Palau has agreed to accept up to 75 people deported from the United States in return for $7.5 million in American assistance, the two governments said Wednesday, December 24, 2025.
The arrangement, formalized in a Memorandum of Understanding, will allow certain third-country nationals with no known criminal history to live and work in the Pacific archipelago, which has a population of about 17,000.
Officials in Koror framed the initiative as a response to local labor shortages and an opportunity to direct new funding to public services. U.S. officials described Palau’s cooperation as part of a broader emphasis on enforcing immigration laws and expanding options to remove people who lack legal grounds to remain in the United States.
What the deal includes
Government statements said the United States would provide $7.5 million to support Palau’s public services tied to the program. Separate assistance detailed alongside the announcement includes $6 million to bolster Palau’s civil service pension system and $2 million for new law-enforcement initiatives.
Palau’s presidency said the newcomers would be permitted to work in occupations where local employers face persistent hiring gaps.
The timeline for transfers was not specified. Officials said the initial cohort would be vetted to ensure no known criminal history and that case processing would be coordinated between immigration authorities. Palau indicated that the arrivals would be eligible for work authorization under local law, with access to basic services structured through existing ministries.
Who qualifies and how placement would work
The agreement references “third-country nationals,” meaning individuals who are neither U.S. nor Palauan citizens. Authorities said candidates would be drawn from the U.S. immigration system among people who have final deportation orders and lack viable claims to remain.
The understanding does not extend to people with violent criminal convictions, according to summaries released alongside the signing.
Implementation details will matter. Typical placement steps include document verification, medical checks, and coordination with prospective employers. Palau plans to channel arrivals toward sectors with shortages, such as hospitality, construction, and elder care. Local agencies would liaise with employers and community organizations to handle housing and integration needs as transfers begin.
Why Palau, and what existing support looks like
Palau is one of three Freely Associated States linked to the United States by Compacts of Free Association. Under a compact renewal that entered into force in March 2024, Washington committed $889 million over 20 years to Palau for grants and trust fund contributions. That package supports public services such as health and education and reflects Palau’s longstanding ties with the United States in defense and economic policy.
Officials in both capitals have emphasized that compact assistance and the new deportee program are distinct tracks. Still, the compact framework underpins broader cooperation, including strategic access for U.S. forces and development support for Palau’s small, tourism-dependent economy.
The new memorandum leverages that foundation to structure a limited labor-migration channel for people the United States intends to remove.
