Palau has received $2.6 million in funding from the US for road maintenance and to buy new hardware for the country's new financial management system.
The money has been released under the Compact of Free Association between the two countries.
Two million dollars will go towards maintenance for the highway that circles Babeldaob island, and links key facilities.
The remainder will procure the hardware to support the Palau government's financial management systems and train appropriate staff.