Bill Targets Iranian Influence in Iraq: Mandates New Strategy, Aid Cuts, Terrorist Designations, and Sanctions

This bill, the "Free Iraq from Iran Act," outlines a significant shift in U.S. policy towards Iraq, aiming to aggressively counter Iranian influence. It mandates the creation of a detailed strategy within 180 days involving the State Department, Treasury, and the U.S. Agency for Global Media (USAGM). The core goal is stated as supporting the Iraqi people's desire to remove Iranian sway over their country, militias, and political system.

The Strategy Blueprint

The required strategy isn't just talk; it demands concrete plans. According to Section 3, this includes blueprints for dismantling all Iran-backed militias, specifically naming the Popular Mobilization Forces (PMF), and ending Iranian control over Iraq's political levers. It also requires plans to support Iraqi civil society through intelligence sharing, security assistance for opposition groups, countering disinformation, expanding U.S. broadcasting efforts critical of Iranian influence, and backing independent Iraqi media. A key component is ensuring coordination between various U.S. government bodies.

Cutting Ties and Turning Off Taps

The bill takes direct aim at specific groups and funding streams. Within 90 days, Section 4 mandates designating several militias, including the Badr Corps and Kataib Sayyid al-Shuhada, as Foreign Terrorist Organizations (FTOs). This isn't just a label; Section 5 immediately prohibits any U.S. federal funds from directly or indirectly supporting these designated groups or their members.

Furthermore, Section 6 pulls back U.S. security assistance to the entire Federal Government of Iraq. This funding can only resume if the President certifies that Iraq is no longer supporting these militias and is actively removing them from government and security roles – a potentially high bar requiring significant shifts within the Iraqi state. There's a waiver provision, but it requires Presidential certification that it's in the U.S. national security interest.

Sanctions and Energy Squeeze

The legislation also employs financial pressure. Section 7 requires the Treasury Secretary to report within 180 days on Iran's agents in Iraq – naming specific political figures like Nouri al-Maliki and Hadi al-Ameri, banks like Al-Rafidain, and even the state oil marketing organization – and mandates sanctions against everyone named in the report under Executive Order 13438.

Finally, Section 8 imposes an energy restriction, prohibiting Iraq (both government and private entities) from importing liquefied natural gas (LNG) from Iran. The Treasury Secretary is tasked with enforcing this ban through sanctions. This could directly impact Iraq's energy supply and potentially raise costs for Iraqi citizens and businesses if alternative, affordable sources aren't readily available.

What This Means on the Ground

This act represents a forceful attempt to reshape the political and security landscape in Iraq by targeting Iranian influence through multiple avenues: diplomatic strategy, financial restrictions, terrorist designations, individual sanctions, and energy policy. The conditions placed on U.S. aid could significantly strain relations with the Iraqi government and impact its operational capacity. The broad FTO designations and sanctions list specific individuals and entities, creating clear lines but also potentially complicating interactions for U.S. personnel and international partners operating in Iraq. The effectiveness hinges on the successful development and implementation of the mandated strategy and how the Iraqi government and regional actors respond to these significant pressures.