Sources with knowledge of the plan say Blackwater's Erik Prince wants to send up to 5,000 Spanish-speaking troops into Venezuela.
The shooting spree killed 14 unarmed Iraqi civilians and injured 17 others.
The Blackwater founder testified before the House Intelligence Committee.
Half of all U.S. forces in Iraq and Afghanistan are employed by private contractors.
A federal judge sentenced four former Blackwater security guards to lengthy prison terms on Monday in the 2007 massacre of 14 unarmed Iraqis.
The Washington jury found three of the ex-guards with the private security company, Paul Slough, Dustin Heard and Evan Liberty, guilty of voluntary manslaughter.
Three other former Blackwater security guards face manslaughter charges in connection with a shooting that killed 17 civilians