U.S. Compact of Free Association

The U.S. Compact of Free Association is an agreement with certain Pacific island nations—such as Palau, the Marshall Islands, and Micronesia—that grants their citizens special privileges to live, work, and access services in the U.S. without visas. In return, the U.S. provides financial aid, defense, and support for economic development. This arrangement allows the nations to maintain their independence while benefiting from U.S. assistance and strategic security arrangements. The compact is renewed periodically, shaping the relationship for future cooperation and mutual benefits.