LegiStorm

Summary:

Although historically the United States had close relations with Venezuela, a major oil supplier, friction in bilateral relations increased under the leftist, populist government of President Hugo Chávez (1999-2013), who died in 2013 after battling cancer. After Chávez’s death, Venezuela held presidential elections in which acting President Nicolás Maduro narrowly defeated Henrique Capriles of the opposition Democratic Unity Roundtable (MUD), with the opposition alleging significant irregularities. In 2014, the Maduro government violently suppressed protests and imprisoned a major opposition figure, Leopoldo López, along with others. In December 2015, the MUD initially won a two-thirds supermajority in National Assembly elections, a major defeat for the ruling United Socialist Party of Venezuela (PSUV). The Maduro government subsequently thwarted the legislature’s power by preventing three MUD representatives from taking office (denying the opposition a supermajority) and using the Supreme Court to block bills approved by the legislature. For much of 2016, opposition efforts were focused on recalling President Maduro through a national referendum, but the government slowed down the referendum process and suspended it indefinitely in October. After an appeal by Pope Francis, the government and most of the opposition (with the exception of Leopoldo López’s Popular Will party) agreed to talks mediated by the Vatican along with the former presidents of the Dominican Republic, Spain, and Panama and the head of the Union of South American Nations. The two sides issued a declaration in November expressing firm commitment to a peaceful, respectful, and constructive coexistence. They also issued a statement that included an agreement to improve the supply of food and medicine and to resolve the situation of the three National Assembly representatives. Some opposition activists strongly criticized the dialogue as a way for the government to avoid taking any real actions, such as releasing all political prisoners. The next round of talks was scheduled for December but was suspended until January 2017, and many observers are skeptical that the dialogue will resume. The rapid decline in the price of oil since 2014 hit Venezuela hard, with a contracting economy (projected -10% in 2016), high inflation (projected 720% at the end of 2016), declining international reserves, and increasing poverty—all exacerbated by the government’s economic mismanagement. The situation has increased poverty, with severe shortages of food and medicines and high crime rates. U.S. Policy U.S. policymakers and Members of Congress have had concerns for more than a decade about the deterioration of human rights and democratic conditions in Venezuela and the government’s lack of cooperation on antidrug and counterterrorism efforts. After a 2014 government-opposition dialogue failed, the Administration imposed visa restrictions and asset-blocking sanctions on Venezuelan officials involved in human rights abuses. The Obama Administration continued to speak out about the democratic setback and poor human rights situation, called repeatedly for the release of political prisoners, expressed deep concern about the humanitarian situation, and strongly supported dialogue. The Administration also supported the efforts Organization of American States Secretary General Luis Almagro to focus attention on Venezuela’s democratic setback. Congressional Action Congress enacted legislation in 2014—the Venezuela Defense of Human Rights and Civil Society Act of 2014 (P.L. 113-278)—to impose targeted sanctions on those responsible for certain human rights abuses (with a termination date of December 2016 for the requirement to impose sanctions). In July 2016, Congress enacted legislation (P.L. 114-194) extending the termination date of the requirement to impose sanctions set forth in P.L. 113-278 through 2019. In September 2016, the House approved H.Res. 851 (Wasserman Schulz), which expressed profound concern about the humanitarian situation, urged the release of political prisoners, and called for the Venezuelan government to hold the recall referendum this year. In the Senate, a similar but not identical resolution, S.Res. 537 (Cardin), was reported, amended, by the Senate Foreign Relations Committee in December 2016. For more than a decade, Congress has appropriated funding for democracy and human rights programs in Venezuela. An estimated $6.5 million is being provided in FY2016, and the Administration requested $5.5 million for FY2017. The House version of the FY2017 foreign operations appropriations bill (H.R. 5912, H.Rept. 114-693) would have provided $8 million, whereas the Senate version (S. 3117, S.Rept. 114-290) would have fully funded the request. The 114th Congress did not complete action on FY2017 appropriations, although it approved a continuing resolution in December 2016 (P.L. 114-254) appropriating foreign aid funding through April 28, 2017, at the FY2016 level, minus an across-the board reduction of almost 0.2%. Note: This report provides background on political and economic developments in Venezuela, U.S. policy, and U.S. legislative action and initiatives from 2013 to 2016 covering the 113th and 114th Congresses. It will not be updated. For additional information, see CRS In Focus IF10230, Venezuela: Political Situation and U.S. Policy Overview.