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 fol-
lowing 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 Condi-
tionality Act of 2018 and the Reinforcing Nicaragua’s 
Adherence to Conditions for Electoral Reform Act of 
2021, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Restoring Sovereignty and Human Rights in Nicaragua 
Act of 2024’’. 
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(b) TABLE OF CONTENTS.—The table of contents of 
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 NICA-
RAGUAN 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 gen-
erate 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 Amer-
ican 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-Cen-
tral 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. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Foreign Relations 
and the Committee on Banking of the Senate; 
and 
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(B) the Committee on Foreign Affairs and 
the Committee on Financial Services of the 
House of Representatives. 
(2) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) an individual who is a citizen or na-
tional of the United States or an alien lawfully 
admitted for permanent residence in the United 
States; and 
(B) any corporation, partnership, or other 
entity organized under the laws of the United 
States or the laws of any jurisdiction within the 
United States. 
SEC. 3. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) the Secretary of State, working through the 
head of the Office of Sanctions Coordination, and in 
consultation with the Secretary of the Treasury, 
should engage in diplomatic efforts with partners of 
the United States, including the Government of Can-
ada, governments of countries in the European 
Union, and governments of countries in Latin Amer-
ica and the Caribbean, to impose targeted sanctions 
with respect to the persons subject to sanctions au-
thorized by the Nicaraguan Investment Condition-
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(B) to document all gross violations of 
internationally recognized human rights in 
Nicaragua; and 
(C) to call for the end of political persecu-
tion against members of religious organizations, 
including the Catholic Church. 
TITLE 
I—REAUTHORIZATION 
AND 
AMENDMENT 
OF 
THE 
NICARAGUAN 
INVESTMENT 
CONDITIONALITY ACT OF 2018 
AND 
THE 
REINFORCING 
NICARAGUA’S ADHERENCE TO 
CONDITIONS 
FOR 
ELEC-
TORAL REFORM ACT OF 2021 
SEC. 101. EXTENSION OF AUTHORITIES OF THE NICA-
RAGUAN INVESTMENT CONDITIONALITY ACT 
OF 2018. 
Section 10 of the Nicaraguan Investment Condition-
ality Act of 2018 (Public Law 115–335; 50 U.S.C. 1701 
note) is amended by striking ‘‘2023’’ and inserting 
‘‘2028’’. 
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SEC. 102. ENHANCING SANCTIONS ON SECTORS OF THE 
NICARAGUAN 
ECONOMY 
THAT 
GENERATE 
REVENUE FOR THE ORTEGA FAMILY. 
Section 5(a) of the Nicaraguan Investment Condi-
tionality Act of 2018 (Public Law 115–335; 50 U.S.C. 
1701 note) is amended— 
(1) in paragraph (3)(B), by striking ‘‘or’’; 
(2) in paragraph (4), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(5) to operate or have operated in the gold 
sector of the Nicaraguan economy or in any other 
sector of the Nicaraguan economy identified by the 
Secretary of the Treasury, in consultation with the 
Secretary of State, for purposes of this paragraph.’’. 
SEC. 103. IMPOSITION OF SANCTIONS WITH RESPECT TO 
THE 
ORTEGA 
ADMINISTRATION’S 
ABUSES 
AGAINST THE CATHOLIC CHURCH, POLITICAL 
PRISONERS, AND SUPPORT FOR THE INVA-
SION OF UKRAINE. 
(a) EXPANSION OF ACTIVITIES TRIGGERING TAR-
GETED SANCTIONS.—Section 5(b) of the Nicaraguan In-
vestment Conditionality Act of 2018 (Public Law 115– 
335; 50 U.S.C. 1701 note) is amended by adding at the 
end the following: 
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‘‘(5) The arrest or prosecution of a person, in-
cluding a person who is a member of or an officer 
of the Catholic Church, because of the legitimate ex-
ercise by such person of the freedom of religion. 
‘‘(6) The conviction and sentencing of a person 
who is a member of an opposition party or inde-
pendent civil society organization under politically 
motivated charges. 
‘‘(7) Gross violations of the internationally rec-
ognized human rights of prisoners. 
‘‘(8) Acts of providing significant goods, serv-
ices, or technology to or expressing support for the 
invasion of Ukraine by the Russian Federation that 
began on February 24, 2022.’’. 
(b) 
MODIFICATION
OF
TARGETED
SANCTIONS 
PRIORITIZATION.—Section 5(b)(2)(B) of the Reinforcing 
Nicaragua’s Adherence to Conditions for Electoral Reform 
Act of 2021 (Public Law 117–54; 50 U.S.C. 1701 note) 
is amended— 
(1) by redesignating clauses (viii) and (ix) as 
clauses (ix) and (x), respectively; and 
(2) by inserting after clause (vii) the following 
new clause (viii): 
‘‘(viii) Officials of the Instituto de 
Previsio´n Social Militar (IPSM), commonly 
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known as the Military Institute of Social 
Security of Nicaragua.’’. 
SEC. 104. COORDINATED DIPLOMATIC STRATEGY TO RE-
STRICT INVESTMENT AND LOANS THAT BEN-
EFIT 
THE 
GOVERNMENT 
OF 
NICARAGUA 
FROM THE CENTRAL AMERICAN BANK FOR 
ECONOMIC INTEGRATION. 
Section 4 of the Nicaragua Investment Conditionality 
Act of 2018 (Public Law 115–335; 50 U.S.C. 1701 note) 
is amended— 
(1) by redesignating subsection (f) as sub-
section (g); 
(2) by inserting after subsection (e) the fol-
lowing new subsection (f): 
‘‘(f) DIPLOMATIC STRATEGY TO RESTRICT INVEST-
MENT IN NICARAGUA AT THE CENTRAL AMERICAN BANK 
FOR ECONOMIC INTEGRATION.—The Secretary of State, 
in consultation with the Secretary of the Treasury, shall 
engage in diplomatic efforts with governments of countries 
that are partners of the United States and members of 
the Central American Bank for Economic Integration (re-
ferred to in this section as ‘CABEI’), including the govern-
ments of Mexico, Taiwan, Argentina, Colombia, Spain, 
and the Republic of Korea— 
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‘‘(1) to oppose the extension by CABEI of any 
loan or financial or technical assistance to the Gov-
ernment of Nicaragua for any project in Nicaragua; 
‘‘(2) to increase the scrutiny of any loan or fi-
nancial or technical assistance provided by CABEI 
to any project in Nicaragua; and 
‘‘(3) to ensure that any loan or financial or 
technical assistance provided by CABEI to a project 
in Nicaragua is administered through an entity with 
full technical, administrative, and financial inde-
pendence from the Government of Nicaragua.’’; and 
(3) in subsection (g), as so redesignated— 
(A) in paragraph (4), by striking ‘‘; and’’ 
and inserting a semicolon; 
(B) by redesignating paragraph (5) as 
paragraph (6); and 
(C) by inserting after paragraph (4) the 
following new paragraph (5): 
‘‘(5) a description of the results of the diplo-
matic strategy mandated by subsection (f); and’’. 
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TITLE 
II—ADDITIONAL 
ECO-
NOMIC MEASURES TO HOLD 
THE GOVERNMENT OF NICA-
RAGUA 
ACCOUNTABLE 
FOR 
HUMAN RIGHTS ABUSES 
SEC. 201. STATEMENT OF POLICY. 
It is the policy of the United States to seek a resolu-
tion to the political crisis in Nicaragua that includes— 
(1) a commitment by the Government of Nica-
ragua to hold free and fair elections that meet demo-
cratic standards and permit credible international 
electoral observation to replace the Ortega adminis-
tration; 
(2) the cessation of the violence perpetrated 
against civilians by the National Police of Nicaragua 
and by armed groups supported by the Government 
of Nicaragua; and 
(3) independent investigations into the killings 
of protesters in Nicaragua. 
SEC. 202. REVIEW OF PARTICIPATION OF NICARAGUA IN 
THE DOMINICAN REPUBLIC-CENTRAL AMER-
ICA-UNITED STATES FREE TRADE AGREE-
MENT. 
(a) REPORT REQUIRED.— 
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(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act, and annually 
thereafter, the Secretary of State, in consultation 
with the United States Trade Representative, shall 
submit to the appropriate congressional committees 
a report on the participation of Nicaragua in 
CAFTA–DR, which includes— 
(A) an assessment of the benefits that the 
Ortega regime receives from the participation of 
Nicaragua in CAFTA–DR, including profits 
earned by Nicaraguan State-owned entities; 
(B) a description of the violations of com-
mitments made by Nicaragua under CAFTA– 
DR; and 
(C) an assessment of whether Nicaragua 
qualifies as a nonmarket economy for the pur-
poses of the Trade Act of 1974 (19 U.S.C. 
2101 et seq.). 
(2) FORM.—The report required by paragraph 
(1) shall be submitted in unclassified form, but may 
include a classified annex. 
(b) CAFTA–DR DEFINED.—In this section, the term 
‘‘CAFTA–DR’’ means the Dominican Republic-Central 
America-United States Free Trade Agreement— 
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(1) entered into on August 5, 2004, with the 
Governments of Costa Rica, the Dominican Repub-
lic, El Salvador, Guatemala, Honduras, and Nica-
ragua, and submitted to Congress on June 23, 2005; 
and 
(2) approved by Congress under section 
101(a)(1) of the Dominican Republic-Central Amer-
ican-United States Free Trade Agreement Imple-
mentation Act (19 U.S.C. 4011(a)(1)). 
SEC. 203. PROHIBITION ON NEW UNITED STATES INVEST-
MENT IN NICARAGUA. 
(a) PROHIBITION.—After the date of the enactment 
of this Act, a United States person, wherever located, may 
not make any investment in any sector of the economy 
of Nicaragua. 
(b) IMPLEMENTATION.—The President may exercise 
all authorities provided to the President under sections 
203 and 205 of the International Emergency Economic 
Powers Act (50 U.S.C. 1702 and 1704) to carry out this 
section. 
(c) PENALTIES.—A person that violates, attempts to 
violate, conspires to violate, or causes a violation of this 
section or any regulation, license, or order issued to carry 
out this section shall be subject to the penalties set forth 
in subsections (b) and (c) of section 206 of the Inter-
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national Emergency Economic Powers Act (50 U.S.C. 
1705) to the same extent as a person that commits an 
unlawful act described in subsection (a) of that section. 
(d) EXCEPTIONS.— 
(1) EXCEPTION
FOR
INTELLIGENCE
ACTIVI-
TIES.—This section shall not apply with respect to 
activities subject to the reporting requirements 
under title V of the National Security Act of 1947 
(50 U.S.C. 3091 et seq.) or any authorized intel-
ligence activities of the United States. 
(2) HUMANITARIAN EXCEPTION.—The prohibi-
tion under subsection (a) does not apply with respect 
to any person for conducting or facilitating a trans-
action for the sale of agricultural commodities, food, 
medicine, or medical devices to Nicaragua, or for the 
provision of humanitarian assistance to the people of 
Nicaragua. 
(e) NATIONAL SECURITY WAIVER.—The President 
may waive the application of the prohibition under sub-
section (a) with respect to a person if the President— 
(1) determines that such a waiver is in the na-
tional security interests of the United States; and 
(2) submits to the appropriate congressional 
committees a notification of the waiver and the rea-
sons for the waiver. 
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SEC. 204. TERMINATION. 
The provisions of this title shall cease to have effect 
upon certification by the President to the appropriate con-
gressional committees that a resolution to the political cri-
sis in Nicaragua as described in section 201 has been 
reached. 
TITLE 
III—PROMOTING 
THE 
HUMAN 
RIGHTS 
OF 
NICA-
RAGUANS 
SEC. 301. SUPPORT FOR HUMAN RIGHTS AND DEMOCRACY 
PROGRAMS. 
(a) GRANTS.— 
(1) IN GENERAL.—The President may provide 
grants to private, nonprofit organizations to support 
programs that promote human rights, democracy, 
and the rule of law in Nicaragua, including pro-
grams that document human rights abuses com-
mitted by the Ortega regime since April 2018. 
(2) ADMINISTRATION OF PROGRAMS.—Any pro-
gram that receives a grant under paragraph (1) 
shall be administered in consultation with members 
of the Nicaraguan opposition, including individuals 
in exile in Costa Rica and the United States. 
(3) FUNDING LIMITATION.—Any entity owned, 
controlled, or otherwise affiliated with the Ortega re-
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gime is not eligible to receive a grant under this sec-
tion. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, and annually thereafter 
through fiscal year 2028, the Secretary of State, in con-
sultation with the heads of other appropriate Federal 
agencies, shall submit to the appropriate congressional 
committees a report on actions taken pursuant to this sec-
tion. 
SEC. 302. SUPPORT FOR NICARAGUAN HUMAN RIGHTS AT 
THE UNITED NATIONS. 
(a) SUPPORT TO EXTEND MANDATE OF THE GROUP 
OF HUMAN RIGHTS EXPERTS
ON NICARAGUA.—The 
President shall direct the United States Permanent Rep-
resentative to the United Nations to use the voice, vote, 
and influence of the United States in the United Nations 
Human Rights Council and the United Nations General 
Assembly— 
(1) to seek to extend the mandate of the Group 
of Human Rights Experts on Nicaragua under 
Human Rights Council Resolution 49/3 (2022) until 
a peaceful solution to the current political crisis in 
Nicaragua is reached, including— 
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