08-12-2025

Reissuance of and Amendments to National Security Presidential Memorandum 5 on Strengthening the Policy of the United States Toward Cuba

MemorandumView the Original .pdf
View the Original .pdf

Analysis of Presidential Memorandum on U.S. Policy Toward Cuba

The 1-Minute Brief

What: This Presidential Memorandum, issued on June 30, 2025, tightens United States policy toward Cuba. It aims to block the Cuban government and military from profiting from U.S. travel and commerce by prohibiting American financial transactions with a list of Cuban companies. It also imposes stricter rules on travel, particularly for educational purposes, to ensure adherence to the statutory ban on tourism. [Sec. 2, Sec. 3]

Money: The memorandum does not appropriate new funds. Instead, it directs how existing U.S. policy should be implemented to restrict the flow of U.S. dollars to Cuban government- and military-owned enterprises. [Sec. 5] Its primary financial impact is on the Cuban economy, particularly the state-controlled tourism sector.

Your Impact: For the average American, the most likely direct effect is on travel to Cuba. It will be more difficult to travel to the island individually for educational or "people-to-people" purposes, and Americans will be barred from spending money at hotels, restaurants, and other businesses identified as being controlled by the Cuban military. [Sec. 3(b)]

Status: This Presidential Memorandum was issued on June 30, 2025, and published in the Federal Register on August 12, 2025. It is now in effect, with federal agencies directed to update and implement regulations within 30 to 90 days. [Sec. 3]

What's Actually in the Memorandum

This executive action strengthens sanctions and travel restrictions on Cuba. The core function is to redirect economic activity away from the Cuban state and its armed forces, which control large parts of the economy, and toward the Cuban people and an independent private sector. [Sec. 1, Sec. 2(a)] The memorandum is an official reissuance and amendment of a similar policy document from 2017. [Sec. 4(a), 29]

Core Provisions:

  • The State Department must maintain and publish a list of restricted entities controlled by the Cuban military, intelligence, or security services, such as the business conglomerate GAESA. [Sec. 3(a)(i)] U.S. citizens and companies are prohibited from conducting direct or indirect financial transactions with these entities. [Sec. 3(a)(ii)]
  • Exceptions to the transaction ban include U.S. government operations, democracy-building programs, authorized remittances, and the sale of agricultural and medical goods. [Sec. 3(a)(iii)]
  • Individual "people-to-people" educational travel is no longer authorized. All such travel must be done through a U.S.-based organization, and travelers must be accompanied by a representative of that organization. [Sec. 3(b)(i)]
  • Travelers to Cuba must maintain a full-time schedule of activities that support Cuban civil society and must keep all travel-related transaction records for at least 5 years for potential Treasury Department audits. [Sec. 3(b)(ii-iii)]
  • The Treasury Department is ordered to conduct regular audits of U.S. travel to Cuba to ensure compliance. [Sec. 3(c)]

Stated Purpose (from the Sponsors):

The memorandum states that the policy is designed to support the Cuban people's aspirations for freedom and prosperity by pressuring the Cuban government. [Sec. 1]

  1. End economic practices that disproportionately benefit the Cuban government or its military at the expense of the Cuban people. [Sec. 2(a)]
  2. Promote respect for human rights and encourage the growth of a free-market private sector independent of government control. [Sec. 1, Sec. 2(f)]
  3. Ensure adherence to the long-standing statutory ban on tourism to Cuba. [Sec. 2(b)]

Key Facts:

Affected Sectors: Travel & Tourism, Finance, Foreign Relations, International Trade.
Timeline: The Secretaries of Treasury and Commerce were directed to begin adjusting regulations within 30 days of the memorandum's issuance on June 30, 2025. Other reports, such as one from the Attorney General on U.S. fugitives in Cuba, are due within 90 days. [Sec. 3(a), 3(g)]
Scope: The policy affects all U.S. citizens, residents, and persons subject to U.S. jurisdiction, as well as companies involved in travel or financial transactions related to Cuba.

The Backstory: How We Got Here

Timeline of Events:

  • The Cold War Embargo (1960s-2014): Following Fidel Castro's 1959 revolution and the nationalization of U.S.-owned properties, the United States imposed a comprehensive economic embargo in the early 1960s. For decades, relations were defined by hostility, with a brief easing in the 1970s that saw the opening of "interests sections" in both capitals. The 1996 Helms-Burton Act strengthened the embargo, making it law and allowing U.S. nationals to sue entities that "traffic" in property confiscated by the Cuban government.
  • The Obama Thaw (2014-2016): On December 17, 2014, President Barack Obama announced a major shift in policy, seeking to normalize relations with Cuba. This led to the re-establishment of embassies, Cuba's removal from the list of state sponsors of terrorism, and the easing of restrictions on travel and remittances through Presidential Policy Directive 43 (PPD-43). In January 2017, Obama also ended the "Wet Foot, Dry Foot" policy, which had previously allowed any Cuban who reached U.S. soil to stay.
  • The Trump Reversal (2017-2021): In June 2017, President Donald Trump reversed key aspects of the Obama-era normalization. He issued National Security Presidential Memorandum 5 (NSPM-5), the precursor to the current document, which restricted travel and created the list of prohibited entities with ties to the Cuban military.
  • Solidifying the Stance (2025): The current memorandum, issued on June 30, 2025, amends and reissues the 2017 NSPM-5. [Sec. 4(a)] It solidifies the policy of economic pressure and supersedes the Obama-era PPD-43 directive on normalization. [Sec. 4(b)]

Why Now? The Political Calculus:

  • The memorandum frames the action as a response to the Cuban government's continued human rights abuses, suppression of dissent, and failure to allow political and economic freedom. [Sec. 1]
  • It serves to reaffirm and continue a policy of pressure that began in 2017, creating a clear contrast with the engagement strategy of the Obama administration.
  • The policy aligns with the views of segments of the Cuban-American community and political leaders who advocate for a hardline stance against the Cuban government.

Your Real-World Impact

The Direct Answer: This directly affects Americans who want to travel to Cuba and certain U.S. industries, particularly travel and tourism.

What Could Change for You:

Potential Benefits:
  • For those who support a policy of economic pressure, the primary benefit is ensuring their travel dollars do not support the Cuban military or state security services.
  • The policy aims to indirectly support independent Cuban entrepreneurs by encouraging authorized travelers to seek out private businesses rather than state-run enterprises.
Possible Disruptions or Costs:

Short-term (within 6 months):

  • Travelers must change existing plans for individual educational travel and re-book through authorized U.S. organizations.
  • Research will be required before traveling to ensure that planned lodging, dining, and other activities do not involve entities on the U.S. government's restricted list.

Long-term:

  • Individual travel to Cuba for educational and cultural exchange will remain difficult and highly regulated.
  • The risk of audits by the Treasury Department may deter some Americans from traveling to Cuba.

Who's Most Affected:

Primary Groups: U.S. citizens planning travel to Cuba, Cuban-American families sending remittances (though these are largely still allowed), and U.S.-based tour operators specializing in Cuba.
Secondary Groups: The Cuban government and its military conglomerate GAESA are the intended targets of the restrictions. Independent Cuban private business owners (cuentapropistas) may see a mixed impact, with some potentially gaining business while the overall reduction in travel could harm others.
Regional Impact: The policy has a significant political and social impact in South Florida, home to a large and politically active Cuban-American community.

Bottom Line: Your ability to travel to Cuba is more restricted, requiring you to go with a licensed group and avoid spending money at a list of government-controlled businesses.

Where the Parties Stand

Republican Position: "Pressure for Freedom"

Core Stance: Republicans generally support a tough stance on Cuba, favoring the economic embargo and sanctions as tools to pressure the government for democratic change and improved human rights.

Their Arguments:

  • ✓ They support measures that cut off funds to the Cuban military and intelligence services.
  • ✓ They argue that economic engagement, as pursued by the Obama administration, only enriches the ruling regime without benefiting the Cuban people.
  • ✗ They oppose lifting the U.S. embargo until there is a fundamental change in the Cuban government.

Legislative Strategy: To maintain and strengthen existing sanctions, support Cuban pro-democracy movements, and oppose any efforts to return to the Obama-era policy of normalization.

Democratic Position: "Engagement and Empowerment"

Core Stance: The Democratic party platform generally supports reversing the Trump-era restrictions and returning to a policy of engagement to empower the Cuban people directly. However, the party is not monolithic, with some members, particularly in Florida, expressing reservations.

Their Arguments:

  • ✓ They support people-to-people exchanges and believe that increased American travel can help foster a more open society.
  • ✓ Many Democrats argue that the decades-long embargo has failed and has hurt the Cuban people more than its government.
  • ⚠️ While supporting human rights, they are often divided on how much direct pressure to apply versus how much to engage.

Legislative Strategy: To push for the easing of travel and remittance restrictions and ultimately advocate for lifting the economic embargo, framing it as a failed policy that harms everyday Cubans.

Constitutional Check

The Verdict: ✓ Constitutional

Basis of Authority: The President has broad, constitutionally recognized authority to conduct foreign policy and direct the national security apparatus of the United States. This memorandum directs executive branch agencies to implement policy consistent with existing laws passed by Congress.

[Relevant Portion of the Constitution]: Article II, Section 2 of the U.S. Constitution designates the President as "Commander in Chief of the Army and Navy of the United States," which, along with the role as chief executive, forms the basis for presidential power in foreign affairs and national security.

Constitutional Implications:

  • [Presidential Authority]: This memorandum is a standard exercise of the President's authority to direct the foreign policy of the executive branch.
  • [Statutory Execution]: The memorandum directs agencies to implement policies within the framework of existing legislation, such as the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 and the Trade Sanctions Reform and Export Enhancement Act of 2000. [Sec. 2(c), Sec. 3(a)(iii)(F)]
  • [Federalism]: Foreign policy is an exclusive power of the federal government, so there are no significant federalism concerns.

Potential Legal Challenges: It is highly unlikely that the memorandum itself would face a successful legal challenge. Any lawsuits would more likely be directed at the specific regulations issued by agencies like the Treasury Department, for example, by a company arguing it was improperly placed on the restricted list.

Your Action Options

TO SUPPORT THIS POLICY

5-Minute Actions:
  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to support the administration's policy of applying economic pressure on the Cuban government to protect human rights."
30-Minute Deep Dive:
  • Write a Detailed Email: Contact members of the House Foreign Affairs Committee and Senate Foreign Relations Committee to express your support.
  • Join an Organization: Groups like the Cuban American National Foundation (CANF) have historically advocated for a strong embargo and pressure on the Cuban regime.

TO OPPOSE THIS POLICY

5-Minute Actions:
  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to oppose the administration's restrictive Cuba policy and to support legislation that eases the embargo and travel restrictions."
30-Minute Deep Dive:
  • Write a Letter to the Editor: Submit a letter to your local newspaper arguing that engagement, not isolation, is the best way to support the Cuban people and U.S. interests.
  • Join an Organization: Groups like Engage Cuba, the Washington Office on Latin America (WOLA), and the Center for Democracy in the Americas advocate for lifting the embargo and normalizing relations.