Trump migration deal with Palau for the transfer of migrants

A new international agreement once again places US migration policy under the international spotlight.

This time, the focus is on the western Pacific, where a small island nation agreed to cooperate with Washington in relocating deported immigrants who cannot be returned to their countries of origin.

The agreement is part of the strategy of President Donald Trump to accelerate deportations and reduce pressure on the asylum system within the United States—one of the central promises of his return to the White House.

The Agreement Between United States and Palau

The U.S. on Tuesday said Deputy Secretary of State Landau spoke to Palau President Surangel Whipps about transferring third-country nationals to the Pacific Island nation. pic.twitter.com/u6FiXtQuIC

— wR (@WeReporter) December 24, 2025

The U.S. government reached a memorandum of understanding with the Republic of Palau to transfer up to 75 immigrants deported from U.S. territory. In exchange, Washington will provide an economic aid package valued at $7.5 million.

The agreement was announced following a call between Palau President Surangel Whipps Jr. and U.S. Deputy Secretary of State Christopher Landau.

The deal allows so-called “third-country nationals”—migrants who cannot be repatriated to their home countries—to live and work temporarily in the archipelago, provided they do not face criminal charges.

Labor Needs and Local Demand

Palau has a population of approximately 18,000 people spread across hundreds of volcanic islands and coral atolls.

According to the local government, the country faces a significant labor shortage, a situation that prompted renewed talks with Washington after Palau’s Congress rejected a similar proposal earlier this year.

Palauan authorities stated that migrants could fill vacancies in key sectors of the local economy while their asylum claims continue to be processed. President Whipps emphasized that each case will be reviewed individually by a national task force.

Use of US Funds

PHOTO: EFE. Trump migration deal with Palau for the transfer of migrants

As part of the agreement, the United States will allocate the $7.5 million to strengthen public services and infrastructure in Palau.

According to Christopher Landau, the aid will include construction of a new hospital, improvements to disaster-response capacity, support for financial stability, and additional resources for law enforcement.

The package also includes funds for reforms to Palau’s civil service pension system and the hiring of security advisors.

The US Embassy in Koror confirmed that the agreement was formally signed by Ambassador Joel Ehrendreich and Palau’s Minister of State Gustav Aitaro during a ceremony held this week.

Migration, Legality, and Concerns

Since January, the Trump administration has intensified the use of agreements with third countries to manage deportations, a practice that has expanded to regions in Africa, Latin America, and now the Pacific.

This strategy has drawn criticism from human rights organizations.

One of the main concerns is that Palau is not a signatory to the 1951 United Nations Convention Relating to the Status of Refugees, raising questions about the legal protections available to asylum seekers transferred to the archipelago.

In the United States, a federal judge recently ruled that the government cannot rapidly deport migrants to countries other than their own without proper notice or an opportunity to express fears of persecution or torture.

Even so, the White House has defended the agreement as a necessary measure to improve internal security and relieve strain on the immigration system.

For Palau—a close US ally since its independence in 1994 and linked to Washington through a Compact of Free Association—the Trump migration deal with Palau represents both a significant source of funding and a political and humanitarian challenge.