S. 37 — VALOR Act of 2025

This section directs the President, upon determining that a democratically elected government is in power in Venezuela, to notify the appropriate congressional committees. It defines such a government as one that (1) results from free and fair elections conducted under international observation, with full candidate participation, opposition campaigning, and media access; (2) demonstrates progress in establishing an independent judiciary, respecting human rights and freedoms per the Universal Declaration of Human Rights, permitting independent associations, guaranteeing free speech and press rights, and protecting private property; (3) excludes Nicolas Maduro and persons sanctioned by the Office of Foreign Assets Control or sought by the Department of Justice; (4) lifts the January 11, 2016, contempt order against the National Assembly convened January 6, 2016, restoring its powers and deputy immunities; (5) ceases interference with political parties and candidates; (6) releases all political prisoners and permits international human rights investigations of prisons; (7) dissolves the Colectivos and human rights-violating state security services; (8) extradites or renders persons sought by the Department of Justice for U.S. crimes; (9) provides no support to groups seeking violent overthrow of foreign governments; (10) permits unfettered international human rights monitors; and (11) frees all hostages and wrongfully detained U.S. nationals.

This section directs the Secretary of the Treasury to instruct the U.S. executive director of each specified international financial institution to oppose seating representatives of Nicolás Maduro's regime or any nondemocratic successor government as a member of that institution. Upon a presidential determination under section 101(a) that a democratically elected government is in power in Venezuela, it encourages the President to support seating representatives of that government and directs the Secretary to oppose any assistance from those institutions not assessed by the U.S. government as contributing to a stable democratic foundation. It defines "international financial institution" to include the International Monetary Fund, International Bank for Reconstruction and Development, International Development Association, International Finance Corporation, Multilateral Investment Guarantee Agency, and Inter-American Development Bank.

This section directs the President to instruct the U.S. Permanent Representative to the Organization of American States (OAS) to oppose, using the U.S. voice and vote, any measure allowing a nondemocratic government of Venezuela to participate in the OAS until the President submits to the appropriate congressional committees a determination under section 101(a) that a democratically elected government is in power in Venezuela.

This section authorizes the President to provide assistance and other support for individuals and independent nongovernmental organizations engaged in democracy-building efforts in Venezuela (notwithstanding any other provision of law except notification requirements under section 634A of the Foreign Assistance Act of 1961 or comparable requirements). It directs the President to encourage the Organization of American States (OAS) to establish a special emergency fund for deploying human rights observers and election support in Venezuela and to provide at least $5 million in U.S. voluntary contributions to the OAS solely for that fund. The section further instructs the U.S. Permanent Representative to the OAS to urge other OAS member states to call for the Venezuelan government to allow immediate deployment of OAS human rights monitors throughout Venezuela and on-site visits by the Inter-American Commission on Human Rights. Finally, it prohibits any funds or assistance under this section from being provided to a nondemocratic government of Venezuela.

This section authorizes the President, pursuant to General License 29 of the Office of Foreign Assets Control (OFAC) of the Department of the Treasury, to provide assistance through independent nongovernmental organizations for humanitarian projects in Venezuela to meet basic human needs, build democracy, provide education, support non-commercial development projects, and protect the environment. The section further requires the President to establish safeguards ensuring such assistance does not provide material benefit to the Maduro regime and is used solely for its intended purposes and the benefit of the Venezuelan people.

This section defines key terms for purposes of this title, including (1) "entity" as a partnership, association, trust, joint venture, corporation, group, subgroup, or organization; (2) "Government of Venezuela" as the state and government of Venezuela, its political subdivisions, agencies, or instrumentalities (including the Central Bank of Venezuela and Petroleos de Venezuela, S.A.), any person owned or controlled by them, or any person acting or purporting to act on their behalf (including members of the Nicolas Maduro regime or any nondemocratic successor); (3) "person" as an individual or entity; and (4) "United States person" as a U.S. citizen or alien lawfully admitted for permanent residence, any entity organized under U.S. laws (including foreign branches), or any person physically located in the United States.

This section states as U.S. policy that the President should encourage countries trading with Venezuela to restrict such trade and credit relations consistent with the Act's purposes. It authorizes the President to impose sanctions on any country providing assistance to the regime of Nicolas Maduro or a nondemocratic successor government in Venezuela—defined to include grants, favorable loans or credit, export subsidies to Venezuela, favorable tariffs on Venezuelan goods, or debt exchanges for equity (excluding humanitarian aid or medical exports)—by (1) deeming the country ineligible for nonhumanitarian assistance under the Foreign Assistance Act or assistance/sales under the Arms Export Control Act; and (2) deeming it ineligible for U.S. government debt forgiveness or reduction. The authority terminates upon a presidential determination under section 101(a) that a democratically elected government is in power in Venezuela.

This section prohibits, effective on the date of enactment, all transactions by U.S. persons or within the United States that relate to, provide financing for, or otherwise deal in debt instruments issued by, for, or on behalf of Petróleos de Venezuela, S.A. (PDVSA), or the regime of Nicolás Maduro (or any nondemocratic successor government in Venezuela). The prohibition specifically includes (1) transactions in debt instruments with maturities exceeding 90 days issued by PDVSA on or after enactment, debt instruments with maturities exceeding 30 days or equity issued by the Maduro regime on or after enactment (other than specified PDVSA debt), bonds issued by the Maduro regime prior to enactment, and dividend payments or profit distributions to the Maduro regime from entities it owns or controls; (2) direct or indirect purchases of securities from the Maduro regime (except specified PDVSA and Maduro regime debt instruments); (3) purchases of any debt owed to the Maduro regime, including accounts receivable; (4) transactions involving debt owed to the Maduro regime that was pledged as collateral after May 21, 2018, including accounts receivable; (5) transactions involving the Maduro regime's sale, transfer, assignment, or pledge as collateral of any equity interest in entities in which it holds a 50% or greater ownership interest; and (6) any evasive transactions. The Secretary of the Treasury, in consultation with the Secretary of State, must issue regulations to implement these prohibitions (with authority to delegate), and all U.S. agencies must take appropriate measures within their authority to enforce them.

This section prohibits, effective on the date of enactment, any transaction by a U.S. person or within the United States that relates to, provides financing for, or otherwise deals in any digital currency, digital coin, or digital token issued by, for, or on behalf of the Nicolas Maduro regime or any nondemocratic successor government in Venezuela (e.g., the Petro). It also prohibits transactions that evade or attempt to violate this prohibition (notwithstanding prior contracts or licenses), authorizes the Secretary of the Treasury—in consultation with the Secretary of State—to issue implementing regulations, and directs all U.S. agencies to carry out the section.

This section directs the President to exercise authorities under the International Emergency Economic Powers Act (IEEPA) (50 U.S.C. 1701 et seq.) to block all property and interests in property of the Government of Venezuela—and persons who materially assist such blocked persons or are owned or controlled by them—that are in the U.S., come within the U.S., or are in the possession or control of a U.S. person. It prohibits evasion of these blocking measures (with applicability notwithstanding prior contracts), authorizes the Secretary of the Treasury (in consultation with the Secretary of State) to issue implementing regulations and redelegate authority, and requires all U.S. agencies to assist in enforcement.

This section directs the President, upon determining under section 101(a) that a democratically elected government is in power in Venezuela and notifying the appropriate congressional committees, to terminate sanctions imposed under this title. Upon termination, the President must immediately notify Congress and submit reports every 180 days for three years on Venezuela's progress toward establishing a democratically elected government. The section establishes expedited procedures for a joint resolution of disapproval of the termination—referred to the Senate Committee on Foreign Relations or House Committee on Foreign Affairs, limited to one per chamber per 180-day period beginning with the notification date, and considered under specified Senate and House rules—which if enacted ceases the termination's effect.

This section (1) authorizes the President to exercise all authorities under sections 203 and 205 of the International Emergency Economic Powers Act (IEEPA; 50 U.S.C. 1702, 1704) to implement sanctions under this title; (2) applies penalties under IEEPA section 206(b) and (c) (50 U.S.C. 1705(b), (c)) to any person who violates, attempts to violate, conspires to violate, or causes a violation of this title or any regulation, license, or order issued pursuant thereto; and (3) permits the President to waive such sanctions for a foreign person upon certification to the appropriate congressional committees, at least 10 days prior to the waiver's effective date, that the waiver is vital to U.S. national security interests, with a detailed justification provided.

This section directs the Secretary of the Treasury, in coordination with the Secretary of State, to submit unclassified reports (with possible classified annexes) to the appropriate congressional committees not later than 180 days after enactment and every 180 days thereafter through the 10-year anniversary of enactment. Each report must list all specific licenses issued by the Office of Foreign Assets Control (OFAC) during the preceding 180-day period that authorize transactions with persons sanctioned under sections 303, 304, or 305—including for each license the recipient entity's name, a description of the authorized activity, and OFAC's justification—and provide (i) in the first report, an estimate of funds accessed by the Maduro regime from OFAC licenses since January 20, 2021; and (ii) in subsequent reports, an estimate for the preceding 180-day period. The section further requires the Secretary to provide copies of listed licenses to requesting Members of Congress within 60 days of report submission; protects any identified proprietary information as business confidential under the Freedom of Information Act exemption for trade secrets and commercial or financial information (5 U.S.C. § 552(b)(4)); and sunsets 10 years after enactment.

This section directs the Secretary of State, in consultation with the heads of other relevant federal agencies, to submit to the appropriate congressional committees, not later than 180 days after enactment, a report identifying foreign persons that (1) have engaged in significant transactions or provided material support to the Government of Venezuela, persons responsible for undermining democratic processes or institutions, serious human rights abuses since February 1, 2014, restrictions on freedom of expression or assembly, or significant public corruption by senior Venezuelan officials, or entities whose members have engaged in such activities; (2) operate in Venezuela's mining, financial, energy, shipping, or shipbuilding sectors; (3) operate in Venezuelan ports, free trade zones, or special economic zones; (4) are owned or controlled by such persons; or (5) have knowingly provided significant financial, material, technological support or goods or services to such persons.

This section requires the President to develop a plan for providing assistance to the people of Venezuela under a democratically elected government—including food, medicine, medical supplies, emergency energy aid, development assistance under chapter 1 of part I of the Foreign Assistance Act of 1961, Economic Support Fund assistance under chapter 4 of part II of that Act, Food for Peace Act programs, Export-Import Bank financing and guarantees, Trade and Development Agency assistance, and Peace Corps programs—with distribution via U.S. agencies and nongovernmental organizations and communication of the plan to the Venezuelan people. The section further requires (1) a detailed report on the plan to appropriate congressional committees within 90 days of enactment; (2) implementation of the plan and delivery of assistance upon a presidential determination of a democratically elected government in Venezuela; (3) annual reports to those committees within 60 days after the end of each fiscal year describing assistance provided and planned; (4) designation of a Department of State coordinating official to oversee distribution, agency coordination, and dispute resolution; (5) 15-day advance reprogramming notifications to congressional committees under FAA section 634A procedures; funding only to the extent authorized and appropriated; and efforts to secure comparable assistance from other countries and international institutions.

This section requires the President, upon submitting to the appropriate congressional committees a determination under section 101(a) that a democratically elected government is in power in Venezuela, to submit a report to the House Ways and Means Committee, Senate Finance Committee, and appropriate congressional committees that (1) identifies acts, policies, and practices constituting significant barriers to or distortions of U.S. trade in goods or services or foreign direct investment with Venezuela; and (2) describes U.S. policy objectives for trade relations with such a government, including the reasons for those objectives and possible reciprocal extension of nondiscriminatory (most-favored-nation) treatment. With respect to those policy objectives, the section further directs the President to (1) consult with those congressional committees and (2) seek advice from appropriate advisory committees established under section 135 of the Trade Act of 1974 (i.e., committees that provide overall policy advice on U.S. trade negotiating objectives, agreements, and related matters from representatives of the private sector, labor, industry, agriculture, and non-Federal governments).

This section excludes the importation of goods from authorities and requirements to impose sanctions under this Act, defining a good as any article, natural or manmade substance, material, supply, or manufactured product, including inspection and test equipment but excluding technical data.