The BOLIVAR Act prevents the U.S. government from doing business with companies that have significant operations with Venezuela's government—specifically the government that the U.S. doesn't recognize as legitimate. When federal agencies need to buy goods or services, they can't contract with any company that knowingly does substantial business with the Venezuelan regime.

However, there are important exceptions. The government can still work with these companies if it's necessary for humanitarian aid, disaster relief, saving lives, or protecting national security. The State Department can also make exceptions for U.S. diplomatic operations in Venezuela, intelligence activities, and companies that have special licenses from the Office of Foreign Assets Control. Additionally, the Secretary of State has the power to waive this rule entirely if they decide it's in America's national interest.

Basically, this law is a tool to pressure the Venezuelan government by cutting off its access to U.S. government contracts. It applies to any contracts signed within three years of the law taking effect, but it's flexible enough to allow the government to work around it when necessary for humanitarian, diplomatic, or security reasons. Companies doing business with Venezuela need to be aware that they might lose out on U.S. government contracts because of this rule.

BOLIVAR Act

Waltz, Michael

Banning Operations and Leases with the Illegitimate Venezuelan Authoritarian Regime Act or the BOLIVAR Act This bill temporarily prohibits an executive agency from entering into a contract for the procurement of goods or services with any person that it determines, with the concurrence of the Department of State, knowingly engages in significant business operations with the Maduro regime in Venezuela. The bill lists exceptions, including where vital to U.S. national security or as necessary for purposes of providing humanitarian assistance, disaster relief and other urgent lifesaving measures, or to carry out noncombatant evacuations. The prohibition shall not apply to contracts that support U.S. government activities in Venezuela or to contracts with international organizations. The State Department may waive the requirements of this bill upon determining that to do so is in the national interest.