A joint resolution to promote internal reconciliation within Nicaragua, on the basis of democratic principles, in furtherance of a peaceful resolution of the conflict in Central America.

Requires specified prohibitions contained in the Department of Defense Appropriations Act, 1985 and the Intelligence Authorization Act for FY 1985 to cease to apply upon enactment of this Act.

Provides a specified amount of funds to Nicaragua for humanitarian assistance. Requires the President to provide for independent monitoring of the use of such funds by the National Security Council.

Urges the President to: (1) pursue diplomatic and economic steps (including embargo of U.S. trade with Nicaragua) to resolve the conflict in Nicaragua; (2) suspend military maneuvers in Honduras if Nicaragua agrees to a cease-fire and opens a dialog with the democratic resistance; (3) call upon the democratic resistance in Nicaragua to remove from its ranks any human rights violators; and (4) resume bilateral discussions with Nicaragua.

Requires the President to report to the Congress.

Permits the President, under specified circumstances, to request the Congress to authorize additional assistance for the resistance.

Sets forth specified congressional procedures with respect to the enactment of this Act.