These countries are struggling with widespread insecurity, fragile political and judicial systems, and high levels of poverty and unemployment. The Obama Administration determined that it was "in the national security interests of the United States" to work with Central American governments to improve security, strengthen governance, and promote economic prosperity in the region. Congress has appropriated an estimated $2.1 billion in aid for the region since FY2016 but has required the Northern Triangle governments to address a series of concerns prior to receiving U.S. support. Although the updated strategy maintains the objectives that were adopted during the Obama Administration, the Trump Administration's policy toward Central America places more emphasis on preventing illegal immigration, combating transnational crime, and generating export and investment opportunities for U.S. businesses. assistance to Central America. The U.S. Strategy for Engagement in Central America is intended to take a broader, more comprehensive approach than previous U.S. initiatives in the region. Whereas other U.S. efforts over the past 20 years generally emphasized a single objective, such as economic growth or crime reduction, the current strategy is based on the premise that prosperity, security, and governance are "mutually reinforcing and of equal importance." Congressional Funding

Congress has appropriated an estimated $2.1 billion for efforts under the U.S. Strategy for Engagement in Central America. This figure includes $754 million in FY2016, nearly $700 million in FY2017, and an estimated $627 million in FY2018 (see Table 5 and the Appendix ). Congress has placed strict conditions on aid to those three countries, however, requiring the Northern Triangle governments to address a range of concerns to receive assistance (see " Conditions on Assistance ," below). Due to those legislative requirements, delays in the budget process, and congressional holds, assistance has been slow to arrive in the region. 115-245 and P.L. The act also stipulated that another 50% of the "assistance for the central governments of El Salvador, Guatemala, and Honduras" could not be obligated until the Secretary of State certified the each government was
working cooperatively with an autonomous, publicly accountable entity to provide oversight of the Plan of the Alliance for Prosperity in the Northern Triangle in Central America; combating corruption, including investigating and prosecuting current and former government officials credibly alleged to be corrupt; implementing reforms, policies, and programs to improve transparency and strengthen public institutions, including increasing the capacity and independence of the judiciary and the Office of the Attorney General; implementing a policy to ensure that local communities, civil society organizations (including indigenous and other marginalized groups), and local governments are consulted in the design, and participate in the implementation and evaluation of, activities of the [Alliance for Prosperity] that affect such communities, organizations, and governments; countering the activities of criminal gangs, drug traffickers, and organized crime; investigating and prosecuting in the civilian justice system government personnel, including military and police personnel, who are credibly alleged to have violated human rights, and ensuring that such personnel are cooperating in such cases; cooperating with commissions against corruption and impunity and with regional human rights entities; supporting programs to reduce poverty, expand education and vocational training for at-risk youth, create jobs, and promote equitable economic growth, particularly in areas contributing to large numbers of migrants; implementing a plan that includes goals, benchmarks, and timelines to create a professional, accountable civilian police force and end the role of the military in internal policing, and make such plan available to the Department of State; protecting the right of political opposition parties, journalists, trade unionists, human rights defenders, and other civil society activists to operate without interference; increasing government revenues, including by implementing tax reforms and strengthening customs agencies; and resolving commercial disputes, including the confiscation of real property, between United States entities and such government. Policy Issues for Congress

Congress may examine a number of policy issues as it deliberates on potential changes to the U.S. Strategy for Engagement in Central America and future appropriations for the initiative. These issues include the funding levels and strategy necessary to meet U.S. objectives in the region, the extent to which Central American governments are demonstrating the political will to undertake domestic reforms, the utility of the conditions placed on assistance to Central America, and the potential implications of changes to U.S. immigration, trade, and drug control policies for U.S. objectives in the region. Strategy and Funding Levels

U.S. policymakers have begun to reassess the U.S. Strategy for Engagement in Central America. The Consolidated Appropriations Act, 2017 ( P.L. The Trump Administration also has sought to reduce funding for U.S. foreign aid programs in Central America and shift the balance of the remaining assistance toward security efforts. The Consolidated Appropriations Act, 2018 ( P.L.
Central America has received renewed attention from U.S. policymakers over the past few years as the region has become a major transit corridor for illicit drugs and has surpassed Mexico as the largest source of irregular migration to the United States. These narcotics and migrant flows are the latest symptoms of deep-rooted challenges in several countries in the region, including widespread insecurity, fragile political and judicial systems, and high levels of poverty and unemployment. The U.S. government and partners in the region have begun to implement new initiatives intended to address those challenges, but living conditions in Central America have yet to improve significantly.
U.S. Strategy for Engagement in Central America
The Obama Administration determined it was in the national security interests of the United States to work with Central American governments to address their challenges. With congressional support, it launched a new U.S. Strategy for Engagement in Central America and significantly increased aid to the region. The strategy takes a broader, more comprehensive approach than previous U.S. initiatives in Central America and is based on the premise that efforts to promote prosperity, improve security, and strengthen governance are mutually reinforcing and of equal importance. The strategy focuses primarily on the "Northern Triangle" countries of Central America (El Salvador, Guatemala, and Honduras), which face the greatest challenges and are carrying out complementary efforts under their Alliance for Prosperity initiative. It also provides an overarching framework for U.S. engagement with the other countries in the region: Belize, Costa Rica, Nicaragua, and Panama.
The Trump Administration has maintained the U.S. Strategy for Engagement in Central America but has adjusted the initiative to place more emphasis on preventing illegal immigration, combating transnational crime, and generating export and investment opportunities for U.S. businesses. The Administration also has sought to scale back U.S. assistance to Central America, but Congress has rejected the majority of the proposed reductions.
Funding and Conditions
Congress has appropriated nearly $2.1 billion for the Central America strategy since FY2016. This figure includes $754 million appropriated in FY2016, $700 million appropriated in FY2017, and an estimated $627 million appropriated in FY2018 (through P.L. 114-113, P.L. 115-31, and P.L. 115-141, respectively). Congress has placed strict conditions on the aid, requiring the Northern Triangle governments to address a range of concerns, including border security, corruption, and human rights, to receive assistance. As a result of those legislative requirements, delays in the budget process, and congressional holds, aid has been slow to arrive in the region.
Future Appropriations and Other Policy Issues
The first session of the 116th Congress will determine the amount of assistance to be appropriated for the Central America strategy for the remainder of FY2019 and consider the Trump Administration's forthcoming foreign aid budget request for FY2020. As Congress deliberates on the future of the Central America strategy, it may examine a number of policy issues. These issues include the funding levels and strategy necessary to meet U.S. objectives; the extent to which Central American governments are demonstrating the political will to undertake domestic reforms; the utility of the conditions placed on assistance to Central America; and the potential implications of changes to U.S. immigration, trade, and drug control policies for U.S. objectives in the region.