I 

118TH CONGRESS 

2D SESSION H. R. 6954 

To reauthorize and amend the Nicaraguan Investment Conditionality Act 

of 2018 and the Reinforcing Nicaragua’s Adherence to Conditions for 

Electoral Reform Act of 2021, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 11, 2024 

Mr. SMITH of New Jersey (for himself and Ms. SALAZAR) introduced the following bill; which was 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 

A BILL 

To reauthorize and amend the Nicaraguan Investment Conditionality Act of 2018 and the Reinforcing Nicaragua’s 

Adherence to Conditions for Electoral Reform Act of 

2021, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Restoring Sovereignty and Human Rights in Nicaragua 

6 Act of 2024’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents of 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Sense of Congress. 

TITLE I—REAUTHORIZATION AND AMENDMENT OF THE NICARAGUAN INVESTMENT CONDITIONALITY ACT OF 2018 AND THE 

REINFORCING NICARAGUA’S ADHERENCE TO CONDITIONS FOR 

ELECTORAL REFORM ACT OF 2021 

Sec. 101. Extension of authorities of the Nicaraguan Investment Conditionality 

Act of 2018. 

Sec. 102. Enhancing sanctions on sectors of the Nicaraguan economy that generate revenue for the Ortega family. 

Sec. 103. Imposition of sanctions with respect to the Ortega administration’s 

abuses against the Catholic Church, political prisoners, and 

support for the invasion of Ukraine. 

Sec. 104. Coordinated diplomatic strategy to restrict investment and loans that 

benefit the Government of Nicaragua from the Central American Bank for Economic Integration. 

TITLE II—ADDITIONAL ECONOMIC MEASURES TO HOLD THE 

GOVERNMENT OF NICARAGUA ACCOUNTABLE FOR HUMAN 

RIGHTS ABUSES 

Sec. 201. Statement of policy. 

Sec. 202. Review of participation of Nicaragua in the Dominican Republic-Central America-United States free trade agreement. 

Sec. 203. Prohibition on new United States investment in Nicaragua. 

Sec. 204. Termination. 

TITLE III—PROMOTING THE HUMAN RIGHTS OF NICARAGUANS 

Sec. 301. Support for human rights and democracy programs. 

Sec. 302. Support for Nicaraguan human rights at the United Nations. 

3 SEC. 2. DEFINITIONS. 

4 In this Act: 

5 (1) APPROPRIATE CONGRESSIONAL COMMIT6 TEES.—The term ‘‘appropriate congressional com7 mittees’’ means— 

8 (A) the Committee on Foreign Relations 

9 and the Committee on Banking of the Senate; 

10 and 


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1 (B) the Committee on Foreign Affairs and 

2 the Committee on Financial Services of the 

3 House of Representatives. 

4 (2) UNITED STATES PERSON.—The term 

5 ‘‘United States person’’ means— 

6 (A) an individual who is a citizen or na7 tional of the United States or an alien lawfully 

8 admitted for permanent residence in the United 

9 States; and 

10 (B) any corporation, partnership, or other 

11 entity organized under the laws of the United 

12 States or the laws of any jurisdiction within the 

13 United States. 

14 SEC. 3. SENSE OF CONGRESS. 

15 It is the sense of Congress that— 

16 (1) the Secretary of State, working through the 

17 head of the Office of Sanctions Coordination, and in 

18 consultation with the Secretary of the Treasury, 

19 should engage in diplomatic efforts with partners of 

20 the United States, including the Government of Can21 ada, governments of countries in the European 

22 Union, and governments of countries in Latin Amer23 ica and the Caribbean, to impose targeted sanctions 

24 with respect to the persons subject to sanctions au25 thorized by the Nicaraguan Investment ConditionVerDate Sep 11 2014 18:13 Jan 13, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6954.IH H6954

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1 ality Act of 2018 and the Reinforcing Nicaragua’s 

2 Adherence to Conditions for Electoral Reform Act of 

3 2021 in order to hold the authoritarian regime of 

4 President Daniel Ortega accountable for crimes 

5 against the Catholic Church, the clergy, and the peo6 ple of Nicaragua; 

7 (2) the United States Government should con8 tinue— 

9 (A) to raise concerns about human rights 

10 and democracy in Nicaragua, and call attention 

11 to religious and opposition leaders and civil so12 ciety, media, and faith-based organizations si13 lenced by the Ortega regime; and 

14 (B) to enforce Executive Order 13851 (50 

15 U.S.C. 1701 note; relating to blocking property 

16 of certain persons contributing to the situation 

17 in Nicaragua), and expand existing sanctions to 

18 other such sectors of the economy of Nicaragua; 

19 and 

20 (3) the international community, including the 

21 Holy See, the International Red Cross, and the 

22 United Nations should coordinate efforts— 

23 (A) to improve the conditions of all polit24 ical prisoners in Nicaragua; 


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1 (B) to document all gross violations of 

2 internationally recognized human rights in 

3 Nicaragua; and 

4 (C) to call for the end of political persecu5 tion against members of religious organizations, 

6 including the Catholic Church. 

7 TITLE I—REAUTHORIZATION 

8 AND AMENDMENT OF THE 

9 NICARAGUAN INVESTMENT 

10 CONDITIONALITY ACT OF 2018 

11 AND THE REINFORCING 

12 NICARAGUA’S ADHERENCE TO 

13 CONDITIONS FOR ELEC14 TORAL REFORM ACT OF 2021 

15 SEC. 101. EXTENSION OF AUTHORITIES OF THE NICA16 RAGUAN INVESTMENT CONDITIONALITY ACT 

17 OF 2018. 

18 Section 10 of the Nicaraguan Investment Condition19 ality Act of 2018 (Public Law 115–335; 50 U.S.C. 1701 

20 note) is amended by striking ‘‘2023’’ and inserting 

21 ‘‘2028’’. 


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1 SEC. 102. ENHANCING SANCTIONS ON SECTORS OF THE 

2 NICARAGUAN ECONOMY THAT GENERATE 

3 REVENUE FOR THE ORTEGA FAMILY. 

4 Section 5(a) of the Nicaraguan Investment Condi5 tionality Act of 2018 (Public Law 115–335; 50 U.S.C. 

6 1701 note) is amended— 

7 (1) in paragraph (3)(B), by striking ‘‘or’’; 

8 (2) in paragraph (4), by striking the period at 

9 the end and inserting ‘‘; or’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(5) to operate or have operated in the gold 

12 sector of the Nicaraguan economy or in any other 

13 sector of the Nicaraguan economy identified by the 

14 Secretary of the Treasury, in consultation with the 

15 Secretary of State, for purposes of this paragraph.’’. 

16 SEC. 103. IMPOSITION OF SANCTIONS WITH RESPECT TO 

17 THE ORTEGA ADMINISTRATION’S ABUSES 

18 AGAINST THE CATHOLIC CHURCH, POLITICAL 

19 PRISONERS, AND SUPPORT FOR THE INVA20 SION OF UKRAINE. 

21 (a) EXPANSION OF ACTIVITIES TRIGGERING TAR22 GETED SANCTIONS.—Section 5(b) of the Nicaraguan In23 vestment Conditionality Act of 2018 (Public Law 115– 

24 335; 50 U.S.C. 1701 note) is amended by adding at the 

25 end the following: 


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1 ‘‘(5) The arrest or prosecution of a person, in2 cluding a person who is a member of or an officer 

3 of the Catholic Church, because of the legitimate ex4 ercise by such person of the freedom of religion. 

5 ‘‘(6) The conviction and sentencing of a person 

6 who is a member of an opposition party or inde7 pendent civil society organization under politically 

8 motivated charges. 

9 ‘‘(7) Gross violations of the internationally rec10 ognized human rights of prisoners. 

11 ‘‘(8) Acts of providing significant goods, serv12 ices, or technology to or expressing support for the 

13 invasion of Ukraine by the Russian Federation that 

14 began on February 24, 2022.’’. 

15 (b) MODIFICATION OF TARGETED SANCTIONS

16 PRIORITIZATION.—Section 5(b)(2)(B) of the Reinforcing 

17 Nicaragua’s Adherence to Conditions for Electoral Reform 

18 Act of 2021 (Public Law 117–54; 50 U.S.C. 1701 note) 

19 is amended— 

20 (1) by redesignating clauses (viii) and (ix) as 

21 clauses (ix) and (x), respectively; and 

22 (2) by inserting after clause (vii) the following 

23 new clause (viii): 

24 ‘‘(viii) Officials of the Instituto de 

25 Previsio ́n Social Militar (IPSM), commonly 


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1 known as the Military Institute of Social 

2 Security of Nicaragua.’’. 

3 SEC. 104. COORDINATED DIPLOMATIC STRATEGY TO RE4 STRICT INVESTMENT AND LOANS THAT BEN5 EFIT THE GOVERNMENT OF NICARAGUA 

6 FROM THE CENTRAL AMERICAN BANK FOR 

7 ECONOMIC INTEGRATION. 

8 Section 4 of the Nicaragua Investment Conditionality 

9 Act of 2018 (Public Law 115–335; 50 U.S.C. 1701 note) 

10 is amended— 

11 (1) by redesignating subsection (f) as sub12 section (g); 

13 (2) by inserting after subsection (e) the fol14 lowing new subsection (f): 

15 ‘‘(f) DIPLOMATIC STRATEGY TO RESTRICT INVEST16 MENT IN NICARAGUA AT THE CENTRAL AMERICAN BANK

17 FOR ECONOMIC INTEGRATION.—The Secretary of State, 

18 in consultation with the Secretary of the Treasury, shall 

19 engage in diplomatic efforts with governments of countries 

20 that are partners of the United States and members of 

21 the Central American Bank for Economic Integration (re22 ferred to in this section as ‘CABEI’), including the govern23 ments of Mexico, Taiwan, Argentina, Colombia, Spain, 

24 and the Republic of Korea— 


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1 ‘‘(1) to oppose the extension by CABEI of any 

2 loan or financial or technical assistance to the Gov3 ernment of Nicaragua for any project in Nicaragua; 

4 ‘‘(2) to increase the scrutiny of any loan or fi5 nancial or technical assistance provided by CABEI 

6 to any project in Nicaragua; and 

7 ‘‘(3) to ensure that any loan or financial or 

8 technical assistance provided by CABEI to a project 

9 in Nicaragua is administered through an entity with 

10 full technical, administrative, and financial inde11 pendence from the Government of Nicaragua.’’; and 

12 (3) in subsection (g), as so redesignated— 

13 (A) in paragraph (4), by striking ‘‘; and’’ 

14 and inserting a semicolon; 

15 (B) by redesignating paragraph (5) as 

16 paragraph (6); and 

17 (C) by inserting after paragraph (4) the 

18 following new paragraph (5): 

19 ‘‘(5) a description of the results of the diplo20 matic strategy mandated by subsection (f); and’’. 


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1 TITLE II—ADDITIONAL ECO2 NOMIC MEASURES TO HOLD 

3 THE GOVERNMENT OF NICA4 RAGUA ACCOUNTABLE FOR 

5 HUMAN RIGHTS ABUSES 

6 SEC. 201. STATEMENT OF POLICY. 

7 It is the policy of the United States to seek a resolu8 tion to the political crisis in Nicaragua that includes— 

9 (1) a commitment by the Government of Nica10 ragua to hold free and fair elections that meet demo11 cratic standards and permit credible international 

12 electoral observation to replace the Ortega adminis13 tration; 

14 (2) the cessation of the violence perpetrated 

15 against civilians by the National Police of Nicaragua 

16 and by armed groups supported by the Government 

17 of Nicaragua; and 

18 (3) independent investigations into the killings 

19 of protesters in Nicaragua. 

20 SEC. 202. REVIEW OF PARTICIPATION OF NICARAGUA IN 

21 THE DOMINICAN REPUBLIC-CENTRAL AMER22 ICA-UNITED STATES FREE TRADE AGREE23 MENT. 

24 (a) REPORT REQUIRED.— 


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1 (1) IN GENERAL.—Not later than 1 year after 

2 the date of the enactment of this Act, and annually 

3 thereafter, the Secretary of State, in consultation 

4 with the United States Trade Representative, shall 

5 submit to the appropriate congressional committees 

6 a report on the participation of Nicaragua in 

7 CAFTA–DR, which includes— 

8 (A) an assessment of the benefits that the 

9 Ortega regime receives from the participation of 

10 Nicaragua in CAFTA–DR, including profits 

11 earned by Nicaraguan State-owned entities; 

12 (B) a description of the violations of com13 mitments made by Nicaragua under CAFTA– 

14 DR; and 

15 (C) an assessment of whether Nicaragua 

16 qualifies as a nonmarket economy for the pur17 poses of the Trade Act of 1974 (19 U.S.C. 

18 2101 et seq.). 

19 (2) FORM.—The report required by paragraph 

20 (1) shall be submitted in unclassified form, but may 

21 include a classified annex. 

22 (b) CAFTA–DR DEFINED.—In this section, the term 

23 ‘‘CAFTA–DR’’ means the Dominican Republic-Central 

24 America-United States Free Trade Agreement— 


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1 (1) entered into on August 5, 2004, with the 

2 Governments of Costa Rica, the Dominican Repub3 lic, El Salvador, Guatemala, Honduras, and Nica4 ragua, and submitted to Congress on June 23, 2005; 

5 and 

6 (2) approved by Congress under section 

7 101(a)(1) of the Dominican Republic-Central Amer8 ican-United States Free Trade Agreement Imple9 mentation Act (19 U.S.C. 4011(a)(1)). 

10 SEC. 203. PROHIBITION ON NEW UNITED STATES INVEST11 MENT IN NICARAGUA. 

12 (a) PROHIBITION.—After the date of the enactment 

13 of this Act, a United States person, wherever located, may 

14 not make any investment in any sector of the economy 

15 of Nicaragua. 

16 (b) IMPLEMENTATION.—The President may exercise 

17 all authorities provided to the President under sections 

18 203 and 205 of the International Emergency Economic 

19 Powers Act (50 U.S.C. 1702 and 1704) to carry out this 

20 section. 

21 (c) PENALTIES.—A person that violates, attempts to 

22 violate, conspires to violate, or causes a violation of this 

23 section or any regulation, license, or order issued to carry 

24 out this section shall be subject to the penalties set forth 

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1 national Emergency Economic Powers Act (50 U.S.C. 

2 1705) to the same extent as a person that commits an 

3 unlawful act described in subsection (a) of that section. 

4 (d) EXCEPTIONS.— 

5 (1) EXCEPTION FOR INTELLIGENCE ACTIVI6 TIES.—This section shall not apply with respect to 

7 activities subject to the reporting requirements 

8 under title V of the National Security Act of 1947 

9 (50 U.S.C. 3091 et seq.) or any authorized intel10 ligence activities of the United States. 

11 (2) HUMANITARIAN EXCEPTION.—The prohibi12 tion under subsection (a) does not apply with respect 

13 to any person for conducting or facilitating a trans14 action for the sale of agricultural commodities, food, 

15 medicine, or medical devices to Nicaragua, or for the 

16 provision of humanitarian assistance to the people of 

17 Nicaragua. 

18 (e) NATIONAL SECURITY WAIVER.—The President 

19 may waive the application of the prohibition under sub20 section (a) with respect to a person if the President— 

21 (1) determines that such a waiver is in the na22 tional security interests of the United States; and 

23 (2) submits to the appropriate congressional 

24 committees a notification of the waiver and the rea25 sons for the waiver. 


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1 SEC. 204. TERMINATION. 

2 The provisions of this title shall cease to have effect 

3 upon certification by the President to the appropriate con4 gressional committees that a resolution to the political cri5 sis in Nicaragua as described in section 201 has been 

6 reached. 

7 TITLE III—PROMOTING THE 

8 HUMAN RIGHTS OF NICA9 RAGUANS 

10 SEC. 301. SUPPORT FOR HUMAN RIGHTS AND DEMOCRACY 

11 PROGRAMS. 

12 (a) GRANTS.— 

13 (1) IN GENERAL.—The President may provide 

14 grants to private, nonprofit organizations to support 

15 programs that promote human rights, democracy, 

16 and the rule of law in Nicaragua, including pro17 grams that document human rights abuses com18 mitted by the Ortega regime since April 2018. 

19 (2) ADMINISTRATION OF PROGRAMS.—Any pro20 gram that receives a grant under paragraph (1) 

21 shall be administered in consultation with members 

22 of the Nicaraguan opposition, including individuals 

23 in exile in Costa Rica and the United States. 

24 (3) FUNDING LIMITATION.—Any entity owned, 

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1 gime is not eligible to receive a grant under this sec2 tion. 

3 (b) REPORT.—Not later than 1 year after the date 

4 of the enactment of this Act, and annually thereafter 

5 through fiscal year 2028, the Secretary of State, in con6 sultation with the heads of other appropriate Federal 

7 agencies, shall submit to the appropriate congressional 

8 committees a report on actions taken pursuant to this sec9 tion. 

10 SEC. 302. SUPPORT FOR NICARAGUAN HUMAN RIGHTS AT 

11 THE UNITED NATIONS. 

12 (a) SUPPORT TO EXTEND MANDATE OF THE GROUP

13 OF HUMAN RIGHTS EXPERTS ON NICARAGUA.—The 

14 President shall direct the United States Permanent Rep15 resentative to the United Nations to use the voice, vote, 

16 and influence of the United States in the United Nations 

17 Human Rights Council and the United Nations General 

18 Assembly— 

19 (1) to seek to extend the mandate of the Group 

20 of Human Rights Experts on Nicaragua under 

21 Human Rights Council Resolution 49/3 (2022) until 

22 a peaceful solution to the current political crisis in 

23 Nicaragua is reached, including— 


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1 (A) a commitment to hold elections that 

2 meet democratic standards and permit credible 

3 international electoral observation; 

4 (B) the cessation of the violence per5 petrated against civilians by the National Police 

6 of Nicaragua and by armed groups supported 

7 by the Government of Nicaragua; and 

8 (C) independent investigations into the 

9 killings of protesters; 

10 (2) to encourage international support to em11 power the Group of Human Rights Experts on Nica12 ragua to fulfil its mission to conduct thorough and 

13 independent investigations into all alleged human 

14 rights violations and abuses committed in Nicaragua 

15 since April 2018; and 

16 (3) to provide investigative and technical assist17 ance to the Group of Human Rights Experts on 

18 Nicaragua as requested and as permitted under 

19 United Nations rules and regulations and United 

20 States law. 

21 (b) SUPPORT FOR FURTHER ACTION.—The Presi22 dent may direct the United States Permanent Representa23 tive to the United Nations to use the voice, vote, and influ24 ence of the United States to urge the United Nations to 


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1 provide greater action with respect to human rights viola2 tions in Nicaragua by— 

3 (1) urging the United Nations General Assem4 bly to consider a resolution, consistent with prior 

5 United Nations resolutions, condemning the exile of 

6 political prisoners and attacks on religious freedom 

7 by the Ortega regime; and 

8 (2) assisting efforts by the relevant United Na9 tions Special Envoys and Special Rapporteurs to 

10 promote respect for human rights and encourage 

11 dialogue towards a peaceful and democratic transfer 

12 of power in Nicaragua. 

Æ 


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