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Updated January 3, 2019
U.S. Strategy for Engagement in Central America: An Overview
Introduction
appropriated for the Northern Triangle nations, and 3% has
Instability in Central America is one of the most pressing
been appropriated for Belize, Costa Rica, Nicaragua, and
challenges for U.S. policy in the Western Hemisphere.
Panama. Congress has appropriated the other 56% to
Several nations—particularly El Salvador, Guatemala, and
regional programs, such as the Central America Regional
Honduras in the “Northern Triangle†of Central America—
Security Initiative (CARSI) (see Figure 1). Country-by-
are struggling with widespread insecurity, fragile political
country breakdowns are not available, but the vast majority
and judicial systems, and high levels of poverty and
of funding for regional programs appears to have been
unemployment.
allocated to the Northern Triangle.
The inability of Central American governments to address
Figure 1. Funding for the U.S. Strategy for
those challenges effectively has had far-reaching
Engagement in Central America: FY2016-FY2019
implications for the United States. Transnational criminal
organizations have used the Central American corridor for a
range of illicit activities, including the trafficking of
approximately 90% of cocaine bound for the United States.
Central America also has become a significant source of
mixed migration flows of asylum seekers and economic
migrants to the United States. In FY2017, U.S. authorities
at the Southwest border apprehended nearly 163,000
unauthorized migrants from the Northern Triangle. More
than 63% of those apprehended were unaccompanied
children or families, many of whom were seeking
humanitarian protection. These flows have continued over
the past year, with some migrants banding together in large
“caravans†to make the journey.
The Obama Administration determined that it was “in the
national security interests of the United States†to work
with Central American governments to promote economic
prosperity, improve security, and strengthen governance in
the region. It approved a new, whole-of-government U.S.
Sources: U.S. Department of State, Congressional Budget
Strategy for Engagement in Central America and requested
Justifications for Foreign Operations, Fiscal Years 2017-2019; U.S.
significant increases in foreign aid to enable the strategy’s
Department of State, “FY 2018 653(a) Al ocations – FINAL,†2018;
implementation. With congressional support, U.S.
and the explanatory statement accompanying P.L. 115-141.
assistance to Central America more than doubled from
Notes: “Other Countries†includes Belize, Costa Rica, Nicaragua,
$338.1 million in FY2014 to $753.7 million in FY2016.
and Panama. CARSI = Central America Regional Security Initiative.
The Trump Administration has voiced support for efforts to
President Trump occasionally has threatened to cut off aid
promote prosperity and security in Central America but has
to the Northern Triangle countries. He has significant
sought to significantly scale back U.S. assistance to the
discretion to do so with funds Congress appropriated in
region. Congress has rejected the majority of the
FY2018, since the Consolidated Appropriations Act, 2018
Administration’s proposed cuts, appropriating $699.7
(P.L. 115-141), placed a ceiling on aid to the region but no
million for the Central America strategy in FY2017 and an
floor. The act also empowers the Secretary of State to
estimated $626.5 million for the strategy in FY2018.
suspend and reprogram some aid if he determines the
Funding
Northern Triangle governments have made “insufficient
progress†in addressing various legislative conditions (see
Since FY2016, Congress has appropriated an estimated
“Conditions,†below).
$2.1 billion for the U.S. Strategy for Engagement in Central
America. The assistance has been roughly evenly divided
FY2019 Request
between traditional development programs focused on good
The Trump Administration’s FY2019 budget request
governance, economic growth, and social welfare, and
included $435.5 million to continue implementing the
security and rule-of-law efforts intended to prevent
Central America strategy. If enacted, assistance to the
violence, reform justice-sector institutions, and combat
region would decline by 30% compared to the FY2018
gangs and organized crime. Some 41% of the aid has been
estimate. The request included $45.7 million for El
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U.S. Strategy for Engagement in Central America: An Overview
Salvador (-21%), $69.4 million for Guatemala (-42%),
With U.S. support, the Northern Triangle nations have
$65.8 million for Honduras (-18%), and $1.8 million for the
made some tentative progress over the past three years.
other four nations in the region (-91%). It also included
They have implemented policy changes intended to
$252.8 million for CARSI (-21%). Although the request
stabilize their economies and have benefitted from more
would cut all types of assistance, it would shift the balance
favorable international economic conditions. Nevertheless,
of the remaining aid toward security and rule-of-law efforts
the improved macroeconomic situation has not translated
and away from governance and economic growth programs.
into better living conditions for many residents of the
region. Approximately 31% of Salvadorans, 49% of
The Senate and House Appropriations Committees reported
Guatemalans, and 50% of Hondurans live on less than
their respective FY2019 Department of State, Foreign
$5.50 per day, according to the World Bank.
Operations, and Related Programs appropriations measures
on June 21, 2018, and July 16, 2018. The Senate committee
Security conditions in the region have improved in some
bill (S. 3108) would have provided $515.5 million for the
respects, with homicide rates falling in all three countries in
Central America strategy, and the House committee bill
each of the past three years. Nevertheless, the Northern
(H.R. 6385) would have provided $595 million. Neither bill
Triangle countries remain among the most violent in the
received floor consideration, however, and a stopgap
world, with homicide rates of 26 per 100,000 in Guatemala,
measure (P.L. 115-298) that continued to fund the Central
44 per 100,000 in Honduras, and 60 per 100,000 in El
America strategy at the FY2018 level expired on December
Salvador in 2017. The percentage of individuals reporting
21, 2018. Funding for the remainder of FY2019 will depend
they were victims of crime in the past year increased in all
on appropriations legislation enacted by the 116th Congress.
three Northern Triangle nations from 2014 to 2017,
according to the Latin American Public Opinion Project.
Conditions
Congress has placed strict conditions on assistance to the
The region has made some tentative progress in improving
Northern Triangle in an attempt to bolster political will in
governance, though there have been considerable setbacks
the region and ensure foreign aid is used as effectively as
over the past year. The attorneys general of El Salvador,
possible. According to the Consolidated Appropriations
Guatemala, and Honduras—with the support of the U.N.-
Act, 2018 (P.L. 115-141),
backed International Commission Against Impunity in
Guatemala (CICIG) and the Organization of American
ï‚· 25% of assistance for the central governments of El
States-backed Mission to Support the Fight Against
Salvador, Guatemala, and Honduras must be withheld
Corruption and Impunity in Honduras (MACCIH)—have
until the Secretary of State certifies that the
begun to investigate and prosecute high-level corruption
governments are informing their citizens of the dangers
cases. Their efforts have generated considerable pushback,
of irregular migration, combating human smuggling and
however, and the Guatemalan and Honduran governments
trafficking, improving border security, and cooperating
have sought to undermine CICIG and MACCIH repeatedly.
with the United States to receive and reintegrate
The region also has experienced democratic backsliding,
repatriated citizens who do not qualify for asylum.
with Freedom House reporting erosions in political rights
and civil liberties in all three Northern Triangle nations.
ï‚· Another 50% must be withheld until the Secretary of
State certifies that the governments are addressing 12
Policy Considerations
other concerns, including combating corruption;
As Congress assesses potential changes to U.S. policy in
countering gangs and organized crime; increasing
Central America, it may consider the following questions:
government revenues; supporting programs to reduce
poverty and promote equitable growth; and protecting
ï‚· How have conditions in Central America changed since
the rights of journalists, political opposition parties, and
the launch of the U.S. Strategy for Engagement? How
human rights defenders to operate without interference.
much aid over how many years would be necessary to
alter conditions in the region substantially?
The State Department certified that all three countries met
both sets of conditions in FY2016 and FY2017. For
ï‚· How would cuts in assistance to Central America affect
FY2018, it has issued certifications for all three countries
U.S. objectives in the region? If assistance to the region
regarding the first set of conditions but not the second set.
is reduced significantly, which programs and activities
should remain priorities?
Regional Developments
The governments of El Salvador, Guatemala, and Honduras
 How have the Trump Administration’s domestic
are carrying out complementary efforts under their Plan of
immigration policies affected irregular migration from
the Alliance for Prosperity in the Northern Triangle.
the region? How might those policy changes affect U.S.
Drafted with technical assistance from the Inter-American
objectives in Central America?
Development Bank, the plan aims to address the root causes
of emigration from the region by stimulating the productive
For further information and analysis, see CRS Report
sector, developing human capital, improving public safety,
R44812, U.S. Strategy for Engagement in Central America:
and strengthening institutions. The Northern Triangle
Policy Issues for Congress.
governments collectively allocated an estimated $7.7 billion
to the initiative from 2016-2018.
Peter J. Meyer, Analyst in Latin American Affairs
IF10371
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U.S. Strategy for Engagement in Central America: An Overview
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