The first section surveys the political transformation of Venezuela under the populist rule of President Hugo Chávez (1999-2013) and the first two years of the government of President Nicolás Maduro, including the government's severe crackdown on opposition protests in 2014. On December 7, 2016, the Senate Foreign Relations Committee reported S.Res. On September 27, 2016, the House approved H.Res. 851 (Wasserman Schultz) expressing profound concern about the humanitarian situation, urging the release of political prisoners, and calling for the Venezuelan government to hold the recall referendum this year. 2012 Presidential Election. Human rights abuses increased as the government violently suppressed the opposition. Efforts toward dialogue at the Organization of American States were thwarted by Venezuela, and a dialogue facilitated by the Union of South American Nations (UNASUR) ultimately was unsuccessful. The government imprisoned a major opposition figure, Leopoldo López, in February, and two opposition mayors in March. Vatican Prompts Renewed Efforts at Dialogue

In late October 2016, after an appeal by Pope Francis, the Venezuelan 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 UNASUR. The two sides issued a declaration on November 12 expressing firm commitment to a peaceful, respectful, and constructive coexistence. They also issued a statement that included agreement to improve the supply of food and medicine, resolve the situation of the three National Assembly representatives blocked from taking office, and work together in naming two CNE members whose terms expire in December. 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, scheduled for December 6, 2016, was suspended until January 2017, but many observers are pessimistic about the dialogue's future. Since mid-2014, however, the rapid decline in the price of oil, which accounts for 96% of Venezuelan exports, has hit Venezuela hard, with a contracting economy, rising inflation, declining international reserves, and increasing poverty—all exacerbated by what most observers see as the Maduro government's economic mismanagement. U.S. Relations and Policy

While the United States traditionally has had close relations with Venezuela, a major oil supplier to the United States, there was significant friction with the Chávez government, and this has continued under the Maduro government. 113-278 and EO 13692 in July 2015.) In the run-up to Venezuela's legislative elections in December 2015, the Obama Administration continued to speak out about the poor human rights situation and efforts by the Venezuelan government to disadvantage the opposition. In terms of congressional action, the House Appropriations Committee's report to the FY2017 foreign operations appropriations measure, H.Rept. 114-290 to S. 3117 , would have fully funded the Administration's request but noted that additional funds could be made available if further programmatic opportunities in Venezuela arise. As noted above, the 114 th Congress did not complete action on FY2017 appropriation, but in December 2016, it approved a continuing resolution providing ( P.L. The opposition focused much of 2016 on efforts to recall President Maduro through a national referendum, but the government resorted to delaying tactics to impede and slow the process. It imposed visa restrictions on more than 60 current and former Venezuelan officials responsible for or complicit in human rights violations and imposed asset-blocking sanctions on 7 Venezuelans for human rights violations. Legislation Initiatives
113 th Congress
P.L. The Administration requested $5 million in Economic Support Funds for Venezuela democracy and human rights projects, and ultimately an estimated $4.3 million in appropriations is being provided. Section 5(e) terminates the requirement to impose sanctions on December 31, 2016. 114 th Congress
P.L. The law extended the termination of sanctions under the Venezuela Defense of Human Rights and Civil Society Act of 2014 through December 31, 2019. 114-254 ( H.R. In April 2015, the bill was originally introduced as the Energy and Water Development and Related Agency Appropriations Act, 2016, but in December 2016, the measure became the legislative vehicle for a FY2017 continuing resolution funding most programs, including foreign aid appropriations, at the FY2016 level minus an across-the-board reduction of almost 0.2%, through April 28, 2017. P.L. As passed, the resolution (1) expresses profound concern about widespread shortages of essential medicines and basic food products and urges President Maduro to permit the delivery of humanitarian assistance; (2) calls on the Venezuelan government to release all political prisoners, including U.S. citizens, to provide protections for freedom of expression and assembly, and to respect internationally recognized human rights; (3) supports meaningful efforts toward dialogue that leads to respect for Venezuelan's constitutional mechanisms and resolves the country's political, economic, social, and humanitarian crisis; (4) affirms support for OAS Secretary General Almagro's invocation of Article 20 of the Inter-American Democratic Charter and urges the OAS Permanent Council to undertake a collective assessment of the constitutional and democratic order in Venezuela; (5) expresses great concern over the Venezuelan executive's lack of respect for the principle of separation of powers, its overreliance on emergency decree powers, and its threat to judicial independence; (6) calls on the Venezuelan government and security forces to respect the Venezuelan constitution, including provisions that provide citizens with the right to peacefully purse a fair and timely recall referendum for their president this year; (7) stresses the urgency of strengthening the rule of law and increasing efforts to combat impunity and public corruption in Venezuela; (8) urges the U.S. President to provide full support for OAS efforts in favor of constitutional and democratic solutions to the political impasse and to instruct appropriate federal agencies to hold Venezuelan government officials accountable for violations of U.S. law and abuses of internationally recognized human rights; and (9) urges the U.S. President to continue to stand in solidarity with the Venezuelan people by urging the Maduro government to hold a fair and free recall referendum by the end of 2016; release all political prisoners, including U.S. citizens; adhere to democratic principles; and permit the delivery of emergency food and medicine. The report to the House bill would have provided $8 million for democracy and human rights programs in Venezuela. 537 (Cardin) .
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.