The denial followed a report that USAID, normally confined to humanitarian projects, tried to build a Twitter-style network to attract Cuban subscribers, which would eventually be used to distribute political content.
White House spokesman Jay Carney said that the programme was a "development assistance" programme designed to allow Cubans facing government restrictions on information access to civil society.
He said the programme, first reported by the Associated Press, was conducted within US law, and had not been a secret since it was debated in Congress.
"But that does not make it covert. USAID is a development agency, not an intelligence agency. Suggestions that this was a covert program are wrong."
Carney said that Congress had appropriated funds to promote democracy in Cuba in an open fashion and that the programme had been vetted by the Government Accountability Office, a federal watchdog body.
The AP report said that the network aimed to build subscribers at first with non controversial content on weather and sports before moving onto political messaging when the service expanded.
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