Protecting Taxpayers from Risky Investments in Venezuela Act

#7038 | HR Congress #119

Subjects:

Last Action: Referred to the House Committee on Foreign Affairs. (1/13/2026)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Protecting Taxpayers from Risky Investments in Venezuela Act" is a legislative proposal aimed at preventing the U.S. government from financially supporting Venezuela's oil and petroleum infrastructure. The bill explicitly prohibits the use of federal funds for any activities related to the development, maintenance, or expansion of Venezuela's oil sector. This includes construction, purchases of real property, insurance costs, and any support from U.S. officials in international settings. The legislation allows for exceptions only if explicitly authorized by a future Act of Congress. Additionally, it mandates that the Secretary of State submit an annual report to Congress detailing any related expenditures and confirming compliance with the law.

Possible Impacts

This legislation, known as the "Protecting Taxpayers from Risky Investments in Venezuela Act," could affect people in several ways:

1. **Economic Impact on Venezuelan Citizens**: By prohibiting U.S. funding for Venezuela's oil infrastructure, the legislation could exacerbate the already dire economic situation in Venezuela. As the oil sector is a critical source of revenue for the Venezuelan government, restrictions on funding may hinder the country's ability to maintain or improve its oil production capabilities. This could lead to further economic decline, job losses in the oil sector, and increased poverty among Venezuelan citizens who rely on the oil industry for their livelihoods.

2. **Diplomatic Relations**: The legislation may strain diplomatic relations between the United States and Venezuela. By explicitly prohibiting financial support, it sends a strong message against the Venezuelan government's policies and actions. This could lead to heightened tensions, impacting not only bilateral relations but also regional dynamics in Latin America, where other countries might be affected by the fallout from U.S. sanctions and policies regarding Venezuela.

3. **Impact on U.S. Taxpayers and Investors**: The legislation aims to protect U.S. taxpayers from potential financial losses associated with investments in Venezuela's oil infrastructure. By restricting funding, it may prevent U.S. companies and investors from engaging in potentially risky ventures in Venezuela. While this could shield taxpayers from financial exposure, it may also limit opportunities for American businesses to participate in markets that could recover in the future, thereby affecting economic growth and job creation in the U.S.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7038 Introduced in House (IH)]

<DOC>






119th CONGRESS
  2d Session
                                H. R. 7038

 To prohibit the United States Government from funding Venezuela's oil 
                infrastructure, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 13, 2026

   Mr. Levin (for himself, Ms. Escobar, Mr. Doggett, Mr. Casten, Mr. 
 Stanton, Mr. Vargas, Mr. Min, Ms. Friedman, Mr. Liccardo, Ms. Norton, 
Ms. Matsui, Mrs. Foushee, and Mr. Ruiz) introduced the following bill; 
         which was referred to the Committee on Foreign Affairs

_______________________________________________________________________

                                 A BILL


 
 To prohibit the United States Government from funding Venezuela's oil 
                infrastructure, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Taxpayers from Risky 
Investments in Venezuela Act''.

SEC. 2. DEFINED TERM.

    In this Act, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on Foreign Relations of the Senate;
            (2) the Committee on Appropriations of the Senate;
            (3) the Committee on the Budget of the Senate;
            (4) the Committee on Foreign Affairs of the House of 
        Representatives;
            (5) the Committee on Appropriations of the House of 
        Representatives; and
            (6) the Committee on the Budget of the House of 
        Representatives.

SEC. 3. PROHIBITION ON THE USE OF FEDERAL FUNDS TO SUPPORT VENEZUELA'S 
              OIL AND PETROLEUM INFRASTRUCTURE.

    (a) Prohibition.--Except as provided in subsection (b), none of the 
funds appropriated or otherwise made available for any department or 
agency of the United States Government or for any account owned, 
controlled, or accessible by the United States, or a person acting on 
behalf of the United States, may be used to finance, subsidize, insure, 
guarantee, contract for, or otherwise support the development, 
maintenance, or expansion of oil infrastructure or the petroleum sector 
in Venezuela, including--
            (1) the construction, installation, manufacture, 
        development, modernization, repair, or permanent improvement of 
        any oil or gas infrastructure in Venezuela;
            (2) the purchase of real property, including a 
        reimbursement for any such purchase;
            (3) insurance costs, loan guarantees, tax incentives, and 
        royalty relief;
            (4) any payments made to individuals or domestic, 
        international, or multinational corporations; and
            (5) any form of advocacy, promotion, or support provided by 
        officers or employees of the United States Government for the 
        benefit of Venezuela's oil infrastructure or petroleum sector, 
        including at international financial institutions, multilateral 
        organizations, or diplomatic forums.
    (b) Exception.--The prohibition under subsection (a) shall not 
apply to any expenditure explicitly authorized by an Act of Congress 
after the date of the enactment of this Act.

SEC. 4. ANNUAL REPORT.

    Not later than 180 days after the date of the enactment of this 
Act, and annually thereafter, the Secretary of State shall submit a 
report to the appropriate congressional committees that--
            (1) describes any expenditures or activities related to 
        Venezuela's oil infrastructure or petroleum sector; and
            (2) certifies compliance with this Act.
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