Republic of Palau Sovereign state in Free Association with the United States of America
Republic of Palau is formerly a district of the Trust Territory of the Pacific Islands, administered by the United States Department of the Interior. It is a constitutional republic in free association with the United States, as organized under the Compact is the core of the Compact of Free Association Act. While it has the freedom of sovereignty over domestic affairs, military affairs continues to be administered by the United States under the Defense Department, foreign affairs continues to be administered by the State Department and social programs and federal funding continue to be administered by the Interior Department.
Palau is governed by a President and Vice President, both elected on separate tickets. Legislation is the responsibility of the bicameral Parliament called the Olbiil Era Kelulau, composed of a Senate and House of Delegates. Palau is an ethnically diverse nation. 70% are Micronesian with Malayan and Melanesian admixtures, 28% are Asian, mostly Filipino and Chinese.