Restoring Sovereignty and Human Rights in Nicaragua Act of 2026

Bill Number

H.R. 7055

Origin Chamber

House

Congress

119th Congress, Session 2

Status

Introduced

Latest Action

2026-01-14: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-02-21T04:53:25Z

AI-Generated Summary

Purpose of the Legislation

The "Restoring Sovereignty and Human Rights in Nicaragua Act of 2026" (H.R. 7055) aims to renew and strengthen U.S. sanctions and diplomatic efforts against the Nicaraguan government under President Daniel Ortega for human rights abuses, suppression of democracy, and support for Russia's invasion of Ukraine. It seeks to pressure the regime to hold free elections, end violence against civilians, and investigate protester killings, while promoting human rights and restricting economic benefits to the government.

Key Provisions

The bill is organized into three titles, focusing on sanctions, economic measures, and human rights support.

Title I: Reauthorization and Amendment of Existing Acts

• Extension of Authorities: Extends the Nicaraguan Investment Conditionality Act of 2018 until 2030, allowing continued U.S. sanctions on foreign investments that benefit the Nicaraguan government.
• Enhanced Sanctions on Economic Sectors: Adds the gold sector and other revenue-generating sectors identified by the Treasury Secretary (in consultation with the State Department) to the list of sanctioned areas tied to the Ortega family's revenue.
• New Triggers for Sanctions: Expands reasons for imposing targeted sanctions, including:
• Arrests or prosecutions of Catholic Church members or others for practicing religion freely.
• Politically motivated convictions of opposition party members or civil society leaders.
• Severe human rights violations against prisoners.
• Providing goods, services, technology, or support to Russia's 2022 invasion of Ukraine.
• Prioritization of Sanctions: Adds officials of the Nicaraguan Military Institute of Social Security (IPSM) to the list of high-priority targets under the Reinforcing Nicaragua's Adherence to Conditions for Electoral Reform Act of 2021.
• Diplomatic Strategy with CABEI: Requires the State Secretary (with Treasury input) to work with U.S. partners (e.g., Mexico, Taiwan, Argentina) who are members of the Central American Bank for Economic Integration (CABEI—a regional development bank) to:
• Block new loans or assistance to the Nicaraguan government.
• Increase oversight of existing projects.
• Ensure any aid goes through independent entities, not government-controlled ones.
• Report annually on these efforts.

Title II: Additional Economic Measures

• Policy Statement: Declares U.S. goals for resolving Nicaragua's crisis, including free and fair elections with international observers, ending police and pro-government violence, and independent probes into protester deaths.
• Review of CAFTA-DR Participation: Mandates annual State Department reports (with the U.S. Trade Representative) assessing:
• Benefits to the Ortega regime from the Dominican Republic-Central America-U.S. Free Trade Agreement (CAFTA-DR, a trade pact allowing duty-free exports).
• Violations of Nicaragua's commitments under CAFTA-DR.
• Whether Nicaragua qualifies as a "nonmarket economy" (a status under U.S. trade law that could limit favorable treatment due to government control over markets).
• Prohibition on New U.S. Investments: Bans U.S. persons (citizens, residents, or U.S.-based entities) from making any new investments in Nicaragua's economy after enactment. Implemented via the International Emergency Economic Powers Act (IEEPA, a law allowing the President to regulate economic transactions during emergencies). Includes penalties for violations and exceptions for:
• U.S. intelligence activities.
• Humanitarian aid like food, medicine, or agricultural sales.
• National security waivers by the President, with congressional notification.
• Termination: Ends these measures if the President certifies that Nicaragua has met the policy goals (e.g., free elections and end to violence).

Title III: Promoting Human Rights

• Grants for Programs: Authorizes presidential grants to nonprofit organizations for initiatives promoting human rights, democracy, and rule of law in Nicaragua, such as documenting abuses since 2018. Programs must consult exiled Nicaraguan opposition and exclude any Ortega-affiliated entities. Annual reports required through 2030.
• Support at the United Nations: Directs the U.S. UN representative to:
• Push to extend the mandate of the UN Group of Human Rights Experts on Nicaragua (established in 2022 to investigate abuses) until the crisis is resolved.
• Seek global backing for the group's investigations and provide U.S. technical assistance as allowed.
• Advocate for UN resolutions condemning political prisoner exiles and religious freedom attacks, and support UN envoys for dialogue toward democratic transition.

Significant Changes to Existing Law

• Extends the 2018 Act's expiration from 2023 to 2030, ensuring long-term sanctions authority.
• Broadens sanctionable economic sectors beyond mining and energy to include gold and any Treasury-identified areas linked to Ortega family revenue.
• Introduces new sanction triggers focused on religious persecution (e.g., against the Catholic Church), political prisoners, prisoner abuses, and Nicaragua's ties to Russia's Ukraine invasion—expanding from prior focuses on electoral fraud and general human rights.
• Adds IPSM officials to sanction priorities, targeting military-linked social security benefits.
• Creates a new diplomatic mandate to influence CABEI lending, with required reporting.
• Imposes a blanket ban on new U.S. investments (previously limited to specific sectors), reviewable under CAFTA-DR, marking a shift to comprehensive economic isolation.

Potential Impacts

• On Government Agencies: Increases workload for the State Department (diplomacy, UN advocacy, reports) and Treasury (sanctions identification, enforcement). The President gains IEEPA powers for investment bans but must notify Congress on waivers.
• On Citizens and Businesses: U.S. persons face restrictions on investing in Nicaragua, potentially limiting business opportunities but allowing humanitarian exceptions. Nicaraguan citizens, especially opposition, civil society, and religious groups, may gain indirect support through grants and international pressure, though the regime could retaliate with more repression.
• On International Relations: Strengthens U.S. coordination with allies (e.g., Canada, EU, Latin American countries) on sanctions and CABEI oversight, potentially straining ties with Nicaragua and Russia. Could isolate Nicaragua economically via CAFTA-DR reviews and UN actions, encouraging multilateral human rights efforts but risking regional tensions in Central America.

Main Stakeholders Affected

• U.S. Government: Congress (oversight via committees like Foreign Affairs and Financial Services), State and Treasury Departments (implementation), and the President (waivers and certifications).
• Nicaraguan Government and Regime: Ortega administration, military (including IPSM), and state-owned entities face expanded sanctions, investment blocks, and diplomatic isolation.
• U.S. Persons and Businesses: Investors and companies prohibited from new Nicaraguan ventures, impacting trade and energy sectors.
• Nicaraguan Civil Society: Opposition leaders, political prisoners, Catholic Church, and exiles benefit from grants, documentation, and UN support.
• International Entities: CABEI (lending restrictions), UN bodies (extended mandates), and allies like Mexico or the EU (diplomatic coordination).

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on IEEPA for enforceable investment bans and penalties, with built-in exceptions to balance national security and humanitarian needs. CAFTA-DR reviews could invoke trade law (e.g., nonmarket economy status under the 1974 Trade Act), potentially leading to disputes or tariff changes without violating the pact's core terms.
• Constitutional: Aligns with Congress's foreign affairs powers (Article I) and presidential emergency authorities (Article II), but waivers and terminations ensure congressional checks, avoiding overreach concerns.
• Political: Signals bipartisan U.S. commitment (introduced by Reps. Smith and Salazar) to human rights in Latin America, potentially pressuring the Ortega regime toward reforms but risking escalation if viewed as interference. Enhances U.S. leverage against authoritarianism globally, including ties to Russia, without direct military involvement.

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

Sponsor

Rep. Smith, Christopher H. [R-NJ-4]

Cosponsors (1)

Rep. Salazar, Maria Elvira [R-FL-27]

Recent Actions

• 2026-01-14: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-14: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-14: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-14: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-14: Introduced in House
• 2026-01-14: Introduced in House

Bill Versions

• Restoring Sovereignty and Human Rights in Nicaragua Act of 2026 — issued 2026-01-14 — PDF (17 pages)