H.R. 7055

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7055 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 7055

To reauthorize and amend the Nicaraguan Investment Conditionality Act 
of 2018 and the Reinforcing Nicaragua's Adherence to Conditions for 
Electoral Reform Act of 2021, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

January 14, 2026

Mr. Smith of New Jersey (for himself and Ms. Salazar) introduced the 
following bill; which was referred to the Committee on Foreign Affairs, 
and in addition to the Committees on Financial Services, the Judiciary, 
and Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To reauthorize and amend the Nicaraguan Investment Conditionality Act 
of 2018 and the Reinforcing Nicaragua's Adherence to Conditions for 
Electoral Reform Act of 2021, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Restoring 
Sovereignty and Human Rights in Nicaragua Act of 2026''.
(b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Sense of Congress.
TITLE I--REAUTHORIZATION AND AMENDMENT OF THE NICARAGUAN INVESTMENT 
CONDITIONALITY ACT OF 2018 AND THE REINFORCING NICARAGUA'S ADHERENCE TO 
CONDITIONS FOR ELECTORAL REFORM ACT OF 2021

Sec. 101. Extension of authorities of the Nicaraguan Investment 
Conditionality Act of 2018.
Sec. 102. Enhancing sanctions on sectors of the Nicaraguan economy that 
generate revenue for the Ortega family.
Sec. 103. Imposition of sanctions with respect to the Ortega 
administration's abuses against the 
Catholic Church, political prisoners, and 
support for the invasion of Ukraine.
Sec. 104. Coordinated diplomatic strategy to restrict investment and 
loans that benefit the Government of 
Nicaragua from the Central American Bank 
for Economic Integration.
TITLE II--ADDITIONAL ECONOMIC MEASURES TO HOLD THE GOVERNMENT OF 
NICARAGUA ACCOUNTABLE FOR HUMAN RIGHTS ABUSES

Sec. 201. Statement of policy.
Sec. 202. Review of participation of Nicaragua in the Dominican 
Republic-Central America-United States Free 
Trade Agreement.
Sec. 203. Prohibition on new United States investment in Nicaragua.
Sec. 204. Termination.
TITLE III--PROMOTING THE HUMAN RIGHTS OF NICARAGUANS

Sec. 301. Support for human rights and democracy programs.
Sec. 302. Support for Nicaraguan human rights at the United Nations.

SEC. 2. DEFINITIONS.

In this Act:
(1) Appropriate congressional committees.--The term 
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and the 
Committee on Banking of the Senate; and
(B) the Committee on Foreign Affairs and the 
Committee on Financial Services of the House of 
Representatives.
(2) United states person.--The term ``United States 
person'' means--
(A) an individual who is a citizen or national of 
the United States or an alien lawfully admitted for 
permanent residence in the United States; and
(B) any corporation, partnership, or other entity 
organized under the laws of the United States or the 
laws of any jurisdiction within the United States.

SEC. 3. SENSE OF CONGRESS.

It is the sense of Congress that--
(1) the Secretary of State, working through the head of the 
Office of Sanctions Coordination, and in consultation with the 
Secretary of the Treasury, should engage in diplomatic efforts 
with partners of the United States, including the Government of 
Canada, governments of countries in the European Union, and 
governments of countries in Latin America and the Caribbean, to 
impose targeted sanctions with respect to the persons subject 
to sanctions authorized by the Nicaraguan Investment 
Conditionality Act of 2018 and the Reinforcing Nicaragua's 
Adherence to Conditions for Electoral Reform Act of 2021 in 
order to hold the authoritarian regime of President Daniel 
Ortega accountable for crimes against the Catholic Church, the 
clergy, and the people of Nicaragua;
(2) the United States Government should continue--
(A) to raise concerns about human rights and 
democracy in Nicaragua, and call attention to religious 
and opposition leaders and civil society, media, and 
faith-based organizations silenced by the Ortega 
regime; and
(B) to enforce Executive Order 13851 (50 U.S.C. 
1701 note; relating to blocking property of certain 
persons contributing to the situation in Nicaragua), 
and expand existing sanctions to other such sectors of 
the economy of Nicaragua; and
(3) the international community, including the Holy See, 
the International Red Cross, and the United Nations should 
coordinate efforts--
(A) to improve the conditions of all political 
prisoners in Nicaragua;
(B) to document all gross violations of 
internationally recognized human rights in Nicaragua; 
and
(C) to call for the end of political persecution 
against members of religious organizations, including 
the Catholic Church.

TITLE I--REAUTHORIZATION AND AMENDMENT OF THE NICARAGUAN INVESTMENT 
CONDITIONALITY ACT OF 2018 AND THE REINFORCING NICARAGUA'S ADHERENCE TO 
CONDITIONS FOR ELECTORAL REFORM ACT OF 2021

SEC. 101. EXTENSION OF AUTHORITIES OF THE NICARAGUAN INVESTMENT 
CONDITIONALITY ACT OF 2018.

Section 10 of the Nicaraguan Investment Conditionality Act of 2018 
(Public Law 115-335; 50 U.S.C. 1701 note) is amended by striking 
``2023'' and inserting ``2030''.

SEC. 102. ENHANCING SANCTIONS ON SECTORS OF THE NICARAGUAN ECONOMY THAT 
GENERATE REVENUE FOR THE ORTEGA FAMILY.

Section 5(a) of the Nicaraguan Investment Conditionality Act of 
2018 (Public Law 115-335; 50 U.S.C. 1701 note) is amended--
(1) in paragraph (3)(B), by striking ``or'';
(2) in paragraph (4), by striking the period at the end and 
inserting ``; or''; and
(3) by adding at the end the following:
``(5) to operate or have operated in the gold sector of the 
Nicaraguan economy or in any other sector of the Nicaraguan 
economy identified by the Secretary of the Treasury, in 
consultation with the Secretary of State, for purposes of this 
paragraph.''.

SEC. 103. IMPOSITION OF SANCTIONS WITH RESPECT TO THE ORTEGA 
ADMINISTRATION'S ABUSES AGAINST THE CATHOLIC CHURCH, 
POLITICAL PRISONERS, AND SUPPORT FOR THE INVASION OF 
UKRAINE.

(a) Expansion of Activities Triggering Targeted Sanctions.--Section 
5(b) of the Nicaraguan Investment Conditionality Act of 2018 (Public 
Law 115-335; 50 U.S.C. 1701 note) is amended by adding at the end the 
following:
``(5) The arrest or prosecution of a person, including a 
person who is a member of or an officer of the Catholic Church, 
because of the legitimate exercise by such person of the 
freedom of religion.
``(6) The conviction and sentencing of a person who is a 
member of an opposition party or independent civil society 
organization under politically motivated charges.
``(7) Gross violations of the internationally recognized 
human rights of prisoners.
``(8) Acts of providing significant goods, services, or 
technology to or expressing support for the invasion of Ukraine 
by the Russian Federation that began on February 24, 2022.''.
(b) Modification of Targeted Sanctions Prioritization.--Section 
5(b)(2)(B) of the Reinforcing Nicaragua's Adherence to Conditions for 
Electoral Reform Act of 2021 (Public Law 117-54; 50 U.S.C. 1701 note) 
is amended--
(1) by redesignating clauses (viii) and (ix) as clauses 
(ix) and (x), respectively; and
(2) by inserting after clause (vii) the following new 
clause (viii):
``(viii) Officials of the Instituto de 
Prevision Social Militar (IPSM), commonly known 
as the Military Institute of Social Security of 
Nicaragua.''.

SEC. 104. COORDINATED DIPLOMATIC STRATEGY TO RESTRICT INVESTMENT AND 
LOANS THAT BENEFIT THE GOVERNMENT OF NICARAGUA FROM THE 
CENTRAL AMERICAN BANK FOR ECONOMIC INTEGRATION.

Section 4 of the Nicaragua Investment Conditionality Act of 2018 
(Public Law 115-335; 50 U.S.C. 1701 note) is amended--
(1) by redesignating subsection (f) as subsection (g);
(2) by inserting after subsection (e) the following new 
subsection (f):
``(f) Diplomatic Strategy To Restrict Investment in Nicaragua at 
the Central American Bank for Economic Integration.--The Secretary of 
State, in consultation with the Secretary of the Treasury, shall engage 
in diplomatic efforts with governments of countries that are partners 
of the United States and members of the Central American Bank for 
Economic Integration (referred to in this section as `CABEI'), 
including the governments of Mexico, Taiwan, Argentina, Colombia, 
Spain, and the Republic of Korea--
``(1) to oppose the extension by CABEI of any loan or 
financial or technical assistance to the Government of 
Nicaragua for any project in Nicaragua;
``(2) to increase the scrutiny of any loan or financial or 
technical assistance provided by CABEI to any project in 
Nicaragua; and
``(3) to ensure that any loan or financial or technical 
assistance provided by CABEI to a project in Nicaragua is 
administered through an entity with full technical, 
administrative, and financial independence from the Government 
of Nicaragua.''; and
(3) in subsection (g), as so redesignated--
(A) in paragraph (4), by striking ``; and'' and 
inserting a semicolon;
(B) by redesignating paragraph (5) as paragraph 
(6); and
(C) by inserting after paragraph (4) the following 
new paragraph (5):
``(5) a description of the results of the diplomatic 
strategy mandated by subsection (f); and''.

TITLE II--ADDITIONAL ECONOMIC MEASURES TO HOLD THE GOVERNMENT OF 
NICARAGUA ACCOUNTABLE FOR HUMAN RIGHTS ABUSES

SEC. 201. STATEMENT OF POLICY.

It is the policy of the United States to seek a resolution to the 
political crisis in Nicaragua that includes--
(1) a commitment by the Government of Nicaragua to hold 
free and fair elections that meet democratic standards and 
permit credible international electoral observation to replace 
the Ortega administration;
(2) the cessation of the violence perpetrated against 
civilians by the National Police of Nicaragua and by armed 
groups supported by the Government of Nicaragua; and
(3) independent investigations into the killings of 
protesters in Nicaragua.

SEC. 202. REVIEW OF PARTICIPATION OF NICARAGUA IN THE DOMINICAN 
REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE TRADE 
AGREEMENT.

(a) Report Required.--
(1) In general.--Not later than 1 year after the date of 
the enactment of this Act, and annually thereafter, the 
Secretary of State, in consultation with the United States 
Trade Representative, shall submit to the appropriate 
congressional committees a report on the participation of 
Nicaragua in CAFTA-DR, which includes--
(A) an assessment of the benefits that the Ortega 
regime receives from the participation of Nicaragua in 
CAFTA-DR, including profits earned by Nicaraguan State-
owned entities;
(B) a description of the violations of commitments 
made by Nicaragua under CAFTA-DR; and
(C) an assessment of whether Nicaragua qualifies as 
a nonmarket economy for the purposes of the Trade Act 
of 1974 (19 U.S.C. 2101 et seq.).
(2) Form.--The report required by paragraph (1) shall be 
submitted in unclassified form, but may include a classified 
annex.
(b) CAFTA-DR Defined.--In this section, the term ``CAFTA-DR'' means 
the Dominican Republic-Central America-United States Free Trade 
Agreement--
(1) entered into on August 5, 2004, with the Governments of 
Costa Rica, the Dominican Republic, El Salvador, Guatemala, 
Honduras, and Nicaragua, and submitted to Congress on June 23, 
2005; and
(2) approved by Congress under section 101(a)(1) of the 
Dominican Republic-Central American-United States Free Trade 
Agreement Implementation Act (19 U.S.C. 4011(a)(1)).

SEC. 203. PROHIBITION ON NEW UNITED STATES INVESTMENT IN NICARAGUA.

(a) Prohibition.--After the date of the enactment of this Act, a 
United States person, wherever located, may not make any investment in 
any sector of the economy of Nicaragua.
(b) Implementation.--The President may exercise all authorities 
provided to the President under sections 203 and 205 of the 
International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) 
to carry out this section.
(c) Penalties.--A person that violates, attempts to violate, 
conspires to violate, or causes a violation of this section or any 
regulation, license, or order issued to carry out this section shall be 
subject to the penalties set forth in subsections (b) and (c) of 
section 206 of the International Emergency Economic Powers Act (50 
U.S.C. 1705) to the same extent as a person that commits an unlawful 
act described in subsection (a) of that section.
(d) Exceptions.--
(1) Exception for intelligence activities.--This section 
shall not apply with respect to activities subject to the 
reporting requirements under title V of the National Security 
Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized 
intelligence activities of the United States.
(2) Humanitarian exception.--The prohibition under 
subsection (a) does not apply with respect to any person for 
conducting or facilitating a transaction for the sale of 
agricultural commodities, food, medicine, or medical devices to 
Nicaragua, or for the provision of humanitarian assistance to 
the people of Nicaragua.
(e) National Security Waiver.--The President may waive the 
application of the prohibition under subsection (a) with respect to a 
person if the President--
(1) determines that such a waiver is in the national 
security interests of the United States; and
(2) submits to the appropriate congressional committees a 
notification of the waiver and the reasons for the waiver.

SEC. 204. TERMINATION.

The provisions of this title shall cease to have effect upon 
certification by the President to the appropriate congressional 
committees that a resolution to the political crisis in Nicaragua as 
described in section 201 has been reached.

TITLE III--PROMOTING THE HUMAN RIGHTS OF NICARAGUANS

SEC. 301. SUPPORT FOR HUMAN RIGHTS AND DEMOCRACY PROGRAMS.

(a) Grants.--
(1) In general.--The President may provide grants to 
private, nonprofit organizations to support programs that 
promote human rights, democracy, and the rule of law in 
Nicaragua, including programs that document human rights abuses 
committed by the Ortega regime since April 2018.
(2) Administration of programs.--Any program that receives 
a grant under paragraph (1) shall be administered in 
consultation with members of the Nicaraguan opposition, 
including individuals in exile in Costa Rica and the United 
States.
(3) Funding limitation.--Any entity owned, controlled, or 
otherwise affiliated with the Ortega regime is not eligible to 
receive a grant under this section.
(b) Report.--Not later than 1 year after the date of the enactment 
of this Act, and annually thereafter through fiscal year 2030, the 
Secretary of State, in consultation with the heads of other appropriate 
Federal agencies, shall submit to the appropriate congressional 
committees a report on actions taken pursuant to this section.

SEC. 302. SUPPORT FOR NICARAGUAN HUMAN RIGHTS AT THE UNITED NATIONS.

(a) Support To Extend Mandate of the Group of Human Rights Experts 
on Nicaragua.--The President shall direct the United States Permanent 
Representative to the United Nations to use the voice, vote, and 
influence of the United States in the United Nations Human Rights 
Council and the United Nations General Assembly--
(1) to seek to extend the mandate of the Group of Human 
Rights Experts on Nicaragua under Human Rights Council 
Resolution 49/3 (2022) until a peaceful solution to the current 
political crisis in Nicaragua is reached, including--
(A) a commitment to hold elections that meet 
democratic standards and permit credible international 
electoral observation;
(B) the cessation of the violence perpetrated 
against civilians by the National Police of Nicaragua 
and by armed groups supported by the Government of 
Nicaragua; and
(C) independent investigations into the killings of 
protesters;
(2) to encourage international support to empower the Group 
of Human Rights Experts on Nicaragua to fulfill its mission to 
conduct thorough and independent investigations into all 
alleged human rights violations and abuses committed in 
Nicaragua since April 2018; and
(3) to provide investigative and technical assistance to 
the Group of Human Rights Experts on Nicaragua as requested and 
as permitted under United Nations rules and regulations and 
United States law.
(b) Support for Further Action.--The President may direct the 
United States Permanent Representative to the United Nations to use the 
voice, vote, and influence of the United States to urge the United 
Nations to provide greater action with respect to human rights 
violations in Nicaragua by--
(1) urging the United Nations General Assembly to consider 
a resolution, consistent with prior United Nations resolutions, 
condemning the exile of political prisoners and attacks on 
religious freedom by the Ortega regime; and
(2) assisting efforts by the relevant United Nations 
Special Envoys and Special Rapporteurs to promote respect for 
human rights and encourage dialogue towards a peaceful and 
democratic transfer of power in Nicaragua.
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