Updated June 25, 2021
Cuba: U.S. Policy Overview
Since the early 1960s, when the United States imposed a
the generational change in Cuban leadership that began
trade embargo on Cuba, the centerpiece of U.S. policy
several years ago. Even if Castro is gone from the political
toward Cuba has consisted of economic sanctions aimed at
scene, the government’s slogan, Somos continuidad (We
isolating the Cuban government.
are continuity), signals that political change is unlikely.
While in power (2006-2018), Raúl Castro began to
In late 2014, the Obama Administration initiated a policy
implement significant economic policy changes, moving
shift away from sanctions and toward engagement and the
toward a more mixed economy with a stronger private
normalization of relations. Changes included the rescission
sector, but his government’s slow, gradualist approach did
of Cuba’s designation as a state sponsor of international
not produce major improvements. Cuba adopted a new
terrorism (May 2015); the restoration of diplomatic
constitution in 2019 that introduced some reforms but
relations (July 2015); and an easing of restrictions on travel,
maintained the state’s dominance over the economy and the
remittances, trade, telecommunications, and banking and
PCC’s predominant political role.
financial services (2015 and 2016), accomplished through
amendments to the Cuban Assets Control Regulations,
The Cuban economy is being hard-hit by the economic
administered by the Treasury Department, and the Export
shutdown associated with the Coronavirus Disease 2019
Administration Regulations, administered by the Commerce
(COVID-19) pandemic; Venezuela’s economic crisis,
Department. The restoration of relations led to increased
which has reduced Venezuelan financial support; and U.S.
government-to-government engagement, with over 20
economic sanctions. The Cuban government reports the
bilateral agreements and numerous dialogues.
economy contracted 11% in 2020; the Economist
Intelligence Unit projects 2.2% growth in 2021. On January
President Trump unveiled his Administration’s Cuba policy
1, 2021, Cuba eliminated its dual currency system, a major
in 2017, issuing a national security presidential
and long-debated reform. Economists maintain the currency
memorandum that introduced new sanctions, including
reform will have high costs initially (especially inflation)
restrictions on transactions with companies controlled by
but should boost productivity and development in the
the Cuban military. By 2019, the Administration had
longer term.
largely abandoned engagement; from 2019 to January 2021,
it significantly increased sanctions (see below) to pressure
Cuba’s public health response to the pandemic initially kept
the Cuban government on human rights and for its support
cases and deaths low, but both began to increase in late
of the Venezuelan government of Nicolás Maduro.
2020 and have surged in 2021. As of June 24, 2021, the
country reported 1,193 deaths and almost 173,000 cases,
The Biden Administration maintains that it is conducting a
according to Johns Hopkins University. Cuba has made
review of policy toward Cuba; currently, sanctions imposed
progress on two vaccines it has developed; as of June 24,
during the Trump Administration remain in place. During
Cuba had fully vaccinated 8.1% of its population and aims
the U.S. election campaign, Biden said he would reverse
to have 70% of the population vaccinated by August.
Trump Administration policies that harmed the Cuban
people without advancing democracy and human rights.
Cuba has a poor record on human rights, with the
The White House press s ecretary said on March 9 that
government sharply restricting freedoms of expression and
although a Cuba policy shift was not among the President’s
other basic rights. As of June 1, 2021, the human rights
top priorities, the Administration was “committed to
group Cuban Prisoners Defenders reported 150 political
making human rights a core pillar” of policy and “to
prisoners (including 76 imprisoned for reasons of
carefully reviewing policy decisions made in the prior
conscience and 39 under conditional release). Since
administration, including the decision to designate Cuba as
November 2020, the government’s crackdown on the San
a state sponsor of terrorism.” On June 23, the Biden
Isidro Movement, a civil society group opposed to
Administration opposed a U.N. General Assembly
restrictions on artistic expression, has focused international
resolution (approved by vote of 184 to 2, with 3
attention on the poor human rights situation.
abstentions) urging the United States to end its embargo on
Cuba; the Obama Administration had abstained on the
Key U.S. Sanctions Imposed Since 2017
annual resolution in 2016.
Restrictions on Transactions with the Cuban Military.
In 2017, the State Department published a list of entities
Cuban Political and Economic Developments
controlled by the Cuban military, intelligence, or security
In April 2018, Vice President Miguel Díaz-Canel succeeded
services, with which direct financial transactions would
Raúl Castro as president, and in April 2021, Díaz-Canel
disproportionately benefit those services or personnel at the
succeeded Castro as head of the Cuban Communist Party
expense of the Cuban people or private enterprise. The
(PCC) at its eighth party congress. The departure of Castro
State Department subsequently updated its “Cuba restricted
and other older leaders from the PCC’s Politburo reflects
list” several times, most recently in January 2021; the list
https://crsreports.congress.gov

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Cuba: U.S. Policy Overview
includes 231 entities and subentities (ministries, holding
Colombia’s National Liberation Army. The sanctions
companies, hotels, and various companies).
associated with the designation are, in large part, redundant
to other U.S. sanctions already in effect. Nevertheless, a
Efforts to Stop Venezuelan Oil Exports to Cuba. In
terrorism designation requires the Commerce Department to
2019, the Treasury Department imposed sanctions on
place Cuba on its most restrictive export-licensing list,
several shipping companies and vessels that transported
which could impede transactions related to technology.
Venezuelan oil to Cuba and sanctioned Cuba’s state-run oil
Some sectors, seeking to avoid any perception of sanctions
import-export company.
violations, may become more risk averse in entering into
transactions with Cuba.
Lawsuits Related to Confiscated Property. Effective May
2, 2019, then-Secretary of State Mike Pompeo allowed the
Injuries of U.S. Embassy Personnel
right to file lawsuits against those trafficking in confiscated
Between late 2016 and May 2018, 26 U.S. Embassy
property in Cuba, pursuant to Title III of the Cuban Liberty
Havana community members suffered a series of
and Democratic Solidarity (LIBERTAD) Act of 1996 (P.L.
unexplained injuries , including hearing loss and cognitive
104-114). Lawsuits can be brought by any U.S. national,
issues. The State Department maintains the investigation
including those who were not U.S. nationals at the time of
into the injuries has not reached a conclusion regarding the
the confiscation. Previous Administrations suspended, at
cause or source. In December 2020, the National
six-month intervals, the right to file such lawsuits. To date,
Academies of Sciences, Engineering, and Medicine
40 lawsuits have been filed against U.S. and foreign
released a report concluding the most plausible mechanism
companies, including cruise ship operators, airlines, travel
for the source of the health symptoms was directed pulsed
booking companies, and hotels; several lawsuits have been
radio frequency energy. Secretary of State Blinken stated at
dismissed and one reportedly is approaching settlement.
a June 8, 2021, Senate Appropriations Committee hearing
that the National Security Council was leading a
Restrictions on Travel and Remittances. In 2019, the
government-wide review on the issue. (On June 7, the
Treasury Department eliminated people-to-people
Senate passed S. 1828, which would provide additional
educational travel and the Commerce Department generally
authority to the Central Intelligence Agency and the State
prohibited cruise ships, private and corporate aircraft,
Department to provide financial support to those Americans
sailboats, and fishing boats from going to Cuba. The
serving abroad who experience traumatic brain injuries.)
Transportation Department suspended commercial flights to
cities other than Havana in 2019 and, in 2020, suspended
117th Congress: Legislative Initiatives on Cuba
charter flights to cities other than Havana and private
Congress will consider the Biden Administration’s FY2022
charter flights to Havana. In 2020, Treasury prohibited U.S.
request of $20 million for Cuba democracy and human
travelers from staying at over 400 hotels and privately
rights programming (same as appropriated annually since
owned residences identified by the State Department as
FY2014) and $12.973 million for Cuba broadcasting (same
owned or controlled by the Cuban government or by a
as appropriated in FY2021).
prohibited government official or PCC Party member (or
close relative). In 2019, Treasury capped family remittances
In April and May 2021, the Senate approved two Cuba
to $1,000 per quarter per Cuban national and eliminated the
human rights resolutions: S.Res. 37, expressing solidarity
category of donative remittances. In 2020, Treasury
with the San Isidro Movement, and S.Res. 81, honoring Las
prohibited the processing of remittances through entities on
Damas de Blanco, a woman-led nonviolent human rights
the “Cuba restricted list,” which resulted in Western Union
group.
ceasing its operations in Cuba; the company had been the
main mechanism used for transmitting remittances to Cuba.
Among bills introduced to date on Cuba, H.R. 198 would
permit Cuban nationals to play organized professional
Targeted Human Rights Sanctions. In 2019 and 2020, the
baseball in the United States; H.R. 287 and S. 689 would
State Department imposed visa restrictions on three high-
prohibit the rescission of Cuba’s designation as a state
ranking Cuban officials (Raúl Castro and the defense and
sponsor of terrorism until Cuba satisfies certain conditions;
interior ministers) and their immediate family members.
H.R. 2684 would establish a Cuban family reunification
Treasury also imposed financial sanctions on the head of
parole program; S. 249 and H.R. 3625 would lift economic
GAESA, a military holding company, in 2020, and on the
sanctions and would call for negotiations with Cuba on
interior ministry and minister in January 2021.
property claims and human rights; S. 1694 would lift
restrictions on trade; and S. 2138 would reestablish a
Terrorism Designations. In May 2020, then-Secretary of
program to allow the admission into the United States of
State Pompeo (pursuant to Section 40A of the Arms Export
certain Cuban medical personnel working in third countries.
Control Act) included Cuba in the annual list of countries
certified as not cooperating fully with U.S. antiterrorism
Also see CRS Report R45657, Cuba: U.S. Policy in the
efforts, the first time since 2015. In May 2021, Secretary of
116th Congress and Through the Trump Administration;
State Antony Blinken also included Cuba on the annual list.
and CRS Report RL31139, Cuba: U.S. Restrictions on
Travel and Remittances.
On January 11, 2021, Pompeo designated the Cuban
government as a state sponsor of international terrorism (the
Mark P. Sullivan, Specialist in Latin American Affairs
previous such designation was rescinded in 2015), citing
Cuba’s harboring of several U.S. fugitives and members of
IF10045
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Cuba: U.S. Policy Overview


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https://crsreports.congress.gov | IF10045 · VERSION 87 · UPDATED

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