Australia will spend $US65 million to help struggling Pacific countries meet basic costs.
The halt in tourism caused by border closures, cuts to remittances and seasonal worker programmes and other effects of Covid-19 have been devastating for many Pacific economies.
The funding will be redirected from the existing aid programme, and the government says it will provide respite for Pacific governments.
A fifth of the money will go to Papua New Guinea, with the rest to be shared among nine other countries.