Trump Declares National Emergency to Shield Venezuelan Funds From Seizure by Courts and Creditors

Washington, Jan 2026 : US President Donald Trump has declared a national emergency to prevent courts and creditors from seizing Venezuelan government funds held in the United States, a move aimed at protecting oil-related revenues deemed crucial to American national security and foreign policy objectives in the Western Hemisphere.

In an executive order signed on Friday and released on Saturday, Trump said the “threat of attachment or the imposition of other judicial process” against Venezuelan government deposit funds would “materially harm the national security and foreign policy of the United States.” He warned that allowing such actions could interfere with US efforts to foster “economic and political stability in Venezuela,” jeopardising key objectives including curbing illegal immigration, disrupting narcotics trafficking, countering “malign actors such as Iran and Hezbollah,” and promoting stability and prosperity in the region.

The order — formally declaring a national emergency under US emergency powers law — blocks any court attachment, judgment, lien, garnishment or other judicial action against what it refers to as “Foreign Government Deposit Funds,” unless explicitly licensed or authorised by the administration. It states that any such legal action is “prohibited, and shall be deemed null and void.”

These protected funds include revenues paid to or held by the US government in designated Treasury accounts on behalf of the Venezuelan government or its agencies, such as the Central Bank of Venezuela and state oil company Petróleos de Venezuela, S.A. The order specifies that the funds are derived from the sale of natural resources and diluents to the Venezuelan government.

Trump described the funds as an “unusual and extraordinary threat” to US interests if subject to judicial seizure, reinforcing the need for special protection. The executive order underscores that these assets are considered sovereign property of Venezuela — not assets of private parties or judgment creditors — and are held by the US government “solely in a custodial and governmental capacity, and not as a market participant.”

Under the terms of the order, the funds cannot be transferred, exported, withdrawn or used in any manner except as permitted by future regulations or licences issued by the administration. It further asserts that the funds “have not been, and shall not be, used for any commercial activity in the United States.”

The executive directive directs the US Treasury to clearly designate the status of these funds as Venezuelan sovereign property held in American custody. The Treasury is also instructed to follow disbursement or transfer instructions determined by the US Secretary of State, and to coordinate with the Attorney General and Secretary of Energy. The order authorises both the Treasury and Justice Departments to assert sovereign immunity on behalf of the funds in any judicial or administrative proceedings, in accordance with US law.

Importantly, the order emphasises that placing the funds in US Treasury accounts does not constitute a waiver of Venezuela’s sovereign immunity nor consent to US court jurisdiction for enforcing private claims. Trump argued that allowing court actions against these funds would interfere with US foreign relations and undermine principles of international comity.

The national emergency declaration represents a significant assertion of executive authority, aiming to insulate Venezuelan oil revenues from creditor claims and judicial intervention, while preserving them for sovereign, governmental and diplomatic purposes under US oversight.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)