Updated November 23, 2022
Latin America and the Caribbean: U.S. Policy Overview
The United States and neighboring Latin America and the
ahead of the country’s 2021 elections, in which Ortega
Caribbean (LAC) maintain strong linkages based on
claimed victory, and has continued repressing political
geographic proximity and diverse U.S. interests, including
opponents. In Cuba, the government responded to
economic, political, and security concerns. The United
widespread anti-government protests in July 2021 with
States is a major trading partner and source of foreign
arrests and harsh sentences for hundreds of protestors.
investment for many of the 33 countries in LAC, with free-
The region’s economic decline, along with difficult security
trade agreements enhancing economic linkages with 11
and political conditions, also has fueled irregular migration
countries. The region is a large source of U.S. immigration,
to the United States. In FY2022, Southwest border
both authorized and irregular; major factors driving
enforcement encounters (apprehensions and expulsions)
migration include proximity, economic and security
reached almost 2.4 million, the highest level ever, with the
conditions, natural disasters, and familial ties. Curbing the
largest number of migrant encounters from Mexico, Cuba,
flow of illicit drugs has been a long-standing component of
Guatemala, Honduras, Venezuela, and Nicaragua.
relations, involving close cooperation with Mexico,
Colombia, Central America, and the Caribbean. U.S.
Biden Administration Policy
Administrations have long supported democracy and human
In its first year, the Biden Administration focused
rights in the region, with a current focus on Cuba,
extensively on addressing the root causes of Central
Nicaragua, and Venezuela—all ruled by authoritarian
American migration. President Biden revised some of the
governments repressing the political opposition—and on
Trump Administration’s restrictive immigration policies,
democratic backsliding and corruption in other countries.
while contending with a large increase in the number of
Increasing Challenges in the Region
undocumented Central American and other migrants
seeking to enter the United States. In July 2021, the
Beginning in 2020, the Coronavirus Disease 2019 (COVID-
Administration released two new strategies to address the
19) pandemic had widespread public health, economic,
underlying causes that push Central Americans to migrate
social, and political effects throughout LAC. From the start
and to manage migration in the region collaboratively. The
of the pandemic to November 2022, LAC countries
Administration also has imposed targeted sanctions for
reported more than 1.7 million COVID-19 deaths,
corruption against dozens of current and former officials of
according to data from Johns Hopkins University. The
the governments of Central America’s Northern Triangle
region reported over 26% of deaths worldwide despite the
region accounting for about 8.4% of the world’s population.
countries (El Salvador, Guatemala, and Honduras).

As of November 2022, over 70% of the region’s population
The Administration also has fleshed out its broader
had been fully vaccinated although five Caribbean countries
approach toward the region. In October 2022, the
had fully vaccinated less than 40% of their populations.
Administration issued its National Security Strategy, which
laid out three broad U.S. priorities for the Western
Countries throughout the region suffered sharp recessions
Hemisphere—expanding economic opportunities,
in 2020 and increases in poverty. The International
strengthening democracy, and building security—that
Monetary Fund (IMF) reported a 7.0% economic
reflect long-standing continuity with U.S. policy for the
contraction for the region in 2020. Most LAC countries
region. In its strategy, the Biden Administration
began to recover economically in 2021 and 2022 but are
acknowledged the considerable challenges confronting the
still contending with the lingering effects of the pandemic,
China’s economic slowdown, and increases in global fuel
Western Hemisphere, remarking that the COVID-19
pandemic and resultant recession exacerbated long-standing
and food prices due to Russia’s invasion of Ukraine.
structural challenges, fueled political and social unrest,
Difficult economic times have contributed to increased
undermined faith in democracy’s ability to deliver, and
social protests in some countries and fueled an anti-
spurred unprecedented levels of irregular migration. It
incumbent electoral trend. IMF projections show the
region’s economic
noted challenges posed by increased geopolitical and
growth rate slowing in 2023 to below
economic volatility and climate change.
global growth prospects.
The Administration vowed to confront these challenges and
The region faces several ongoing political challenges. In
advance its policy priorities in the region through regular
Venezuela, the political and humanitarian crisis under the
interaction and engagement, multilateral and institutional
government of Nicolás Maduro has resulted in over 7
collaboration, and regional initiatives. Illustrative of this
million migrants since 2015. Haiti remains in turmoil after
engagement was the June 2022 Ninth Summit of the
the July 2021 assassination of President Jovenel Moïse,
Americas hosted by the Administration in Los Angeles,
contending with surges in gang violence, uncertainty over
CA, at which President Biden met with heads of
future elections, the aftermath of a severe 2021 earthquake,
government or representatives from 30 LAC countries and
and a new cholera outbreak in October 2022. In Nicaragua,
Canada. The nations approved political commitments
President Daniel Ortega’s government escalated repression
https://crsreports.congress.gov

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Latin America and the Caribbean: U.S. Policy Overview
related to health, climate change, clean energy, digital
Although the measure did not specify total funding for
transformation, and democratic governance.
LAC, its explanatory statement included funding directives
for several key countries (Colombia, Haiti, Mexico,
The Biden Administration also announced several new
Venezuela) and regional programs for the Caribbean and
regional policy initiatives at the June 2022 summit. These
Central America; ultimately the State Department allocated
included new aid commitments to advance food security; a
over $2 billion in assistance for the region, a 13% increase
partnership with the Pan American Health Organization to
from FY2021. P.L. 117-103 also included, as Division V,
establish an Americas Health Corps that would provide
the Haiti Development, Accountability, and Institutional
training throughout the region; a new U.S.-Caribbean
Transparency Initiative Act, to promote the sustainable
Partnership to Address the Climate Crisis 2030 (PACC
rebuilding and development of Haiti and the prioritization
2030) aimed at supporting climate adaptation, strengthening
of U.S. support for anti-corruption efforts and human rights.
energy security, and building resilience for critical
infrastructure and local economies; and a new initiative, the
Both houses approved several resolutions, including H.Res.
Americas Partnership for Economic Prosperity, aimed at
760, S.Res. 37, S.Res. 81, S.Res. 310, and S.Res. 489 on
mobilizing increased investment, making supply chains
the human rights situation in Cuba; S.Res. 22 on relations
more resilient, creating clean energy jobs and energy, and
with Ecuador; S.Res. 120 on the Summit of the Americas;
ensuring sustainable and inclusive trade. The United States
H.Res. 1168 on prioritizing trade programs with the
also joined with 20 other hemispheric countries to endorse
Caribbean region; and S.Res. 753 on Brazil’s presidential
the Los Angeles Declaration for Migration and Protection,
election.
which seeks to mobilize the region around actions to create
conditions for safe, orderly, humane, and regular migration,
Pending action includes completion of FY2023 foreign aid
and to strengthen frameworks for international protection
appropriations (House Appropriations Committee-reported
and cooperation.
H.R. 8282 and Senate-introduced S. 4662) and the National
Defense Authorization Act for FY2023 (House-passed H.R.
Policy analysts offered mixed assessments of the summit.
7900 and Senate Armed Services Committee-reported S.
Some asserted that U.S. initiatives were modest and not
4543.) Both of these measures may include various LAC
fully developed, whereas others emphasized that the
provisions, including funding, aid conditions, and reporting
summit prompted pragmatic steps on shared challenges that
requirements.
could portend stronger collaboration on such key issues as
health, migration, climate change, and economic recovery.
In other action, both houses approved bills aimed at
On other political challenges, the Administration has
positioning the United States to better compete with China
imposed new sanctions on Cuba and Nicaragua as their
that included numerous LAC provisions. In June 2021, the
governments have become more repressive, and has
Senate approved S. 1260, the United States Innovation and
continued to pressure the Maduro government in Venezuela
Competition Act of 2021, and in February 2022, the House
through sanctions to resume negotiations with the
approved H.R. 4521, the America COMPETES Act of
opposition. On Haiti, the Administration is working to
2022. The Senate approved H.R. 4521 in March 2022,
support conditions for free and fair elections, including
substituting the language of S. 1260, and the measure went
support to restore security and address gang violence and
to conference. Ultimately, many provisions, including those
thereby permit the unimpeded flow of humanitarian aid.
on LAC, were not included in a different legislative vehicle
signed into law in August 2022 (P.L. 117-167). Among
Legislative Action in the 117th Congress
other provisions, both House and Senate versions of H.R.
Congress traditionally has played an active role in policy
4521 would have required a strategy to strengthen U.S.
toward LAC in terms of both legislation and oversight.
economic competitiveness and promote good governance,
Since 2020, Congress has appropriated some $17 billion in
human rights, and the rule of law in LAC; required a report
international affairs funding to respond to COVID-19
assessing China’s engagement in international
globally. In the 117th Congress, this funding included $10.8
organizations and the defense sector in LAC; and supported
billion appropriated in the American Rescue Plan Act of
U.S. defense cooperation in LAC.
2021 (P.L. 117-2), enacted in March 2021. This supported
over $539 million in U.S. Agency for International
Also see CRS Report R46781, Latin America and the
Development funding and almost 70 million COVID-19
Caribbean: U.S. Policy and Key Issues in the 117th
vaccine doses for the region.
Congress; CRS Report R47028, U.S. Foreign Assistance to
Latin America and the Caribbean: FY2022 Appropriations;
In other action in 2021, Congress approved the Reinforcing
Nicaragua’s Adherence to Conditions for Electoral R
CRS In Focus IF11581, Latin America and the Caribbean:
eform
Impact of COVID-19; CRS In Focus IF10982, China’s
Act of 2021 (RENACER Act; P.L. 117-54) in November,
Engagement with Latin America and the Caribbean; and
which directs the Administration to use diplomatic tools
CRS Insight IN11934, 2022 Summit of the Americas; CRS
and targeted sanctions against antidemocratic actions and
Report R47230, Organization of American States: In Brief;
corruption. In December 2021, Congress approved the
and CRS In Focus IF12031, Anti-corruption Efforts in Latin
National Defense Authorization Act for Fiscal Year 2022
America and the Caribbean.
(P.L. 117-81), with provisions on Colombia, Central
America, and China’s presence and influence in LAC.
Mark P. Sullivan, Specialist in Latin American Affairs
In March 2022, Congress completed action on the FY2022
foreign aid appropriations bill, included as Division K of
IF10460
the Consolidated Appropriations Act (P.L. 117-103).
https://crsreports.congress.gov

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Latin America and the Caribbean: U.S. Policy Overview


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https://crsreports.congress.gov | IF10460 · VERSION 31 · UPDATED

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