The United States is to cut all non-humanitarian aid to Honduras in support of the deposed president, Manuel Zelaya.
He's been holding talks in Washington with Secretary of State Hillary Clinton.
On 28 June, Mr Zelaya was forced from his bed, driven to the airport and flown out of the country. Since then, he's been travelling around the Americas appealing for help to go back.
The opposition - now the interim government - says he was attempting to extend his term in office.
The State Department said the US needed to take strong action given the failure of the replacement regime to restore "democratic, constitutional rule".
The US says it would not, at this stage, recognise elections scheduled for November as legitimate.