crs_reports: R48859

Congressional Research Service reports with summaries, authors, and topic classifications.

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R48859 Mexico: Background and Key Issues in U.S. Relations 2026-02-23T05:00:00Z 2026-02-26T09:37:57Z Active Reports Danielle M. Trachtenberg, Clare Ribando Seelke Latin America, Caribbean & Canada Mexico, the 10th most populous country and 13th largest economy in the world, is bound to the United States by geography and deep economic, cultural, and historical ties. In addition to sharing a nearly 2,000-mile land border, Mexico was the top U.S. trade partner in goods in 2025 and the second-largest oil supplier, behind Canada. Drug cartels, six of which the Trump Administration has designated terrorist organizations, have endangered the lives of people, including U.S. citizens, in parts of Mexico. U.S.-Mexico ties and issues, including addressing the production and trafficking of fentanyl from Mexico, have prompted legislative activity and oversight interest in the 119th Congress. Mexico has undergone significant change under successive National Regeneration Movement (MORENA) presidencies. The party’s founder, former President Andrés Manuel López Obrador (2018-2024), concentrated power in the presidency and focused government efforts on raising wages and increasing social programs. Observers criticized López Obrador for trying to weaken autonomous institutions and the judiciary and for increasing military involvement in public security. In October 2024, President Claudia Sheinbaum took office for a six-year term. Sheinbaum, a former head of government of Mexico City (2018-2023), is Mexico’s first female president and a close ally of López Obrador. She has benefitted from MORENA and its allies’ two-thirds majorities in both chambers of the legislature seated in September 2024. In her first year, Sheinbaum shepherded 22 constitutional reforms through congress, many of which were proposed by López Obrador. Although President Sheinbaum has continued aspects of López Obrador’s policies, she has adopted a more aggressive public security policy and appears to have partially aligned her trade policy with that of the United States by backing legislation that imposed tariffs on imports from the People’s Republic of China and other countries with which Mexico does not have a free-trade agreement. Some observers are concerned that MORENA has increased control of the federal, state, and local governments just over a decade since its founding as a party. U.S. Policy U.S.-Mexican relations have been tested as the Sheinbaum administration has sought to maintain Mexico’s sovereignty while addressing U.S. concerns on various issues. Since February 2025, President Trump has used the imposition or threat of tariffs to spur the Mexican government into action on migration control, drug trafficking, and Rio Grande water deliveries to the United States. President Trump has repeatedly threatened unilateral U.S. military intervention in Mexico to combat drug cartels, which could derail cooperation. A successful joint review of the U.S.-Mexico-Canada Agreement (USMCA)—through which most Mexican exports entered the United States duty-free in 2024—is a top priority for Mexico. The 119th Congress has considered legislation and conducted oversight on varied aspects of U.S. relations with Mexico through hearings, delegations, and letters. The FY2026 National Defense Authorization Act (P.L. 119-60) requires several reports, plans, and strategies to track Mexico’s efforts against illicit synthetic drugs and to improve joint training and security cooperation. The National Security, Department of State, and Related Programs Appropriations Act, Division F of the FY2026 Consolidated Appropriations Act (P.L. 119-75), conditions the provision of non-fentanyl-related U.S. foreign assistance on Mexico’s water deliveries to the United States. The Senate Intelligence Committee’s reported version of the FY2026 Intelligence Authorization Act (S. 2342) would require U.S. intelligence agencies to develop plans to improve their antidrug collaboration with the Mexican government. The Senate Foreign Relations Committee reported legislation (S. 1780) that would require a strategy for U.S. security assistance to Mexico and annual reporting on its implementation, as well as legislation (S. 860) that would impose targeted sanctions related to the production and trafficking of synthetic opioids. Congress has a consultative role in the 2026 USMCA joint review and may evaluate whether potential revisions to USMCA require congressional approval. Congress also may consider legislation to shape U.S. trade policy and/or to authorize or prohibit certain tariffs or other trade measures. Regarding Administration threats for military action in Mexico, Congress could authorize or prohibit such activity, appropriate or restrict funding for such policies, and conduct oversight through hearings, inspector general reports, letters, or other measures. https://www.congress.gov/crs_external_products/R/PDF/R48859/R48859.5.pdf https://www.congress.gov/crs_external_products/R/HTML/R48859.html

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