S.261 - Halt All United States Investments in Venezuela’s Energy Sector Act of 2025 (119th Congress)
Summary
S.261, the "Halt All United States Investments in Venezuela's Energy Sector Act of 2025," aims to prohibit U.S. investment in Venezuela's energy sector until the results of the July 28, 2024, election are respected. The bill was introduced in the Senate by Mr. Durbin and referred to the Committee on Banking, Housing, and Urban Affairs. The bill cites the contested election results and subsequent actions by the Maduro regime as justification for the investment halt.
The Act outlines specific prohibitions on petroleum-related transactions and transactions allowed under certain general licenses. It also includes a national security waiver provision, allowing the President to waive the prohibitions if deemed in the U.S.'s national security interests.
Finally, the bill defines key terms such as "appropriate congressional committees" and "United States person" and specifies penalties for violations, referencing the International Emergency Economic Powers Act.
Expected Effects
The immediate effect of this bill, if enacted, would be to halt U.S. investment in Venezuela's energy sector. This would likely reduce revenue for the Venezuelan government and potentially impact energy production in Venezuela.
It could also strain diplomatic relations between the U.S. and Venezuela. The longer-term effect depends on whether the Maduro regime recognizes the election results and relinquishes power.
Potential Benefits
- Promotes Democracy: Sends a strong message that the U.S. supports democratic processes and condemns authoritarian regimes.
- Addresses Human Rights Concerns: Responds to the alleged abuse of Venezuelan citizens for political participation.
- Potential for Positive Political Change: Could pressure the Maduro regime to respect the election results and allow for a transition of power.
- Aligns with U.S. Values: Reinforces the U.S.'s commitment to human rights and democratic governance internationally.
- Protects U.S. Investors: Reduces the risk of U.S. investors supporting a regime that may be considered illegitimate.
Most Benefited Areas:
Potential Disadvantages
- Economic Impact on Venezuela: Could worsen the economic situation in Venezuela, potentially leading to further instability and humanitarian crisis.
- Potential for Retaliation: Venezuela could retaliate against U.S. interests or citizens.
- Impact on U.S. Energy Companies: U.S. energy companies with investments in Venezuela could suffer financial losses.
- Strain on Diplomatic Relations: Could further damage already strained relations between the U.S. and Venezuela.
- Unintended Consequences: The policy could have unintended consequences, such as driving Venezuela closer to other countries that may not share U.S. values.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the U.S. Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce with foreign nations. The bill's provisions regarding penalties and implementation through the Secretary of the Treasury are consistent with the delegation of powers within the executive branch.
The bill also implicitly touches upon the President's power to conduct foreign policy. The inclusion of a national security waiver acknowledges the President's role in determining the best course of action for the U.S. in international affairs.
However, the bill's impact on individual liberties and property rights should be considered. While the bill does not directly infringe upon specific constitutional rights, its economic consequences could indirectly affect U.S. citizens and businesses.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).