They were sold to the United States by Denmark in the Treaty of the Danish West Indies of 1916. Now an organized, unincorporated United States territory, the islands are considered an insular area, which is a U.S. territory that is not related to any of the 50 U.S. states or the District of Columbia.

The U.S. Virgin Islands (USVI) remains an unincorporated territory rather than a state due to a combination of historical, political, and constitutional factors. Unlike "incorporated" territories intended for statehood, the USVI is governed under the Revised Organic Act of 1954, which grants it limited self-governance. While USVI residents are U.S. citizens, they cannot vote in presidential elections and have no voting representation in Congress. For the USVI to become a state in 2026, it would require a formal petition for statehood followed by an Act of Congress, but there is currently no major political movement for this. Many islanders are more focused on drafting a local constitution to gain more autonomy within the territorial framework. Additionally, the territory's relatively small population (around 105,000) and unique economic dependencies on tourism and federal aid complicate the transition to the full financial responsibilities of statehood.