The VALOR Act of 2025 outlines U.S. policy towards Venezuela, aiming to promote a democratic transition through sanctions on the current regime, support for democratic forces, and the provision of humanitarian assistance once a democratically elected government is in place. It also restricts international support and financial dealings with the current regime, targeting those who assist or transact with it.
James Risch
Senator
ID
The Venezuela Advancing Liberty, Opportunity, and Rights Act of 2025 (VALOR Act) outlines a comprehensive strategy to promote democracy in Venezuela. It includes offering support for free and fair elections, human rights, and economic stability once a democratic government is established. The Act also authorizes targeted sanctions against the current regime and those who support it, with the possibility of easing sanctions based on progress toward democracy. Furthermore, it aims to coordinate international efforts and provide humanitarian assistance to the Venezuelan people through independent organizations.
VALOR Act Aims to Squeeze Maduro with Sanctions, Offers Aid if Democracy Returns to Venezuela
The Venezuela Advancing Liberty, Opportunity, and Rights (VALOR) Act of 2025 lays out a roadmap for US policy towards Venezuela. It's a two-pronged approach: increase pressure on the Maduro regime through sanctions, while holding out the carrot of aid and normalized relations if the country transitions to a democratically-elected government. The core goal is to promote a peaceful return to democracy in Venezuela, supporting the Venezuelan people and leveraging diplomatic tools.
Pressure Points: Sanctions and Financial Restrictions
This bill turns up the heat on Maduro and anyone doing business with his government. Think of it like this: if you're a company or even a country, and you're cozying up to the current Venezuelan regime, the US government is authorized to come down hard. This includes financial sanctions on individuals and entities (Sec. 303, 304, 305), blocking property (Sec. 305) and even restricting trade (Sec. 302). For example, if a European shipping company is found to be regularly transporting goods for a Venezuelan state-owned enterprise, they could find themselves facing US sanctions. This section also extends to cryptocurrency, banning any transactions by US persons or within the US related to digital currencies issued by the Maduro regime (Sec. 304). The bill defines "Government of Venezuela" broadly, including not just the state itself, but also entities like the Central Bank and the state-owned oil company, Petroleos de Venezuela, S.A. (Sec. 301).
The Path to Relief: What Venezuela Needs to Do
The VALOR Act doesn't just lay down the hammer; it also outlines a clear path for sanctions to be lifted. But it's a high bar. Section 101 spells out the conditions for recognizing a "democratically elected government." This includes free and fair elections, respect for human rights, an independent judiciary, and, crucially, the exclusion of Nicolas Maduro or anyone already under US sanctions. Basically, Venezuela needs a complete overhaul of its political system to get back in the US's good graces. If a construction worker in Caracas is hoping for improved living conditions and more opportunities, they'll need to see their government meet all of these requirements before significant US aid flows.
Aid and Future Relations
Once a democratically-elected government is in place (as defined by the very specific conditions in Sec. 101), the bill authorizes aid to Venezuela. This can include support for basic needs like food and medicine, as well as assistance for building democracy and economic development (Sec. 204, 401). The bill also encourages the US to work with international financial institutions to support a democratic Venezuela (Sec. 201). This is where things could potentially get better for everyday Venezuelans if the political changes happen. The bill requires the President to create a plan for distributing this aid, prioritizing NGOs and ensuring the aid doesn't end up benefiting the remnants of the Maduro regime (Sec. 401). It also requires a lot of reporting to Congress on licenses granted and who is still doing business with the Maduro regime (Sec. 308, 309). While there is the potential for increased trade and investment in the long term, the immediate focus is on meeting basic needs and supporting democratic transition.
The Big "But": Potential Downsides
While the goal is democracy and human rights, there are some potential pitfalls. The definition of "assisting" the Maduro regime is broad, which could impact legitimate businesses or even humanitarian organizations (Sec. 302). The President has significant power to impose sanctions, and there's always a risk that these powers could be used for reasons beyond the stated goals of the bill (Sec. 307). Also, the sanctions themselves, while intended to pressure the regime, could end up hurting the Venezuelan people if not implemented carefully. There's a "national security" exception for waiving sanctions (Sec 307), which, while standard, always raises the question of how it will be applied. The bill's sponsor, James Risch, receives significant funding from the Securities & Investment and Oil & Gas industries. Sanctions and foreign policy decisions related to Venezuela could potentially impact these industries, creating a possible conflict of interest. It is important to watch how this plays out.