The Free Iraq from Iran Act would compel the U.S. executive branch to produce an interagency strategy within 180 days aimed at helping the Iraqi people counter Iran’s influence and dismantle Iran-backed militias, including the Popular Mobilization Forces (PMF). The plan would be unclassified and require coordination among the State Department, the Treasury, and the U.S. Agency for Global Media (USAGM), with an implementation plan due within 60 days of strategy development. The bill also seeks to reframe U.S. policy by promoting Iraqi civil society, monitoring and countering Iran’s disinformation, and publicly exposing Iran’s alleged abuses through broadcasting and media efforts. Beyond strategy, the bill imposes sanctions and restrictions intended to pressure Iran’s proxies and limit their leverage inside Iraq. It would designate specific Iran-backed groups in Iraq as Foreign Terrorist Organizations (FTOs), bar funding to these militias and their members, prohibit U.S. security assistance to the Government of Iraq unless certain milestones are met, require Treasury sanctions against designated actors and facilitators, and prohibit LNG imports from Iran to Iraq. The overall aim is to reduce Iran’s influence in Iraq and bolster Iraqi independence and democratic governance, though these measures could significantly affect U.S.–Iraq relations and regional dynamics.
Key Points
- 1Interagency strategy to free Iraq from Iran: Requires the Secretary of State, in coordination with the Treasury and USAGM, to develop and submit an unclassified strategy within 180 days that details how to dismantle Iran-backed puppet militias, curb Iran’s political influence in Iraq, and support Iraqi civil society, with a coordinated implementation plan due within 60 days.
- 2Designation of Iran’s puppet militias in Iraq as Foreign Terrorist Organizations: Within 90 days, the Secretary of State would designate groups such as Abu Fadl al-Abbas Brigades, Badr Corps, Harakat Hezbollah al-Nujaba, PMF, and related entities (including any agents of the Islamic Revolutionary Guard Corps) as foreign terrorist organizations under U.S. law.
- 3Funding and security assistance restrictions: The bill prohibits federal funding to support Iran-backed militias or their members, and prohibits security assistance to the Government of Iraq unless milestones are met (e.g., dismantling militias, ensuring Iraq does not sponsor terrorism, removing militias from security ministries), with a waiver mechanism and annual reviews.
- 4Treasury sanctions and listed actors: The Department of the Treasury would produce a report naming Iranian puppet actors in Iraq (political figures, militia members, financiers, and facilitators) within 180 days, and sanctions would be imposed on those individuals and entities under existing authorities (including Executive Order 13438).
- 5LNG import prohibition: The U.S. Treasury would block the Government of Iraq or Iraqi entities from importing liquefied natural gas from Iran, reinforcing economic pressure on Iran and its proxies.