Denmark has announced plans to increase spending in Greenland, Reuters reports.
It has pledged 1.6 billion Danish kroner ($253 million) for investments in healthcare and infrastructure between 2026 and 2029. The decision comes amid growing international interest in the Arctic island.
U.S. President Donald Trump has previously said he wants to take control of Greenland, a semi-autonomous territory within the Kingdom of Denmark. The strategically located island is rich in oil, natural gas and many minerals needed for high-tech industries.
Denmark, which retains control of Greenland's security and foreign affairs, has responded with increased investment to improve strained relations with the territory's population of 57,000.
The funds, which supplement Greenland's annual subsidy of about 4.3 billion kroner, will include funding for a new airstrip at Ittoqqortoormiit in eastern Greenland and a deep-sea port at Qaqortoq in the south. Denmark will also now cover the costs of Greenlandic patients requiring treatment in Danish hospitals - a financial responsibility previously borne by Greenland.
The funding comes at a time when Greenland is facing economic challenges, including falling prices and supplies of key exports such as shrimp and flounder. The fishing industry, which dominates Greenland's economy, has slowed after record catches earlier this decade. Greenland's aging population and reliance on state-owned enterprises have exacerbated economic difficulties.
The party that won Greenland's elections in March has pledged to reform the economy and sees Denmark as a preferred partner on Greenland's path to independence.
"This deal aims to support a self-sustaining Greenland, among other things, with long-term investments," Greenlandic Prime Minister Jens-Frederik Nielsen said in a joint statement with Danish Prime Minister Mette Frederiksen.
Denmark is holding a major military exercise in Greenland this week after criticism from U.S. Vice President J.D. Vance that Denmark is not doing enough to ensure the territory's security.