New Delhi, Sept. 13 -- The U.S. government employs a sizable staff of 150 Venezuelans and spends upward of $6.7 million annually for upkeep of the shuttered American embassy and other diplomatic properties in Caracas, despite having broken relations with President Nicolas Maduro's government in 2019, according to a new watchdog report.

The report, published on Friday by the State Department's Office of Inspector General, criticized U.S. officials for failing to conduct a required cost-benefit analysis to determine whether taxpayers should continue to foot the bill for the security, operations, and maintenance of the 27-acre embassy compound and five residences no longer housing American diplomats.

The Trump administration has emphasized...