The regulations have been in place for decades. The new regulations, which let some Americans travel to the island without a license, go into effect Friday.
A USAID official confirmed the payment to Alan Gross, who spent five years in a Cuban prison. It's part of a settlement with the Maryland-based company for which he worked at the time of his arrest.
American Alan Gross had spent more than five years in a Cuban prison, where he suffered ill health. Then, on Tuesday, his lawyer, Scott Gilbert, told him in a phone call that he was going home.
Havana freed Gross, who spent five years in a Cuban prison, as a humanitarian gesture. The former USAID contractor said he hoped the U.S. and Cuba move past their "mutually belligerent" policies.
The U.S. and Cuba will start talks on normalizing relations and discuss opening a U.S. Embassy in Havana. Also today, Cuba freed USAID contractor Alan Gross on humanitarian grounds.