What does it mean when a state is out of the contiguous US?

When a state is described as being "out of the contiguous US," it means that the state is either Alaska or Hawaii. The contiguous United States refers to the 48 states that share land borders with each other on the mainland of North America. Alaska and Hawaii are not physically connected to the contiguous US but are still part of the United States, hence they often referred to as the "non-contiguous" states.
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