"A Compact of Free Association (COFA) is an agreement dictating the relationship between the USA and the three Pacific island countries of Palau, Micronesia and the Marshall Islands.
The islands allow the US to dictate defense policy and grant exclusive military access to the USA. In exchange, the US commits to financial assistance to these nations.
They have also granted access to duty-free trade and a free labour market between the countries, as well as access to disaster prevention, schooling and medicaid (although access to the latter was revoked from 1996-2020). The agreements are subject to renegotiation."