HR2658-119

What This Bill Does

The Free Iraq from Iran Act sets U.S. policy to support the people of Iraq in countering Iranian influence, Iran-backed militias, and threats to democracy, rule of law, and human rights. It requires the Secretary of State, with the Secretary of the Treasury and the U.S. Agency for Global Media, to submit an unclassified strategy within 180 days to counter Iran and Iranian-backed militias in Iraq, including efforts to dismantle groups such as the Popular Mobilization Forces, support Iraqi civil society, use intelligence to expose suppression and disinformation, expand USAGM broadcasting and social media work, support independent Iraqi journalists, and coordinate across agencies.

The bill bars federal funds from directly or indirectly supporting specified militias or their members, prohibits federal funding to the Federal Government of Iraq unless the President certifies Iraq has stopped supporting Iranian-backed militias or is taking significant steps to remove them from security forces and a waiver is in the U.S. national security interest, and requires Defense annual reviews. It also directs Treasury to report on and sanction Iranian-aligned Iraqi political figures, judiciary members, militias, financiers, and facilitators under Executive Order 13438, and requires sanctions prohibiting Iraq's government or private Iraqi entities from importing liquefied natural gas from Iran.

Who Benefits and How

Iraqi civil society actors, opposition groups, independent journalists, and protesters benefit from planned U.S. support, exposure of repression, security support, and expanded broadcasting about militia abuses and corruption. U.S. policymakers benefit from a coordinated State, Treasury, intelligence, and USAGM strategy and implementation plan. U.S. national-security agencies benefit from funding restrictions and sanctions tools aimed at limiting Iranian influence in Iraq.

Who Bears the Burden and How

Iran-backed Iraqi militias, named militia leaders, facilitators, and affiliated entities face foreign-terrorist-organization designation risk, funding cutoffs, sanctions, and public reporting. The Federal Government of Iraq risks loss of U.S. security assistance unless presidential certification and waiver conditions are met. Treasury, State, Defense, the Intelligence Community, and USAGM must produce strategies, reports, designations, sanctions, annual reviews, broadcasts, and implementation plans. Iraqi entities importing Iranian LNG face sanctions risk.

Key Provisions

• Requires an interagency strategy within 180 days to counter Iranian influence and Iran-backed militias in Iraq.
• Requires descriptions of efforts to dismantle militias, condition U.S. security assistance, support Iraqi civil society, expose repression, and counter disinformation.
• Prohibits federal funds from supporting listed militias, their members, or the Federal Government of Iraq unless waiver conditions are met.
• Directs Treasury reporting and sanctions on Iranian-aligned Iraqi figures, banks, militias, financiers, and facilitators.
• Requires sanctions prohibiting Iraqi government or private entities from importing liquefied natural gas from Iran.