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Representative Josh Gottheimer (D-N.J.), a Republican who introduced the bill to stop aid to the Maldives, said the Maldives' action is not acceptable. Image/Axios

US aid to Maldives at stake amid Israeli passport ban

The US stance may be perceived as favouring Israel over the Maldives, potentially affecting bilateral ties.

5 June 2024

In a significant diplomatic standoff, while simultaneously showing solidarity for Palestine, the Maldivian cabinet recently decided to ban Israeli passport holders from visiting the archipelago nation. This move has drawn attention from US lawmakers, who are now crafting legislation to address the situation.

Issue in the US Parliament

Representative Josh Gottheimer is leading the charge in Congress. He aims to condition US aid to the Maldives on allowing Israeli passport holders entry into the country. Gottheimer, a staunch defender of Israel, is working with colleagues from both parties on the proposed bill, which will be called the "Protecting Allied Travel Here (PATH) Act."

US aid to Maldives

Since 2019, the United States has provided approximately USD 36 million in foreign assistance to the Maldives. These funds support various programs, including strengthening democratic governance, environmental conservation, and climate change adaptation. The recent amendment adds an additional USD 7.2 million (MVR 555 million) to this total, emphasising the US commitment to the island nation.

In addition:

  • Recently, US aid to Maldives has been increased

  • US has agreed to donate a special naval vessel to the Maldives to strengthen its maritime surveillance

  • The Maldives is also in talks with US to introduce some of its financial services like PayPal to the Maldives.

Impact on diplomatic relations and development

The US response carries significant implications. By linking aid to the Israeli passport ban, the US signals its disapproval of the Maldives' decision. However, this move risks straining diplomatic relations between the two countries. The Maldives, not alone and a Muslim-majority nation, joined 27 other Muslim-majority countries with longstanding bans on Israeli passport holders. The US stance may be perceived as favouring Israel over the Maldives, potentially affecting bilateral ties.

The US move also raises concerns about power dynamics and diplomatic pressure. Given the Maldives’ status as a small developing island nation, some critics perceive the US stance as assertive or coercive.

Furthermore, the aid reduction could impact Maldivian developmental efforts. However, much like the Maldivian ban on Israeli passports, the US distancing itself from Maldives diplomatically too has no timeline yet. Even though the cabinet decided to ban the passports of Israelis, there is no clarity on when it will be implemented.

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