S. 688 would generally prohibit any executive agency from entering into a contract with any person that has business operations with any authority of the Venezuelan government that is not recognized as the legitimate government by the United States. That prohibition could be waived for certain contracts, such as those determined by the Secretary of State to be in the national security interests of the United States.
CBO is unaware of any contracts that executive agencies have with entities associated with the Venezuelan government. However, CBO estimates that the costs for the Department of State to discover and monitor any future contracts would be less than $500,000 annually and total about $1 million over the 2021-2026 period. Such spending would be subject to the availability of appropriated funds.