Presidential Memorandum emphasizes toughened US policy on Cuba

The NSPM and Fact Sheet were issued on 30 June. The NSPM amends and reissues in its entirety NSPM-5 entitled “Strengthening the Policy of the United States Toward Cuba” issued during the first Trump Administration. While the NSPM does not itself make any changes in relevant regulations, it sets forth the Administration’s policy and steps to implement the policy.

Reproduced below is key text in the NSPM regarding the Administration’s policy:

1. End economic practices that disproportionately benefit the Cuban government or its military, intelligence, or security agencies or personnel at the expense of the Cuban people.
2. Ensure adherence to the statutory ban on tourism to Cuba.
3. Support the economic embargo of Cuba described in section 4(7) of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (the embargo), including by opposing measures that call for an end to the embargo at the United Nations and other international forums and through regular reporting on whether the conditions of a transition government exist in Cuba.
4. Amplify efforts to support the Cuban people through the expansion of internet services, free press, free enterprise, free association, and lawful travel.
5. Not reinstate the “Wet Foot, Dry Foot” policy, which encouraged untold thousands of Cuban nationals to risk their lives to travel unlawfully to the United States.
6. Ensure that engagement between the United States and Cuba advances the interests of the United States and the Cuban people. These interests include: advancing Cuban human rights; encouraging the growth of a Cuban private sector independent of government control; enforcing final orders of removal against Cuban nationals in the United States; protecting the national security and public health and safety of the United States, including through proper engagement on criminal cases and working to ensure the return of fugitives from American justice living in Cuba or being harbored by the Cuban government; supporting United States agriculture and protecting plant and animal health; advancing the understanding of the United States regarding scientific and environmental challenges; and facilitating safe civil aviation.

The NSPM describes actions to implement the policies. Key actions include:

Transactions with Cuba. As we reported here, on 6 February 2025 the State Department reinstated the Cuba Restricted List (CRL), available here, which identifies “entities and subentities under the control of, or acting for or on behalf of, the Cuban military, intelligence, or security services or personnel with which direct financial transactions would disproportionately benefit such services or personnel at the expense of the Cuban people or private enterprise in Cuba.” US Department of State amended the CRL with additional Cuban military-controlled hotels effective 14 July:

Hotels in La Habana Province

Grand Aston La Habana

Iberostar Selection La Habana

also “Torre K”

INNSiDE Habana Catedral

Hotels in Matanzas Province

Varadero Sol Caribe

Hotels in Villa Clara Province - Cayo Santa Maria:

Gran Muthu Cayo Santa María

Roc Casa del Mar

Hotels in Holguín Province

Sol Turquesa Beach

The NSPM requires the Treasury and Commerce Departments along with the State and Transportation Departments by 30 July to initiate the process to adjust regulations regarding transactions with Cuba. As part of that process, the Secretary of State is to identify “any entities or subentities, as appropriate, that are under the control of, or act for or on behalf of, or for the benefit of, the Cuban military, intelligence, or security services or personnel…and publish a list of those identified entities and subentities with which direct or indirect financial transactions would disproportionately benefit such services or personnel at the expense of the Cuban people or private enterprise in Cuba.” (Emphasis added.) With certain exceptions, direct or indirect financial transactions with the listed entities and subentities will be prohibited. The addition by the NSPM of “indirect financial transactions” indicates a potential expansion of the Cuba Restricted List restrictions, as these restrictions previously applied only to “direct” transactions.

Enforcement of Travel Restrictions to Cuba. By 30 July, the Treasury and the State Departments are to initiate a process to ensure adherence to the statutory ban on tourism to Cuba. The amended regulations are to require that educational travel be for “legitimate educational purposes”, and that those traveling for permissible non academic education purposes or to provide support to the Cuban people engage in a full-time schedule of approved activities and meaningfully interact with individuals in Cuba. The process is to include regular audits by the Department of Treasury and mandatory minimum 5-year recording keeping for all travel-related transactions.

Reports. Among the topics to be tracked and reported upon:

• Issues related to fugitives from American justice living in Cuba or being harbored by the Cuban government within 90 days (28 September) of the date of NSPM.
• Whether the conditions of a transition government exist in Cuba, including a review of human rights abuses.
• The results of the Treasury Department Inspector General’s review of Treasury’s actions to implement the audit requirement, within 180 days of the adjustment of current regulations and then annually.
• Annual report on the engagement of the U.S. with Cuba to ensure that engagement is advancing the interests of the United States.

Authored by Andrea Fraser-Reid, Deborah Wei, and Beth Peters.