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                                                                                           Updated January 3, 2019

U.S. Strategy for Engagement in Central America: An Overview


Introduction
Instability in Central America is one of the most pressing
challenges for U.S. policy in the Western Hemisphere.
Several nations-particularly El Salvador, Guatemala, and
Honduras in the Northern Triangle of Central America-
are struggling with widespread insecurity, fragile political
and judicial systems, and high levels of poverty and
unemployment.

The inability of Central American governments to address
those challenges effectively has had far-reaching
implications for the United States. Transnational criminal
organizations have used the Central American corridor for a
range of illicit activities, including the trafficking of
approximately 90%  of cocaine bound for the United States.

Central America also has become a significant source of
mixed migration flows of asylum seekers and economic
migrants to the United States. In FY2017, U.S. authorities
at the Southwest border apprehended nearly 163,000
unauthorized migrants from the Northern Triangle. More
than 63% of those apprehended were unaccompanied
children or families, many of whom were seeking
humanitarian protection. These flows have continued over
the past year, with some migrants banding together in large
caravans to make the journey.

The Obama  Administration determined that it was in the
national security interests of the United States to work
with Central American governments to promote economic
prosperity, improve security, and strengthen governance in
the region. It approved a new, whole-of-government U.S.
Strategy for Engagement in Central America and requested
significant increases in foreign aid to enable the strategy's
implementation. With congressional support, U.S.
assistance to Central America more than doubled from
$338.1 million in FY2014 to $753.7 million in FY2016.

The Trump  Administration has voiced support for efforts to
promote prosperity and security in Central America but has
sought to significantly scale back U.S. assistance to the
region. Congress has rejected the majority of the
Administration's proposed cuts, appropriating $699.7
million for the Central America strategy in FY2017 and an
estimated $626.5 million for the strategy in FY2018.

Funding
Since FY2016, Congress has appropriated an estimated
$2.1 billion for the U.S. Strategy for Engagement in Central
America. The assistance has been roughly evenly divided
between traditional development programs focused on good
governance, economic growth, and social welfare, and
security and rule-of-law efforts intended to prevent
violence, reform justice-sector institutions, and combat
gangs and organized crime. Some 41% of the aid has been


appropriated for the Northern Triangle nations, and 3% has
been appropriated for Belize, Costa Rica, Nicaragua, and
Panama.  Congress has appropriated the other 56% to
regional programs, such as the Central America Regional
Security Initiative (CARSI) (see Figure 1). Country-by-
country breakdowns are not available, but the vast majority
of funding for regional programs appears to have been
allocated to the Northern Triangle.

Figure  I. Funding for the U.S. Strategy for
Engagement in   Central America:  FY20  I 6-FY20 19

    $MILLIONS, CURRENT
    $800
                  $4dor
                         $627
    $600                             m Guatemala


                                $436   Honduras
    $400
                                      *Other Countries

                                      CARSI
    $200

                                     SOher  Regional
                                       Programs

           FY16   FY17   FY18   FY19
                          Est.  Req.
Sources: U.S. Department of State, Congressional Budget
justifications for Foreign Operations, Fiscal Years 2017-2019; U.S.
Department of State, FY 2018 653(a) Allocations - FINAL, 2018;
and the explanatory statement accompanying P.L. 115-141.
Notes: Other Countries includes Belize, Costa Rica, Nicaragua,
and Panama. CARSI = Central America Regional Security Initiative.

President Trump occasionally has threatened to cut off aid
to the Northern Triangle countries. He has significant
discretion to do so with funds Congress appropriated in
FY2018,  since the Consolidated Appropriations Act, 2018
(P.L. 115-141), placed a ceiling on aid to the region but no
floor. The act also empowers the Secretary of State to
suspend and reprogram some  aid if he determines the
Northern Triangle governments have made insufficient
progress in addressing various legislative conditions (see
Conditions, below).

FY20  19 Request
The Trump  Administration's FY2019 budget request
included $435.5 million to continue implementing the
Central America strategy. If enacted, assistance to the
region would decline by 30% compared to the FY2018
estimate. The request included $45.7 million for El


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