The United States has agreed to modify its sanctions on Venezuela to allow the government in Caracas to pay the legal fees of former President Nicolas Maduro and his wife Cilia Flores, resolving a months-long constitutional standoff that had threatened to derail their federal drug trafficking prosecution in New York.
US Attorney Jay Clayton filed a letter with the court on Friday stating that the Treasury Department's Office of Foreign Assets Control had issued amended sanctions licenses permitting Venezuela to cover the couple's legal costs. The modification carries one condition: payments may only draw on funds available to Venezuela after March 5, 2026, the date diplomatic relations between Washington and Caracas formally resumed. Following the concession, defense attorneys withdrew their motion to dismiss the indictment, and prosecutors requested a status hearing in 60 days to chart next steps toward trial.
OFAC Reversed Course | A License Revoked in Under 3 Hours
The legal battle traces back to January 9, when OFAC initially granted a license authorizing Venezuela to fund the defense of both Maduro and Flores. The license was revoked less than three hours later without explanation, triggering a constitutional crisis within the case.
Defense attorney Barry Pollack argued in February that the revocation violated Maduro's Sixth Amendment right to counsel of his choosing. Venezuelan law obligates the state to cover legal expenses for its president and first lady. Because Maduro "cannot otherwise afford counsel," Pollack contended, the federal government had effectively stripped him of a constitutionally guaranteed right. Pollack filed a motion to dismiss the indictment entirely.
Judge Hellerstein, 92 | "Right to Counsel Is Paramount"
On March 26, US District Judge Alvin Hellerstein, 92, heard more than two hours of arguments in a Manhattan federal courtroom. He declined to dismiss the case but delivered a pointed rebuke to the government's position. Hellerstein stated from the bench that Maduro and Flores "no longer represent any threat to national security" and that the "right to constitutionally guaranteed legal counsel" is "paramount."
Prosecutor Kyle Wirshba had argued that national security concerns justified the funding block and that the defendants could draw on personal funds to pay for representation. The defense contested both claims. Judge Hellerstein's skepticism of the government's framing applied public pressure that preceded Treasury's eventual decision to amend the licenses.
What Comes Next | 60-Day Status Hearing, Trial Path Unresolved
With the dismissal motion withdrawn and funding now authorized, the Maduro and Flores prosecution moves toward a trial track for the first time. Prosecutors have asked for a status conference in 60 days. The timeline to actual trial remains uncertain given the complexity of the case, potential pretrial motions, and the diplomatic sensitivity of prosecuting a sitting foreign head of state whose government just restored formal diplomatic ties with Washington.
The drug trafficking charges against Maduro and Flores, unsealed in 2020, allege that the couple conspired with narcoterrorist organizations to flood the United States with cocaine. Maduro has denied all charges and previously described the indictment as a US political attack. The resumption of diplomatic relations on March 5 introduced a new variable into how aggressively the Justice Department will pursue the case toward a courtroom verdict.
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