S. 1151Senate116th Congress (2019-2021)In Committee

Venezuelan Contracting Restriction Act

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Updated April 14, 2026 at 4:25 AM UTC

The Venezuelan Contracting Restriction Act bars U.S. executive agencies from awarding contracts to any person that the agency head, with the Secretary of State’s agreement, determines is engaged in significant business with the Maduro government, which the United States does not recognize as legitimate. The rule applies to all federal contracts entered into after the law takes effect, but includes several carve‑outs for humanitarian aid, disaster relief, national‑security needs, U.S. government operations in Venezuela, and other specific circumstances.

Key Provisions

Federal agencies may not contract with any individual or entity that has significant business dealings with the Maduro regime, unless the Secretary of State approves an exception.
Exceptions are allowed for contracts needed for humanitarian assistance, disaster relief, non‑combatant evacuations, or that serve U.S. national‑security interests.
Contracts that support U.S. government activities in Venezuela or involve international organizations are also exempt.
A valid Office of Foreign Assets Control (OFAC) license or a waiver from the Secretary of State can override the prohibition.
The Secretary of State must notify the Senate Homeland Security and Governmental Affairs Committee and the House Homeland Security Committee of any contract entered under an exception.
The restriction does not apply to contracts for operating U.S. consular or diplomatic facilities in Venezuela.

Legislative Activity

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4 earlier actions

SenateCalendars Latest Action

Placed on Senate Legislative Calendar under General Orders. Calendar No. 189.

September 10, 2019

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SenateIntro Referral

Introduced in Senate

April 11, 2019

SenateIntro Referral

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Homeland Security and Governmental Affairs Committee

April 11, 2019

SenateCommittee

Committee on Homeland Security and Governmental Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.

Homeland Security and Governmental Affairs Committee

June 19, 2019

SenateCommittee

Committee on Homeland Security and Governmental Affairs. Reported by Senator Johnson with an amendment in the nature of a substitute. With written report No. 116-85.

Homeland Security and Governmental Affairs Committee

September 10, 2019

SenateCalendars

Placed on Senate Legislative Calendar under General Orders. Calendar No. 189.

September 10, 2019

Bill Text

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Reported to SenateIssued September 10, 2019

Calendar No. 189

116th CONGRESS

1st Session

S. 1151

[Report No. 116–85]

IN THE SENATE OF THE UNITED STATES

April 11, 2019

Mr. Scott of Florida (for himself, Mr. Rubio, and Mr. Cotton) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

September 10, 2019

Reported by Mr. Johnson, with an amendment

Strike out all after the enacting clause and insert the part printed in italic

A BILL

To prohibit contracting with persons that have business operations with the Maduro regime, and for other purposes.

Short title

This Act may be cited as the Venezuelan Contracting Restriction Act.

Prohibition on contracting with persons that have business operations with the Maduro regime

(a)

Prohibition

The head of an executive agency may not enter into a contract for the procurement of goods or services with any person that has business operations with an authority of the government of Venezuela that is not recognized as the legitimate government of Venezuela by the United States Government.

(b)

Definitions

In this section:

(1)

Business operations

The term business operations means engaging in commerce in any form, including acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce.

(2)

Executive agency

The term executive agency has the meaning given the term in section 133 of title 41, United States Code.

(3)

Person

The term person means—

(A)

a natural person, corporation, company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group;

(B)

any governmental entity or instrumentality of a government, including a multilateral development institution (as defined in section 1701(c)(3) of the International Financial Institutions Act (22 U.S.C. 262r(c)(3))); and

(C)

any successor, subunit, parent entity, or subsidiary of, or any entity under common ownership or control with, any entity described in subparagraph (A) or (B).

(c)

Applicability

This section shall apply with respect to any contract entered into on or after the date of the enactment of this section.

Short title

This Act may be cited as the Venezuelan Contracting Restriction Act.

Prohibition on contracting with persons that have business operations with the Maduro regime

(a)

Prohibition

Except as provided in subsections (b), (c), and (d), the head of an executive agency may not enter into a contract for the procurement of goods or services with any person that the head of an executive agency determines, with the concurrence of the Secretary of State, knowingly engages in significant business operations with an authority of the Government of Venezuela that is not recognized as the legitimate Government of Venezuela by the United States.

(b)

Exceptions

(1)

In general

The prohibition under subsection (a) does not apply to a contract that the Secretary of State determines—

(A)

is necessary—

(i)

for purposes of providing humanitarian assistance to the people of Venezuela;

(ii)

for purposes of providing disaster relief and other urgent life-saving measures; or

(iii)

to carry out noncombatant evacuations; or

(B)

is in the national security interests of the United States.

(2)

Support for United States Government activities

The prohibition in subsection (a) shall not apply to contracts that support United States Government activities in Venezuela, including those necessary for the maintenance of United States Government facilities in Venezuela, or to contracts with international organizations.

(3)

Notification requirement

The Secretary of State shall notify the appropriate congressional committees of any contract entered into on the basis of an exception provided for under paragraph (1).

(c)

Office of foreign assets control licenses

The prohibition in subsection (a) does not apply to a person that has a valid license to operate in Venezuela issued by the Office of Foreign Assets Control.

(d)

American diplomatic mission in Venezuela

The prohibition in subsection (a) does not apply to contracts related to the operation and maintenance of the United States Government’s consular offices and diplomatic posts in Venezuela.

(e)

Waiver

The Secretary of State may waive the requirements of subsection (a) if the Secretary of State determines that to do so is in the national interest of the United States.

(f)

Definitions

In this section:

(1)

Appropriate congressional committees

The term appropriate congressional committees means the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Homeland Security of the House of Representatives.

(2)

Business operations

(3)

Executive agency

The term executive agency has the meaning given the term in section 133 of title 41, United States Code.

(4)

Government of Venezuela

(A)

The term Government of Venezuela includes the government of any political subdivision of Venezuela, and any agency or instrumentality of the Government of Venezuela.

(B)

For purposes of subparagraph (A), the term agency or instrumentality of the Government of Venezuela means an agency or instrumentality of a foreign state as defined in section 1603(b) of title 28, United States Code, with each reference in such section to a foreign state deemed to be a reference to Venezuela.

(5)

Person

The term person means—

(A)

a natural person, corporation, company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group;

(B)

any governmental entity or instrumentality of a government; and

(C)

any successor, subunit, parent entity, or subsidiary of, or any entity under common ownership or control with, any entity described in subparagraph (A) or (B).

(g)

Applicability

This section shall apply with respect to any contract entered into on or after the date of the enactment of this section.

September 10, 2019

Reported with an amendment