Article published on the 2009-03-12 Latest update 2009-03-12 09:17 TU
The US broke off diplomatic relations with Cuba in 1961 and imposed an economic embargo in 1962, after Fidel Castro natonalised American interests.
Castro had come to power in 1959, after a guerrilla struggle against US ally Fulgencio Batista.
Former President George W Bush tightened travel restrictions when he came to office in 2001, which this newest law would loosen.
The law would allow Cubans in the US to visit the island once a year and stay for an unlimited time, instead of once every three years with a 14-day limit. They can also spend up to 179 dollars (140 euros) a day in Cuba, instead of 50.
Over 1.5 million Cubans live in the US.
Two Democratic senators with large Cuban-American constituencies, Bill Nelson of Florida and Bob Menendez of New Jersey, initially opposed the bill, concerned that it would change US policy towards Cuba. But they were reassured by a letter from Treasury Secretary Tim Geithner, which said that the trade blockade still remains in place.
Cuba has not reacted officially to the new law, which comes a month before Obama is to attend the Summit of the Americas in Trinidad and Tobago, which brings the US together with Latin American leaders.