Overview:
Palau’s U.S. Deportee Deal Sparks Tension
Palau’s executive insists it followed a formal process to approve a U.S. agreement to host 75 deportees, including $7.5M in funding with $500K already disbursed for Palau Community College housing. But Senate leaders and the Council of Chiefs challenge the claim, questioning the process.
By: Eoghan Olkeriil Ngirudelsang
Koror, Palau – Palau’s President Surangel Whipps Jr. and his cabinet say they followed a formal process in approving a U.S. agreement to house up to 75 deportees, but the Senate and Council of Chiefs dispute that claim.
Whipps said a working group—including representatives from Rubekul Belau, Mechesil Belau, state leaders, and Congress—was formed to vet potential deportees and draft the Memorandum of Understanding (MOU). Chaired by Minister Victor and co-chaired by Minister Olegeriil, the group reportedly finalized terms requiring deportees to be medically healthy, of working age, hold valid passports, and have no criminal records.
Victor outlined a timeline of events: the U.S. request arrived in June 2025, with initial discussions and draft MOU circulated by July. The OEK Congress and the Council of Chiefs sent letters expressing reservations about Palau’s capacity and legal framework, and rejected the proposal. ” Victor interpreted such letters as reservations only to the terms of the agreement rather than diplomatic rejections to decline the U.S’ request.
Despite these, the working group proceeded, meeting several times between October and December, before the MOU was signed on December 24.
Senate President Hokkons Baules argued that the Congress members who represented OEK during a courtesy visit with U.S. Deputy Secretary Landau were never authorized to commit to the working group. Lawmakers said they did not receive any official reports on the working group’s deliberations prior to the MOU’s execution.
Whipps reported Palau has received $7.5 million in grant funding from the U.S., with $500,000 allocated to Palau Community College to prepare housing for the deportees. Whipps said additional assistance includes $2 million for advisors on combating illegal drugs, a new hospital partnership, and $6 million for the national pension plan.
The dispute reflects the ongoing tension between Palau’s executive branch, which asserts it followed proper procedures, and legislative leaders, who question the legitimacy and transparency of the process.