This bill strengthens U.S. pressure on Nicaragua's government under President Daniel Ortega by expanding economic sanctions and diplomatic efforts. The law targets individuals and companies involved in human rights abuses, religious persecution, and suppression of opposition groups. It extends existing sanctions programs through 2028 and adds new restrictions, including sanctions on people involved in Nicaragua's gold sector and military social security officials, as well as anyone persecuting Catholic Church members or opposition party members.

The bill also bans American citizens and U.S. companies from making any new investments in Nicaragua's economy, with limited exceptions for humanitarian aid, food, medicine, and agricultural sales. The U.S. government will work with international partners like Canada, European Union countries, and Latin American nations to coordinate similar sanctions. Additionally, the bill directs the State Department to pressure international financial institutions to stop lending to Nicaragua's government and to report annually on Nicaragua's trade benefits under existing trade agreements.

On the diplomatic side, the bill commits the U.S. to supporting international investigations into human rights violations in Nicaragua since 2018, particularly documenting abuses against religious leaders, political prisoners, and protesters. The government will fund nonprofit organizations working to promote democracy and human rights in Nicaragua. These measures are designed to pressure the Ortega regime to hold free elections, stop violence against civilians, and investigate killings of protesters. The sanctions and restrictions can be lifted once the political crisis is resolved and democratic reforms are achieved.