H.R. 7055 — Restoring Sovereignty and Human Rights in Nicaragua Act of 2026

This section expands the scope of sanctions under sec. 5(a) of the Nicaraguan Investment Conditionality Act of 2018 to include persons who knowingly engage in activities to operate or who have operated in the gold sector of the Nicaraguan economy or in any other sector identified by the Secretary of the Treasury, in consultation with the Secretary of State. (The act authorizes sanctions on investments and transactions in specified sectors that generate revenue for the Ortega-Murillo regime.)

This section expands the activities triggering targeted sanctions under sec. 5(b) of the Nicaraguan Investment Conditionality Act of 2018 by adding four new triggers: (1) arrest or prosecution of a person, including a Catholic Church member or officer, for legitimate exercise of freedom of religion; (2) conviction and sentencing of opposition party or independent civil society organization members under politically motivated charges; (3) gross violations of internationally recognized human rights of prisoners; and (4) providing significant goods, services, or technology to, or expressing support for, Russia's invasion of Ukraine that began on February 24, 2022. The section further amends sec. 5(b)(2)(B) of the Reinforcing Nicaragua’s Adherence to Conditions for Electoral Reform Act of 2021 to add officials of the Instituto de Previsión Social Militar (IPSM), or Military Institute of Social Security of Nicaragua, to the list of sanctions prioritization targets.

This section requires the Secretary of State, in consultation with the Secretary of the Treasury, to pursue a diplomatic strategy with U.S. partner countries that are members of the Central American Bank for Economic Integration (CABEI)—including Mexico, Taiwan, Argentina, Colombia, Spain, and the Republic of Korea—to (1) oppose any CABEI loan or financial or technical assistance to the Government of Nicaragua for Nicaraguan projects, (2) increase scrutiny of any CABEI loan or assistance to Nicaraguan projects, and (3) ensure such assistance is administered by an entity fully independent from the Nicaraguan government. The section also amends the reporting requirement under subsection (g), as redesignated, to include a description of the results of this diplomatic strategy.

This section establishes the policy of the United States to seek a resolution to the political crisis in Nicaragua that includes (1) a commitment by the Government of Nicaragua to hold free and fair elections that meet democratic standards and permit credible international electoral observation to replace the Ortega administration; (2) the cessation of violence perpetrated against civilians by the National Police of Nicaragua and by government-supported armed groups; and (3) independent investigations into the killings of protesters in Nicaragua.

This section requires the Secretary of State, in consultation with the United States Trade Representative, to submit to the appropriate congressional committees, not later than one year after the date of enactment of this Act and annually thereafter, a report on Nicaragua's participation in the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) that includes (1) an assessment of benefits received by the Ortega regime, including profits earned by Nicaraguan state-owned entities; (2) a description of Nicaragua's violations of CAFTA-DR commitments; and (3) an assessment of whether Nicaragua qualifies as a nonmarket economy under the Trade Act of 1974. The report must be submitted in unclassified form but may include a classified annex.

This section prohibits any United States person, wherever located, from making a new investment in any sector of Nicaragua's economy after the date of enactment. The President may implement the prohibition using all authorities under sections 203 and 205 of the International Emergency Economic Powers Act (IEEPA). Violations are subject to the civil and criminal penalties under IEEPA section 206(b) and (c). Exceptions apply to (1) U.S. intelligence activities subject to title V of the National Security Act of 1947 or any authorized intelligence activities and (2) transactions for agricultural commodities, food, medicine, medical devices, or humanitarian assistance to the people of Nicaragua. The President may waive the prohibition for any person upon determining it serves U.S. national security interests and notifying the appropriate congressional committees.

This section terminates the provisions of this title upon certification by the President to the appropriate congressional committees that a resolution to the political crisis in Nicaragua, as described in section 201, has been reached.

This section authorizes the President to provide grants to private, nonprofit organizations for programs promoting human rights, democracy, and the rule of law in Nicaragua—including those documenting human rights abuses by the Ortega regime since April 2018—with such programs to be administered in consultation with the Nicaraguan opposition (including exiles in Costa Rica and the United States) and ineligible for any entity owned, controlled, or affiliated with the Ortega regime. The section further requires the Secretary of State, in consultation with other appropriate federal agencies, to submit to the appropriate congressional committees a report on actions taken pursuant to these grants within one year of enactment and annually thereafter through FY2030.

This section directs the President to instruct the U.S. Permanent Representative to the United Nations to use U.S. voice, vote, and influence in the UN Human Rights Council and General Assembly (1) to seek extension of the mandate of the Group of Human Rights Experts on Nicaragua (established under Human Rights Council Resolution 49/3 (2022)) until a peaceful resolution of Nicaragua's political crisis—including democratic elections with international observation, cessation of violence against civilians by police and government-backed groups, and independent investigations into protester killings; (2) to encourage international support for the group's investigations of alleged human rights violations since April 2018; and (3) to provide requested investigative and technical assistance consistent with UN rules and U.S. law. The section further authorizes the President to direct the U.S. representative to urge additional UN action, including a General Assembly resolution condemning the Nicaraguan regime's exile of political prisoners and attacks on religious freedom, and assistance to relevant UN Special Envoys and Rapporteurs to promote human rights and a democratic transfer of power.