Protecting Taxpayers from Risky Investments in Venezuela Act
- Bill Number
- S. 3621
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- International Affairs
- Status
- Introduced
- Latest Action
- 2026-01-13: Read twice and referred to the Committee on Foreign Relations.
- Last Updated
- 2026-02-09T19:28:55Z
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 develop Venezuela's oil and petroleum infrastructure. It seeks to protect U.S. taxpayers by prohibiting financial involvement in what the bill describes as risky investments, while allowing for congressional oversight and exceptions.
Key Provisions
- Prohibition on Federal Funding: No U.S. federal funds, including those from departments, agencies, or accounts controlled by the U.S. or its representatives, can 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 or reimbursing real property.
- 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 (e.g., Foreign Relations, Appropriations, and Budget committees in both the Senate and House) starting 180 days after enactment. The report must:
- Describe any U.S. expenditures or activities related to Venezuela's oil or petroleum sector.
- Certify that the U.S. is complying with the prohibition.
Significant Changes to Existing Law
This bill introduces a new, specific ban on U.S. funding for Venezuela's oil sector, which was not previously restricted in this targeted manner. It builds on existing U.S. sanctions and foreign aid laws by adding enforceable prohibitions and mandatory reporting, ensuring stricter congressional control over foreign spending related to Venezuela's energy infrastructure.
Potential Impacts
- On Government Agencies: U.S. agencies like the State Department and international financial institutions (e.g., World Bank) will face restrictions on activities involving Venezuela's oil sector, potentially limiting diplomatic or economic tools. The reporting requirement adds administrative burdens but enhances transparency.
- On Citizens: U.S. taxpayers are protected from indirect funding of foreign oil projects, reducing financial risks associated with Venezuela's unstable economy and political situation.
- On International Relations: This could strain U.S.-Venezuela ties by isolating Venezuela's petroleum industry from U.S. support, signaling a tougher stance on the Venezuelan government. It may affect broader regional energy markets and U.S. influence in Latin America, while encouraging other countries to limit involvement.
Main Stakeholders Affected
- U.S. Government and Congress: Agencies (e.g., State Department) must comply and report; congressional committees gain oversight authority.
- U.S. Taxpayers and Businesses: Protected from funding risks; U.S. companies may face barriers to involvement in Venezuelan oil projects.
- Venezuelan Government and Oil Sector: State-owned entities like PDVSA (Venezuela's national oil company) lose potential U.S. financial support, impacting infrastructure and revenue.
- International Organizations: Multilateral bodies (e.g., international banks) influenced by U.S. policy may restrict loans or aid to Venezuela's petroleum industry.
- Global Energy Markets: Indirectly affected through reduced U.S. involvement in Venezuelan oil development.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens enforcement of U.S. foreign policy through funding prohibitions, aligning with existing sanctions frameworks (e.g., under the International Emergency Economic Powers Act). The exception clause preserves congressional authority over appropriations, avoiding conflicts with separation of powers.
- Constitutional: Relies on Congress's power of the purse (Article I, Section 9) to control federal spending, reinforcing legislative oversight of executive foreign policy actions.
- Political: Highlights bipartisan concerns (introduced by Senators from both parties) about Venezuela's regime and economic risks, potentially influencing U.S. strategy amid ongoing geopolitical tensions in the region. It may prompt debates on balancing human rights, energy security, and diplomatic engagement.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (6)
Sen. Kaine, Tim [D-VA], Sen. Sanders, Bernard [I-VT], Sen. Wyden, Ron [D-OR], Sen. Van Hollen, Chris [D-MD], Sen. Alsobrooks, Angela D. [D-MD], Sen. Welch, Peter [D-VT]
Recent Actions
- 2026-01-13: Read twice and referred to the Committee on Foreign Relations.
- 2026-01-13: Introduced in Senate
Bill Versions
- Protecting Taxpayers from Risky Investments in Venezuela Act — issued 2026-01-13 — PDF (4 pages)