The Republic of Palau has entered into a memorandum of understanding with the United States, allowing for the acceptance of up to 75 deportees from the U.S. in exchange for $7.5 million in foreign aid. This agreement permits 'third-country nationals' who have not been charged with any crimes to reside and work in Palau, which has a population of approximately 18,000. The U.S. Embassy in Koror expressed appreciation for Palau's cooperation in enforcing U.S. immigration laws, which is a priority for the Trump administration.

Palau's government cited labor shortages as a significant factor in the agreement. The U.S. will also provide an additional $6 million to support Palau's civil service pension system and $2 million for law enforcement initiatives. Historically, Palau has been a recipient of U.S. support and relies heavily on foreign aid. Under a previous agreement during the Biden administration, the U.S. committed $889 million in aid over a 20-year period.

As the Trump administration intensifies its efforts on mass deportations, several countries, including Uganda, Rwanda, and El Salvador, have agreed to accept deported individuals, reflecting a broader trend in U.S. immigration policy.