As stated in the first answer, it is technically legal to travel to Cuba but illegal to spend money. Travel restrictions are easing up a bit under the Obama administration. You can travel to Cuba now with designated person-to-person tour groups, but the itineraries are limited to education-based activities and not, for example, spending time on the beach.
That being said, yes, it is illegal but it is very rare to actually be prosecuted for breaking this law. I recently went to Cuba illegally and had no issues coming back to the states.
Update as of March 18, 2015
Restrictions for US citizens traveling to Cuba have been relaxed even more:
(…)While tourism is still barred by statute, the new rules amount to
permission for any American who wants to travel to Cuba to plan an
educational sojourn there, as long as they keep records of their
activities for five years.Travelers who fill their days with museum visits, cultural sightseeing
and conversations with Cubans about their society, and keep a daily
journal, could meet the requirements. American officials suggested
that there would be little policing of the comings and goings of those
making people-to-people trips.
Update as of January 15, 2015
In December, 17 2014 Obama announced modifications to the travel regulations and the embargo against Cuba in general. The details can be found in the following page:
Fact Sheet: Treasury And Commerce Announcement Of Regulatory Amendments To The Cuba Sanctions
Summarizing, although it is still technically illegal for US citizens to visit Cuba as regular tourists, the restrictions have been relaxed and there are a lot more of possible scenarios that make it possible to travel there, for example it is not longer required to apply for an explicit permission, traveling with a specialized company that has a permit is enough. On top of that, US credit cards can now be used in Cuba, and US citizens are now allowed to spend money in Cuba.
There is an ongoing debate in the US government currently about whether to lift the embargo entirely or not.
My old answer:
As far as I know, visiting Cuba without a permission from U.S. Department of the Treasury is illegal.
Title 31–Money and Finance: Treasury
CHAPTER V–OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
PART 515–CUBAN ASSETS CONTROL REGULATIONS
(I wonder if posting this information here is also illegal…)
Even if you do have permission, some restrictions still apply, as stated in this document (CUBA TRAVEL ADVISORY):
Authorized travelers to Cuba are subject to daily spending limits and
are prohibited from bringing any Cuban “souvenirs” or other goods into
the United States, with the exception of information and informational
materials.Civil and criminal penalties may result from a violation of the
Regulations.
As far as my understanding goes, you can visit Cuba, but you cannot spend money there. The USA has an embargo on Cuba. Wikipedia has a pretty solid article on it. You need a license to actually participate in commerce… but since that includes buying food you in essence cannot go to Cuba.
Licenses are released however. I have a Cuban uncle who goes back once a year. The valid reasons as per wikitravel are:
Professional journalists on assignment in Cuba
Full-time professionals conducting academic research or attending
professional conferencesPersons on official government business
The following are issued on a case by case basis:
Persons visiting immediate family in Cuba
Full-time graduate students conducting academic research to be counted
toward a graduate degreeUndergraduate or graduate students participating in a study abroad
program of at least 10 weeks in lengthProfessors/teachers employed at a US institution travelling to Cuba to
teachPersons engaging in religious activities
Freelance journalists
Persons engaging in humanitarian projects
Persons engaging in non-profit cultural exhibitions
So in summary, is it open travel? No. Is it possible? Yes. The most common way around this that I have heard is “travel writers.”
Credit:stackoverflow.com‘
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