HR7055119th CongressWALLET

Restoring Sovereignty and Human Rights in Nicaragua Act of 2026

Sponsored By: Representative Rep. Smith, Christopher H. [R-NJ-4]

Introduced

Summary

Expands U.S. sanctions and blocks new U.S. investment in Nicaragua. The bill extends an existing sanctions framework through 2030, widens the list of sanctionable sectors and actions, and pushes diplomacy to limit multilateral lending to Managua.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

Tougher, longer Nicaragua sanctions

This bill would expand and extend U.S. authorities to target Nicaragua through 2030 and widen who and what can trigger sanctions. It would add the gold sector (and allow Treasury to add others), prioritize officials at the Military Institute of Social Security, and widen triggers to include arrests for religious freedom, politically motivated convictions, gross prisoner abuses, and significant support for Russia's invasion of Ukraine (starting February 24, 2022). Section authorities now in NICA would be extended through 2030. Title II measures would remain until the President certifies a political resolution that includes free and fair elections, an end to violence, and independent probes into protester killings.

Ban on U.S. investment in Nicaragua

This bill would ban new investment in any sector of Nicaragua by a "United States person" after enactment. "United States person" would include U.S. citizens, U.S. nationals, lawful permanent residents, and companies organized under U.S. law. Sales of food, medicine, medical devices, and other authorized humanitarian assistance would still be allowed, and authorized U.S. intelligence activities would be exempt. The President could waive the ban for national security but must notify Congress. Violations would be subject to penalties under the International Emergency Economic Powers Act.

Grants for Nicaraguan human rights

This bill would let the President fund grants to private nonprofits that promote human rights, democracy, and the rule of law in Nicaragua. Grants could pay for documenting abuses since April 2018 and must be run in consultation with Nicaraguan opposition members, including exiles in Costa Rica and the U.S. Groups tied to the Ortega regime could not get money. The Secretary of State would report to Congress within one year and then every year through fiscal year 2030 about these actions.

Pressure on multilateral loans and U.N. action

This bill would direct U.S. diplomacy to block or tighten CABEI loans or assistance to projects in Nicaragua and to press partner governments such as Mexico, Taiwan, Argentina, Colombia, Spain, and Korea to oppose such loans. It would also require an annual CAFTA‑DR report on Nicaragua, first due within one year, and ask the U.S. U.N. representative to push for an expanded U.N. human‑rights mandate on Nicaragua and to support investigations of abuses since April 2018. These moves would reduce multilateral financing tied to the Nicaraguan government while boosting international human‑rights monitoring.

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Sponsors & CoSponsors

Sponsor

Rep. Smith, Christopher H. [R-NJ-4]

NJ • R

Cosponsors

  • Salazar

    FL • R

    Sponsored 1/14/2026

Roll Call Votes

No roll call votes available for this bill.

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