U.S. Rep. Bill Huizenga (R-MI) introduced a bill in the House last week that would effectively cut off the Iranian Government from the U.S. financial system.
Specifically, Huizenga’s No U.S. Financing for Iran Act (H.R. 5921) would prohibit the Treasury Secretary from authorizing transactions by U.S. financial institutions to Iran for any goods, services, or technology. This prohibition does not apply to the sale of agricultural commodities, food, medicine, or medical devices benefitting the civilian population of Iran. It would also prevent the International Monetary Fund (IMF) from providing financial assistance to Iran and the allocation of Special Drawing Rights.
Further, it would codify the statutory authority for the prohibition on the Export-Import Bank financing with respect to Iran. As a result, the bank may not guarantee, insure, or extend credit in connection with any transaction for Iran or a government-controlled entity.
“For years, Iran has been recognized as the world’s leading state sponsor of terrorism,” Huizenga, chair of the House Financial Services Subcommittee on Oversight and Investigations, said. “The Iranian regime routinely provides about $100 million annually to terrorist groups that have killed Americans while others were taken hostage during the barbaric assault on Israel. The No U.S. Financing for Iran Act legislation cuts off the Iranian regimes access to our financial system while protecting American taxpayers from supporting the terrorism Iran funds throughout the Middle East and across the globe.”
Iran remains the world’s leading state sponsor of terrorism, according to the State Department’s 2021 Country Reports on Terrorism. Huizenga said Iran supports proxy elements across the Middle East, including Hamas and the Palestinian Islamic Jihad, by providing funding as well as weapons and training.
The 2021 report also states that, “Iran continues to provide Hizballah with most of its funding, training, weapons, and explosives, as well as political, diplomatic, monetary, and organizational aid. Iran’s annual financial backing to Hizballah — which has been estimated to be hundreds of millions of dollars annually— accounts for the overwhelming majority of the group’s annual budget.”
The No U.S. Financing for Iran Act is cosponsored by U.S. Reps. Ann Wagner (R-MO), Blaine Luetkemeyer (R-MO), Maria Salazar (R-FL), John James (R-MI), Dan Meuser (R-PA), Bill Posey (R-FL), Zach Nunn (R-IA), Barry Loudermilk (R-GA), Roger Williams (R-TX), Guy Reschenthaler (R-PA), Rich McCormick (R-GA), Scott Franklin (R-FL), and Chris Smith (R-NJ).