H.R. 2658 — Free Iraq from Iran Act

This section declares it to be the policy of the United States to support the people of Iraq in liberating their country from the malign influence of Iran and its puppet militias and to support democracy, rule of law, and human rights in Iraq.

This section directs the Secretary of State, in coordination with the Secretary of the Treasury and the CEO of the U.S. Agency for Global Media (USAGM), to develop and submit to Congress, not later than 180 days after enactment, an unclassified interagency strategy to support Iraqi efforts to counter Iranian influence and Iran-backed militias (i.e., Popular Mobilization Forces (PMF)) in Iraq. The strategy must include (1) efforts to dismantle all such militias and end Iran's dominance of Iraq's political system; (2) efforts to cease U.S. security assistance to the Iraqi federal government unless the militias are dismantled, Iraq ends terrorism support, the militias are removed from government organs, and militia-linked parties lose control of ministries; and (3) support for Iraqi civil society, including Intelligence Community monitoring/exposure of suppression efforts, assistance to opposition groups, and counters to disinformation; USAGM expansion of anti-militia broadcasting, social media exposure of abuses, and aid to independent journalists; and interagency coordination. Not later than 60 days after submission of the strategy, the task force shall submit to Congress an implementation plan.

This section directs the Secretary of State, no later than 90 days after enactment, to designate each of the following as foreign terrorist organizations (FTOs) under the Immigration and Nationality Act: (1) Abu Fadl al-Abbas Brigades; (2) Badr Corps; (3) Harakat Hezbollah al-Nujaba; (4) the Popular Mobilization Forces (Al-Hashd al-Sha’bi); (5) Kata’ib al-Imam Ali; (6) Kata’ib Jund al-Imam; (7) Kata’ib Sayyid al-Shuhada; (8) Sarraya al-Jihad; (9) Sarraya al-Khorasani; (10) the Islamic Resistance of Iraq; and (11) any foreign entity or organization that is an agent of, affiliated with, or owned or controlled by the Islamic Revolutionary Guard Corps. (FTO designation prohibits providing material support to the group, renders group members inadmissible to the U.S., and authorizes asset blocking and other sanctions.)

This section prohibits any federal department or agency, including the Department of State and the Department of Defense, from obligating or expending federal funds to support, directly or indirectly, any militia or organization described in subsection (4)(a) of this Act (i.e., Iranian-backed militias in Iraq) or any member thereof.

This section prohibits any federal department or agency, including the Departments of State and Defense, from obligating or expending federal funds to the Federal Government of Iraq. The President may waive the prohibition upon certifying that Iraq has ceased supporting or sponsoring Iranian-backed puppet militias, or is taking significant demonstrated steps to remove such militias from its security forces, and that the waiver is in the U.S. national security interest. The Department of Defense must annually review Iraq's support for such militias and the prohibition itself to ensure prohibited funds do not compromise the national security interests of the United States or Iraq.

This section requires the Secretary of the Treasury, not later than 180 days after enactment, to submit a report identifying Iran's puppets in Iraq—including political figures, judiciary members, militias, financiers, and facilitators of Iran and its militias—and to impose sanctions pursuant to Executive Order 13438 (relating to blocking property of persons threatening Iraq's political stabilization efforts) on all persons identified in the report. The report must specifically include former Iraqi Prime Minister Nouri al-Maliki, Al-Rafidain Bank, the State Organization for Marketing of Oil, Badr Corps leader Hadi al-Ameri, Iraqi National Security Adviser Qais al-Araji, Iraqi Military Chief of Staff Abdul Rashid Yar Allah, and Iraqi Federal Supreme Court President Jassem Abboud. The report is submitted in unclassified form but may include a classified annex.

This section directs the Secretary of the Treasury to impose sanctions prohibiting the government of Iraq or any private entity in Iraq from importing liquefied natural gas from the government of Iran or any private entity in Iran.