U.S. Attorney Jay Clayton Files Letter in Manhattan Court Regarding Treasury Department Actions

U.S. Attorney Jay Clayton announced on April 25, 2026, that the U.S. Treasury Department has authorized the Venezuelan government to pay for the legal defense of Nicolás Maduro and his wife, Cilia Flores, in their ongoing cocaine-trafficking conspiracy case in Manhattan federal court.

The decision resolves a months-long dispute over funding for the defendants’ legal representation, which had threatened to delay proceedings and raised concerns about potential costs to U.S. Taxpayers. Prosecutors had previously argued that Maduro, whom they accused of “plundering Venezuela’s wealth,” should not be permitted to use state funds for his defense.

In a joint letter filed late Friday in the Southern District of New York, Clayton outlined strict conditions for the use of these funds: any money used to pay defense attorneys must have become available after March 5, 2026, and must not originate from restricted foreign government deposit accounts.

The Treasury Department’s newly issued licenses were cited as the basis for resolving the funding dispute. Both prosecution and defense have agreed to pause the speedy trial clock and schedule a status conference in approximately 60 days to allow time for evidence disclosure and pretrial preparations.

Maduro and Flores were arrested in January 2026 on charges related to narcotics trafficking and have been detained since. Their attorney, Barry Pollock, had maintained that blocking access to Venezuelan government funds improperly restricted their client’s right to mount a defense, a position that appeared to gain traction with Judge Alvin Hellerstein, who had suggested the case could be dismissed if the defendants could not secure legal representation.

The development marks a significant shift in the federal case against the Venezuelan leadership, removing a key procedural obstacle while maintaining judicial oversight over the source and timing of defense funding.