Sponsors (4)
The bill limits federal contracting with firms doing substantial business with an unrecognized Venezuelan authority to avoid supporting that regime while preserving humanitarian and government operations, but it imposes lost revenue and compliance burdens on contractors and raises risks of discretionary or politicized enforcement.
Taxpayers: Federal agencies will avoid contracting with firms that do substantial business with the unrecognized Venezuelan authority, reducing U.S. indirect support for that regime.
People (including those needing emergency assistance): Humanitarian, disaster-relief, evacuation, and national-security exceptions allow critical aid and emergency missions to continue despite the contracting restrictions.
Federal employees and state governments: Contracts that support U.S. government activities and consular/diplomatic operations are exempted, preserving essential embassy and mission functions.
Small business owners: Companies with substantial Venezuelan ties may be barred from federal contracts for up to three years, reducing revenue opportunities.
Small business owners and taxpayers: Firms that rely on federal contracts face added compliance costs and uncertainty from determinations that require State concurrence and could have retroactive impacts.
Taxpayers and federal employees: Broad executive discretion and waiver authorities create a risk of inconsistent application and political influence over who is barred or allowed to contract with the government.
Based on analysis of 2 sections of legislative text.
Bars executive agencies from contracting with entities that knowingly do significant business with an unrecognized Venezuelan government, with exceptions, waivers, and a 3-year window.
Prohibits executive branch agencies from awarding procurement contracts to persons the agency head (with State Department concurrence) determines knowingly conduct significant business operations with a Venezuelan government authority that the United States does not recognize. The prohibition lasts for three years from enactment and includes several narrow exceptions (humanitarian/disaster relief, national security, U.S. government operations in Venezuela, contracts with international organizations, valid OFAC licenses, and operation of diplomatic posts) and a national-security waiver; the Secretary of State must notify certain congressional committees when invoking some exceptions.
Official title: Prohibit contracting with persons that have business operations with the Maduro regime, and for other purposes.
Introduced April 1, 2025 by Richard Lynn Scott · Last progress April 1, 2025