Palau's President Johnson Toribiong has signed the amended fiscal year 2011 budget bill amounting to US$56 million.
The House of Delegates last week rejected the changes to the budget bill proposed by Mr Toribiong but the Senate accepted them.
But the House has now voted to adopt the president's amendments.
It earlier noted "questionable" provisions that were never explained by the administration and exceeded the original budget limits.
The amended budget allows Mr Toribiong to reprogramme funds retroactive to fiscal year 2010.
It has a provision that repeals the requirement to report to lawmakers the expenditure and obligation of all funds received from outside sources.
The budget allows the appropriation or disbursement of Protected Areas Network funds from the 2011 fees collected.
It also allows the Compact Review Office services purchased with the funds appropriated exempted from competitive procurement requirements.