the Biden administration.