U.S. Foreign Assistance to Latin America and the Caribbean: FY2018 Appropriations

objectives. U.S. policymakers have emphasized different strategic interests in the region at different times, from combating Soviet influence during the Cold War to promoting democracy and open markets since the 1990s. Over the past year, the Trump Administration has sought to reduce foreign aid significantly and refocus U.S. assistance efforts in the region to address U.S. domestic concerns, such as irregular migration and transnational crime. For FY2018, the Trump Administration requested $1.1 billion to be provided to Latin America and the Caribbean through foreign assistance accounts managed by the State Department and the U.S. Agency for International Development (USAID). This would have been $617 million, or 36%, less than the $1.7 billion of U.S. assistance the region received in FY2017. The proposal would have cut funding for nearly every type of assistance and would have reduced aid for every Latin American and Caribbean nation. The Trump Administration also proposed the elimination of the Inter-American Foundation, a small, independent U.S. foreign assistance agency that promotes grassroots development in the region. The Administration's efforts to scale back U.S. assistance could have significant implications for U.S. policy in Latin America and the Caribbean. Faced with potential cuts, U.S. agencies could accelerate efforts to transition countries in the region away from traditional development assistance and toward other forms of bilateral engagement. Reductions in State Department-managed security assistance could lead to the Department of Defense taking on a larger role in U.S. security cooperation. Moreover, reductions in foreign aid, combined with other policy shifts, could contribute to a relative decline in U.S. influence in the region. On March 23, 2018, President Trump signed into law the Consolidated Appropriations Act, 2018 (P.L. 115-141). The act provided $39.9 billion for foreign operations globally, a 4.2% cut compared to FY2017. The total amount of foreign assistance Congress appropriated for Latin America and the Caribbean is unclear since the legislation and the accompanying explanatory statement do not specify aid levels for every Latin American and Caribbean nation. Nevertheless, the amounts designated in the act for several significant initiatives indicate that total funding for the region will exceed the Administration's request and may approach FY2017 levels. The act provides $615 million to continue implementation of the U.S. Strategy for Engagement in Central America, which is $155 million more than the Administration requested but $85 million less than was allocated to the initiative in FY2017. The act also provides more than $391 million to support the peace process and security and development efforts in Colombia, which is $140 million more than requested and $5 million more than Colombia received in FY2017. Additionally, the act provides nearly $153 million to support security and rule-of-law efforts in Mexico, which is $65 million more than requested and $14 million more than Mexico received in FY2017.