El Salvador and Honduras face economic risks amid TPS uncertainty

The potential revocation of Temporary Protection Status (TPS) in the United States is creating significant economic and social uncertainty for El Salvador and Honduras. Experts warn that the loss of status for hundreds of thousands of migrants could severely impact national GDPs through reduced remittance inflows, which account for approximately 27% of Honduras’s GDP and 24-26% of El Salvador’s.

In El Salvador, local municipalities are being urged to prepare for a possible mass return of citizens. Public management experts emphasize that local governments will be the first line of support for reintegrating returning migrants into the workforce and social fabric.

Separately, El Salvador's Supreme Electoral Tribunal (TSE) is preparing for the 2027 elections. Plans include establishing 92 voting centers across 29 countries to facilitate participation for the diaspora through remote internet voting and in-person electronic voting. Additionally, the Salvadoran Legislative Assembly has ratified an agreement with the United States to reactivate the Peace Corps program, which will bring American volunteers to support community projects in agriculture, education, and health.