USAID Freeze, Guantánamo, and Restricting Remittances in Cuba
CORRECTION: Catholic Relief Services one of the three organizations of Caritas North America , has a budget of $1.5 billion and receives over half its funding from the United States government. A previous version of the News Brief stated that Caritas had a budget of $1.5 billion and received over half its funding from USAID.
It’s hard to keep up with the speed of current events occurring in the Americas– from migration concerns to Guantánamo to the impact of illegal freezing of already appropriated USAID funds. The addition of Orbit S.A. to the Cuba Restricted List will cut off a vital economic lifeline for millions of Cuban families. Meanwhile, the Trump Administration’s expansion of migrant detention at Guantánamo raises serious legal and humanitarian concerns, as details remain scarce about who is being sent there and under what justification.
USAID’s democracy promotion programs in Cuba have faced criticism for their perceived inefficacy and association with regime change efforts. One of the more public and ill-fated efforts include the creation of a social media app to stir unrest called ZunZuneo. USAID funding also supports a broader range of initiatives, including independent media, human rights organizations, and other civil society efforts. The reduction or elimination of these funds could have significant consequences for organizations across Latin America, including Cuba.
USAID and Cuba
The recent freeze on USAID funding by the Trump Administration has significantly impacted media outlets, civil society organizations, and religious groups on the island, many of which are now seeking alternative funding sources to continue their operations. In 2024, USAID allocated $2.3 million to support independent media programs in Cuba and Reuters reported that Miami-based CubaNet received a dedicated $500,000 from USAID in 2024.
The funding freeze will drastically impact the Catholic Church’s charity, Caritas. In Cuba, Caritas runs a Humanitarian and Emergency Response program, an HIV/AIDS program, along with various other programs aimed to “protect the dignity of the most vulnerable people in society.” In response to the freeze, Caritas penned a scathing Press Release entitled “Closure of USAID Foreign Aid Will Kill Millions.”
Background: Since 1996, the U.S. government has allocated funding for democracy promotion programs in Cuba under Section 109 of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act. These programs have been a persistent source of tension in U.S.-Cuba relations, with the Cuban government viewing them as interference in its internal affairs. While some initiatives have provided critical support to independent media, human rights monitoring, and civic engagement efforts, others have been criticized for their high cost, limited impact, and association with efforts to promote regime change. According to State Department Congressional Budget Justifications, up to $20 million has been made available for these efforts in recent years, including 2024.
USAID programs in Cuba have faced operational challenges and diplomatic controversies. In 2009, USAID contractor Alan Gross was arrested in Cuba for distributing satellite communication equipment, leading to a diplomatic crisis that was partially responsible for stalling the process of normalizing relations under the Obama administration. Concerns over transparency and financial oversight have also been raised. A 2006 Government Accountability Office (GAO) report found that the Department of State and USAID lacked sufficient internal controls to monitor grantees effectively. A 2013 follow-up report noted improvements but identified persistent weaknesses in performance indicators and financial oversight.
US Blocks Orbit; Western Union Suspends Money Transfers to Cuba
On January 31st, Secretary of State Marco Rubio restored the State Department’s Cuba Restricted List and added a new restricted entity: Orbit S.A. Entities on this list will be prohibited from direct financial transactions via the Office of Foreign Assets Control. The addition of Orbit S.A. to the list is notable. Orbit is Western Union’s partner and plays a key role in processing remittances to Cuba. Unless Western Union secures a new partner, remittances to Cuba will be cut off.
While Cuba does not publish official figures on remittances, Manuel Orozco of the Inter-American Dialogue reported that around $4 billion USD in remittances were sent to Cuba in 2023. Over two-thirds of Cuban families on the island receive financial assistance through remittances, and in 2023, remittances made up 26 percent of Cuba’s GDP. Amidst a severe economic crisis, including historic levels of inflation, a halt in remittances would devastate millions of Cuban families.
Background: Orbit S.A. was established in 2020. In 2022 the Central Bank of Cuba (BCC) licensed it to manage remittances from the US. Orbit replaced its predecessor, Fincimex S.A., during the first Trump Administration due its connection to the Cuban military.
Detained Migrants Land at the Guantánamo Bay Naval Base
Timeline:
January 29: President Donald Trump signs an executive order to take all necessary actions to expand the Naval Station at Guantánamo Bay to full capacity and announces that he intends on sending up to 30,000 migrants to the base until deportation to their home countries, or third countries, can be processed.
February 4: The USS St. Louis lands at the U.S. Naval Station in Guantánamo Bay as part of its first phase of expansion, which will increase the number of migrants to 2,000. In preparation for the incoming migrants, the US will deploy 200 marines to the base in waves in addition to the roughly 300 military personnel already on the base.
February 4: The first plane carrying migrants arrives at the Guantánamo Bay Naval Base. According to the Department of Homeland Security (DHS), there were 10 migrants on the flight, all accused of having connections to Venezuelan gang Tren de Aragua.
February 6: A second flight lands in Guantánamo with 13 migrants aboard. No documents or information has been released about the crimes these migrants are charged with, and DHS has declined to comment.
February 7: DHS Secretary Kristi Noem visited the base to assess progress and meet with Department of Defense personnel, and representatives from the DHS. Secretary Noem has stated that it is "not the plan" for migrants to permanently stay at Guantánamo, but later told CNN’s Dana Bash that she was also “not going to rule that out.”
February 7: A third flight arrives in Guantánamo. U.S. Southern Command stated there were around 3 dozen migrants being detained at the facility. Since February 7, daily flights have landed in Guantanamo.
February 9: A federal judge in Albuquerque blocks the government from deporting three Venezuelan men to Guantánamo. While there were no plans to deport the men to Guantánamo yet, their lawyer filed a restraining order because the men "fit precisely the profile" of others who had already been deported to the base. The men were accused of what their lawyer cited as “(false) charges of connections with the Tren de Aragua gang." This is a short-term hold and will be revisited in the next few weeks.
Feb 12: CBS News reports that migrants without criminal records are being detained at the migrant facilities, despite the Trump Administration’s plan to hold “higher risk” (those charged with violent crimes) migrants.
Feb 12: The New York Times reports that dozens of Venezuelan migrants sent by the Trump administration to the U.S. military base in Guantánamo Bay, Cuba, are being guarded by troops rather than civilian immigration officers. The Times also acquired a list of 53 men’s names who have reportedly been sent to Guantánamo and are being held in “Camp 6”, the building used to house terrorism suspects. There are conflicting reports on the exact number of people currently detained at Guantánamo with reports ranging from 68 to 98. The facility now has the capacity to house up to 2,500 migrants.
Feb 12: ACLU and other advocates sue for access to migrants moved to Guantánamo Bay, claiming migrants are unable to invoke their right to an attorney.
In August 2024, the Biden Administration awarded a contract with a ceiling of $163.4 million to Akima Infrastructure Protection (AIP), part of the Akima portfolio, to operate the Migrant Operations Center (MOC) at Guantánamo, which has traditionally been used for detaining migrants intercepted trying to reach the US by boat. By the end of January 2025, $1.4 million in funding had been allocated for the MOC, and by February 2025, that amount had increased to $9.3 million. Akima also manages other migrant detention facilities in the US, including one in Los Fresnos, which a federal watchdog previously reported as "unsafe and unsanitary."
Rubio’s First Trip as Secretary of State: Blames Cuban, Nicaraguan, and Venezuelan Governments for Migration Crisis
Secretary Marco Rubio made Latin America his first official destination as Secretary of State. The five-nation trip was marked by significant policy shifts and controversy. While he focused on immigration-related agreements with El Salvador, Guatemala, and Costa Rica on migrant deportations, experts argue he missed an opportunity to push for long-term migration stability through legal pathways and integration efforts. The unraveling of USAID overshadowed the tour. Rubio faced criticism and confusion over these issues.
In Costa Rica, he told the press he labeled the governments of Cuba, Nicaragua, and Venezuela as “enemies of humanity,” blaming them for fueling the region’s migration crisis. He asserted that mass migration would not be a crisis in the hemisphere without these governments. Cuba’s President Miguel Díaz-Canel responded on X, claiming that Cuba’s exodus is due to tightening sanctions and quipping, “Humanity is endangered by your neofascism.”
In a Wall Street Journal op-ed, Rubio doubled down on his stance, arguing that mass migration, drug trafficking, and the actions of Cuba, Nicaragua, and Venezuela threaten U.S. interests and stability in the region.
More In Cuba News
Reuters | Cuba tells non-essential workers, students to stay home in latest blackout
Cuba closed schools and told non-essential workers to stay home on Friday as its electrical grid faltered following the failure of a major power plant, causing widespread blackouts across the crisis-ridden island. Only six of the country's 15 oil-fired power plants are in operation, according to government reports, and a dire fuel shortage has made it impossible to run smaller clusters of diesel-fired generators that typically backup the system.
Politico | Trump’s Envoy Lets Loose on the Panama Canal and ‘Imminent’ Change in Cuba
Mauricio Claver-Carone is the Trump Administration’s Special Envoy for Latin America
From the interview:
Q: Do you have a message to the Cuban people, to the Cuban government?
Mauricio Claver-Carone: The Cuban government is probably at its weakest point that we’ve ever seen. People always say that, but this time it really is. And the desire for change of the Cuban people is overwhelming. Even its leadership structure knows that change is inevitable.
Q: Regime change? What kind of change?
Claver-Carone: Democratic change. The Cuban model is obviously dead. You don’t hear any country in the region saying, “I want to become like Cuba.” It’s an interesting time in Cuba where transition is not only inevitable, but frankly is probably imminent. Now what that transition looks like is a question, right? For me, it’s not even a question of when, It’s really a question of who and how.
Q: What role can the Trump administration play in that change?
Claver-Carone: Oh, I think we can be very creative. Very creative.
Q: What does that mean?
Claver-Carone: I think we can be very creative, and I’ll leave it at that.
Recommended Reading & Viewing
📖 ProPublica – Inside Trump’s Immigration Executive Orders (Read here)
📖 Miami Herald – Oppenheimer on U.S. Policy & Latin America (Read here)
📺 PBS Newshour – “Poet of Havana” on the Power of Music & Politics (Watch here)