Overview

Title

To reauthorize and amend the Nicaraguan Investment Conditionality Act of 2018 and the Reinforcing Nicaragua’s Adherence to Conditions for Electoral Reform Act of 2021, and for other purposes.

ELI5 AI

The Restoring Sovereignty and Human Rights in Nicaragua Act of 2024 is a plan to stop people in charge in Nicaragua from doing bad things by using rules that limit certain money activities, help those who’ve been hurt, and work with other countries to make sure the people in Nicaragua have fair choices for leaders and freedoms.

Summary AI

H. R. 6954, also known as the “Restoring Sovereignty and Human Rights in Nicaragua Act of 2024,” seeks to amend and reauthorize previous acts regarding Nicaragua. The bill aims to extend sanctions on sectors of the Nicaraguan economy benefiting the Ortega family, address human rights violations such as the persecution of the Catholic Church and political prisoners, and limit new U.S. investments in Nicaragua. It also promotes a coordinated international effort to ensure fair elections and support human rights initiatives. The bill outlines steps to address the political crisis in Nicaragua, including diplomatic strategy and policy changes related to international trade agreements.

Published

2024-01-11
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-01-11
Package ID: BILLS-118hr6954ih

Bill Statistics

Size

Sections:
13
Words:
3,336
Pages:
17
Sentences:
69

Language

Nouns: 1,097
Verbs: 204
Adjectives: 153
Adverbs: 16
Numbers: 159
Entities: 296

Complexity

Average Token Length:
4.42
Average Sentence Length:
48.35
Token Entropy:
5.33
Readability (ARI):
27.02

AnalysisAI

General Summary of the Bill

The proposed legislation, known as the “Restoring Sovereignty and Human Rights in Nicaragua Act of 2024,” aims to amend and reauthorize previous U.S. acts related to investment and electoral conditions in Nicaragua. It seeks to extend economic sanctions targeting sectors of the Nicaraguan economy that provide financial support to the Ortega family. Additionally, the bill encourages a coordinated strategy with international partners to impose sanctions on Nicaragua for human rights abuses, particularly focusing on issues involving the Catholic Church, political prisoners, and support for Russia's invasion of Ukraine. The bill also emphasizes promoting human rights and democracy programs and calls for a review of Nicaragua's involvement in free trade agreements.

Summary of Significant Issues

The bill raises several important issues, notably the extension of the Nicaraguan Investment Conditionality Act to 2028 without ample justification or an assessment of its potential impacts. There is a lack of clear criteria for which sectors of the economy might be targeted for sanctions, leading to potential ambiguity and concerns of arbitrary decision-making. The provisions for imposing sanctions and the strategies for enforcing them are not sufficiently detailed in terms of financial and logistical implications, which questions their effectiveness and the cost of implementation.

Furthermore, the bill involves extensive diplomatic efforts with international partners to restrict Nicaragua's economic interactions. It does not, however, provide clear benchmarks for evaluating the success of such strategies. The prohibition on new U.S. investments in the Nicaraguan economy raises legal questions due to vague definitions and exception criteria for presidential waivers. Lastly, the bill's support for human rights groups lacks detailed oversight mechanisms, sparking concerns about accountability and financial oversight.

Public Impact

If enacted, the bill could have broad implications for how the United States engages with Nicaragua. By intensifying sanctions and other economic measures, the legislation aims to exert pressure on the Nicaraguan government to adopt democratic norms and respect human rights. This approach aligns with broader U.S. foreign policy objectives to promote democracy and human rights globally.

However, increased sanctions might also lead to economic hardships for the general population of Nicaragua, potentially exacerbating poverty and instability. The focus on international collaboration to impose sanctions may foster stronger diplomatic ties with other countries, but also risks diplomatic friction if partners do not fully align with U.S. strategies.

Impact on Specific Stakeholders

Nicaraguan Government and Economy: The government is likely to face increased pressure both economically and politically. The focus on sectors that benefit the Ortega family might undermine their financial support, but could also destabilize broader economic activities, affecting ordinary citizens.

United States Persons and Entities: U.S. citizens and businesses will face prohibitions on new investments in Nicaragua. Although exceptions exist for humanitarian activities, the bill's complex restrictions may deter legitimate economic engagement, potentially impacting businesses looking for opportunities abroad.

International Community: Global actors, particularly those who partner on sanction efforts, are encouraged to align with U.S. strategies. This collaboration might enhance global human rights practices but also require significant diplomatic engagement to maintain cohesion.

Human Rights Organizations: These groups are potential beneficiaries of grants intended to support democracy and human rights documentation in Nicaragua. However, without a clear oversight mechanism, the effectiveness of these grants remains uncertain, raising concerns about accountability.

In summary, while the bill seeks to promote democracy and human rights, its provisions and potential impacts require careful consideration to avoid unintended economic and diplomatic consequences. The balance between asserting pressure on the Nicaraguan government and minimizing adverse effects on ordinary citizens is crucial to the bill's success.

Issues

  • The extension of the Nicaraguan Investment Conditionality Act of 2018 to 2028 without providing justification or an assessment of potential impacts may raise political and ethical concerns regarding U.S. foreign policy decisions (Section 101).

  • The lack of clear criteria for identifying sectors of the Nicaraguan economy for sanctions could lead to perceptions of arbitrary or politically motivated economic actions against Nicaragua, potentially affecting bilateral relations (Section 102).

  • The imposition of sanctions related to the Ortega administration's actions without specifying financial or logistical implications for enforcement raises concerns about the effectiveness and costs associated with such policies (Section 103).

  • The reliance on diplomatic strategies involving multiple international partners without explicit criteria for evaluating success poses risks of diplomatic tensions and administrative expenses without assurance of return on investment (Section 104).

  • There is potential ambiguity due to the undefined term 'United States person,' which could create legal uncertainties regarding who is subject to the prohibition on new investments in Nicaragua (Section 203).

  • The provision for a presidential waiver under 'national security interests' for the prohibition on U.S. investments in Nicaragua is vague, raising concerns over transparency and potential misuse (Section 203).

  • The endorsement of international organizations like the Holy See and the International Red Cross to document human rights violations may imply alignment with U.S. political objectives, raising ethical considerations (Section 3).

  • The lack of detailed mechanisms for oversight or evaluation of the human rights and democracy programs funded by U.S. grants could lead to concerns about accountability and financial mismanagement (Section 301).

  • Ambiguities regarding the criteria or termination process in the event of a political resolution in Nicaragua might lead to potential misuse or misinterpretations (Section 204).

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title; table of contents Read Opens in new tab

Summary AI

The Restoring Sovereignty and Human Rights in Nicaragua Act of 2024 outlines its purpose and contents, focusing on reauthorizing previous acts to enhance sanctions against Nicaragua, particularly targeting revenue-generating sectors for the Ortega family, and addressing human rights abuses. It proposes additional economic measures and support for Nicaraguan human rights and democracy, including a review of trade agreements and a prohibition on new U.S. investments.

2. Definitions Read Opens in new tab

Summary AI

The section provides definitions for key terms used in the Act. It specifies that "appropriate congressional committees" include certain Senate and House committees related to foreign relations and financial services, and defines "United States person" as U.S. citizens, nationals, lawful permanent residents, as well as corporations and partnerships formed under U.S. law.

3. Sense of Congress Read Opens in new tab

Summary AI

Congress expresses that the Secretary of State, in collaboration with the Secretary of the Treasury, should work with international partners to enforce sanctions against persons involved with the Nicaraguan regime for its violations against the Catholic Church and human rights. The U.S. government should highlight issues of human rights in Nicaragua, enforce relevant executive orders, and encourage international coordination to improve political prisoners' conditions, document human rights violations, and end persecution of religious groups.

101. Extension of authorities of the Nicaraguan Investment Conditionality Act of 2018 Read Opens in new tab

Summary AI

The section updates the Nicaraguan Investment Conditionality Act of 2018 by extending its authorities from 2023 to 2028.

102. Enhancing sanctions on sectors of the Nicaraguan economy that generate revenue for the Ortega family Read Opens in new tab

Summary AI

The section updates a law to impose stricter sanctions on the Nicaraguan economy, particularly targeting the gold sector and any other sectors identified by the U.S. Secretary of the Treasury, to prevent revenue generation for the Ortega family.

103. Imposition of sanctions with respect to the Ortega administration’s abuses against the Catholic Church, political prisoners, and support for the invasion of Ukraine Read Opens in new tab

Summary AI

The section proposes expanding the reasons for imposing sanctions connected to the Nicaraguan government's actions against the Catholic Church, political prisoners, and those aiding the Russian invasion of Ukraine. It also modifies how sanctions prioritize officials of Nicaragua's Military Institute of Social Security.

104. Coordinated diplomatic strategy to restrict investment and loans that benefit the Government of Nicaragua from the Central American Bank for Economic Integration Read Opens in new tab

Summary AI

The bill modifies the Nicaragua Investment Conditionality Act of 2018 to include a new subsection that requires the U.S. Secretary of State, in collaboration with the Secretary of the Treasury, to work with other countries that are partners of the U.S. and members of the Central American Bank for Economic Integration (CABEI). The goal is to block or closely scrutinize any loans or assistance that CABEI might give to Nicaragua and to ensure those funds are managed independently of the Nicaraguan government.

201. Statement of policy Read Opens in new tab

Summary AI

The policy of the United States is to address the political crisis in Nicaragua by ensuring free and fair elections with international observers, stopping violence against civilians by police and armed groups supporting the government, and conducting independent investigations into the deaths of protesters.

202. Review of participation of Nicaragua in the Dominican Republic-Central America-United States free trade agreement Read Opens in new tab

Summary AI

The bill requires the Secretary of State, with the United States Trade Representative, to submit a yearly report to Congress about Nicaragua's role in the Dominican Republic-Central American-United States Free Trade Agreement (CAFTA-DR). The report should evaluate benefits received by the Nicaraguan government, note any commitment breaches, and decide if Nicaragua is a nonmarket economy according to the Trade Act of 1974.

203. Prohibition on new United States investment in Nicaragua Read Opens in new tab

Summary AI

The section prohibits any American from investing in Nicaragua's economy after the enactment of the Act, with penalties for violations, but allows exceptions for U.S. intelligence activities and humanitarian transactions. The President can waive this prohibition if it benefits national security and must notify Congress if they do so.

204. Termination Read Opens in new tab

Summary AI

The section states that the rules in this title will stop being in effect once the President confirms to the relevant congressional committees that the political crisis in Nicaragua has been resolved, as specified in section 201.

301. Support for human rights and democracy programs Read Opens in new tab

Summary AI

The President can give grants to nonprofit organizations to support human rights and democracy programs in Nicaragua, excluding any group linked to the Ortega regime. These projects must be coordinated with Nicaraguan opposition members, and a report on the actions taken must be submitted annually until 2028.

302. Support for Nicaraguan human rights at the United Nations Read Opens in new tab

Summary AI

The section instructs the United States to urge the United Nations to continue supporting human rights efforts in Nicaragua by extending the mandate of the Group of Human Rights Experts, promoting peaceful elections, investigating violence against civilians, and taking further action to address human rights violations by the Nicaraguan government.