United States redirected foreign aid to fund Costa Rica's interception of US-bound migrants

The U.S. and Costa Rica signed a Memorandum of Understanding on April 3, 2025 under which DHS funds and runs logistics for Costa Rica's own deportations of irregular migrants, primarily those transiting toward the United States. The State Department is redirecting up to $7.85 million from its Economic Support Fund — a foreign-aid line normally used for allied economic development — to DHS to pay for the program, modeled in part on a 2024 Biden-era deal under which the U.S. paid Panama to detain and deport migrants moving toward the U.S. border.

On April 3, 2025, the United States and Costa Rica signed a Memorandum of Understanding "Concerning Assistance for the Deportation of Select Irregular Migrants" — an arrangement that runs the opposite direction from the third-country deportation deals the U.S. struck with dozens of other nations. Rather than the U.S. sending people to Costa Rica, DHS provides Costa Rica technical advice, equipment, air transportation, and escort funding to conduct Costa Rica's own deportations of migrants who lack legal status there, primarily those transiting toward the United States. The MOU's Annex A gives a DHS "program manager" a direct operational role, receiving deportation-type classifications ("criminal, terrorism-related, illegal migrant") and coordinating charter or commercial flight scheduling with Costa Rican officials. The agreement includes a clause stating the parties "affirm their intent not to publicize this MOU, until its effective date, except as required by law."

Reuters reported in August 2025 that the State Department planned to redirect up to $7.85 million from its Economic Support Fund — a foreign-aid budget line typically used to promote economic development in allied countries — to DHS to fund the program, raising questions about repurposing foreign aid for extraterritorial immigration enforcement. A State Department spokesperson said the funding was intended to "build capacity of the Costa Rican immigration authorities to stop the flow of illegal migration through its borders," while acknowledging the arrangement was modeled in part on a 2024 deal the Biden administration struck with Panama, under which the U.S. paid Panama to detain and deport migrants moving toward the U.S. border from Colombia. The MOU does not specify which countries Costa Rica may deport people to, leaving open the possibility that some transferred migrants are sent onward to third countries rather than returned home.

The right to seek asylum does not depend on reaching U.S. soil to invoke it, but paying a transit country to intercept and remove people before they arrive accomplishes exactly that result without the individualized screening due process requires. The U.S. redirected foreign-aid funds meant for economic development to finance Costa Rica's interception and removal of migrants headed toward the United States, and the underlying MOU includes a clause barring its own publication until it took effect — concealing from the public how a border-enforcement outcome was being achieved through a third country rather than through the U.S. asylum system.

  1. Memorandum of Understanding Between the Government of the United States of America and the Government of the Republic of Costa Rica Concerning Assistance for the Deportation of Select Irregular Migrants, with Annex AU.S. Department of State (Case Act non-binding instruments archive) primary accessed July 31, 2026
  2. Exclusive-US plans to fund deportations from Costa Rica, document showsReuters (via U.S. News) investigative accessed July 31, 2026