The Palauan Government operates as a democratic republic, where the President serves as both the head of state and government. The government is divided into three branches: the executive, legislative, and judicial. The legislative branch consists of a bicameral Congress, which includes the Senate and the House of Delegates, responsible for making laws. Palau's political system is based on a Compact of Free Association with the United States, which provides economic assistance and defense. The government emphasizes local governance, with traditional leaders playing a significant role in community decision-making, reflecting the importance of Palauan culture and tradition.