	Introduction

Trends in U.S. foreign assistance to Latin America generally reflect the trends and rationalesfor U.S. foreign aid programs globally. U.S.assistance has not reached levels attained during the Alliance for Progress. Some countries are benefitting from two newPresidential foreign aid initiatives. In Congress, the annual Foreign Operations Appropriations bills have been the vehicles by which Congress provides funding for, and exercises oversight of foreign assistance programs. ForFY2006, Congress provided $20.9 billion out of the President's $22.8 billion international affairsrequest in the FY2006 Foreign Operations Appropriations Act ( P.L. 109-102 ). Assistance by Subregion

For FY2006, U.S. assistance to Latin America and the Caribbean is estimated at about $1.68billion, including Peace Corps and P.L. 480 food aid. The largest portion,$919 million, is allocated to the Andean countries of Bolivia, Colombia, Peru, Ecuador, andVenezuela, and represents 55% of regional assistance. Another $292 million, or 17%, is allocatedto Mexico and Central America, while the Caribbean would receive $307 million, or 18%. Braziland the Southern Cone of South America would receive an estimated $36 million, or 2%. TheUnited States also maintains aid programs of a regional nature, such as trade capacity building, andmigration and refugee assistance, that total an estimated $133 million, or 8%, in FY2006. The Andean Region. DA - Development Assistance
CSH - Child Survival and Health
ESF - Economic Support Funds 
PL 480 - emergency food aid
IMET - International Military Education and Training
ACI - Andean Counterdrug Initiative
FMF - Foreign Military Financing 
For FY2007, the Administration proposes spending a total of $721.5 million, with Colombiareceiving the same amount as in the previous year and neighboring countries receiving cuts. U.S. programs focus on economic growth, reproductive health, the environment, anddemocracy. Since FY2000, U.S. aid to the Caribbean region (including FY2006 aid estimates) hasamounted to almost $1.6 billion, because of increased HIV/AIDS assistance to the region (especiallyto Guyana and Haiti), disaster and reconstruction assistance in the aftermath of several hurricanesand tropical storms in 2004, and increased support for the interim government in Haiti followingthe departure of President Jean-Bertrand Aristide from power. ESF will also continue to supportUSAID-administered programs with democracy and human rights groups. Othersargue that programs are often ill-designed in relation to their goals. Because of the inclusion of Guyana and Haiti as focuscountries in the President's Emergency Plan for AIDS Relief (PEPFAR), funded through the GlobalHIV/AIDS Initiative (GHAI) account, U.S. assistance to the Caribbean and Central America forHIV/AIDS increased to $47 million in FY2004, $82.5 million in FY2005, and an estimated $92.7million in FY2006. CSH funds focus oncombating infectious disease and promoting child and maternal health, family planning, andreproductive health. Development Assistance. There are justice sector modernizationprograms underway in 12 countries in the region, as well as 15 anti-corruption programs throughoutLatin America. Millennium Challenge Account (MCA). FMF provides grantsto foreign nations to purchase U.S. defense equipment, services, and training. Theprogram also seeks to improve foreign military capabilities of countries that control land approachesto the United States and the Caribbean, which is referred to as the "third border."
Trends in U.S. assistance to the Latin America and Caribbean region generally reflect thetrends and rationales for U.S. foreign aid programs globally. Aid to the region increased during the1960s with the Alliance for Progress and during the 1980s with aid to Central America. Since 2000,aid levels have increased, especially in the Andean region as the focus has shifted from Cold Warissues to counternarcotics and security assistance. Current aid levels to Latin America and theCaribbean comprise about 11.8% of the worldwide FY2006 bilateral aid budget. Amounts requestedfor FY2007 would reduce this ratio to 10.6%. Two countries -- Honduras and Nicaragua -- havesigned compacts for Millennium Challenge Account (MCA) funds. Aid levels to the region couldincrease further as more countries become eligible for MCA. Both Haiti and Guyana are focuscountries for the President's Emergency Plan for AIDS Relief (PEPFAR).
For FY2006, U.S. assistance to Latin America and the Caribbean is estimated at $1.68billion, the largest portion of which is allocated to the Andean region -- $919 million. Mexico andCentral America are slated to receive $292 million, while the Caribbean would receive $307 million.Brazil and the Southern Cone of South America are to receive an estimated $36 million. The UnitedStates also maintains programs of a regional nature that total an estimated $133 million in FY2006.
Aid programs are designed to achieve a variety of goals, from poverty reduction to economicgrowth. Child Survival and Health (CSH) funds focus on combating infectious diseases andpromoting child and maternal health. Development Assistance (DA) promotes sustainable economicgrowth in key areas such as trade, agriculture, education, the environment, and democracy. TheEconomic Support Fund (ESF) assists countries of strategic importance to the United States, andfunds programs relating to justice sector reforms, local governance, anti-corruption, and respect forhuman rights. P.L. 480 food assistance is provided to countries facing emergency situations, suchas natural disasters. Counternarcotics programs seek to assist countries to reduce drug production,interdict trafficking, and promote alternative crop development. Foreign Military Financing (FMF)provides grants to nations for the purchase of U.S. defense equipment, services and training.
The annual Foreign Operations Appropriations bills are the vehicles by which Congressprovides funding for foreign assistance programs. The FY2006 Foreign Operations AppropriationsAct ( P.L. 109-102 ) provided $20.9 billion for the foreign assistance budget worldwide. In the secondsession of the 109th Congress, Members of Congress will likely continue to be interested in a numberof related issues, including the general effectiveness of foreign aid programs, and how best to addressthe HIV/AIDS problem and poverty issues. Congress may also debate the U.S. role in fightingnarcotics trafficking and illegally armed groups in Colombia and stabilizing the situation in Haiti. This report will be updated as events warrant.