INSIGHTi
Venezuela: Challenges for U.S. Policymakers
in 2021
February 18, 2021
The multifaceted crisis in Venezuela is one of the primary chal enges facing the Biden Administration in
the Western Hemisphere. Two years after the United States ceased to recognize Nicolás Maduro as the
legitimate president of Venezuela, Maduro has taken de facto control of the National Assembly, the last
independent branch of government. Maduro has consolidated his hold on Venezuela despite a dire
economic and humanitarian crisis exacerbated by the Coronavirus Disease 2019 (COVID-19) pandemic,
intense U.S. and international pressure for him to cede power, and an opposition led by Juan Guaidó, the
National Assembly president elected in 2015 who was once regarded as interim president by nearly 60
countries. While the Biden Administration stil recognizes Guaidó as interim president, many U.S. al ies,
including the European Union (EU), do not.
Congress supported the Trump Administration’s efforts to promote a restoration of democracy in
Venezuela without the use of military force and provide humanitarian assistance to Venezuelans. In
December 2019, Congress enacted the Venezuela Emergency Relief, Democracy Assistance, and
Development Act of 2019 (VERDAD Act; P.L. 116-94, Division J) to address the crisis in Venezuela. The
117th Congress may examine any new policy approaches by the Biden Administration and further
legislative options, such as additional sanctions against the Maduro government or humanitarian
assistance to Venezuelans.
U.S. Policy on Venezuela
In January 2019, the Trump Administration implemented a campaign to compel Maduro to leave office
while providing aid to the opposition and humanitarian assistance to the Venezuelan people and countries
sheltering them. Some Trump officials reportedly discussed the possibility of using military force in
Venezuela, a policy option that neighboring countries and Congress opposed. Ultimately, the Trump
Administration sought to achieve its objectives through diplomacy, sanctions, and legal pressure.
Examples are as follows:
 The United States encouraged other countries to recognize the Guaidó government,
sanction Maduro officials (as Canada, the EU, and some Latin American and Caribbean
countries have done), and provide shelter or humanitarian aid to Venezuelans.
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 The State Department revoked more than 1,000 visas, including those of Venezuelan
officials and their families.
 The Treasury Department expanded individual, financial, and sectoral sanctions to
prohibit unlicensed transactions with the state oil company, Petróleos de Venezuela
(PdVSA), Venezuela’s central bank, and the Maduro government. In 2020, Treasury
sanctioned two Russian energy companies shipping Venezuelan oil and a Chinese
technology company that helped Maduro conduct digital surveil ance.
 The Department of Justice (DOJ) indicted Maduro and 14 top officials for narco-
terrorism, drug trafficking, and other crimes.
Although U.S. efforts under the Trump Administration failed to dislodge Maduro, they created an array of
tools that the Biden Administration could use. The Biden Administration has stated that its approach to
Venezuela is to focus on addressing the humanitarian situation, supporting the Venezuelan people, and
engaging in multilateral diplomacy to hold corrupt and abusive officials accountable and to press for a
return to democracy. It does not foresee “any direct [United States] contact with Maduro.”
Sanctioning Maduro Government Officials and Pursuing Maduro’s Criminal
Revenue
Nicolás Maduro has continued to use Venezuelan security forces to detect and quash political dissent. As
of February 15, 2021, the government held some 329 political prisoners, according to Foro Penal, a
Venezuelan human rights organization. The U.N. Office of the High Commissioner for Human Rights has
documented thousands of extrajudicial kil ings and other abuses committed by security forces since 2014
that amounted to crimes against humanity.
The Biden Administration has stated that it wil pursue individuals involved in corruption and human
rights abuses. Analysts have urged more coordination on sanctions with the EU, a region where Maduro
government officials’ resources and families reside.
In addition to sanctions, U.S. criminal investigations have targeted il icit revenue earned and crimes
committed by the Maduro government and its enablers. According to one indictment, Maduro and other
top officials al egedly participated in the Cartel of the Suns drug cartel in conspiracy with the
Revolutionary Armed Forces of Colombia (FARC) to produce and traffic il icit drugs to the United States.
DOJ is seeking the extradition of Alex Saab, a money launderer al egedly involved in smuggling il icit
gold for Maduro whose indictment also cites his ties to Hezbollah.
Congress may consider new ways to support U.S. and partner countries’ efforts to seize il icit revenue tied
to the Maduro government and prosecute corrupt Venezuelan officials and their associates.
Supporting the Venezuelan People and Addressing the Humanitarian Crisis
Six years into an economic crisis in which Venezuela’s real gross domestic product (GDP adjusted for
inflation) has shrunk by about 75% and the poverty rate as measured by income has risen to 96%,
Venezuela is experiencing a dire humanitarian crisis. Conditions have worsened over the past year due to
the COVID-19 pandemic. In December 2020, U.N. agencies estimated 5.4 mil ion Venezuelans had left
the country. Some 4.6 mil ion of those migrants went to other Latin American and Caribbean countries,
especial y Colombia.
The United States has been the largest donor of humanitarian aid to address the Venezuela regional crisis.
From FY2017 to FY2020, it provided $1 bil ion to Venezuela and countries sheltering Venezuelans. U.S.
agencies separately have provided $43.7 mil ion for pandemic-related aid efforts in Venezuela.

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In addition to providing assistance, some Members of Congress have cal ed for humanitarian relief for
Venezuelans living in the United States. Although the Trump Administration ended removals of
Venezuelans eligible for Deferred Enforced Departure in January 2021, Congress or the Biden
Administration may seek to designate Venezuela as a beneficiary country for Temporary Protected Status
(e.g., S. 50).
Some Members of Congress also have expressed concerns about the humanitarian impact of sanctions, as
described in a February 2021 Government Accountability Office report. The Biden Administration is
reviewing U.S. sanctions to ensure they do not exacerbate humanitarian conditions in Venezuela. Some
analysts have suggested using the potential for sanctions relief to influence Maduro’s actions.
See CRS Report R44841, Venezuela: Background and U.S. Relations; CRS In Focus IF10715, Venezuela:
Overview of U.S. Sanctions; and CRS In Focus IF11029, The Venezuela Regional Humanitarian Crisis
and COVID-19.

Author Information

Clare Ribando Seelke

Specialist in Latin American Affairs




Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
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