Washington Explores COFA Framework to Shape Arctic Future Amid Denmark-Greenland Tensions

Breaking Defense reports that the US is considering a Compacts of Free Association (COFA) agreement with Greenland as an alternative to annexation. The proposal would provide a sovereign wealth fund of $30 billion, modeled after Alaska’s Permanent Fund, to support infrastructure, education, energy, and defense in Greenland. This approach may offer a transformative path forward for the island nation, but its success hinges on Greenland’s ability to maintain control over its sovereignty and institutions.