U.S. Foreign Assistance to Latin America and the Caribbean: Recent Trends and FY2015 Appropriations

foreign assistance to Latin America and the Caribbean has been a cornerstone of U.S. policy in the region, with the focus and funding levels of aid programs changing over time to reflect broader U.S. policy goals. Since 1946, the United States has provided over $160 billion in assistance to the region, with funding levels fluctuating according to regional trends and U.S. policy initiatives. U.S. assistance spiked during the 1960s under President Kennedy's Alliance for Progress, and then declined in the 1970s before spiking again during the Central American conflicts of the 1980s. The current U.S. policy in the region is designed to promote economic and social opportunity, ensure citizen security, strengthen effective democratic institutions, and secure a clean energy future. As part of these efforts, the United States provides Latin American and Caribbean nations with substantial amounts of foreign assistance. The Obama Administration's FY2015 foreign aid budget request would continue the recent downward trend in assistance to the region, with a request of $1.3 billion, which is 10% below the FY2014 estimate and 27% lower than the amount provided in FY2012. The balance of U.S. assistance would shift toward development aid and away from security aid, with each of the four major U.S. security initiatives seeing cuts. Aid levels for Colombia, Haiti, and Mexico would decline, but they would continue to be the top three recipients in the region, accounting for 52% of all U.S. aid to Latin America and the Caribbean. The House and Senate Appropriations Committees reported out their respective bills in June 2014, with the House bill providing 0.6% lower total foreign aid funding than the Administration's request, and the Senate bill providing 5.3% above the request. Congressional priorities appear to differ from those of the Administration in certain respects, with both bills providing additional assistance for democracy promotion in certain countries, conservation in the Brazilian Amazon, and efforts to stem the flow of unaccompanied alien children from Central America. The House bill rejects the Administration's proposed cuts to security initiatives in the region. The current aid programs reflect the diversity of the countries in the region, with some countries receiving the full range of U.S. assistance as they continue to struggle with political, socioeconomic, and security challenges. Others, which have made major strides in democratic governance and economic and social development, no longer receive traditional U.S. development assistance but continue to receive some support for security challenges, such as combating transnational organized crime. Foreign aid continues to play an important role in advancing U.S. policy in the region, despite the progress made by some countries. The report provides an overview of U.S. assistance to Latin America and the Caribbean, examining historical and recent trends in aid to the region, as well as the Obama Administration's FY2015 request for State Department and U.S Agency for International Development (USAID)-administered assistance. The report also tracks congressional action on foreign aid appropriations for Latin America and the Caribbean in FY2015, and raises questions Congress may consider as it appropriates funding for the region. The report notes that aid figures in this report refer only to bilateral assistance that is managed by the State Department or USAID and is requested for individual countries or regional programs, and that there are several other sources of U.S. aid to the region.