Overview:
Palauans are raising alarm after President Surangel Whipps Jr. signed a Christmas Eve deal accepting 75 U.S. deportees in exchange for $7.5 million. Lawmakers and traditional leaders say they were not consulted, while citizens question the screening process, long-term costs, and potential impact on public safety.
By: L.N. Reklai & Summer Kennard
KOROR, Palau (Dec. 29, 2025) — Shock, anger and unease have dominated public reaction in Palau following President Surangel Whipps Jr.’s decision to sign a memorandum of understanding on Dec. 24 agreeing to accept up to 75 deportees from the United States in exchange for $7.5 million in U.S. funding. The agreement was signed despite repeated objections from congressional leaders and the Council of Chiefs.
Executed on Christmas Eve, the MOU commits Palau to hosting third-country nationals removed from the United States.
Public criticism has focused not only on the substance of the deal, but also on its timing and the lack of consultation. On social media and in interviews, many Palauans described the decision as rushed, secretive and dismissive of both elected lawmakers and traditional leadership. Critics warned the agreement could expose the country to long-term social, financial and security risks.
“Why on Christmas Eve?” one commenter wrote. “Who was consulted when everyone was with their families?” Another questioned whether lawmakers and traditional leaders were deliberately sidelined in the final days before the agreement was signed.
“It feels rushed and risky, and the community deserves more transparency and involvement,” another commenter said.
The president’s office has framed the relocation plan as humanitarian, saying it involves “people seeking safety and stability” and responding to what it described as “serious migration pressures faced by the United States.” During the signing of the MOU, Whipps said the deportees have “no known criminal records.”
That assurance has done little to calm public concern. Residents have pointed to past statements by senior U.S. officials who have described deportees in violent or predatory terms, raising questions about how individuals will be screened and how potential risks will be managed once they arrive in Palau.
One commenter wrote in Palauan, “Kid keda mla mo part era ‘Human Trafficking?’ because this is clearly what’s happening here….”
Concerns have also been raised in the context of Palau’s standing in international anti-trafficking efforts. The United States’ 2025 Trafficking in Persons Report rated Palau as Tier 2, noting that while the government has made efforts to address human trafficking, it does not yet meet minimum standards.
Whipps has said the deportees will initially be housed in dormitories at Palau Community College until they are matched with potential employers. He said they will work and help fill Palau’s labor needs.
Citing the presence of more than 6,000 foreign workers already in Palau, Whipps said the country can manage an additional 75 people. However, existing foreign workers are typically on one- or two-year contracts and are required to return home when their contracts expire. It remains unclear whether the deportees would be required or able to leave Palau after their employment ends.
Not all are against the decision. A 74-year-old retired teacher said,“ Palau is small, and our culture and traditions are so fragile, so resources are always a concern. I am hopeful that the deportees will be welcomed. At the same time, I wonder if the government has plans for long-term support. Medical care, safety, and jobs need careful thought. I think our people are generous, but change can create stress if not managed well. I believe this is an opportunity for Palau to demonstrate our values to the world, yet we cannot ignore the challenges that may come.”
A 20-year-old college student said, “I understand why some people are worried, but I also see this as a humanitarian gesture. These are people looking for safety, not criminals. If the process is handled properly, this could show that Palau stands for human dignity. I also like that the agreement includes support for healthcare and infrastructure. Still, young people want transparency. We want to know how this affects our society, honest communication will help reduce fear.”
Under the agreement, Palau is to receive $7.5 million to cover hosting costs, along with additional U.S. assistance, including funding for pension reform, law enforcement initiatives and a feasibility study for a new Belau National Hospital.
Whipps said Palau would approve arrivals on a case-by-case basis through a national working group and pledged continued communication with the Olbiil Era Kelulau, traditional leaders and the public as the agreement is implemented.
Lawmakers, however, say no such consultation occurred before the deal was signed.