United States-Cuba Trade Act of 2026
- Bill Number
- H.R. 7521
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, Energy and Commerce, the Judiciary, Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-06-24T08:09:12Z
AI-Generated Summary
Purpose of the Legislation
The United States-Cuba Trade Act of 2026 aims to end the long-standing U.S. trade embargo against Cuba, established over decades through various laws. It seeks to normalize economic and trade relations between the two countries, promote democratic change and economic reform in Cuba through engagement, and remove restrictions on travel, telecommunications, remittances, and commerce while encouraging negotiations on property claims and human rights.
Key Provisions
- Repeal of Embargo Laws: Eliminates key statutes that enforce the embargo, including sections of the Foreign Assistance Act of 1961 (prohibiting aid to Cuba), the Trading with the Enemy Act (used for economic restrictions), the Cuban Democracy Act of 1992, and the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996. This also repeals related provisions in laws like the Trade Sanctions Reform and Export Enhancement Act of 2000 and the Food Security Act of 1985 (ending sugar import quotas).
- Export and Trade Controls: Ends existing bans on U.S. exports to Cuba under export control laws. Allows the President to impose new controls only if based on a fresh national emergency declaration related to threats to U.S. security, policy, or economy.
- Telecommunications: Permits U.S. common carriers (telecom companies) to install, maintain, repair, and upgrade telecommunications equipment and services between the U.S. and Cuba without restrictions.
- Travel and Related Transactions: Prohibits regulation of travel to or from Cuba by U.S. citizens or residents if the travel would be legal within the U.S. This includes incidental activities like banking transactions, currency exchanges, and maintenance costs during travel.
- Remittances: Bans limits on the amount of money U.S. persons can send to Cuba, rescinding existing Treasury regulations. Exceptions apply for money laundering or illegal financial activities.
- Normal Trade Relations: Extends "nondiscriminatory treatment" (also known as most-favored-nation status or normal trade relations) to Cuban goods, amending the Harmonized Tariff Schedule and repealing parts of the Trade Act of 1974 that treated Cuba differently. This takes effect 15 days after enactment.
- Negotiations and Reporting: Directs the President to negotiate with Cuba on settling U.S. nationals' claims for expropriated property (seized assets) and protecting human rights. Requires a congressional report on U.S.-Cuba trade relations within 18 months.
- Other Adjustments: Modifies tax code provisions on foreign tax credits to require presidential reports to Congress before denying credits related to sanctioned countries. Repeals restrictions on U.S. intellectual property transactions involving Cuba and aid conditions for former Soviet states tied to Cuban facilities.
Significant Changes to Existing Law
- Embargo Termination: Fully repeals the statutory foundation of the embargo, which has been in place since 1960 and tightened by laws like the 1992 and 1996 acts. This shifts from a blanket prohibition to allowing trade unless new, specific presidential actions are taken.
- Presidential Flexibility: Removes automatic exercise of old emergency powers but preserves the President's ability under laws like the International Emergency Economic Powers Act to reimpose restrictions if justified by new threats (e.g., a declared national emergency).
- Visa and Claims Adjustments: Eliminates specific visa revocations tied to the LIBERTAD Act and repeals sections of the International Claims Settlement Act related to Cuban property claims, while encouraging bilateral negotiations instead.
- Trade Status Update: Ends Cuba's exclusion from normal trade relations under GATT 1994 (General Agreement on Tariffs and Trade, a World Trade Organization framework), removing the need for U.S. exceptions under security clauses.
- Effective Dates: Most changes apply 60 days after enactment, except trade relation extensions (15 days) and tax credit rules (immediate for new determinations).
Potential Impacts
- On Government Agencies: Agencies like the Treasury (OFAC, which enforces sanctions), State Department (diplomacy and claims), Commerce (exports), and Agriculture (trade quotas) will need to rescind regulations and redirect resources from enforcement to facilitation. This could reduce administrative burdens but require new oversight for any reimposed controls.
- On Citizens: U.S. citizens, especially Cuban Americans, gain unrestricted travel, unlimited remittances (e.g., family support), and easier business opportunities, potentially boosting family ties and personal finances. Cuban residents may see increased access to U.S. goods, services, and telecom.
- On International Relations: Improves U.S.-Cuba bilateral ties, signaling a policy shift toward engagement over isolation. Could enhance U.S. influence in Latin America by promoting economic reform in Cuba, but might strain relations with embargo supporters (e.g., some allies) or invite scrutiny if human rights issues persist. Globally, it aligns U.S. trade with WTO norms, potentially increasing Cuban exports to the U.S.
Main Stakeholders Affected
- U.S. Citizens and Businesses: Travelers, remitters, telecom providers, exporters (e.g., agriculture, tech), and investors benefit from reduced barriers.
- Cuban Government and People: Gains access to U.S. markets, technology, and remittances, potentially aiding economic recovery but requiring negotiations on claims and rights.
- Cuban American Community: Mixed impacts—easier family contact and trade, but some may oppose due to unresolved property claims or political concerns.
- U.S. Government Entities: Congress (receives reports), executive agencies (policy implementation), and courts (fewer embargo-related cases).
- International Actors: WTO members (trade normalization), former Soviet aid recipients (removed Cuba-linked conditions), and claim holders (U.S. nationals with expropriated property).
Notable Legal, Constitutional, or Political Implications
- Legal: Removes statutory prohibitions but maintains constitutional presidential powers for foreign affairs and emergencies, avoiding challenges to executive authority. Encourages negotiated settlements for claims under the International Claims Settlement Act, potentially resolving long-pending lawsuits without court intervention. No direct impact on anti-money laundering laws.
- Constitutional: Aligns with Congress's commerce clause authority (Article I) to regulate trade and the President's treaty/negotiation powers (Article II), promoting a balanced approach to foreign policy without overriding separation of powers.
- Political: Reflects a congressional push (bipartisan sponsors) for normalization to foster democracy via economic ties, contrasting past isolationist policies. The "sense of Congress" provision signals intent to end GATT security exceptions, but allows future invocations, providing flexibility amid debates on Cuba's human rights record and U.S. credibility in promoting global trade fairness. Could influence future sanctions policy toward other nations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. McGovern, James P. [D-MA-2]
Cosponsors (27)
Rep. Velázquez, Nydia M. [D-NY-7], Rep. DeLauro, Rosa L. [D-CT-3], Rep. Pocan, Mark [D-WI-2], Rep. Omar, Ilhan [D-MN-5], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Ramirez, Delia C. [D-IL-3], Rep. Moore, Gwen [D-WI-4], Rep. Tlaib, Rashida [D-MI-12], Rep. Casar, Greg [D-TX-35], Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. Dean, Madeleine [D-PA-4], Rep. Lynch, Stephen F. [D-MA-8], Rep. Simon, Lateefah [D-CA-12], Rep. Jayapal, Pramila [D-WA-7], Rep. DeSaulnier, Mark [D-CA-10], Rep. Cohen, Steve [D-TN-9], Rep. Waters, Maxine [D-CA-43], Rep. Moulton, Seth [D-MA-6], Rep. Pressley, Ayanna [D-MA-7], Rep. Schakowsky, Janice D. [D-IL-9], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Jackson, Jonathan L. [D-IL-1], Rep. Dexter, Maxine [D-OR-3], Rep. Carson, André [D-IN-7], Rep. Khanna, Ro [D-CA-17], Rep. Schneider, Bradley Scott [D-IL-10]
Recent Actions
- 2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, Energy and Commerce, the Judiciary, Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, Energy and Commerce, the Judiciary, Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, Energy and Commerce, the Judiciary, Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, Energy and Commerce, the Judiciary, Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, Energy and Commerce, the Judiciary, Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, Energy and Commerce, the Judiciary, Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-12: Introduced in House
- 2026-02-12: Introduced in House
Bill Versions
- United States-Cuba Trade Act of 2026 — issued 2026-02-12 — PDF (13 pages)