Updated December 11, 2020
Cuba: U.S. Policy Overview
Since the early 1960s, when the United States imposed a
8.3% economic contraction in 2020. Cuba announced some
trade embargo on Cuba, the centerpiece of U.S. policy
economic reforms in July 2020, and on December 10, 2020,
toward Cuba has consisted of economic sanctions aimed at
President Díaz-Canel announced that Cuba would eliminate
isolating the Cuban government.
its dual currency system on January 1, 2021, a major reform
that long has been debated.
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 December 10, 2020, the country
of Cuba’s designation as a state sponsor of international
reported 136 deaths, with a mortality rate of 1.2 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
Cuba has a poor record on human rights, with the
(CACR), administered by the Treasury Department, and the
government sharply restricting freedoms of expression and
Export Administration Regulations, administered by the
other basic rights. As of December 1, 2020, the human
Commerce Department. The restoration of relations led to
rights group Cuban Prisoners Defenders listed 134 political
increased government-to-government engagement, with
over 20 bilateral agreements and numerous dialogues.
prisoners, with 77 imprisoned for reasons of conscience. A
November 2020 government crackdown on the San Isidro
President Trump unveiled a new policy toward Cuba in
Movement, a civil society group opposed to the
2017, introducing new sanctions and rolling back efforts to
government’s restrictions on artistic expression, spurred a
normalize relations. By 2019, the Administration had
protest by several hundred Cubans, many young artists, and
largely abandoned engagement and had increased sanctions
galvanized international attention on human rights in Cuba.
to pressure the Cuban government on human rights and for
Trump Administration Sanctions. President Trump
its support of the Venezuelan government of Nicolás
issued a national security presidential memorandum in June
Maduro. In 2020, the Administration significantly increased
2017 that introduced new sanctions, including restrictions
restrictions on travel and remittances.
on transactions with companies controlled by the Cuban
Cuban Political and Economic Developments. In April
military. The State Department issued a list of “restricted
2018, Miguel Díaz-Canel, who was serving as first vice
entities” in 2017, which has been updated several times,
president, succeeded Raúl Castro as president. Castro
most recently in September 2020. The “Cuba restricted list”
continues to head the Cuban Communist Party until 2021.
includes 230 entities and subentities, including 2 ministries,
The selection of Díaz-Canel, now 60 years old, reflected the
5 holding companies and 54 of their subentities, 111 hotels,
generational change in Cuban leadership that began several
2 tourist agencies, 5 marinas, 10 stores in Old Havana, and
years ago and marks the first time since the 1959 Cuban
41 entities serving defense and security sectors.
revolution that a Castro is not in charge of the government.
Since 2019, the Administration has imposed increasingly
While in power from 2006 to 2018, Raúl Castro began to
strong sanctions. In addition to those below, it has
implement significant economic policy changes, moving
highlighted allegations of coercive labor practices in Cuba’s
toward a more mixed economy with a stronger private
foreign medical missions . In May 2020, the State
sector, but his government’s slow, gradualist approach did
Department (pursuant to Section 40A of the Arms Export
not produce major economic improvements.
Control Act) added Cuba to its annual list of countries
In 2019, Cuba adopted a new constitution with such
certified as not cooperating fully with U.S. antiterrorism
changes as an appointed prime minister to oversee
efforts for the first time since 2015.
government operations; limits on the president’s tenure
Efforts to Stop Venezuelan Oil Exports to Cuba.
(two five-year terms) and age (60, beginning first term);
Since April 2019, the Treasury Department has imposed
and market-oriented economic reforms, including the right
sanctions on several shipping companies and vessels
to private property and foreign investment promotion. The
that transported Venezuelan oil to Cuba. In July 2019, it
new constitution also ensured the state’s dominance over
sanctioned Cuba’s state-run oil import/export company.
the economy and the Communist Party’s predominant role.
Lawsuits Related to Confiscated Property. Effective
The Cuban economy is being hard-hit by Venezuela’s
May 2, 2019, the Administration allowed the right to file
economic crisis, which has reduced Venezuela’s support for
lawsuits against those trafficking in confiscated property
Cuba; increased U.S. economic sanctions, which have hurt
Cuba’s nascent private sector
in Cuba pursuant to Title III of the Cuban Liberty and
; and the economic decline
Democratic Solidarity (LIBERTAD) Act of 1996 (P.L.
associated with the Coronavirus Disease 2019 (COVID-19)
104-114). Lawsuits can be brought by any U.S. national,
pandemic. The Economist Intelligence Unit forecast an
https://crsreports.congress.gov
Cuba: U.S. Policy Overview
including those who were not U.S. nationals at the time
Injuries of U.S. Embassy Personnel in Havana.
of the confiscation. Previous Administrations had
According to the State Department, 26 U.S. Embassy
suspended, at six-month intervals, the right to file such
community members suffered a series of unexplained
lawsuits. To date, 29 lawsuits have been filed against
injuries, including hearing loss and cognitive issues
U.S. and foreign companies, including cruise ship
between late 2016 and May 2018. The State Department
operators, airlines, travel booking companies, and
maintains that the investigation into the health incidents has
hotels; several lawsuits have been dismissed.
not reached a conclusion regarding the cause or source of
the injuries. On December 5, 2020, the National Academies
Restrictions on Travel and Remittances. On travel, in
of Sciences, Engineering, and Medicine publicly released a
June 2019, the Treasury Department eliminated people-
report concluding that the most plausible mechanism for the
to-people educational travel and the Commerce
source of the health symptoms was directed pulsed radio
Department generally prohibited cruise ships, private
frequency energy. Some analysts and observers have raised
and corporate aircraft, sailboats, and fishing boats from
the possibility of Russia’s involvement.
going to Cuba. The Transportation Department
suspended commercial flights to cities other than
116th Congress Action. The 116th Congress has continued
Havana in December 2019; charter flights to cities other
to fund Cuba democracy assistance and U.S.-government
than Havana in January 2020; and private charter flights
sponsored broadcasting to Cuba: $20 million for democracy
to Havana in October 2020. In September 2020, the
programs and $29.1 million for broadcasting in FY2019
Treasury Department prohibited U.S. travelers from
(P.L. 116-6) and $20 million for democracy programs and
staying at properties identified by the State Department
$20.973 million for broadcasting in FY2020 (P.L. 116-94,
as owned or controlled by the Cuban government; the
Division G). For FY2021, the Administration requested $10
ban includes over 400 hotels and privately owned
million for democracy programs and $12.973 million for
residences for rent (casas particulares) if they are
broadcasting. Both the House-passed version of the FY2021
controlled by a prohibited government official or
foreign aid appropriations bill, Division A of H.R. 7608
Communist Party member (or close relative).
(H.Rept. 116-444), and the Senate Appropriations
Committee’s draft bill and explanatory statement would
On remittances, in September 2019, the Treasury
provide $20 million for democracy programs and fully fund
Department capped family remittances to $1,000 per
the broadcasting request.
quarter per Cuban national and eliminated the category
of donative remittances. In June and September 2020,
In other action, P.L. 116-94 (Division J) included benefits
the State Department added to its “Cuba restricted list”
for State Department employees and dependents injured
two Cuban companies that facilitate the processing of
while stationed in Cuba. The conference report (H.Rept.
remittances. In October 2020, the Treasury Department
116-617) to the FY2021 defense authorization bill, H.R.
prohibited, effective November 26, the processing of
6395, would extend such benefits to personnel of other
remittances through any entities on the “Cuba restricted
federal agencies. The Senate approved S.Res. 454 in June
list.” This resulted in Western Union—the major
2020, calling for the unconditional release of democracy
financial services company used for transmitting
activist José Daniel Ferrer.
remittances to Cuba, with more than 400 offices on the
island—to cease its operations in Cuba on November 22
Among other bills, several would ease or lift U.S. sanctions:
until a solution can be found to keep its services open.
H.R. 213 (baseball); S. 428 (trade); H.R. 1898/S. 1447
Other Trade and Financial Sanctions. In September
(U.S. agricultural exports); H.R. 2404 (overall embargo);
2019, the Treasury Department ended the use of U-turn
and H.R. 3960/S. 2303 (travel). H.R. 4884 would reinstate
transactions, which allowed banking institutions to
the Cuban Family Reunification Program. S. 3977 would
process certain funds transfers originating and
require reporting on countries with Cuban medical
terminating outside the United States. In October 2019,
missions. S. 4635 would require reporting on Cuba’s
the Commerce Department restricted Cuba’s access to
medical missions and reinstate the Cuban Medical
leased commercial aircraft; reimposed a 10% de
Professional Parole program. S. 4973 would authorize
minimis rule (from 25%) requiring a third country-based
compensation for certain U.S. government personnel who
company exporting goods to Cuba with more than 10%
incur disabilities resulting from certain injuries to the brain.
U.S.-origin content to apply for a license; and imposed
licensing requirements for the export of certain donated
Several resolutions would address the following: the release
items to organizations controlled by the Cuban
of Cuban political prisoner Silverio Portal Contreras
government or Communist Party and items for
(H.Res. 1172), who was ultimately released December 1,
telecommunications infrastructure.
2020; Cuba’s medical missions (S.Res. 14/H.Res. 136);
U.S. fugitives from justice in Cuba (H.Res. 92/S.Res. 232);
Visa Restrictions. The State Department imposed visa
Cuban religious/political freedom (S.Res. 215); Las Damas
restrictions on Raúl Castro in September 2019 for gross
de Blanco human rights group (S.Res. 531); and the 35th
violations of human rights in Cuba and Venezuela.
anniversary of Cuba broadcasting (H.Res. 971/S.Res. 637).
Further visa restrictions were imposed on Cuba’s
Also see CRS Report RL31139, Cuba: U.S. Restrictions on
Interior Minister (November 2019) and Cuba’s defense
Travel and Remittances, and CRS Report R45657, Cuba:
minister (January 2020) for human rights violations.
U.S. Policy in the 116th Congress.
Mark P. Sullivan, Specialist in Latin American Affairs
https://crsreports.congress.gov
Cuba: U.S. Policy Overview
IF10045
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permissio n of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF10045 · VERSION 77 · UPDATED