President Donald Trump has said the US will "begin cutting off" foreign aid to Guatemala, Honduras and El Salvador because of a large convoy of migrants heading north.
Trump criticised the countries on Monday for allowing people to leave the region and come "illegally" to the US.
The group is travelling through Mexico, but is still far from the US border.
Human rights organisations have said that cutting aid would make the situation worse.
The president has not specified what money will be cut and it is unclear if such action can be taken by presidential order, says a BBC report.
In 2017, Guatemala received over $248m (£191m) in US aid. The same year, Honduras received $175m and El Salvador $115m, according to the US Agency for International Development.
"Cutting aid to refugee-producing countries will only make worse the conditions that displace people in the first place," said Human Rights Watch on Sunday.
The organisation said root causes must be addressed. "People generally don't want to leave their homes if they can live normal, safe lives there."
Though President Trump has accused the migrants of trying to illegally enter the US, many of the families travelling towards the border are seeking asylum.
They say they are fleeing persecution, poverty and violence in their home countries.