Sponsors (4)
The bill seeks to deny federal contracting support to entities tied to an unrecognized Venezuelan authority to pressure that regime while protecting humanitarian and diplomatic missions, but it creates economic costs for affected businesses and implementation discretion that could cause uncertainty or politicization.
Taxpayers and the general public: federal agencies will avoid contracting with firms that do substantial business with an unrecognized Venezuelan authority, reducing U.S. support for that regime.
People in crisis and humanitarian responders: the law explicitly preserves humanitarian, disaster‑relief, evacuation, and national‑security exceptions so critical aid and emergency missions can continue.
Federal employees and state diplomatic operations: contracts that support U.S. government activities and consular/diplomatic functions are exempted, helping preserve essential embassy and mission operations.
Small businesses and contractors: firms with substantial Venezuelan ties may be barred from federal contracts for up to three years, reducing revenue opportunities and market access.
Small-business owners and taxpayers: companies relying on federal work will face added compliance costs, uncertainty from determinations requiring State concurrence, and potential retroactive impacts on contracts.
Taxpayers and federal contractors: the statute allows executive discretion and broad waivers, which could produce inconsistent application or political influence over who is barred or allowed to contract with the government.
Based on analysis of 2 sections of legislative text.
Introduced April 1, 2025 by Richard Lynn Scott · Last progress April 1, 2025
Bars federal procurement contracts with persons who knowingly do significant business with Venezuelan government authorities not recognized by the U.S., with specific exceptions and waivers.
Prohibits federal executive agencies from entering into procurement contracts with persons the agency head (with the Secretary of State's 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 but includes specific exceptions for humanitarian and disaster relief, noncombatant evacuations, U.S. national security interests, U.S. government activities in Venezuela, international organizations, OFAC‑licensed persons, and operation/maintenance of U.S. consular or diplomatic posts; the Secretary of State may also waive the ban for national interest and must notify Congress when certain exceptions are used.