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

This bill, known as the Restoring Sovereignty and Human Rights in Nicaragua Act of 2026, aims to address the political and human rights situation in Nicaragua, particularly under the leadership of President Daniel Ortega. It seeks to extend and enhance certain sanctions and measures that have been previously implemented against the Nicaraguan government and its officials. Below are the key provisions of the bill:

Reauthorization and Amendment of Prior Acts

The bill reauthorizes and amends the Nicaraguan Investment Conditionality Act of 2018 and the Reinforcing Nicaragua’s Adherence to Conditions for Electoral Reform Act of 2021. This encompasses:

• Extension of Sanctions: The authority to impose sanctions has been extended until 2030.
• Enhanced Sanctions: It includes provisions for imposing sanctions on specific sectors of the Nicaraguan economy that generate revenue for the Ortega family.
• New Sanctions Triggers: Expands the list of activities that trigger sanctions to include abuses against the Catholic Church and political prisoners, as well as support for the Russian invasion of Ukraine.

Coordinated Diplomatic Efforts

The bill mandates a diplomatic strategy to work with countries that are partners of the United States to:

• Restrict investment and loans benefiting the Nicaraguan government from the Central American Bank for Economic Integration.
• Oppose loans or assistance to Nicaragua unless it is administered independently of the government.

Economic Measures and Accountability

Additional measures include:

• A commitment to press for electoral reforms and investigations into political violence in Nicaragua.
• A prohibition on new U.S. investment in Nicaragua, with certain exceptions for humanitarian activities.
• Annual assessments on Nicaragua's participation in the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR).

Promotion of Human Rights

The bill emphasizes the need to support human rights initiatives by:

• Providing grants to non-governmental organizations that promote democracy and document human rights abuses.
• Supporting investigations into human rights violations at the United Nations.

Implementation and Enforcement

The measure provides the President with the authority to implement these sanctions and provisions and outlines penalties for violations. It allows for a national security waiver for certain cases and prohibits penalties for humanitarian assistance.

Termination Clause

The provisions of this legislation will cease if the President certifies that a resolution to the political crisis in Nicaragua has been reached.

Relevant Companies

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