How U.S. Territories Differ from States in Federal Lawmaking and Governance

U.S. territories operate under federal authority but lack the full constitutional rights and political representation afforded to states, creating unique legal and governance challenges.

By Garret Merkley · Explainer · Jul 25, 2026

Branched from The Legal Battle Over Church Property in U.S. Territories

Quick take

U.S. Territories are under federal jurisdiction but are not part of any U.S. state.
Residents of most territories are U.S. citizens but cannot vote in federal elections and have no voting members in Congress.
Congress has broad authority over territories, often applying federal laws and constitutional rights selectively.
These differences impact everything from federal funding to individual civil liberties and political self-determination.

A U.S. territory is a division of land under the jurisdiction of the United States but not part of any U.S. state. Unlike states, territories do not have full constitutional protections or voting representation in the federal government, placing them in a unique legal and political position. This distinction shapes how federal laws apply to them and how their local governments function within the broader U.S. system.

Federal Lawmaking and Representation

Residents of U.S. territories are generally U.S. citizens (with the exception of American Samoa, where residents are U.S. nationals), but they cannot vote in presidential elections. While they elect non-voting delegates or resident commissioners to the U.S. House of Representatives, these representatives can participate in committee work and debate but cannot cast votes on the House floor. Federal laws passed by Congress apply to territories, but Congress has the power to apply them selectively or modify them, often leading to different legal frameworks than those found in states.

Governance and Congressional Authority

Each territory has its own elected local government, typically with a governor and a legislative body, and some have their own constitutions. However, the U.S. Congress holds ultimate authority over territories under the “Territorial Clause” (Article IV, Section 3, Clause 2) of the Constitution. This means Congress can pass laws that supersede local territorial laws, approve or reject territorial constitutions, and even alter their governmental structures. This broad power gives the federal government a much more direct hand in territorial affairs than in state affairs.

Application of Constitutional Rights

The application of the U.S. Constitution is a key difference. In what are called “unincorporated” territories (which include Puerto Rico, Guam, the U.S. Virgin Islands, the Northern Mariana Islands, and American Samoa), only “fundamental” constitutional rights are automatically applied, as determined by the Supreme Court through a series of early 20th-century rulings known as the Insular Cases. This means some rights, like the full right to a jury trial in all criminal cases or the uniform application of certain federal taxes, may not fully extend to residents of unincorporated territories in the same way they do to residents of states.

These differences profoundly impact the approximately 3.6 million U.S. citizens living in territories. They face a unique form of “taxation without full representation,” influencing everything from economic development and federal funding allocations to individual civil liberties and political self-determination. The distinct legal status can also affect property rights, business regulations, and the overall quality of life, often leading to calls for greater autonomy, statehood, or even independence.

Are people born in U.S. territories U.S. citizens?

Generally, yes. Most people born in Puerto Rico, Guam, the U.S. Virgin Islands, and the Northern Mariana Islands are U.S. citizens by birthright. Those born in American Samoa are U.S. nationals but not citizens, though they can become citizens through naturalization.

Can residents of U.S. territories vote in federal elections?

No, residents of U.S. territories cannot vote in general elections for President and Vice President. They also do not have voting representation in the U.S. Senate or on the floor of the U.S. House of Representatives.

Why do these differences exist?

These differences stem largely from historical Supreme Court rulings known as the Insular Cases, decided in the early 20th century. These cases established that territories are not fully incorporated into the U.S. and that Congress has broad power to govern them, allowing for a different application of the Constitution.

Do territories pay federal taxes?

It varies. Residents of Puerto Rico, Guam, the U.S. Virgin Islands, and the Northern Mariana Islands generally pay federal taxes like Social Security and Medicare, but they typically do not pay federal income tax on income earned within the territory. American Samoans pay U.S. federal income tax.

Sources

U.S. Constitution, Article IV, Section 3, Clause 2 (Territorial Clause)
U.S. Government Accountability Office (GAO) reports on U.S. territories
Congressional Research Service (CRS) reports on Insular Areas