To provide for the rescission of certain waivers and licenses relating to Iran, and for other purposes.
- Bill Number
- H.R. 2575
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- International Affairs
- Status
- Introduced
- Latest Action
- 2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2025-05-14T15:25:21Z
AI-Generated Summary
Purpose
This bill, H.R. 2575, aims to strengthen U.S. sanctions on Iran by terminating specific waivers and licenses that allow Iran access to certain frozen funds, and by preventing the President from issuing similar relief in the future. It targets financial arrangements related to payments for Iranian oil sales, ensuring those funds remain inaccessible to Iran.
Key Provisions
- Termination of Waivers and Licenses (Section 1):
- Immediately ends a waiver issued on September 11, 2023, under laws like the National Defense Authorization Act for Fiscal Year 2012 (NDAA) and the Iran Freedom and Counter-Proliferation Act of 2012. This waiver had allowed the transfer of Iranian funds held in South Korea to Qatar.
- Cancels any general or specific licenses issued by the Office of Foreign Assets Control (OFAC, a part of the U.S. Treasury Department that enforces economic sanctions) that relate directly or indirectly to these funds.
- Prohibits the President from reissuing any new waiver or license for the same or similar purposes.
- Limitations on Future Actions (Section 2):
- Bars the President from using waiver authority under the mentioned laws to let the Iranian government or Iranian individuals access accounts set up for holding payments from Iranian oil sales (as defined in NDAA section 1245(d)(4)(D)(ii)(II)).
- Prevents OFAC or the President from issuing any licenses, guidance, or actions that would allow Iran or its people to access or benefit from these accounts.
Significant Changes to Existing Law
- This bill overrides parts of prior laws (e.g., NDAA 2012 and Iran Freedom Act 2012) that grant the President flexibility to waive sanctions temporarily for humanitarian or diplomatic reasons, such as facilitating access to frozen assets.
- It introduces permanent restrictions on reissuing waivers or licenses, shifting more control from the executive branch (President and Treasury) to Congress by limiting discretionary authority in Iran sanctions enforcement.
- No changes to the core sanctions framework, but it closes specific loopholes related to "access accounts" for Iranian funds abroad.
Potential Impacts
- On Government Agencies: The U.S. Treasury Department (via OFAC) and State Department will face stricter enforcement requirements, potentially increasing administrative burdens to monitor and block Iranian access to funds. This could limit diplomatic flexibility in negotiations involving Iran.
- On Citizens: Minimal direct impact on U.S. citizens, though it may indirectly affect global energy markets or prices if it escalates tensions over Iranian oil.
- On International Relations: Could heighten U.S.-Iran tensions by blocking Iran's access to billions in frozen assets (estimated at around $6 billion in the Qatar account), potentially derailing nuclear talks or humanitarian deals. It may strain relations with allies like South Korea and Qatar, which hold these funds, by complicating their role in U.S. sanctions compliance.
Main Stakeholders Affected
- Iranian Government and Entities: Directly loses access to restricted funds, limiting its ability to use them for imports or other purposes.
- U.S. Government Branches: Congress gains oversight; the executive branch (President, Treasury, State) loses waiver flexibility.
- International Partners: Countries like South Korea (holding Iranian funds) and Qatar (as a potential transfer point) may need to adjust financial dealings to comply.
- Global Financial Institutions: Banks and entities under U.S. jurisdiction must enforce the new restrictions, risking penalties for non-compliance.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces the U.S. sanctions regime under existing laws but could face challenges if seen as infringing on the President's constitutional authority over foreign affairs (Article II). It does not alter core treaties like the Joint Comprehensive Plan of Action (Iran nuclear deal) but could complicate compliance.
- Constitutional: Highlights tensions between congressional power to regulate commerce and declare policy (Article I) and executive foreign policy powers, potentially setting precedent for future limits on presidential waivers.
- Political: Introduced by a bipartisan group of House members, it signals congressional pushback against perceived leniency in Iran policy, possibly influencing midterm or election-year debates on national security and sanctions enforcement. No immediate judicial review is anticipated, but it could prompt international legal disputes over asset access.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Pfluger, August [R-TX-11]
Cosponsors (22)
Rep. Nunn, Zachary [R-IA-3], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Edwards, Chuck [R-NC-11], Rep. Bilirakis, Gus M. [R-FL-12], Rep. Latta, Robert E. [R-OH-5], Rep. Cline, Ben [R-VA-6], Rep. Steil, Bryan [R-WI-1], Rep. Wagner, Ann [R-MO-2], Rep. Fallon, Pat [R-TX-4], Rep. Schmidt, Derek [R-KS-2], Rep. Begich, Nicholas [R-AK-At Large], Rep. Messmer, Mark [R-IN-8], Rep. Kustoff, David [R-TN-8], Rep. Tenney, Claudia [R-NY-24], Rep. McGuire, John [R-VA-5], Rep. Goldman, Craig [R-TX-12], Rep. Loudermilk, Barry [R-GA-11], Rep. Stefanik, Elise M. [R-NY-21], Rep. Hamadeh, Abraham [R-AZ-8], Rep. Williams, Roger [R-TX-25], Rep. Biggs, Sheri [R-SC-3], Rep. Baumgartner, Michael [R-WA-5]
Recent Actions
- 2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-04-01: Introduced in House
- 2025-04-01: Introduced in House
Bill Versions
- To provide for the rescission of certain waivers and licenses relating to Iran, and for other purposes. — issued 2025-04-01 — PDF (3 pages)