Restoring Sovereignty and Human Rights in Nicaragua Act of 2026

Summary

Imposes new U.S. diplomatic and economic measures aimed at holding Nicaragua’s government accountable for human-rights abuses and political repression. It expands targeted sanctions (including new human-rights and sectoral targets like gold), directs the U.S. to oppose multilateral lending to the Nicaraguan government, bars new U.S. investments in Nicaragua (with limited humanitarian and intelligence exceptions and a national-security waiver), and authorizes U.S. grants to nonprofit groups supporting human rights, democratic processes, and documentation of abuses.

• Expands U.S. targeted sanctions to new sectors (including gold) and to abuses such as religious persecution and politically motivated convictions.
• Bars new U.S. investments in any sector of Nicaragua’s economy after enactment, enforceable under IEEPA, with limited humanitarian and intelligence exceptions.
• Directs diplomatic efforts to oppose or restrict CABEI lending to the Nicaraguan government and increases scrutiny of multilateral financing of Nicaraguan projects.
• Requires annual reporting on Nicaragua’s CAFTA–DR participation, potential nonmarket-economy status, and whether trade benefits flow to the Ortega regime.
• Authorizes grants to U.S. nonprofits to support human-rights documentation, democracy programs, and rule-of-law projects, excluding entities affiliated with the Nicaraguan regime.
• Urges international coordination (including U.N., Holy See, and regional partners) to pressure Nicaragua on political prisoners, human-rights documentation, and an end to repression.
• Allows the President to waive the investment ban for national-security reasons, and terminates restrictive authorities once political-crisis conditions are certified as resolved.
• Applies existing IEEPA penalties for violations of the investment prohibition; reporting and oversight provisions extend through FY2030 for some items.