Updated November 20, 2020
Cuba: U.S. Policy Overview
Since the early 1960s, when the United States imposed a
Cuba; increased U.S. economic sanctions, which have hurt
trade embargo on Cuba, the centerpiece of U.S. policy
Cuba’s nascent private sector; and the economic decline
toward Cuba has consisted of economic sanctions aimed at
associated with the Coronavirus Disease 2019 (COVID-19)
isolating the Cuban government.
pandemic. The Economist Intelligence Unit forecast an
8.3% economic contraction in 2020.
In 2014, the Obama Administration initiated a policy shift
away from sanctions and toward engagement and the
Cuba’s public health response to the pandemic appears to
normalization of relations . Changes included the rescission
have been effective. As of November 20, 2020, the country
of Cuba’s designation as a state sponsor of international
reported 131 deaths, with a mortality rate of 1.16 per
terrorism (May 2015); the restoration of diplomatic
100,000 people (among the lowest rates in the hemisphere),
relations (July 2015); and an easing of restrictions on travel,
according to Johns Hopkins University. Cuba has provided
remittances, trade, telecommunications, and banking and
international assistance for pandemic response by sending
financial services (2015 and 2016), accomplished through
over 3,700 medical professionals to almost 40 countries.
amendments to the Cuban Assets Control Regulations
Trump Administration Sanctions. President Trump
(CACR), administered by the Treasury Department, and the
issued a national security presidential memorandum in June
Export Administration Regulations, administered by the
2017 that introduced new sanctions, including restrictions
Commerce Department. The restoration of relations led to
on transactions with companies controlled by the Cuban
increased government-to-government engagement, with
over 20 bilateral agreements and numerous dialogues.
military. The State Department issued a list of “restricted
entities” in 2017, which has been updated several times,
President Trump unveiled a new policy toward Cuba in
most recently in September 2020. The “Cuba restricted list”
2017, introducing new sanctions and rolling back efforts to
includes 230 entities and subentities, including 2 ministries,
normalize relations. By 2019, the Administration had
5 holding companies and 54 of their subentities, 111 hotels,
largely abandoned engagement and had increased sanctions
2 tourist agencies, 5 marinas, 10 stores in Old Havana, and
to pressure the Cuban government on human rights and for
41 entities serving defense and security sectors.
its support of the Venezuelan government of Nicolás
Since 2019, the Administration has imposed increasingly
Maduro. In 2020, the Administration has ratcheted up
strong sanctions. In addition to those noted below, it has
restrictions on travel and remittances. In October, it
increased efforts to highlight allegations of coercive labor
announced new sanctions on remittances, effective
practices in Cuba’s foreign medical missions, a major
November 26, which resulted in Western Union announcing
foreign exchange earner for Cuba. In May 2020, the State
it would stop forwarding remittances to Cuba on November
Department (pursuant to Section 40A of the Arms Export
22 (see below).
Control Act) added Cuba to its annual list of countries
Cuban Political and Economic Developments. In April
certified as not cooperating fully with U.S. antiterrorism
2018, Miguel Díaz-Canel, who was serving as first vice
efforts for the first time since 2015.
president, succeeded Raúl Castro as president. Castro
Efforts to Stop Venezuelan Oil Exports to Cuba.
continues to head the Cuban Communist Party until 2021.
Since April 2019, the Treasury Department has imposed
The selection of Díaz-Canel, now 60 years old, reflected the
sanctions on several shipping companies and vessels
generational change in Cuban leadership that began several
that transported Venezuelan oil to Cuba. In July 2019, it
years ago and marks the first time since the 1959 Cuban
sanctioned Cuba’s state-run oil import/export company.
revolution that a Castro is not in charge of the government.
While in power from 2006 to 2018, Raúl Castro began to
Lawsuits Related to Confiscated Property. Effective
implement significant economic policy changes, moving
May 2, 2019, the Administration allowed the right to file
toward a more mixed economy with a stronger private
lawsuits against those trafficking in confiscated property
sector, but his government’s slow, gradualist approach did
in Cuba pursuant to Title III of the Cuban Liberty and
not produce major economic improvements.
Democratic Solidarity (LIBERTAD) Act of 1996 (P.L.
104-114). Lawsuits can be brought by any U.S. national,
In 2019, Cuba adopted a new constitution with such
including those who were not U.S. nationals at the time
changes as an appointed prime minister to oversee
of the confiscation. Previous Administrations had
government operations; limits on the president’s tenure
suspended, at six-month intervals, the right to file such
(two five-year terms) and age (60, beginning first term);
lawsuits. The European Union and Canada criticized the
and market-oriented economic reforms, including the right
Trump Administration’s action, vowing to ban
to private property and foreign investment promotion. The
enforcement or recognition of any judgement and allow
new constitution also ensured the state’s dominance over
the economy and the Communist Party’s predominant role.
counterclaims. To date, 29 lawsuits have been filed
against U.S. and foreign companies, including cruise
The Cuban economy is being hard-hit by Venezuela’s
ship operators, airlines, travel booking companies, and
economic crisis, which has reduced Venezuela’s support for
hotels; several lawsuits have been dismissed.
https://crsreports.congress.gov
Cuba: U.S. Policy Overview
Restrictions on Travel and Remittances. On travel, in
of conscience in 2019. After six months of detention, José
June 2019, the Treasury Department eliminated people-
Daniel Ferrer, leader of the opposition Patriotic Union of
to-people educational travel and the Commerce
Cuba, was released in April 2020 to house arrest.
Department generally prohibited cruise ships, private
Injuries of U.S. Embassy Personnel in Havana.
and corporate aircraft, sailboats, and fishing boats from
According to the State Department, 26 U.S. Embassy
going to Cuba. The Transportation Department
community members suffered a series of unexplained
suspended commercial flights to cities other than
injuries, including hearing loss and cognitive issues
Havana in December 2019; charter flights to cities other
between late 2016 and May 2018. The State Department
than Havana in January 2020; and private charter flights
maintains that the investigation has not reached a
to Havana in October 2020. In September 2020, the
conclusion regarding the cause or source of the injuries, for
Treasury Department prohibited U.S. travelers from
which Cuba strongly denies responsibility. In September
staying at properties identified by the State Department
2017, the State Department ordered the departure of
as owned or controlled by the Cuban government; the
nonemergency personnel from the U.S. Embassy to
ban includes over 400 hotels and privately owned
minimize the risk of their exposure to harm; embassy staff
residences for rent (casas particulares) if they are
was reduced by about two-thirds. The staff reduction has
controlled by a prohibited government official or
affected embassy operations, especially visa processing.
Communist Party member (or close relative).
116th Congress Action. The 116th Congress has continued
On remittances, in September 2019, the Treasury
to fund Cuba democracy assistance and U.S.-government
Department capped family remittances (not previously
sponsored broadcasting to Cuba: $20 million for democracy
limited) to $1,000 per quarter per Cuban national and
programs and $29.1 million for broadcasting in FY2019
eliminated the category of donative remittances. In June
(P.L. 116-6) and $20 million for democracy programs and
and September 2020, the State Department added to its
$20.973 million for broadcasting in FY2020 (P.L. 116-94,
“Cuba restricted list” two Cuban companies that
Division G). P.L. 116-94 (Division J) included benefits for
facilitate the processing of remittances. On October 27,
U.S. government employees and dependents injured while
2020, the Treasury Department prohibited, effective
stationed in Cuba. For FY2021, the Administration
November 26, the processing of remittances through any
requested $10 million for democracy programs and $12.973
entities on the “Cuba restricted list.” This resulted in
million for broadcasting. Both the House-passed version of
Western Union—the major financial services company
the FY2021 foreign aid appropriations bill, Division A of
used for transmitting remittances to Cuba, with more
H.R. 7608 (H.Rept. 116-444), approved July 24, 2020, and
than 400 offices on the island—announcing on
the Senate Appropriations Committee’s draft bill and
November 13 that November 22 would be the last day to
explanatory statement would provide $20 million for
send money to Cuba until a solution could be found to
democracy programs and fully fund the broadcasting
keep its services open.
request. In other legislative action, the Senate approved
S.Res. 454 in June 2020, calling for the release of
Other Trade and Financial Sanctions. In September
democracy activist José Daniel Ferrer (a similar resolution,
2019, the Treasury Department ended the use of U-turn
H.Res. 774, was introduced in the House).
transactions, which allowed banking institutions to
process certain funds transfers originating and
Among other bills , several would ease or lift U.S. sanctions:
terminating outside the United States. In October 2019,
H.R. 213 (baseball); S. 428 (trade); H.R. 1898/S. 1447
the Commerce Department restricted Cuba’s access to
(U.S. agricultural exports); H.R. 2404 (overall embargo);
leased commercial aircraft; reimposed a 10% de
and H.R. 3960/S. 2303 (travel). H.R. 4884 would reinstate
minimis rule (from 25%) requiring a third country-based
the Cuban Family Reunification Program. S. 3977 would
company exporting goods to Cuba with more than 10%
require the State Department to report on countries with
U.S.-origin content to apply for a license; and imposed
Cuban medical missions. S. 4635 would require an annual
licensing requirements for the export of certain donated
report on Cuba’s medical missions and reinstate the Cuban
items to organizations controlled by the Cuban
Medical Professional Parole program.
government or Communist Party and items for
telecommunications infrastructure.
Several resolutions would address the following: the release
of Cuban political prisoner Silverio Portal Contreras
Visa Restrictions. The State Department imposed visa
(H.Res. 1172); Cuba’s medical missions (S.Res. 14/H.Res.
restrictions on Raúl Castro in September 2019 for gross
136); U.S. fugitives from justice in Cuba (H.Res. 92/S.Res.
violations of human rights in Cuba and Venezuela.
232); Cuban religious/political freedom (S.Res. 215); Las
Further visa restrictions were imposed on Cuba’s
Damas de Blanco human rights group (S.Res. 531); and the
Interior Minister (November 2019) and Cuba’s defense
35th anniversary of Cuba broadcasting (H.Res. 971/S.Res.
minister (January 2020) for human rights violations.
637). Also see CRS Report RL31139, Cuba: U.S.
Restrictions on Travel and Remittances, and CRS Report
Continued Human Rights Concerns. Human rights
R45657, Cuba: U.S. Policy in the 116th Congress.
violations in Cuba have been a fundamental U.S. policy
concern for many years. As of October 1, 2020, the human
Mark P. Sullivan, Specialist in Latin American Affairs
rights group Cuban Prisoners Defenders listed 138 political
IF10045
prisoners, with 76 imprisoned for reasons of conscience;
Amnesty International designated six of these as prisoners
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Cuba: U.S. Policy Overview
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https://crsreports.congress.gov | IF10045 · VERSION 76 · UPDATED