U.S. Foreign Assistance to Latin America and the Caribbean: Trends and FY2017 Appropriations

Summary

Geographic proximity has forged strong linkages between the United States and the nations of Latin America and the Caribbean, with U.S. interests encompassing economic, political, and security concerns. U.S. policymakers have emphasized different strategic interests in the region at different times, from combating Soviet influence during the Cold War to advancing democracy and open markets since the 1990s. Current U.S. policy toward the region chiefly seeks to strengthen democratic governance, defend human rights, improve citizen security, enhance social inclusion and economic prosperity, and foster clean energy development and resiliency to climate change. The United States provides foreign assistance to the region to advance these priorities.

Assistance Trends

Since 1946, the United States has provided nearly $165 billion of assistance to the region in constant 2014 dollars (or more than $79 billion in historical, non-inflation-adjusted dollars). Funding levels have fluctuated over time, however, according to regional trends and U.S. policy initiatives. U.S. assistance spiked during the 1960s under President John F. Kennedy’s Alliance for Progress and then declined in the 1970s before spiking again during the Central American conflicts of the 1980s. After another decline during the 1990s, assistance remained on a generally upward trajectory through the first decade of this century. Aid appropriations for the region declined in each of the four fiscal years between FY2011 and FY2014 before increasingly slightly in FY2015 and FY2016.

FY2017 Request

The Administration’s FY2017 foreign aid request would provide $1.7 billion to the region through the State Department and the U.S. Agency for International Development (USAID). Although the overall amount of aid would remain relatively flat compared to FY2016, the allocation of assistance within the region would change in several ways. The request would provide additional development assistance to Central American nations to address the root causes of emigration from the subregion. The request also would increase assistance for Colombia to help end its internal conflict. Conversely, the request would reduce funding for U.S. security initiatives in Mexico, Central America, and the Caribbean.

Legislative Developments

On September 29, 2016, President Obama signed into law a continuing resolution (P.L. 114-223) that funds most foreign aid programs and activities at the FY2016 level, minus an across-the-board reduction of 0.496%, until December 9, 2016. The measure also includes $145.5 million in supplemental FY2016 appropriations for global health assistance to address the Zika virus outbreak. The percentage of those funds that would be allocated to Latin America and the Caribbean remains unclear.

As Congress considers appropriations for the remainder of FY2017, it may draw from the Department of State, Foreign Operations, and Related Programs appropriations measures that were reported out of the Senate and House Appropriations Committees—S. 3117, reported out on June 29, 2016, and H.R. 5912, reported out on July 15, 2016. Whereas S. 3117 includes 0.09% less funding than the Administration requested for bilateral economic assistance and international security assistance globally, H.R. 5912 includes 3.5% more funding than the Administration requested for such programs. The total amount of assistance the measures would provide to Latin America and the Caribbean is unclear because the bills and their accompanying reports (S.Rept. 114-290 and H.Rept. 114-693) do not specify appropriations levels for every country and program. Nevertheless, congressional priorities appear to differ from Administration priorities in several respects:

S. 3117 would provide up to $650.6 million to implement the U.S. Strategy for Engagement in Central America, which is about $100 million less than requested; H.R. 5912 would provide $750 million.

S. 3117 would fully fund the request of $391.3 million for Colombia, whereas H.R. 5912 would provide at least $300.1 million for Colombia, with the potential for the total to increase to $491.2 million.

S. 3117 would provide no more than $183.2 million for Haiti, which is $35 million less than requested. H.R. 5912 does not specify a funding level for Haiti.

S. 3117 would fully fund the Administration’s $134.7 million request for Mexico, whereas H.R. 5912 would provide an additional $24 million for security programs in Mexico.