[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5369 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  2d Session
                                S. 5369

    To reauthorize and expand the imposition of sanctions under the 
    Nicaragua Investment Conditionality Act of 2018, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 7, 2026

  Mr. Cruz (for himself and Mr. Kaine) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
    To reauthorize and expand the imposition of sanctions under the 
    Nicaragua Investment Conditionality Act of 2018, 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 ``Restoring Electoral Fairness and 
Opposition Rights through Mandates for Accountability Act of 2026''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Government of Nicaragua, under the leadership of 
        Daniel Ortega and Rosario Murillo, has engaged in systematic 
        corruption, undermined democratic institutions, eroded the rule 
        of law, and committed widespread human rights abuses, including 
        state-sponsored violence against Nicaraguan citizens, 
        contributing to regional instability, forced migration, 
        transnational repression, and national security concerns.
            (2) The 2021 Nicaraguan presidential election, which 
        resulted in the consolidation of authoritarian rule led by 
        Daniel Ortega and Rosario Murillo, was preceded by--
                    (A) the arrest, disqualification, and forced exile 
                of opposition candidates;
                    (B) the annulment of political parties;
                    (C) crackdowns on civil society; and
                    (D) restrictions on the press.
            (3) Since 2018, the Murillo-Ortega regime has revoked the 
        legal registration of hundreds of nonprofit and faith-based 
        organizations as part of its broader campaign to suppress civil 
        society and religious institutions.
            (4) On November 30, 2022, pursuant to section 402(b)(1)(A) 
        of the International Religious Freedom Act of 1998 (22 U.S.C. 
        6442(b)(1)(A)), the Secretary of State designated Nicaragua as 
        a country of particular concern for religious freedom for 
        having engaged in or tolerated particularly severe violations 
        of religious freedom.
            (5) On December 18, 2023, the Murillo-Ortega regime 
        arrested 11 Nicaraguan pastors and ministry workers affiliated 
        with the organization Mountain Gateway and issued arrest 
        warrants for 3 United States citizens affiliated with the 
        organization on politically motivated charges.
            (6) On July 20, 2026, Daniel Ortega publicly announced that 
        Nicaragua would no longer hold competitive elections, marking 
        the abandonment of elections and further consolidating 
        authoritarian governance.
            (7) Nicaragua does not meet minimum democratic standards 
        under the Inter-American Democratic Charter.
            (8) The policies of the United States Government should 
        support the people of Nicaragua in restoring peace and 
        democracy, protecting human rights, and promoting free, fair 
        and internationally observed elections.

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States--
            (1) to seek a resolution to the political crisis in 
        Nicaragua that includes--
                    (A) a commitment by the Government of Nicaragua to 
                hold competitive, free, and fair elections that meet 
                democratic standards and permit credible international 
                observation of elections;
                    (B) the cessation of the violence perpetrated 
                against civilians by the National Police of Nicaragua 
                and by armed groups supported by the Government of 
                Nicaragua; and
                    (C) independent investigations into the killings of 
                protesters in Nicaragua; and
            (2) to support diplomatic engagement in order to advance a 
        negotiated and peaceful solution to the political crisis in 
        Nicaragua.

SEC. 4. RENEWAL AND TERMINATION OF NICARAGUA INVESTMENT CONDITIONALITY 
              ACT OF 2018.

    Section 10 of the Nicaragua Investment Conditionality Act of 2018 
(Public Law 115-335; 50 U.S.C. 1701 note) is amended to read as 
follows:

``SEC. 10. EFFECTIVE PERIOD.

    ``(a) Effective Date.--The provisions of this Act shall be in 
effect on and after the date of the enactment of the Restoring 
Electoral Fairness and Opposition Rights through Mandates for 
Accountability Act of 2026.
    ``(b) Termination.--The provisions of this Act, and any sanctions 
imposed under this Act, shall terminate on the earlier of--
            ``(1) December 31, 2035; or
            ``(2) the date that is 90 days after the President 
        certifies to the appropriate congressional committees that a 
        resolution to the political crisis in Nicaragua has been 
        reached that includes--
                    ``(A) a commitment by the Government of Nicaragua 
                to hold competitive, free, and fair elections that meet 
                democratic standards and permit credible international 
                observation of elections;
                    ``(B) the cessation of the violence perpetrated 
                against civilians by the National Police of Nicaragua 
                and by armed groups supported by the Government of 
                Nicaragua; and
                    ``(C) independent investigations into the killings 
                of protesters in Nicaragua.''.

SEC. 5. IMPOSITION OF SANCTIONS WITH RESPECT TO GOLD SECTOR OF ECONOMY 
              OF NICARAGUA.

    Section 5(a) of the Nicaragua Investment Conditionality Act of 2018 
(Public Law 115-335; 50 U.S.C. 1701 note) is amended--
            (1) in paragraph (3)(B), by striking ``; or'' and inserting 
        a semicolon;
            (2) in paragraph (4), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(5) to operate or have operated in--
                    ``(A) the gold sector of the economy of Nicaragua; 
                or
                    ``(B) any other sector of the economy of Nicaragua 
                identified by the Secretary of State, in consultation 
                with the Secretary of the Treasury, for the purposes of 
                this paragraph.''.

SEC. 6. EXPANSION OF LIST OF ACTIVITIES SUBJECT TO SANCTIONS WITH 
              RESPECT TO NICARAGUA.

    Section 5(b) of the Nicaragua Investment Conditionality Act of 2018 
(Public Law 115-335; 50 U.S.C. 1701 note) is amended by adding at the 
end the following:
            ``(5) The arrest or prosecution of a person, including a 
        person who is a member, volunteer, or employee of the Catholic 
        Church or a Protestant Church, because of the legitimate 
        exercise by that person of the freedom of religion.
            ``(6) The conviction and sentencing of a person who is a 
        democratic political actor or a member of an independent civil 
        society organization for politically motivated charges.
            ``(7) The provision of significant goods, services, or 
        technology to or from Nicaragua, or by persons operating or 
        having operated in Nicaragua, that support--
                    ``(A) the Government of the Russian Federation on 
                or after February 24, 2022; or
                    ``(B) the Government of the Islamic Republic of 
                Iran on or after February 11, 1979.''.

SEC. 7. ADDITION TO LIST OF PRIORITY SANCTIONS TARGETS.

    Section 5(b)(2)(B) of the Reinforcing Nicaragua's Adherence to 
Conditions for Electoral Reform Act of 2021 (Public Law 117-54; 50 
U.S.C. 1701 note) is amended by inserting after clause (ix) the 
following:
                            ``(x) Officials of the Instituto de 
                        Prevision Social Militar (IPSM), commonly known 
                        as the Military Institute of Social Security of 
                        Nicaragua.''.

SEC. 8. REPORT ON IMPLEMENTATION OF SANCTIONS.

    Not later than 90 days after the date of the enactment of this Act, 
and annually thereafter for a period of 3 years, the Secretary of 
State, in consultation with the Secretary of the Treasury, shall submit 
to the Committee on Foreign Relations of the Senate and the Committee 
on Foreign Affairs of the House of Representatives a report on the 
implementation of section 5 of the Reinforcing Nicaragua's Adherence to 
the Conditions for Electoral Reform Act of 2021 (Public Law 117-54; 50 
U.S.C. 1701 note), which shall include--
            (1) an update on the status of efforts to implement a 
        coordinated strategy on the use of targeted sanctions under 
        section 5(a)(1) of that Act;
            (2) a detailed description of concrete steps that have been 
        taken under section 5(b)(1) of that Act to prioritize the 
        implementation of the targeted sanctions required under section 
        5 of the Nicaragua Investment Conditionality Act of 2018 
        (Public Law 115-335; 50 U.S.C. 1701 note); and
            (3) a detailed description of the results of the review of 
        sanctionable targets required under section 5(b)(2) of the 
        Reinforcing Nicaragua's Adherence to the Conditions for 
        Electoral Reform Act of 2021 (Public Law 117-54;50 U.S.C. 1701 
        note).

SEC. 9. ASSESSMENT OF CONDITIONS NECESSARY FOR DEMOCRATIC TRANSITION.

    (a) Assessment.--The Secretary of State, in consultation with the 
heads of other relevant Federal agencies, shall conduct an assessment 
of the conditions necessary for an eventual democratic transition in 
Nicaragua, including the conditions necessary for--
            (1) the establishment of an impartial elections 
        administration body;
            (2) the establishment of judicial independence;
            (3) police reform;
            (4) strengthening government institutions;
            (5) the provision of humanitarian assistance; and
            (6) the inclusion of Nicaraguan dissidents and opposition 
        leaders in the transition.
    (b) Report Required.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary shall submit a report 
        on the assessment conducted under subsection (a) to the 
        Committee on Foreign Relations of the Senate and the Committee 
        on Foreign Affairs of the House of Representatives.
            (2) Form.--The report required by paragraph (1) shall be 
        submitted in unclassified form but may include a classified 
        annex.
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