LegiStorm

Summary:

Nicaragua, a Central American country with the second-lowest per capita income in the Western Hemisphere, is currently governed by the authoritarian regime of President Daniel Ortega (1984-1990, 2007-present) of the Sandinista National Liberation Front (FSLN) and his wife, Vice President Rosario Murillo. Ortega is currently serving in his fifth overall, and fourth consecutive, term in office. Social welfare programs enacted soon after Ortega returned to office in 2007 helped improve many Nicaraguans’ standard of living, which appears to have bolstered public support for the FSLN and Ortega’s subsequent efforts to consolidate power. In April 2018, however, government-approved tax reforms that included tax increases and a reduction of social security benefits sparked mass protests. Many world leaders, including the U.S. government, condemned the Ortega administration’s repressive response to these protests, which resulted in over 300 dead, thousands injured, and hundreds detained and tortured. The erosion of democracy under the Ortega-Murillo government has strained relations with the United States and raised congressional concerns. Congress may continue to monitor U.S. Administrations’ approaches to Nicaragua and could consider legislative initiatives to guide U.S. policy. U.S. Policy U.S. policy toward Nicaragua generally aims to promote the reestablishment of democratic practices, including free and fair elections, support for human rights, and attention to humanitarian needs. The Biden Administration, with support from Congress, has provided foreign assistance and enhanced U.S. sanctions against certain Nicaraguan officials in an effort to advance those policy goals. U.S. foreign assistance to Nicaragua primarily supports sectors of Nicaraguan civil society seeking to restore democratic governance. In FY2023, for example, the Biden Administration allocated an estimated $17.2 million to Nicaragua, including $15.0 million for democracy programs and $2.2 million in health aid. For FY2025, the Biden Administration has requested $15.0 million for democracy programs in Nicaragua. In an effort to curb antidemocratic practices and human rights abuses, the United States also has imposed numerous targeted sanctions, including asset-blocking sanctions and visa restrictions, on members of the Nicaraguan executive, legislature, and judiciary, along with others determined to be undermining democracy and threatening stability in Nicaragua. The political and economic situation in Nicaragua has contributed to the country becoming a top source country for U.S.- bound migrants. In FY2022, U.S. Customs and Border Protection encountered nearly 164,000 Nicaraguans at the Southwest border. Enforcement encounters declined to 138,729 in FY2023, and 91,049 in FY2024, potentially due, in part, to the implementation of a new humanitarian parole program. That program was temporarily suspended, and then restarted, in August 2024. Legislative Action In the 118th Congress, the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2024 (SFOPS; P.L. 118-47, Division F) appropriated “not less than” $15 million for democracy and religious freedom programs in Nicaragua. For FY2025, the Biden Administration has requested $15 million for democracy programs in Nicaragua. The funds would aim to “support and build the capacities of civil society, human rights activists, independent media, and other democratic actors to protect Nicaraguans’ basic rights and freedoms.” Some Members of the 118th Congress also have introduced various bills related to Nicaragua. For example, the Restoring Sovereignty and Human Rights in Nicaragua Act of 2023, introduced in the House (H.R. 6954) and the Senate (S. 1881), would reauthorize and amend the Nicaraguan Investment Conditionality Act of 2018 (NICA Act; P.L. 115-335) and the Reinforcing Nicaragua’s Adherence to Conditions for Electoral Reform Act of 2021 (RENACER Act; P.L. 117-54), which expired in December 2023. Other bills introduced in the 118th Congress include the No Relief for Allies of Dictators Act of 2023 (S. 1129), which would revoke current visas and restrict the issuance of new visas for individuals associated with certain Latin American governments, including the Ortega government in Nicaragua. Congress may continue to shape U.S. policy toward Nicaragua through oversight and legislative efforts.