BOLIVAR Act
- Bill Number
- S. 1221
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-04-01: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Last Updated
- 2025-09-17T11:03:17Z
AI-Generated Summary
Purpose
The BOLIVAR Act aims to restrict U.S. federal government contracts with entities that conduct significant business with the Maduro regime in Venezuela, which the United States does not recognize as the legitimate government. This supports U.S. foreign policy by isolating the regime economically without broadly affecting humanitarian or diplomatic efforts.
Key Provisions
- Prohibition on Contracting: Heads of executive agencies (federal departments and agencies responsible for procurement) are barred from entering contracts for goods or services with any "person" (including individuals, companies, or government entities) determined to knowingly engage in significant business operations with Venezuelan authorities not recognized by the U.S. This determination requires concurrence from the Secretary of State.
- Exceptions:
- Contracts vital for humanitarian aid to Venezuelans, disaster relief, urgent life-saving measures, or noncombatant evacuations.
- Contracts in the U.S. national security interest.
- Contracts supporting U.S. government activities in Venezuela (e.g., maintaining U.S. facilities) or with international organizations.
- Entities holding a valid license from the Office of Foreign Assets Control (OFAC, a Treasury Department office that administers sanctions).
- Contracts for operating and maintaining U.S. consular or diplomatic posts in Venezuela.
- Waiver Authority: The Secretary of State can waive the prohibition if it serves the U.S. national interest.
- Notification Requirement: The Secretary of State must inform specific congressional committees (e.g., Senate Foreign Relations Committee) about any contracts using exceptions.
- Definitions:
- "Business operations" covers any commercial activity, such as owning, leasing, or operating property, equipment, or services.
- "Person" broadly includes natural persons, corporations, partnerships, governmental entities, and their affiliates or subsidiaries.
- "Government of Venezuela" encompasses political subdivisions, agencies, or instrumentalities (similar to how foreign state entities are defined in U.S. law for immunity purposes).
- Duration: The rules apply to contracts entered during the three years following enactment.
Significant Changes to Existing Law
This bill introduces a targeted prohibition on federal procurement tied specifically to business dealings with the unrecognized Maduro regime, expanding beyond general sanctions frameworks like those under OFAC. It does not amend existing laws but adds a new layer of restrictions on executive agency contracting (governed by federal procurement statutes like 41 U.S.C. § 133), requiring State Department involvement in determinations and waivers. Unlike broader sanctions, it focuses on procurement and includes time-limited application (three years), allowing for periodic review.
Potential Impacts
- Government Agencies: Executive agencies may face reduced vendor pools for procurement, potentially increasing costs or complicating supply chains, though exceptions mitigate disruptions for essential operations like diplomacy and aid.
- Citizens and Businesses: U.S. companies or individuals with ties to Venezuela could lose federal contract opportunities if deemed to have "significant" business with the Maduro regime, affecting their revenue. Venezuelan citizens may indirectly benefit from reinforced pressure on the regime, but humanitarian exceptions aim to avoid harming aid delivery.
- International Relations: Strengthens U.S. efforts to delegitimize the Maduro government, potentially encouraging allies to adopt similar measures and isolating Venezuela economically. It could strain relations with entities doing business in Venezuela but aligns with ongoing U.S. sanctions policy.
Main Stakeholders Affected
- U.S. Executive Agencies: Directly responsible for compliance in procurement decisions.
- Businesses and Persons: Companies, partnerships, or individuals with operations in Venezuela, particularly those contracting with the federal government (e.g., defense, aid, or service providers).
- U.S. Department of State and OFAC: Key roles in determinations, waivers, licenses, and notifications.
- Congressional Committees: Involved in oversight, including Homeland Security and Governmental Affairs, Foreign Relations (Senate), and their House counterparts.
- Venezuelan Entities and International Organizations: Indirectly impacted through restricted U.S. dealings, with protections for aid groups and U.S. diplomatic presence.
Notable Legal, Constitutional, or Political Implications
- Legal: Builds on existing sanctions authority (e.g., International Emergency Economic Powers Act) but ties it to procurement laws, potentially leading to challenges over what constitutes "significant" business operations or arbitrary determinations. Courts could review waiver decisions under administrative law standards for reasonableness.
- Constitutional: Reinforces executive branch power in foreign affairs (a shared presidential-congressional domain), with no apparent conflicts to separation of powers, as it mandates congressional notifications for transparency.
- Political: Signals strong bipartisan congressional support for U.S. policy against the Maduro regime (introduced by Sens. Scott, Cruz, and Blackburn), potentially influencing future sanctions or negotiations with Venezuela. The three-year sunset clause allows for reassessment amid evolving regional dynamics, avoiding permanent entrenchment.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Cruz, Ted [R-TX], Sen. Blackburn, Marsha [R-TN], Sen. Moody, Ashley [R-FL]
Recent Actions
- 2025-04-01: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2025-04-01: Introduced in Senate
Bill Versions
- Banning Operations and Leases with the Illegitimate Venezuelan Authoritarian Regime Act — issued 2025-04-01 — PDF (5 pages)