	Recent Developments

On January 8, 2013, Vice President Nicolás Maduro announced that President Chávez would not be sworn into office on January 10 as planned because he was still recovering from cancer surgery in Cuba, but that he would be sworn into office at a later date, as provided for in Article 231 of the Constitution. On October 7, 2012, President Chávez won reelection to another six-year term by a margin of 11%, capturing about 55% of the vote compared to 44% for opposition candidate Henrique Capriles. Political Situation

For more than a decade, Venezuela has experienced significant political changes under the rule of populist President Hugo Chávez, and for a number of years there has been concern about the deterioration of democratic institutions and threats to freedom of expression in the country. Chávez's Health Status and Political Implications

Since mid-2011, President Chávez's precarious health situation has raised questions about Venezuela's political future. If Chávez does not recover, Venezuela will face a new presidential election. Article 233 of the Constitution requires that a new election is to be held within 30 days if the president dies or is incapacitated during the first four years of his term. U.S. Policy

The United States traditionally has had close relations with Venezuela, a major supplier of foreign oil to the United States, but there has been significant friction with the Chávez government. For several years, U.S. officials have expressed concerns about human rights, Venezuela's military arms purchases (largely from Russia), its relations with Cuba and Iran, its efforts to export its brand of populism to other Latin American countries, and the use of Venezuelan territory by Colombian guerrilla and paramilitary forces. Despite tensions in relations, the State Department maintains that the United States remains committed to seeking constructive engagement with Venezuela, focusing on such areas as anti-drug and counter-terrorism efforts. In the aftermath of President Chávez's October 2012 reelection, the Obama Administration, while acknowledging differences with Chávez, congratulated the Venezuelan people on the high level of participation and the relatively peaceful electoral process (see " Election Results and Implications " above). In terms of congressional action on FY2013 foreign aid appropriations, the report to the House Appropriations Committee bill, H.R. 5857 ( H.Rept. In contrast, the report to the Senate Appropriations Committee bill, S. 3241 ( S.Rept. The 112 th Congress did not complete action on a FY2013 full-year foreign operations appropriations, but it did approve a Continuing Appropriations Resolution, FY2013 ( P.L. 112-175 ) in September 2012, which funds regular foreign aid accounts at the same level as in FY2012, plus 0.612% through March 27, 2013, although specific country accounts are left to the discretion of responsible agencies. The 113 th Congress will need to address foreign aid appropriations for the balance of FY2013. Human Rights Concerns

Human rights organizations and U.S. officials have expressed concerns for several years about the deterioration of democratic institutions and threats to freedom of speech and press in Venezuela under the Chávez government. 112-220 , H.R. The United States has imposed sanctions on individuals and companies in Latin America for providing support to Hezbollah. Legislative Initiatives in the 112th Congress

P.L. H.Res. The resolution would have called on the Secretary of State to designate Venezuela as a state sponsor of terrorism and urged increased and sustained cooperation on counter-terrorism initiatives between the United States and allies in the region. H.R. 112-172 ) by the Senate Committee on Appropriations May 24, 2012. The report to the House bill directs that $5 million in ESF be provided for democracy programs in Venezuela, the same amount appropriated in FY2012, and $2 million more than the Administration's request. In contrast, the report to the Senate bill recommends $3 million for democracy programs in Venezuela to be administered by the National Endowment for Democracy (NED) instead of USAID or the Department of State; this is the same amount requested by the Administration, but would be for NED. The report was to contain a description of any activities by the government of Venezuela to supply any terrorist organization with planning, training, logistics, and lethal material support; activities to provide direct or indirect support to any terrorist organization; activities to provide other types of assistance that could provide material support for the activities of any terrorist organization; activities or assistance to governments currently on the U.S. list of state sponsors of terrorism; and activities by the government of Venezuela in the Western Hemisphere that undermine the national interest of the United States. 3783 , which would require the Administration to develop a "strategy to address Iran's growing hostile presence and activity in the Western Hemisphere." In September 2008, the Treasury Department imposed financial sanctions on Rangel for allegedly helping the Revolutionary Armed Forces of Colombia (FARC) with drug and weapons trafficking. On December 15, 2009, the House approved H.R.
Under the rule of populist President Hugo Chávez, first elected in 1998, Venezuela has undergone enormous political changes, with a new constitution and unicameral legislature, and even a new name for the country, the Bolivarian Republic of Venezuela. Human rights organizations have expressed concerns about the deterioration of democratic institutions and threats to freedom of expression under the Chávez government. President Chávez won reelection to another six-year term on October 7, 2012, by a margin of 11%, capturing about 55% of the vote compared to 44% for opposition candidate Henrique Capriles. On December 11, 2012, however, Chávez faced a fourth difficult operation in Cuba for an undisclosed form of cancer that has raised questions about Venezuela's political future. Because of significant health complications, Vice President Nicolás Maduro announced on January 8, 2013, that President Chávez would not be sworn into office on January 10 as planned, but that he would be sworn into office at a later date, a decision supported by Venezuela's Supreme Court. Looking ahead, if President Chávez does not recover, the Constitution calls for a new election to be held within 30 days if the president dies or is incapacitated during the first four years of his term.
U.S. Policy
The United States traditionally has had close relations with Venezuela, a major supplier of foreign oil, but there has been friction in relations under the Chávez government. Over the years, U.S. officials have expressed concerns about human rights, Venezuela's military arms purchases, its relations with Iran, and its efforts to export its brand of populism to other Latin American countries. Declining cooperation on anti-drug and anti-terrorism efforts has been a major concern. The United States has imposed sanctions: on several Venezuelan government and military officials for allegedly helping the Revolutionary Armed Forces of Colombia (FARC) with drug and weapons trafficking; on three Venezuelan companies for providing support to Iran; and on several Venezuelan individuals for providing support to Hezbollah. Despite tensions in relations, the Obama Administration remains committed to seeking constructive engagement with Venezuela, focusing on such areas as anti-drug and counter-terrorism efforts. In the aftermath of President Chávez's reelection, the White House, while acknowledging differences with President Chávez, congratulated the Venezuelan people on the high level of participation and the relatively peaceful election process.
Legislative Initiatives
As in past years, there were concerns in the 112th Congress regarding the state of Venezuela's democracy and human rights situation and its deepening relations with Iran, and these concerns will likely continue in the 113th Congress. The 112th Congress approved H.R. 3783 (P.L. 112-220), which requires the Administration to conduct an assessment and present "a strategy to address Iran's growing hostile presence and activity in the Western Hemisphere." Other initiatives that were not approved include: H.R. 2542, which would have withheld some assistance to the Organization of American States unless that body took action to invoke the Inter-American Democratic Charter regarding the status of democracy in Venezuela; H.R. 2583, which included a provision prohibiting aid to the government of Venezuela; and H.Res. 247, which would have called on the Secretary of State to designate Venezuela as a state sponsor of terrorism.
In action on FY2013 foreign aid appropriations, the report to the House Appropriations Committee bill, H.R. 5857 (H.Rept. 112-494, reported May 25, 2012), directs that $5 million in Economic Support Funds be provided for democracy programs in Venezuela, the same amount appropriated in FY2012, and $2 million more than requested by the Administration. In contrast, the report to the Senate Appropriations Committee bill, S. 3241 (S.Rept. 112-172, reported May 24, 2012), recommends $3 million for democracy programs in Venezuela to be administered by the National Endowment for Democracy. Ultimately, the 112th Congress did not complete action on a FY2013 full-year foreign operations appropriations measure, but it did approve a Continuing Appropriations Resolution, FY2013 (P.L. 112-175) in September 2012, which funds regular foreign aid accounts at the same level as in FY2012, plus 0.612% through March 27, 2013. Specific country accounts, however, are left to the discretion of responsible agencies. The 113th Congress will need to address foreign aid appropriations for the balance of FY2013.
Note: This report provides background on political and economic changes in Venezuela, U.S. policy, and U.S. legislative action and initiatives from 2009-2012 covering the 111th and 112th Congress. It will not be updated.