Sponsors (4)
The bill aims to prevent U.S. federal support from flowing to firms tied to unrecognized Venezuelan authorities—strengthening national security and preserving humanitarian exemptions—but does so at the cost of reduced contracting opportunities for some U.S. businesses, added administrative burdens, and potential uncertainty from waiver decisions.
Federal procurement and U.S. taxpayers: reduces federal contracting with firms that do significant business with unrecognized Venezuelan authorities, limiting U.S. support to entities tied to illegitimate regimes.
People requiring humanitarian aid (including immigrants) and relevant contractors: preserves the ability to deliver humanitarian, disaster relief, and evacuations by exempting contracts the Secretary deems necessary.
Federal agencies and policymakers: retains flexibility for national security and foreign policy through a State Department waiver and an OFAC license exception.
U.S. small businesses with Venezuela ties: could lose federal contracting opportunities and sales if their operations are tied to Venezuela, reducing revenues.
Federal agencies, contracting officers, and contractors: will face increased administrative burden to vet foreign business ties and to obtain State Department concurrence or OFAC licenses.
Contractors and federal employees: risk politicized or opaque waiver/exemption decisions that create uncertainty for contractors and delay procurement.
Based on analysis of 2 sections of legislative text.
Introduced April 1, 2025 by Richard Lynn Scott · Last progress April 1, 2025
Prohibits federal executive agencies from entering into procurement contracts with persons the agency head and the Secretary of State determine knowingly conduct significant business operations with Venezuelan government authorities that the United States does not recognize. The ban lasts for contracts entered into during the three years after the law takes effect and includes specific exceptions for humanitarian aid, disaster relief, noncombatant evacuations, national security needs, U.S. government activities in Venezuela, international organizations, valid OFAC licensees, and maintenance/operation of U.S. consular or diplomatic posts in Venezuela.