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A U.S. "territory" is an area that is "overseen" (ruled, controlled, and monitored by) the "federal" (national) government of the United States, but that does not have "sovereign" (independent) authority over that area. Territories were originally intended to govern areas that were in the process of becoming a state, but were not yet ready to become a state.

U.S. territories can be "incorporated" or "unincorporated." An "incorporated territory" is an "integral" (important) part of the United States, and the U.S. "Constitution" (the nation's most important legal document) applies there. The Territory of Alaska and Territory of Hawaii were both incorporated territories until 1959, when they became states. Currently, the only incorporated territories are the Palmyra Atoll (a group of small islands south of Hawaii), "coastal waters" (oceanic waters within a certain distance of land), and "vessels" (ships).

"Unincorporated territories" are controlled by the U.S. government, but are not part of the United States. Unincorporated territories include Guam, the Virgin Islands, American Samoa, and the Midway Islands, among others. Puerto Rico is generally considered an unincorporated territory, but courts are currently questioning whether Congressional actions have actually changed Puerto Rico's status to that of an incorporated territory.

The residents of U.S. territories can vote locally and are represented by "delegates" (representatives) to Congress, but those delegates are limited in terms of the issues they may vote on. The residents of territories pay some taxes and receive some legal protections through U.S. courts, but "simultaneously" (at the same time) have their own self-government.