Palau has signed a memorandum of understanding with the United States to accept up to 75 people deported from the U.S. in return for $7.5 million in U.S. assistance. The deal allows those individuals—described as third-country nationals not charged with crimes—to live and work in Palau to help address labor shortages. The U.S. package also includes funding for a new hospital, $2 million for security-related efforts, $6 million for civil-service pensions, and support for disaster response, reinforcing long-standing ties under the Compacts of Free Association.
Palau Agrees To Host Up To 75 U.S. Deportees In $7.5M Deal As Washington Funds Hospital, Security, Pensions
Palau, a small Pacific island nation with a population of roughly 17,700, has signed a memorandum of understanding with the United States to accept up to 75 people removed from the U.S. in exchange for $7.5 million in U.S. support.
The agreement was finalized following a phone call between Palau President Surangel S. Whipps Jr. and U.S. officials, including Deputy Secretary of State Christopher Landau, according to a statement from the Palauan president's office. The memorandum outlines cooperation on immigration, security, and public services while addressing local labor shortages.
Whipps’ office said the talks covered “several new initiatives that help both our nations move forward,” and that Palau welcomed U.S. commitments that deepen the long-standing partnership and deliver benefits in health care, security, pensions, disaster resilience and labor.
Under the deal, up to “75 third-country nationals, who have never been charged with a crime,” will be permitted to live and work in Palau to help fill labor gaps. The $7.5 million grant is intended to help Palau meet related public-service and infrastructure needs while both countries continue close cooperation on immigration and security matters.
The agreement comes against a backdrop of broader U.S. efforts in recent years to tighten immigration enforcement and increase deportations. Palau has been independent since 1994 but maintains close ties with the United States through the Compacts of Free Association, which provide U.S. funding and allow Palauan citizens to live and work in the U.S. and serve in the U.S. military. That compact was renewed in 2024.
A statement from the U.S. Embassy in Koror described the deal as deepening the “bonds of trust and friendship” between the two countries and said the partnership advances regional security and prosperity in the Indo-Pacific.
U.S. Assistance Package
In addition to the $7.5 million grant, the United States committed to several targeted measures to support Palau:
- Construction of a new hospital to strengthen health-care capacity.
- $2 million in assistance for countering drug trafficking, supporting local law enforcement, improving maritime security to protect Palau’s exclusive economic zone, and promoting cybersecurity.
- $6 million to support Palau’s civil service pension plan.
- Support to boost Palau’s disaster-response and resilience capabilities.
Palauan officials framed the arrangement as mutually beneficial: new workers will help address labor shortages while U.S. funding helps shore up public services and infrastructure. The agreement also reaffirms the strategic partnership between Palau and the United States in the Indo-Pacific region.
