Trump Administration's FY2018 Foreign Assistance Request6

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 USAID in FY2018, which would have been $617 million, or 36%, less than the $1.7 billion of assistance provided to the region in FY2017 (see Table 1 ). The Administration also proposed the elimination of the Inter-American Foundation, a small, independent U.S. foreign assistance agency that promotes grassroots development in Latin America and the Caribbean. Colombia has received significant amounts of U.S. assistance to support counternarcotics and counterterrorism efforts since FY2000. Legislative Developments

On March 23, 2018, President Trump signed into law the Consolidated Appropriations Act, 2018 ( P.L. 115-141 ). The Consolidated Appropriations Act, 2018, provides $39.9 billion for foreign operations globally, which is a 4.2% cut compared to FY2017. It is currently unclear how much assistance will be provided to Latin America and the Caribbean, since the legislation and the accompanying explanatory statement do not specify aid levels for every country. 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 (see Table 4 ). The act appropriates "up to" $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 $84.7 million less than was allocated to the initiative in FY2017. The act appropriates "not less than" $391.3 to support security and development efforts and the implementation of the peace accord in Colombia. This is $139.9 million more than the Administration requested and $5 million more than Colombia received in FY2017. According to the explanatory statement, the act appropriates $152.7 million for Mexico, which is $65 million more than the Administration requested and $14.1 million more than Mexico received in FY2017. The act appropriates $15 million for programs to promote democracy and the rule of law in Venezuela. Implications for U.S. Policy

The Trump Administration's desire to scale back U.S. foreign assistance could have significant implications for U.S. policy in Latin America and the Caribbean in the coming years. In particular, it could accelerate U.S. efforts to transition countries in the region away from traditional development assistance and toward other forms of bilateral engagement. It also could result in the Department of Defense (DOD) taking on a larger role in U.S. security cooperation with the region. Moreover, the Administration's proposed foreign assistance cuts, combined with other policy shifts, could contribute to a relative decline in U.S. influence. Influence

Although the relative importance of foreign aid in U.S. relations with the nations of Latin America and the Caribbean has declined since the end of the Cold War, the U.S. government continues to use assistance to advance key policy initiatives in the region.
The United States provides foreign assistance to the nations of Latin America and the Caribbean to support development and other U.S. 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.
FY2018 Request
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). That 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.
Legislative Developments
On March 23, 2018, nearly six months after the start of FY2018, 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 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. 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.