The VALOR Act of 2025 is a Senate bill aimed at promoting a democratic transition in Venezuela. It would define a set of criteria for determining when Venezuela has a democratically elected government, and it links this determination to a broad package of foreign policy tools. The bill envisions using diplomacy, international institution participation, targeted sanctions, and selective humanitarian/assistance aid to support a transition away from the Maduro regime toward a democratically accountable government. It also creates a framework for ongoing oversight, reporting, and potential termination of sanctions if Venezuela meets the democratic benchmarks. Key parts of the bill include a comprehensive sanctions regime (covering financial instruments, cryptocurrency, and blocking government-related property), policies to curb Maduro regime influence in international bodies, authorization of democratic/human rights support and international observer activity, and a dedicated plan to assist the Venezuelan people under a democratically elected government. The act also requires detailed reporting on licenses and foreign actors involved in dealings with the Maduro regime, and it establishes a 10-year sunset for the sanctions provisions, with a formal mechanism for congressional review if a transition is deemed to have occurred.
Key Points
- 1Determination of a democratically elected government: Establishes specific criteria (free and fair elections under international observers, progress toward independent judiciary, human rights protections, media freedom, property rights, release of political prisoners, and other steps) that must be met for the President to certify a democratic transition in Venezuela. It also requires specific actions by the Maduro regime (e.g., restoring National Assembly powers, releasing prisoners, stopping political interference) and excludes individuals already targeted by sanctions.
- 2Sanctions framework (Title III): Creates broad sanctions on the Maduro regime, including blocking international support, prohibiting certain debt and equity transactions, prohibiting purchases of new debt, and restricting access to debt instruments and collateral. It also imposes penalties under the International Emergency Economic Powers Act (IEEPA) and sets up enforcement mechanisms and possible waivers for vital national security reasons.
- 3Crypto and financial tools: Imposes prohibitions on transactions involving any digital currencies or tokens issued by the Maduro regime or its affiliates, with rulemaking to implement these restrictions.
- 4Blocking of government assets: Allows the President to block and prohibit all transactions in property of the Government of Venezuela and related entities or persons, with enforcement and evasion prohibitions.
- 5Termination and congressional oversight: Upon certification of a democratically elected government, sanctions are to be terminated, but Congress must be notified and will receive periodic progress reports for 3 years. A joint resolution of disapproval can block termination, and there are detailed procedural rules for how such disapproval would be considered.
- 6International diplomacy and institutions (Titles II): Directs the U.S. to oppose Maduro’s seating (or participation) in international financial institutions and the Organization of American States until a democratically elected government is in power. After such a determination, the U.S. should push for Venezuela’s representation in these bodies aligned with the democratic government.
- 7Assistance to the Venezuelan people (Title IV): Authorizes a U.S.-led plan to provide humanitarian and development assistance to the Venezuelan people through NGOs and international channels, including food, medicine, education, energy support, development aid, Ex-Im Bank financing, and Peace Corps programs. Safeguards are included to ensure aid does not benefit the Maduro regime, and there is emphasis on coordinating with other countries and international organizations.
- 8Reporting on licenses and foreign involvement (Section 308 and 309): Requires regular reporting on licenses that authorize transactions with sanctioned entities and identifies foreign individuals or entities doing business with the Maduro regime, focusing on sectors like mining, finance, energy, shipping, and port operations.
- 9Trade and investment relations (Title IV, Sec. 402): Requires a report on trade barriers and policy objectives toward a potential normal trade relationship with a democratically elected Venezuela, including possible MFN treatment considerations.