Continued Free Association with Palau Act of 2012 - Approves, with specified exceptions, the agreement and appendices signed by the United States and the Republic of Palau on September 3, 2010, in connection with the Compact of Free Association between the United States and Palau.
Extends funding for: (1) infrastructure maintenance and projects, (2) the Fiscal Consolidation Fund (at a reduced level for FY2012), and (3) specified federal entities.
Assents to specified amendments to the Compact subsidiary agreements.
Authorizes appropriations to the Department of the Interior for postal services related to Palau, the Federated States of Micronesia, and the Marshall Islands.
States that Congress finds that Palau is eligible for certain U.S. domestic programs.
Prohibits specified funds from being used for: (1) assistance to China or Argentina, (2) the development innovation ventures program, and (3) contributions to the United Nations Educational, Scientific and Cultural Organization (UNESCO).