S. 2684 states that it should be the policy of the United States to support countries in Latin America and the Caribbean that maintain diplomatic relations with Taiwan and to counter efforts by the People’s Republic of China (PRC) to cause those relations to be severed. The bill would require the Department of State to develop a mechanism to track significant PRC infrastructure and development projects in those countries and coordinate the U.S. diplomatic and technical responses to those projects.
The bill also would require the Secretary of State to provide several reports to the Congress about Latin American governments that have taken steps to discontinue diplomatic relations with Taiwan, about the PRC’s strategy in Latin America and the Caribbean, and about the actions that the Department of State has taken in response. Finally, the bill would require the Administration to brief the Congress on U.S. efforts to counter the PRC’s efforts to influence other nations, and on the effectiveness of the United States’ and Taiwan’s military posture in the Taiwan Strait.
On the basis of information about the costs of similar reports and diplomatic efforts to influence the actions of other nations, CBO estimates that implementing S. 2684 would cost less than $500,000 annually and total $1 million over the 2026-2030 period. Any spending would be subject to the availability of appropriated funds.
The CBO staff contact for this estimate is David Rafferty. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.
