Protecting Taxpayers from Risky Investments in Venezuela Act
- Bill Number
- H.R. 7038
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- International Affairs
- Status
- Introduced
- Latest Action
- 2026-01-13: Referred to the House Committee on Foreign Affairs.
- Last Updated
- 2026-02-09T19:28:47Z
AI-Generated Summary
Purpose
The legislation, titled the "Protecting Taxpayers from Risky Investments in Venezuela Act," aims to prevent the U.S. government from using federal funds to support or invest in Venezuela's oil and petroleum infrastructure. It seeks to protect U.S. taxpayers from financial risks associated with such investments, particularly in a politically unstable context.
Key Provisions
- Prohibition on Funding: U.S. government funds cannot be used to finance, subsidize, insure, guarantee, or otherwise support the development, maintenance, or expansion of Venezuela's oil infrastructure or petroleum sector. This includes:
- Construction, installation, repair, or improvement of oil or gas facilities.
- Purchasing real property or reimbursing such purchases.
- Providing insurance, loan guarantees, tax incentives, or royalty relief.
- Making payments to individuals or corporations (domestic, international, or multinational).
- Offering advocacy, promotion, or support by U.S. government officials at international financial institutions, multilateral organizations, or diplomatic forums.
- Exception: The prohibition does not apply to any spending explicitly authorized by an Act of Congress passed after the bill's enactment.
- Reporting Requirement: The Secretary of State must submit an annual report to specified congressional committees (covering foreign affairs, appropriations, and budget in both the House and Senate) within 180 days of enactment and yearly thereafter. The report must:
- Describe any U.S. expenditures or activities related to Venezuela's oil infrastructure or petroleum sector.
- Certify that the U.S. government is complying with the prohibition.
Significant Changes to Existing Law
This bill introduces a new, specific ban on using federal funds for Venezuela's oil sector, which was not previously restricted in this targeted manner. It builds on existing U.S. sanctions frameworks (like those under the Treasury Department's Office of Foreign Assets Control) but adds congressional enforcement through funding prohibitions and mandatory reporting, shifting more oversight to Congress over executive branch foreign spending decisions.
Potential Impacts
- On Government Agencies: Agencies like the State Department and Treasury will face restrictions on foreign aid, loans, or diplomatic support involving Venezuela's oil sector, requiring them to redirect resources and ensure compliance to avoid legal violations.
- On Citizens: U.S. taxpayers are protected from indirect financial exposure to Venezuela's volatile oil industry, potentially reducing risks of losses from defaulted loans or failed investments.
- On International Relations: The ban could strain U.S.-Venezuela ties by limiting cooperation on energy projects, affect relationships with international bodies (e.g., World Bank or Inter-American Development Bank) where U.S. influence is used, and signal a tougher U.S. stance on Venezuela's government, possibly influencing global energy markets or alliances in Latin America.
Main Stakeholders Affected
- U.S. Government and Congress: Executive agencies (e.g., State Department) must implement and report on compliance; congressional committees gain enhanced oversight of foreign spending.
- U.S. Taxpayers and Businesses: Protected from risky investments; U.S. companies involved in international energy may face barriers to Venezuelan projects backed by government support.
- Venezuelan Government and Oil Sector: State-owned entities like PDVSA (Venezuela's national oil company) lose potential U.S. funding or guarantees, limiting infrastructure development.
- International Organizations and Multinational Corporations: Affected by restrictions on U.S.-backed advocacy or financial support for Venezuelan oil projects.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens congressional control over the "power of the purse" (Article I, Section 9 of the U.S. Constitution), limiting executive discretion in foreign aid without explicit future authorization. It may intersect with existing sanctions laws, requiring coordination to avoid conflicts.
- Constitutional: Reinforces separation of powers by mandating reports to Congress, ensuring transparency in foreign policy spending.
- Political: Represents bipartisan concern (introduced by a diverse group of representatives) over Venezuela's governance and economic risks, potentially escalating U.S. pressure on the Maduro regime without direct military involvement. It could invite legal challenges if interpreted as overly broad, but the exception clause provides flexibility for future policy shifts.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (22)
Rep. Escobar, Veronica [D-TX-16], Rep. Doggett, Lloyd [D-TX-37], Rep. Casten, Sean [D-IL-6], Rep. Stanton, Greg [D-AZ-4], Rep. Vargas, Juan [D-CA-52], Rep. Min, Dave [D-CA-47], Rep. Friedman, Laura [D-CA-30], Rep. Liccardo, Sam T. [D-CA-16], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Matsui, Doris O. [D-CA-7], Rep. Foushee, Valerie P. [D-NC-4], Rep. Ruiz, Raul [D-CA-25], Rep. Dexter, Maxine [D-OR-3], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Jackson, Jonathan L. [D-IL-1], Rep. Quigley, Mike [D-IL-5], Rep. Trahan, Lori [D-MA-3], Rep. Garcia, Robert [D-CA-42], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Salinas, Andrea [D-OR-6], Rep. Schakowsky, Janice D. [D-IL-9], Rep. McClellan, Jennifer L. [D-VA-4]
Recent Actions
- 2026-01-13: Referred to the House Committee on Foreign Affairs.
- 2026-01-13: Introduced in House
- 2026-01-13: Introduced in House
Bill Versions
- Protecting Taxpayers from Risky Investments in Venezuela Act — issued 2026-01-13 — PDF (4 pages)