The relationship between United States foreign policy and cybersecurity in Latin America has long been a critical factor in the region's ability to defend against cyber threats. U.S. funding has played a significant role in strengthening Latin American cybersecurity efforts, from technical training and infrastructure development to fostering regional partnerships. 

Historically, funding for international development and aid in Latin America has been relatively constant. The U.S. also contributes to multilateral organizations, like the United Nations and the Organization of American States, which work to increase the cybersecurity capabilities of the entire region. In recent years, the U.S. has ramped up funding for cybersecurity capacity development, understanding that in order to keep our country safe from malicious actors, we need to help keep our neighbors safe. 

The Trump administration's planned drastic decreases in foreign aid, though, will leave gaps in U.S. engagement in the region, leading to potential vulnerabilities. With China continuing to increase its presence in the region through its Belt and Road Initiative, this will likely increase Latin American countries' involvement with Chinese companies. And with fewer opportunities for American support, the risk of Chinese and Russian-sponsored cyberattacks on the region rises. Understanding the impact of diminished U.S. support highlights the need for continued U.S. involvement to ensure a robust cybersecurity framework in Latin America.

U.S. Funding in Latin America and its Impact 

Since 1946, the United States has provided nearly $165 billion of assistance to the Latin America and Caribbean region – inflation adjusted to 2014 – with spikes in the 1960s and 1980s. In 2023, it provided at least $10 million in voluntary contributions to support OAS human rights and democracy promotion activities – $1.8 million directed to Cybersecurity and approximately $1 million to prevent cybercrime. 

In recent years, the U.S. has invested heavily in cybersecurity capacity in the region. In 2022, the U.S. continued its support of the region by providing assistance to Costa Rica following a major cyberattack by the Russian-based hacking group Conti. Investing in foreign aid, specifically for cybersecurity, advances several U.S. interests, especially related to national security and geopolitical standing. Areas of concern include promoting democracy and open markets, countering illicit narcotics, addressing the underlying drivers of migration, and, more recently, cybersecurity capacity building. 

U.S. assistance flows through many federal agencies and supports many different objectives. These objectives, which are achieved both directly and indirectly, include enhancing national security, promoting economic growth, improving U.S.-aligned governance, countering terrorism, and curbing illicit drug trafficking. When the U.S. has established connections with countries, they are much more likely to adhere to established norms and choose U.S. governance frameworks to other options, like from China and Russia.

The U.S. involvement in Costa Rica highlights how aid abroad positively benefits domestic security. After a crippling cyberattack shut down Costa Rica’s public-run social services and healthcare systems, the U.S. provided an initial investment of $25 million to strengthen Costa Rica’s cybersecurity capabilities. This investment, along with support from the other allies, enabled Costa Rica to recover and rebuild their cybersecurity infrastructure from scratch. The U.S. Southern Command furthered this investment with a nearly $10 million security assistance initiative that aimed to strengthen Costa Rica’s cyber defense capacity. 

How do these investments benefit U.S. taxpayers? First, the Russian ransomware group behind the attack could easily have continued its attack into other areas like U.S. companies or public institutions. Through investments like the one made, the international community has been able to shut down Conti and prepare itself for similar attacks. Second, Costa Rica has continued to be a strong economic, technological, and ideological partner for the U.S. And third, the funding sent to Costa Rica ended up with U.S. companies that helped the country secure its critical infrastructure. 

Investing in cybersecurity across Latin America not only helps to protect the region from increasing cyberattacks linked to state-sponsored actors from China and Russia but also strengthens U.S. national security interests. Both China and Russia are intensifying their cyber operations across the Western Hemisphere, aiming to advance their strategic interests and influence, often at the expense of U.S. interests. By bolstering Latin America's cybersecurity infrastructure, the U.S. can help mitigate the risks posed by these foreign cyber threats while also promoting stability in a key region. 

Programs that focus on information sharing, workforce development, and enhancing general cybersecurity capabilities will complement “near-shoring” efforts by creating stronger, more resilient partnerships. This collaboration would not only fortify key alliances, but also improve the security of the Americas as a whole. Investing in these initiatives is crucial for the U.S. as it ensures the protection of critical infrastructure, promotes regional cooperation, and defends against cyber threats that could undermine both economic and geopolitical interests.

Trump Administration

On his first day in office, President Donald Trump signed an executive order instituting a 90-day pause on all foreign development assistance to allow for assessments of its efficiency and alignment with his foreign policy. The cost-cutting faction of Trump’s administration, led by the Department of Government Efficiency (DOGE), is also pushing to dismantle the U.S. Agency for International Development (USAID). While legal challenges to this initiative are ongoing, one thing is certain: U.S. foreign aid will be significantly reduced.

Although most aid will be scaled back or eliminated, certain initiatives will continue in some form. For instance, Secretary of State Marco Rubio recently visited Costa Rica on a tour of Central America and the Caribbean — his first major diplomatic mission as Secretary of State — and pledged continued U.S. support for the country’s cybersecurity, 5G infrastructure, and anti-narcotics efforts. 

Sec. Rubio announced that a waiver from the foreign aid freeze would be issued for Costa Rica, allowing these critical initiatives to proceed. But questions remain: Will the administration extend similar exemptions for other cybersecurity projects? Will Rubio’s strong focus on Latin America ensure the region is not overlooked by the U.S.? While these answers remain uncertain, one thing is clear: U.S. assistance plays a vital role in regional security. By maintaining investments in Latin America, the Trump administration can help limit China's influence in the region and ensure both Latin America and the U.S. remain protected from cyber threats.

To advance U.S. interests, the Trump administration should continue to prioritize cybersecurity investments in Latin America. The growing cyber threats posed by China and Russia demand a proactive, cooperative approach. Cutting back foreign aid and cybersecurity support would create a void in the region, leaving Latin America more vulnerable to foreign influence and cyberattacks. 

U.S. assistance has not only strengthened alliances but also provided a means to counterbalance China's Belt and Road Initiative, which increasingly targets Latin American infrastructure, including in critical sectors like telecommunications. Maintaining investments in cybersecurity is a strategic move to ensure U.S. interests are safeguarded in the Western Hemisphere. By continuing to support Latin American cybersecurity efforts, the U.S. not only prevents regional destabilization but also secures its own economic and national security interests, creating an environment of mutual protection and shared stability. In an era where digital threats know no borders, the U.S. must remain committed to the region's defense, ensuring that it does not become a battleground for competing global powers.

Accountability and Shared Investment

That said, Latin American countries also must prioritize cybersecurity funding in their national budgets to address the region's escalating cyberattack vulnerability. While the United States has played a key role in providing technical training, infrastructure development, and fostering regional partnerships, Latin American nations need to invest in their own cybersecurity capacities. 

This shared responsibility ensures that each country has "skin in the game," contributing to collective regional resilience. For nations with limited resources, alternative funding mechanisms should be explored. Multilateral development banks (MDBs), such as the Inter-American Development Bank (IDB) or the Development Bank of Latin America (CAF), can provide financial support for cybersecurity initiatives. International and public-private collaborations can help fill funding gaps while offering technical expertise. However, these investments must be paired with accountability measures, such as clear and actionable national cybersecurity strategies and workforce development programs, to ensure sustainable progress. 

By embedding cybersecurity into national budgets and leveraging external funding where necessary, Latin American countries can strengthen their defenses against cyberattacks, protect critical infrastructure, and foster economic growth in an increasingly digital world.

Strategic Investments for an “America First” Agenda

The current administration's "America First" agenda reshapes international relations by emphasizing strategic investments that benefit domestic and global interests. Supporting cybersecurity efforts in Latin America aligns with this approach, as it not only counters malicious actors from Russia and China but also fosters economic growth, strengthens democracy, and promotes open markets in the region. By investing in Latin America's cybersecurity capabilities, the U.S. creates opportunities for American companies to collaborate with local implementers who possess critical regional expertise, ensuring more effective and sustainable solutions.

By continuing to invest in Latin America's cybersecurity infrastructure, the U.S. helps protect the region from malicious cyberattacks, strengthens key alliances, and counters foreign influence, particularly from China’s growing presence. This investment is essential for ensuring regional stability, fostering economic partnerships, and reinforcing shared security goals. For the U.S., supporting cybersecurity in Latin America is not just about defending against external threats but also about securing its position on the global stage. 

The stakes are high. If the U.S. does not continue to support Latin American countries in enhancing their cybersecurity posture, the region could face increased cyberattacks, a greater reliance on China's technology and influence, and ultimately, a diminished U.S. role on the global stage. Sustained and accountable investments in cybersecurity are essential to prevent regional destabilization and secure U.S. economic and national security interests. 

In today’s interconnected digital world, where the boundaries between physical and cyber threats are increasingly blurred, robust cybersecurity in Latin America is more than a regional imperative – it is a cornerstone of U.S. national security. Ensuring that the United States and its Latin American partners are adequately prepared to counter cyber threats is not simply a matter of technical investment—it is a strategic necessity that will define the balance of power in the Western Hemisphere for years to come.

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