The Pacific island of Palau. Credit: wikimedia Commons
The Trump administration has reached an agreement with the Pacific island nation of Palau to accept dozens of third-country deportees who cannot be returned to their home countries.
Palau, a sparsely populated island chain of roughly 18,000 people and a former filming location for the reality show Survivor, has agreed to take up to 75 non-criminal deportees from the United States.
The deal includes a $7.5 million U.S. grant to improve their public services.
The agreement applies to migrants whose countries of origin, including nations such as China, Cuba, Russia, or Iran, have refused to accept their return.
“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,” Palau President Surangel Whipps Jr. 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.”
“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.”
Palau agrees to take up to 75 deportees from the U.S. in exchange for $7.5 million in aid.…
— Fox News (@FoxNews) December 26, 2025
The U.S. Embassy echoed that sentiment, stating, “The United States deeply appreciates Palau’s cooperation in enforcing U.S. immigration laws, which remains a top priority for the Trump Administration.”
Beyond the deportation deal, the Trump administration also agreed to provide an additional $6 million to prevent the collapse of Palau’s civil service pension system, along with $2 million for new law enforcement initiatives.
Palau already receives substantial American assistance.
Under a Compact of Free Association agreement that took effect last year, the island nation is scheduled to receive approximately $889 million in U.S. aid over 20 years to support education, healthcare, public safety, and government administration.
Located east of the Philippines and a short flight from Guam, Palau was formerly governed by the United States after being captured from Japan during World War II.
Although fully independent since 1994, the country remains closely aligned with Washington, using the U.S. dollar as its currency and hosting military bases.
The deal is part of a broader White House strategy to reduce the cost and burden of deportations by securing third-country agreements.
Similar arrangements have been reached with countries including Equatorial Guinea, Rwanda, El Salvador, Uganda, Honduras, and South Sudan.
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