Joe Biden’s priorities for U.S. foreign aid to Latin America and the Caribbean in the 2025 budget he inherited from Donald Trump focused on migration, combating drug trafficking, and supporting stability in countries like Colombia and Haiti.
This is outlined in a report from the Congressional Research Service (CRS) that compares the requested allocations with figures from previous years. It also examines legislative proposals from Congress, highlighting differences in the House of Representatives and Senate regarding funding levels and conditions for aid.
The legislative analysis provides a historical perspective on U.S. assistance in the region and considers options for Congress in shaping foreign aid policy.
Biden’s Requests and Priorities for 2025
U.S. assistance programs in the region have evolved over time, shifting from Soviet containment during the Cold War to promoting democracy, open markets, and fighting drug trafficking since the 1990s.
Biden’s priorities for the fiscal year 2025 included addressing root causes of migration, anti-drug efforts, implementing the peace agreement in Colombia, strengthening security and the rule of law in Mexico, stabilizing Haiti, focusing on Caribbean security, and responding to crises in Venezuela.
In this context, he requested $2.2 billion for the region, representing a 7.9% increase from 2023, emphasizing regional initiatives and bilateral assistance for Colombia, Haiti, Mexico, and Venezuela, which together account for almost 75% of total requested funding.
As of the report’s date, Congress had not finalized the allocations for 2025, and both the House and Senate proposed modifications to the administration’s request that included variations in funding levels and the imposition of specific conditions.
Historical Evolution of U.S. Assistance to the Region
U.S. foreign assistance to Latin America and the Caribbean spans 80 years. Between 1946 and 2022, the United States provided a total of $104.0 billion.
Cold War (1960s-1980s):
Assistance surged in the early 1960s with Kennedy’s “Alliance for Progress,” aiming to “counter Soviet and Cuban influence.” In the 80s, support shifted to Central American governments “fighting leftist insurgencies to prevent potential Soviet allies from establishing political or military footholds in the region.”
Post-Cold War (1990s):
Aid flows declined following the dissolution of the Soviet Union and the end of civil conflicts in Central America.
Late 90s to 2010:
Assistance began to rise again, driven by:
a) Humanitarian and development aid:
Reconstruction after Hurricane Mitch (1998), establishment of the President’s Emergency Plan for AIDS Relief (PEPFAR, 2003), and the Millennium Challenge Corporation (MCC, 2004). A “spike in assistance to Haiti following the massive earthquake in 2010.”
Anti-drug and Security:
Significant increases in funding for Colombia and its Andean neighbors through the “Plan Colombia” and the Mérida Initiative (2008) for Mexico and Central America.
Last 15 Years (2010 Onward):
Priorities shifted in response to developmental advances and subsequent setbacks.
a) Deteriorating conditions:
By around 2015, socioeconomic conditions stagnated. The COVID-19 pandemic in 2020 “wiped out over a decade of development gains.”
b) Political deterioration:
Emergence of authoritarian governments (Venezuela, Nicaragua), instability in Haiti, and erosion of democracy due to corruption and violence.
Migration crisis:
These challenges have “contributed to large-scale migration flows throughout Latin America and the Caribbean and challenges at the U.S. southwest border.”
2025 Budget Request and Legislative Developments
The Biden administration requested $2.2 billion in foreign assistance for Latin America and the Caribbean for fiscal year 2025, managed by the State Department and USAID. This represents an increase of $161.9 million (7.9%) from 2023. In addition, $52.0 million was requested for the Inter-American Foundation (IAF).
Main Funding Priorities for 2025
Regional initiatives in Central Amercia and the Caribbean.
Bilateral assistance for Colombia, Haiti, Mexico, and Venezuela.
These priorities account for nearly 75% of the total foreign assistance requested.
As of January 14, 2025, Congress had not finalized action on the 2025 SFOPS allocations. Continuing resolutions were approved that fund foreign aid programs in the region at the same rate and under the same conditions and authorities as in 2024 until March 14, 2025.
Congressional Priorities for U.S. Assistance
The H.R. 8771 bill (House of Representatives) prioritizes funding for countries and programs that “combat fentanyl and other narcotics,” “respect democratic norms, constitutional order, and human rights,” “cooperate in combating regional and global authoritarian threats,” and “demonstrate commitment and progress in addressing large-scale migration and human trafficking from or through the Western Hemisphere.”
Meanwhile, the S. 4797 bill (Senate) prioritizes programs that “address violence, economic insecurity, inequality, corruption, and other factors contributing to irregular migration,” “protect the rights of indigenous peoples and support civil society and other independent institutions,” “promote democracy, constitutional order, and human rights,” and “combat fentanyl and other narcotics.”
Main Foreign Assistance Accounts
The majority of the requested funds (68.2%) are for economic and development assistance programs, while the remaining 31.8% is allocated for military and civil security programs.
Development Assistance (DA):
Requested $672.5 million (30.5% of the total). Aimed at “promoting broad-based economic growth and social welfare in low- and middle-income countries.” A proposed increase of 1.3% for the region. Significant decrease for Honduras, offset by increases for integrating Venezuelan migrants into other South American countries.
House legislation: would allocate 33.8% less globally.
Senate legislation: would allocate 8.4% less globally.
Economic Support Fund (ESF):
Requested $523.5 million (23.7% of the total). Seeks to “promote U.S. political, economic, or security interests.” Proposed increase of 10.8% for the region, primarily to “support migration management throughout Latin America and the Caribbean.” An additional $100 million was requested globally as a contribution to Brazil’s Amazon Fund.
House legislation: would allocate 16.6% less globally.
Senate legislation: would allocate 0.7% less globally.
Global Health Programs (GHP):
Requested $309.0 million (14.0% of the total). Includes $190.0 million (State Department) for “preventing and treating HIV/AIDS” and $119.0 million (USAID) for “combating malaria; supporting maternal and child health programs, nutrition and family planning; and advancing global health security activities.”
House legislation: would allocate 3.3% less (State) and 9.2% less (USAID) globally.
Senate legislation: would allocate 0.2% more (State) and 4.0% less (USAID) globally.
International Narcotics Control and Law Enforcement (INCLE):
Requested $584.9 million (26.5% of the total). For “anti-narcotics programs, civilian law enforcement efforts, and projects aimed at strengthening judicial institutions.” A 24.4% increase for the region, with a “significant increase for Haiti aimed at strengthening the Haitian National Police’s capacity, combating gang influence, and supporting the Multinational Security Support mission authorized by the UN and led by Kenya.”
House legislation: would allocate 31.9% more globally.
Senate legislation: would allocate 10.6% less globally.
Nonproliferation, Anti-terrorism, De-mining, and Related Programs (NADR):
Requested $30.1 million (1.4% of the total). For “humanitarian demining programs, management of conventional weapon stockpiles, strategic trade controls, and border security measures, and improving counter-terrorism capacities.” A 26.8% decrease for the region, mainly because “the Colombian government gradually assumes responsibility for demining efforts previously funded by U.S. assistance.”
International Military Education and Training (IMET):
Requested $16.2 million (0.7% of the total). For “training Latin American and Caribbean military and civil security personnel.” A 29.5% increase for the region.
Foreign Military Financing (FMF):
Requested $69.0 million (3.1% of the total). For “providing U.S. military equipment and services to Colombia and other regional partners.” Same funding level as FY2023.
Migration and Refugee Assistance (MRA):
The administration requested $475.0 million for overseas assistance in the Western Hemisphere. The primary priority is “supporting the basic needs and economic and social integration of nearly 6.6 million Venezuelan migrants and refugees.” This includes support for the Safe Mobility Initiative (SMO) to reduce irregular migration.
House legislation: would allocate nearly 49.0% less globally for MRA. Would prohibit funds for SMOs “unless expressly authorized by a subsequent law of Congress.”
Senate legislation: would allocate 5.3% more globally for MRA.
Main Regional and Country Initiatives
The Biden administration’s request prioritized regional initiatives and bilateral assistance for Colombia, Haiti, Mexico, and Venezuela, which account for almost 75% of the total.
Caribbean Basin Security Initiative (CBSI):
Requested FY2025: $81.0 million (a decrease of 1.2% from FY2023).
H.R. 8771 (House): “No less than” $97.5 million (20.3% more than the request), prioritizing drug transit countries affected by the crisis in Haiti.
S. 4797 (Senate): “No less than” $88.0 million (8.6% more than the request).
Central America (strategy to address root causes of migration):
Requested FY2025: $632.6 million (a decrease of 5.7% from FY2023). Includes funds for El Salvador, Guatemala, Honduras, CARSI, and other regional programs.
H.R. 8771 (House): Would impose conditions retaining 60% of assistance for central governments of the Northern Triangle until conditions related to transnational crime cooperation, migration, corruption, and rule of law are met.
S. 4797 (Senate): Would prohibit FMF for Northern Triangle countries (except humanitarian/disaster assistance). Retention of 60% of ESF and international security assistance, with new conditions requiring consultation with human rights and civil society groups.
Colombia:
Requested FY2025: $413.3 million (a decrease of 8.8% from FY2023). Supports anti-narcotics efforts, the 2016 peace agreement, the integration of Venezuelan migrants, and environmental programs.
H.R. 8771 (House): Would designate $208.5 million (49.6% less than the request). Would express “deep concern over harmful policies and relations” of the Petro administration, reducing DA, ESF, and INCLE funds by 50% compared to FY2024. Would impose restrictions and conditions on reparation/compensation payments and require certifications on coca cultivation reduction and anti-narcotics cooperation.
S. 4797 (Senate): “No less than” $380.0 million (8.1% less than the request). Would allocate funds for rural security, biodiversity, and human rights. Would impose conditions on reparation/compensation payments and require certifications on anti-narcotics policies and human rights.
Haiti:
Requested FY2025: $356.7 million (an increase of 54.5% from FY2023). Primarily to strengthen the Haitian National Police and support the Multinational Security Support mission.
H.R. 8771 (House): Would retain aid to the Haitian central government until it is certified that elections have been scheduled or held, and that assistance is in the national interest of the U.S., with exceptions for democracy, security, humanitarian aid, and basic needs.
S. 4797 (Senate): Would prohibit the use of assistance for Haitian armed forces and the use of Stabilization and Prevention Fund resources for Haiti.
Mexico:
Requested FY2025: $109.7 million (an increase of 4.9% from FY2023). To combat fentanyl trafficking, strengthen the rule of law, improve border and migration management, and advance environmental goals.
H.R. 8771 (House): “No less than” $175.0 million in global ESF and INCLE for “countering the flow of fentanyl, fentanyl precursors, and other synthetic drugs into the United States,” including in Mexico. Would retain funds until an agreement on water deliveries is reached and would require certifications on fentanyl reduction, dismantling criminal organizations, and anti-narcotics cooperation.
S. 4797 (Senate): “No less than” $170.0 million in global ESF and INCLE for “countering the flow of fentanyl, fentanyl precursors, and other synthetic drugs into the United States,” including in Mexico. Would retain security assistance until the Mexican government takes steps to reduce fentanyl and cooperates in fighting organized crime.
Venezuela:
Requested FY2025: $53.8 million ($50.0 million for democracy assistance and $3.8 million for GHP). A reduction of 6.3% from FY2023.
H.R. 8771 (House): Would withhold 50% of funds for electoral programs until it is certified that the 2024 elections allowed voting by the diaspora, credible international observation, and participation of opposition candidates.
S. 4797 (Senate): Would fulfill the request of $50 million for democracy programs without imposing conditions.
Inter-American Foundation (IAF)
Requested FY2025: $52.0 million.
H.R. 8771 (House): Would allocate $22.5 million (56.7% less than the request), encouraging the IAF to leverage resources in countries with less USAID presence and in the Caribbean.
S. 4797 (Senate): Would fully fund the request of $52.0 million.
Options for Congress
Congress has several avenues to influence U.S. foreign assistance policy in the region:
Allocations:
Finalize the FY2025 allocations, pass another continuing resolution, or a long-term continuing resolution. This may alter funding priorities, directives, and reporting requirements.
Authorizations:
Consider authorizing legislation for specific aid programs or initiatives, or establish long-term sectoral priorities.
Oversight:
Evaluate and supervise U.S. assistance programs in the region and the executive agencies that administer them through hearings and research missions. This includes reports on fentanyl trafficking in Mexico, alignment of Colombian policies with U.S. interests, destabilization in Haiti, and resilience against natural disasters.