REVOCAR Act of 2025

Bill Number

H.R. 328

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

International Affairs

Status

Introduced

Latest Action

2025-01-09: Referred to the House Committee on Foreign Affairs.

Last Updated

2025-05-21T08:06:15Z

AI-Generated Summary

Purpose

The REVOCAR Act of 2025 aims to pressure the Venezuelan government by prohibiting U.S. persons from investing in or engaging with Venezuela's energy sector until the results of the July 28, 2024, presidential election—showing opposition candidate Edmundo González as the winner—are officially recognized, and power is transferred to a democratically elected government. It seeks to curb repression by limiting financial resources to the Nicolás Maduro regime.

Key Provisions

• Prohibitions: Starting upon enactment, U.S. persons (including citizens, permanent residents, U.S.-organized entities, and those in the U.S.) are banned from transactions involving investment, trade, operations, goods, services, or finance in Venezuela's energy sector. This specifically targets Petróleos de Venezuela, S.A. (PDVSA, the state oil company), its subsidiaries, and the Maduro regime or any nondemocratic successor. Evasion attempts are also prohibited, overriding any prior contracts or licenses.
• Implementation and Enforcement: The Secretary of the Treasury, consulting the Secretary of State, will enforce via regulations and can use powers from the International Emergency Economic Powers Act (IEEPA, a law allowing economic sanctions during national emergencies). Violations carry civil and criminal penalties under IEEPA, such as fines up to $1 million or imprisonment up to 20 years for willful acts. All U.S. agencies must assist.
• Termination: The bans end when the President certifies to Congress that Maduro has recognized González's victory and stepped down, or automatically on December 31, 2027.
• Waivers: The President can temporarily waive bans (up to 90 days, renewable) if deemed vital to U.S. national security, but must notify congressional committees (Foreign Affairs/Relations and Appropriations in both chambers) at least 30 days in advance. Waiver reports must detail the rationale, permitted transactions, U.S. efforts to restrict Maduro's funds, and impacts on democracy, regime finances, human rights, and U.S. interests.

Significant Changes to Existing Law

This bill introduces new, targeted sanctions by revoking implied exemptions for U.S. dealings in Venezuelan oil and energy, building on prior IEEPA-based measures against Venezuela. It mandates immediate application without grandfathering existing deals, strengthens enforcement through explicit Treasury authority, and adds strict waiver requirements with congressional reporting—unlike broader, less conditional prior sanctions that allowed more flexibility for humanitarian or commercial exceptions.

Potential Impacts

• Government Agencies: Increases workload for the Treasury and State Departments in monitoring and regulating transactions; requires inter-agency coordination and periodic reporting to Congress, potentially straining resources.
• Citizens and Businesses: U.S. energy firms and individuals could face financial losses from halted operations or investments in Venezuela, disrupting supply chains and raising oil prices globally. Venezuelan citizens may see indirect benefits if regime funding decreases, though it could worsen economic hardship without a political transition.
• International Relations: Heightens U.S.-Venezuela tensions, signaling strong opposition to Maduro and support for the opposition; may strain ties with countries trading with Venezuela (e.g., China, Russia) but bolster U.S. alliances in Latin America focused on democracy promotion. Could influence global energy markets by reducing Venezuelan oil availability.

Main Stakeholders Affected

• U.S. Persons and Entities: Energy companies, investors, and traders (e.g., those dealing with PDVSA) face direct restrictions and penalties.
• Venezuelan Government and Entities: The Maduro regime and PDVSA lose access to U.S. capital and markets, limiting revenue for repression or operations.
• U.S. Government: Treasury, State Department, and Congress gain enforcement roles and oversight, with the President holding waiver discretion.
• Venezuelan Opposition and Citizens: Potential beneficiaries through pressure for democratic change, though at risk of further regime retaliation.
• International Actors: Global oil buyers and allied nations may experience supply disruptions or need to adjust trade.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on IEEPA for executive sanction powers, ensuring compliance with due process via regulations and penalties; waivers provide flexibility but mandate transparency to prevent abuse.
• Constitutional: Balances executive foreign policy authority with congressional oversight through required certifications and reports, upholding separation of powers without infringing on treaty-making or war powers.
• Political: Represents bipartisan pressure (introduced by Democrats and Republicans) to enforce election integrity abroad, potentially setting a precedent for conditioning sanctions on democratic outcomes; risks escalation if waivers are denied or termination delayed, influencing U.S. credibility in promoting human rights versus economic isolationism.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Wasserman Schultz, Debbie [D-FL-25]

Cosponsors (2)

Rep. Salazar, Maria Elvira [R-FL-27], Rep. Suozzi, Thomas R. [D-NY-3]

Recent Actions

• 2025-01-09: Referred to the House Committee on Foreign Affairs.
• 2025-01-09: Introduced in House
• 2025-01-09: Introduced in House

Bill Versions

• Revoke Exemptions for Venezuelan Oil to Curb Autocratic Repression Act of 2025 — issued 2025-01-09 — PDF (8 pages)