US Support for Energy Security and Clean Transition in Latin America and the Caribbean
This Act establishes a US sovereign lending program for Latin American and Caribbean countries to enhance their energy security and accelerate the transition to clean energy sources. While focused on foreign policy, the long-term goal is regional stabilization by ensuring access to affordable energy, which may indirectly reduce migration and economic instability, impacting global security and trade. The loans are zero or low-interest and explicitly prohibit requirements for austerity measures that could diminish the quality of life for citizens in recipient countries.
Key points
Establishment of a lending program (up to $100 million annually from 2026-2031) for Latin American and Caribbean countries for energy projects.
Funding supports short-term energy needs and transition projects to clean energy, including battery solutions for reliable electricity.
Loans are provided on favorable terms (zero or low-interest, up to 30 or 50 years) and cannot mandate austerity policies that increase poverty or inequality.
US support aims to counter the influence of China and Russia; funds cannot be used to purchase commodities from entities linked to these governments.
Preference for loans is given to countries that share democratic values, respect human rights, and promote economic freedom.
Introduced
Citizen Poll