New Act Mandates Sanctions, Asset Freezes for Foreigners Aiding Houthi Attacks on Red Sea Shipping

The new Combating Houthi Threats and Aggression Act aims to hit the Houthis where it hurts: their supply lines and financial network. This bill establishes a firm U.S. policy commitment to working with allies to keep the Red Sea and Gulf of Aden safe for commercial shipping, which is critical since roughly 12% of global trade moves through that area. When that shipping lane gets risky, everyone eventually feels it through higher prices and delays.

The Mandate: Constant Congressional Check-Ins

This legislation is basically forcing the White House to do its homework—and show its work—on the Houthi threat. Within 180 days of the bill becoming law, and then annually, the President has to send Congress a deep-dive report (Section 3). This isn't just a casual update; it has to detail exactly what the Houthis are planning, their military capabilities (especially drones and missiles), and the specifics of the financial and material support they are getting from Iran, Hezbollah, or other Iranian proxies. Think of it as an annual threat assessment required by law.

Another required report (Section 4) focuses specifically on the maritime attacks themselves. It demands a summary of all Houthi attacks since October 7, 2023, and a detailed analysis of how those threats impact the global economy—meaning, how much those shipping delays and increased insurance costs are hitting the U.S. consumer. It also requires the President to assess Iran's involvement and even notes China's military presence in the area. This is all about giving Congress the hard numbers to understand the real-world economic stakes.

Mandatory Sanctions: Hitting the Wallet and Travel Plans

The most impactful part of the bill is Section 6, which removes the President's discretion and makes sanctions mandatory. If the President determines that a foreign person or entity is responsible for, involved in, or significantly supported Houthi attacks on international shipping, that person faces immediate and severe penalties. This could include anyone from financiers to arms dealers.

For anyone designated, two big things happen. First, all their property and assets in the U.S. are immediately frozen—meaning they can't access or use that money. Second, they are hit with a travel ban, meaning they are barred from entering the U.S., and any existing visas are revoked. This is a powerful tool designed to isolate those aiding the attacks.

However, this mandatory sanctioning power comes with a catch. The bill states sanctions must be imposed on anyone who “knowingly did business or transactions that significantly helped” the attacks. That phrase is pretty broad. While the intent is to target bad actors, that language could potentially be used to target entities with only tangential connections to the conflict, depending on how broadly the President interprets “significantly helped.” This kind of broad power requires careful monitoring to ensure it doesn't lead to unintended diplomatic or economic consequences.

The Expiration Date

Finally, the entire Act is set to expire in five years (Section 7). This built-in sunset clause means Congress will have to actively re-evaluate and renew the law if they want these reporting requirements and mandatory sanctions to continue. It's a way of ensuring that this policy doesn't just become permanent background noise and forces a review of whether it's actually working to secure those vital shipping lanes.