Updated January 25, 2021
Cuba: U.S. Policy Overview
Since the early 1960s, when the United States imposed a
The Cuban economy is being hard-hit by Venezuela’s
trade embargo on Cuba, the centerpiece of U.S. policy
economic crisis, which has reduced Venezuela’s support for
toward Cuba has consisted of economic sanctions aimed at
Cuba; increased U.S. economic sanctions, which have hurt
isolating the Cuban government.
Cuba’s nascent private sector; and the economic decline
associated with the Coronavirus Disease 2019 (COVID-19)
In 2014, the Obama Administration initiated a policy shift
pandemic. The Cuban government reports the economy
away from sanctions and toward engagement and the
contracted 11% in 2020. On January 1, 2021, Cuba
normalization of relations. Changes included the rescission
eliminated its dual currency system, a major reform that
of Cuba’s designation as a state sponsor of international
was long debated. Economists maintain the currency reform
terrorism (May 2015); the restoration of diplomatic
will have high costs initially but should boost productivity
relations (July 2015); and an easing of restrictions on travel,
and development over the longer term.
remittances, trade, telecommunications, and banking and
financial services (2015 and 2016), accomplished through
Cuba’s public health response to the pandemic appears to
amendments to the Cuban Assets Control Regulations,
have been effective, although the number of cases and
administered by the Treasury Department, and the Export
deaths began to increase in late 2020. As of January 23,
Administration Regulations, administered by the Commerce
2021, the country reported 194 deaths and over 21,000
Department. The restoration of relations led to increased
cases. Cuba has provided international assistance for
government-to-government engagement, with over 20
pandemic response by sending over 3,700 medical
bilateral agreements and numerous dialogues.
professionals to almost 40 countries.
President Trump unveiled his Administration’s Cuba policy
Cuba has a poor record on human rights, with the
in 2017, introducing new sanctions and rolling back efforts
government sharply restricting freedoms of expression and
to normalize relations. By 2019, the Administration had
other basic rights. As of January 4, 2021, the human rights
largely abandoned engagement and, from 2019 to January
group Cuban Prisoners Defenders listed 138 political
2021, significantly increased sanctions (see discussion
prisoners, with 74 imprisoned for reasons of conscience. A
below)—especially on travel and remittances—to pressure
November 2020 government crackdown on the San Isidro
the Cuban government on human rights and for its support
Movement, a civil society group opposed to the
of the Venezuelan government of Nicolás Maduro.
government’s restrictions on artistic expression, spurred a
protest by several hundred Cubans, many young artists, and
Most observers expect the Biden Administration to shift
galvanized international attention on human rights in Cuba.
U.S. policy toward Cuba back to focusing on engagement
and away from the numerous sanctions imposed in recent
Trump Administration Sanctions. President Trump
years. During the U.S. election campaign, President Biden
issued a national security presidential memorandum in June
said he would reverse Trump Administration policies,
2017 that introduced new sanctions, including restrictions
maintaining they harmed the Cuban people without
on transactions with companies controlled by the Cuban
advancing democracy and human rights.
military. The State Department issued a list of “restricted
entities” in 2017, which was updated several times, most
Cuban Political and Economic Developments. In April
recently January 8, 2021. The “Cuba restricted list”
2018, Vice President Miguel Díaz-Canel succeeded Raúl
includes 231 entities and subentities (ministries, holding
Castro as president, although Castro continues to head the
companies, hotels, stores, and a wide variety of companies).
Cuban Communist Party (PCC) until at least April 2021.
The Administration imposed a series of sanctions and other
The selection of Díaz-Canel, now 60 years old, reflected the
actions, discussed below, and initiated a campaign
generational change in Cuban leadership that began several
highlighting allegations of coercive labor practices in
years ago and marks the first time since the 1959 Cuban
Cuba’s foreign medical missions.
revolution that a Castro is not in charge of the government.
While in power from 2006 to 2018, Raúl Castro began to
Efforts to Stop Venezuelan Oil Exports to Cuba.
implement significant economic policy changes, moving
Since April 2019, the Treasury Department has imposed
toward a more mixed economy with a stronger private
sanctions on several shipping companies and vessels
sector; his government’s slow, gradualist approach did not
that transported Venezuelan oil to Cuba. In July 2019, it
produce major economic improvements.
sanctioned Cuba’s state-run oil import/export company.
In 2019, Cuba adopted a new constitution that introduced
Lawsuits Related to Confiscated Property. Effective
some political and market-oriented economic reforms but
May 2, 2019, the Administration allowed the right to file
continued the state’s dominance over the economy and the
lawsuits against those trafficking in confiscated property
Communist Party’s predominant political role.
in Cuba pursuant to Title III of the Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1996 (P.L.
https://crsreports.congress.gov
Cuba: U.S. Policy Overview
104-114). Lawsuits can be brought by any U.S. national,
Terrorism Designations. In May 2020, the Secretary of
including those who were not U.S. nationals at the time
State (pursuant to Section 40A of the Arms Export
of the confiscation. Previous Administrations had
Control Act) added Cuba to the annual list of countries
suspended, at six-month intervals, the right to file such
certified as not cooperating fully with U.S. antiterrorism
lawsuits. To date, 32 lawsuits have been filed against
efforts, the first time since 2015. On January 11, 2021,
U.S. and foreign companies, including cruise ship
the Secretary designated the Cuban government a state
operators, airlines, travel booking companies, and
sponsor of international terrorism (the previous such
hotels; several lawsuits have been dismissed.
designation was rescinded in 2015). He cited Cuba’s
harboring of several U.S. fugitives since the 1970s and
Restrictions on Travel and Remittances. In June
of 10 leaders of Colombia’s National Liberation Army
2019, the Treasury Department eliminated people-to-
(a U.S.-designated foreign terrorist organization), who
people educational travel and the Commerce
had traveled to Cuba in 2017 to engage in peace talks
Department generally prohibited cruise ships, private
with the Colombian government. The new
and corporate aircraft, sailboats, and fishing boats from
determinations likely will have little effect, insomuch as
going to Cuba. The Transportation Department
the economic sanctions required by each decision are, in
suspended commercial flights to cities other than
large part, redundant to other U.S. sanctions already in
Havana in December 2019; charter flights to cities other
effect. A terrorism designation, however, requires the
than Havana in January 2020; and private charter flights
Commerce Department to place Cuba on its most
to Havana in October 2020. In September 2020,
restrictive export licensing list, which could impede
Treasury prohibited U.S. travelers from staying at over
transactions related to technology. Some sectors,
400 hotels and privately owned residences identified by
seeking to avoid any perception of sanctions violations,
the State Department as owned or controlled by the
may become more risk averse in transactions with Cuba.
Cuban government or by a prohibited government
official or PCC Party member (or close relative).
Injuries of U.S. Embassy Personnel. Between late 2016
and May 2018, 26 U.S. Embassy Havana community
On remittances, in September 2019, Treasury capped
members suffered a series of unexplained injuries ,
family remittances to $1,000 per quarter per Cuban
including hearing loss and cognitive issues. The State
national and eliminated the category of donative
Department maintains the investigation into the health
remittances. In June and September 2020, the State
injuries has not reached a conclusion regarding the cause or
Department added to its “Cuba restricted list” two
source. On December 5, 2020, the National Academies of
Cuban companies that facilitate the processing of
Sciences, Engineering, and Medicine publicly released a
remittances. In November 2020, Treasury prohibited the
report concluding the most plausible mechanism for the
processing of remittances through entities on the “Cuba
source of the health symptoms was directed pulsed radio
restricted list.” This resulted in Western Union—the
frequency energy. Some analysts and observers have raised
major financial services company used for transmitting
the possibility of Russia’s involvement.
remittances to Cuba—ceasing its operations in Cuba
until a solution can be found to keep its services open.
116th Congress Action. The 116th Congress continued to
fund Cuba democracy assistance and U.S.-government
Other Trade and Financial Sanctions. In September
sponsored broadcasting to Cuba: $20 million for democracy
2019, Treasury ended the use of U-turn transactions that
programs and $29.1 million for broadcasting in FY2019
had allowed banking institutions to process funds
(P.L. 116-6), and $20 million for democracy programs and
transfers originating and terminating outside the United
$20.973 million for broadcasting in FY2020 (P.L. 116-94,
States. In October 2019, the Commerce Department
Division G). For FY2021 (P.L. 116-260 and its explanatory
restricted Cuba’s access to leased commercial aircraft;
statement), Congress provided $20 million for democracy
reimposed a 10% de minimis rule (from 25%) requiring
programs and $12.973 million for broadcasting, and it
a third country-based company exporting goods to Cuba
allowed for the transfer of up to $7 million to support Cuba
with more than 10% U.S.-origin content to apply for a
broadcasting reform. Both P.L. 116-94 and P.L. 116-260
license; and imposed licensing requirements for
also contained numerous Cuba reporting requirements.
exporting certain donated items to organizations
controlled by the Cuban government or PCC and items
In other action, P.L. 116-94 (Division J) included benefits
for telecommunications infrastructure.
for State Department employees and dependents injured
while stationed in Cuba. The FY2021 National Defense
Targeted Human Rights Sanctions. The State
Authorization Act (P.L. 116-283, §1110) extended such
Department imposed visa restrictions on Raúl Castro in
benefits to personnel of other federal agencies. The Senate
September 2019 for human rights violations in Cuba and
approved S.Res. 454 in June 2020, calling for the
Venezuela. Further visa restrictions were imposed on
unconditional release of a Cuban democracy activist.
Cuba’s Interior Minister in November 2019 (until his
death in 2020) and Cuba’s defense minister in January
Also see CRS Report R45657, Cuba: U.S. Policy in the
2020 for human rights violations. Treasury imposed
116th Congress and Through the Trump Administration;
financial sanctions on the head of GAESA, a military
and CRS Report RL31139, Cuba: U.S. Restrictions on
holding company, in September 2020 and on the
Travel and Remittances.
Ministry of the Interior and its minister in January 2021.
Mark P. Sullivan, Specialist in Latin American Affairs
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Cuba: U.S. Policy Overview
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