Palau, tiny pacific nation, strikes deal worth millions with US to welcome third-country nationals as Trump intensifies mass deportation; all about the country and the agreement

Palau, the tiny Pacific nation, has agreed to take up to 75 third-country deportees in exchange for a $7.5 million grant to support the island chain, which houses approximately 18,000 people. The third-country nationals who will be deported as part of the deal do not have criminal records.

Deputy Secretary of State Christopher Landau spoke to Palau President Surangel Whipps about transferring third-country nationals to the Pacific Island nation. The deal was finalized even after its lawmakers rejected a previous request from Washington on the matter.

The agreement between the US and Palau was formalized through a memorandum of understanding, with Palau citing labor shortages as a key factor behind the agreement.


"Palau and the United States signed a memorandum of understanding allowing up to 75 third-country nationals, who have never been charged with a crime, to live and work in Palau, helping address local labor shortages in needed occupations," Whipps' office said in a statement.

“In connection with this arrangement, the United States granted $7.5 million to help Palau meet related public service and infrastructure needs, while both countries continue close cooperation on immigration and security matters,” the statement further read.





The Trump administration has also sent hundreds of people to third countries to which they have no ties, Reuters reported. US President Donald Trump has said that the measures are aimed at improving domestic security.

"The leaders discussed a new U.S.-Palau Memorandum of Understanding regarding the transfer of third-country nationals with no known criminal histories," the State Department said in a statement after Tuesday's call, as quoted by Reuters.

In late July 2025, Palau's Congress said it "cannot accept" a U.S. proposal for it to accept asylum seekers from other countries. US Catholic bishops have also condemned the immigration enforcement activities carried out by the Trump administration, and in October 2025, Pope Leo XIV lamented the mistreatment of immigrants.

In December 2025, a federal judge expressed his willingness to again rule that the Trump administration cannot swiftly deport migrants to countries other than their own without providing meaningful notice and an opportunity for them to raise fears of persecution or torture if they are sent there.

Why did Palau agree to take deportees?

Palau is a country in the western Pacific Ocean. It has a population of roughly 18,000 and has a compact of free association with Washington, which provides economic assistance in return for allowing American military access to its territory. Palau is not a signatory to the 1951 UN Refugee Convention. The country heavily relies on foreign aid, which reportedly accounts for 12% of its GDP.

According to Britannica, the Pacific nation comprises some 340 coral and volcanic islands perched on the Kyushu-Palau Ridge. The Palau archipelago lies in the southwest corner of Micronesia, with Guam 830 miles (1,330 km) to the northeast, New Guinea 400 miles (650 km) to the south, and the Philippines 550 miles (890 km) to the west.

Trump administration approves additional funding for Palau

Besides the new $7.5 million grant, the Trump administration agreed to provide $6 million “to prevent collapse of [Palau’s] civil service pension plan system” and $2 million for “new law enforcement initiatives,” according to the New York Post.

Palau, located east of the Philippines, was the filming location for the 10th season of “Survivor,” which aired in 2005. It was formerly governed by the United States, which conquered the islands from Japan following the Battle of Peleliu in 1944, which claimed 1,544 American lives as Japanese troops fought to the death from mountain hideouts.

According to the New York Post, Palau has also received support from Taiwan and Japan, which controlled Palau following World War I, when most German-colonized Pacific islands were regrouped as a United Nations trusteeship.

The country recognizes Oct. 1, 1994, as its independence day, when its compact of free association agreement with the US took effect.