CRS INSIGHT
President Obama's $1 Billion Foreign Aid Request for
Central America
November 25, 2015 (IN10237)
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Related Authors
Peter J. Meyer
Clare Ribando Seelke
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Peter J. Meyer, Analyst in Latin American Affairs (pmeyer@crs.loc.gov, 7-5474)
Clare Ribando Seelke, Specialist in Latin American Affairs (cseelke@crs.loc.gov, 7-5229)
In FY2014, the number of unaccompanied minors and family groups from the "northern triangle" of Central America
(El Salvador, Guatemala, and Honduras) attempting to enter the United States sharply increased. The resulting spike in
apprehensions strained U.S. government resources and created a complex humanitarian situation. The Obama
Administration's initial response to the migrant crisis included working with the governments of the northern triangle
and Mexico on public diplomacy campaigns to discourage people from making the journey, and law enforcement
operations to dismantle human smuggling networks (see CRS Report R43702, Unaccompanied Children from Central
America: Foreign Policy Considerations). Although total U.S. apprehensions of unaccompanied minors and family
units declined by 42% in FY2015, Mexico—with U.S. support—apprehended record numbers of Central Americans
(see CRS Report IF10215, Mexico's Recent Immigration Enforcement Efforts). The mixed migration flows of children
and families appear to have increased again in recent months, and many analysts argue that long-term reductions will
require policymakers in the countries of origin and the international community to take steps to address the poor
security and socioeconomic conditions causing Central Americans to abandon their homes.
FY2016 Aid Request
Asserting that the FY2014 influx of migrants was a reminder that "the security and prosperity of Central America are
inextricably linked to our own," the Obama Administration has requested over $1 billion in foreign assistance for the
region in FY2016 to support a whole-of-government "U.S. Strategy for Engagement in Central America." The request
includes:
$438 million for promoting economic prosperity. These funds would support efforts to facilitate trade, promote
customs and border integration, improve business environments, and integrate regional electricity markets. They
would also support programs to reduce poverty, improve early grade literacy, and provide vocational training and
alternative education programs.
$315 million for improving security. These funds would support training for law enforcement personnel, border
and maritime interdiction operations, and efforts to strengthen investigative and prosecutorial capacity. They
would also support community policing, municipal crime prevention committees, and the expansion of outreach
centers that provide opportunities for at-risk youth.

$249 million for strengthening governance. These funds would support efforts to implement civil service
reforms, improve revenue collection and financial management, and strengthen rule-of-law institutions and
government service delivery. They would also provide support to civil society groups designed to strengthen their
capacities to hold governments accountable.
While the U.S. government already funds many of these types of activities in Central America, the FY2016 request
would allow current programs to be scaled up significantly. Compared to FY2015 funding estimates, bilateral aid for El
Salvador would increase from $47 million to $119 million, aid for Guatemala would increase from $107 million to
$226 million, and aid for Honduras would increase from $71 million to $163 million. Funding for the Central America
Regional Security Initiative (CARSI; see CRS Report R41731, Central America Regional Security Initiative:
Background and Policy Issues for Congress), which has been the principal component of U.S. engagement with the
region in recent years and has yielded mixed results, would increase from $270 million to $286 million. The vast
majority of the request would support programs, training, and technical assistance implemented by U.S. government
personnel and nongovernmental partners. Only a small percentage of the aid would be used for direct government-to-
government assistance.
Alliance for Prosperity
The objectives of the Administration's strategy are consistent with the priorities established in the "Plan of the Alliance
for Prosperity in the Northern Triangle" that was proposed by the governments of El Salvador, Guatemala, and
Honduras in September 2014. The five-year, $22 billion plan seeks to (1) stimulate the productive sector, (2) develop
human capital, (3) improve public safety, and (4) strengthen institutions. The three northern triangle governments
intend to fund about 80% of the plan, but are seeking private sector and international donor support to finance the rest.
While many analysts are skeptical that leaders in the region are committed to structural changes, especially in light of
recent corruption scandals, the three governments have begun to implement some reforms. The Salvadoran government
has enacted an investment stability law and announced a holistic anti-crime strategy; the Guatemalan government has
extended the mandate of the International Commission against Impunity (CICIG); and the Honduran government has
signed agreements with Transparency International and the Organization of American States (OAS) to combat
corruption.
Legislative Developments
Congress has yet to adopt a full year appropriations bill for foreign aid programs in FY2016. A continuing resolution
(P.L. 114-53) funds most aid programs at the FY2015 level, minus an across-the-board reduction of 0.2108%, until
December 11, 2015. The House and Senate Appropriations Committees reported out their respective FY2016
Department of State, Foreign Operations, and Related Programs appropriations bills (H.R. 2772 and S. 1725) in June
and July 2015. Based on the appropriations levels and committee recommendations included in the bills and their
accompanying reports (H.Rept. 114-154 and S.Rept. 114-79), neither appears to fully fund the Administration's request
for Central America (see Table 1).
The House report recommends providing $296.5 million through CARSI. While it does not prohibit the Administration
from dedicating additional aid to Central America for non-CARSI programs, the funding available for such programs
would likely be limited. The House bill requires the State Department to develop a multi-year strategy for the region. It
also directs the State Department to suspend aid if Central American governments fail to work with U.S. agencies to
improve border security, prevent illegal emigration, and receive and reintegrate deportees.
The Senate bill provides "up to" $675 million to implement the new Central America strategy, including up to $72
million for El Salvador, $137 million for Guatemala, $98 million for Honduras, and $231.5 million for CARSI. It
requires the State Department to develop a multi-year strategy for the region. It also requires 75% of the funds for the
"central governments" of the northern triangle to be withheld until the Secretary of State certifies those governments are
combating corruption, reforming the police, protecting human rights, raising revenues, and resolving commercial
disputes, among other actions. Moreover, it directs the Secretary of State to regularly evaluate the northern triangle
governments' progress in those areas, and to suspend assistance if it is insufficient.

Table 1. U.S. Assistance to Central America: FY2014-FY2016
In millions of current U.S. dollars

FY2014
FY2015
FY2016
FY2016 House
FY2016 Senate
(Actual) (Estimate) (Request)
Bill (H.R. 2772)
Bill (S. 1725)
El Salvador
21.6
46.6
119.2
not
72.3
specified
Guatemala
65.2
107.2
225.6
not
136.7
specified
Honduras
41.8
71.2
163.0
not
97.8
specified
Other
14.4
19.1
24.6
not
24.6
Countries
specified
CARSI
161.5
270.0
286.5
296.5
231.5
Other
33.5
49.2
203.6
not
112.5
Regional
specified
Programs
Total
338.0
563.2
1,022.5
296.5
675.3
Source: U.S. Department of State, H.Rept. 114-154, and S.Rept. 114-79.
Notes: "Other Countries" includes Belize, Costa Rica, Nicaragua, and Panama.