PEACE Act

Bill Number

H.R. 5632

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

International Affairs

Status

Introduced

Latest Action

2025-09-30: Referred to the Committee on Foreign Affairs, and in addition to the Committees on the Judiciary, and Financial Services, 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

2025-11-19T21:08:59Z

AI-Generated Summary

Purpose of the Legislation

The "Preventing Escalation and Advancing Caucasus Engagement Act" (PEACE Act) aims to deter military aggression by Azerbaijan against Armenia through targeted sanctions. It promotes U.S. support for the sovereignty and territorial integrity of both countries, encourages direct peace negotiations between them, and backs Armenia's efforts to achieve a lasting peace agreement while reducing Russian influence in the region.

Key Provisions

• Statement of Policy: The U.S. commits to supporting the independence of Armenia and Azerbaijan, facilitating fair peace talks, using sanctions to prevent force as a substitute for diplomacy, and endorsing Armenia's initiatives under Prime Minister Nikol Pashinyan to secure peace, limit Russian involvement, and build stronger U.S.-Armenia ties.

• Definitions: Key terms include:
• "Hostile action": Military aggression causing significant loss of life, damage to infrastructure, or breaches of sovereignty.
• "Military aggression": Deliberate use of armed force not in response to an attack, expected to harm another country's territory or independence.
• Other terms like "foreign person" (non-U.S. individuals or entities), "United States person," "agricultural commodity," "medicine," and "immediate family members" (close relatives as defined under U.S. immigration law).

• Imposition of Sanctions:
• If the President determines Azerbaijan has taken hostile actions against Armenia, they must certify this to Congress immediately.
• Sanctions apply to:
• Senior Azerbaijani officials involved in such actions, their immediate family members, military units or agencies responsible, and foreign persons who knowingly aid or facilitate these actions.
• Measures include blocking property and assets in U.S. control (using powers from the International Emergency Economic Powers Act, or IEEPA, which allows the President to regulate international economic transactions during emergencies) and barring visa issuance, entry, or parole into the U.S. for affected individuals (with automatic revocation of existing visas).
• Foreign financial institutions face restrictions on U.S. accounts if they knowingly handle significant transactions involving Azerbaijani banks that trade petroleum or petroleum products.
• Additional sanctions can target anyone undermining a peace agreement outlined in the August 8, 2025, Joint Declaration between Armenia and Azerbaijan.

• Exceptions and Waivers:
• Sanctions do not apply to U.S. intelligence activities, humanitarian aid, sales of food, agricultural goods, medicine, or medical devices to Azerbaijan, or U.N. and consular obligations.
• The President can waive sanctions if deemed in the U.S. national interest, with a report to Congress explaining the reasons.

• Termination of Sanctions:
• Sanctions end for individuals after at least one year of verifiable steps to stop involvement in hostile actions and no substantial risk of recurrence.
• For financial institutions, termination occurs after one year without Azerbaijani hostile actions, allowing release of any held funds (with congressional reporting).
• A detailed report to Congress is required before lifting sanctions on individuals.

• Reporting Requirements:
• The President must report every 90 days (starting 30 days after enactment) on whether Azerbaijan has engaged in hostile actions, in unclassified form with possible classified details.
• Annual reviews assess the effectiveness of sanctions after their imposition.

• Sunset and Severability:
• The Act expires 7 years after enactment.
• If any part is ruled invalid, the rest remains in effect.

Significant Changes to Existing Law

This bill introduces a new, conditional sanctions framework specific to Azerbaijan-Armenia tensions, building on existing authorities like the IEEPA (for asset blocking) and the Immigration and Nationality Act (for visa restrictions). It does not amend prior laws but creates targeted triggers for sanctions based on "hostile actions," with built-in exceptions for humanitarian trade and waivers, which were not previously tailored to this regional conflict. It also mandates new reporting on Caucasus peace efforts, enhancing congressional oversight of executive foreign policy actions.

Potential Impacts

• Government Agencies: The President, State Department, and Treasury Department will face increased responsibilities for monitoring conflicts, certifying actions, designating entities, and implementing sanctions, potentially straining resources for compliance and enforcement. Congress gains more insight through regular reports, influencing foreign policy decisions.

• Citizens: Azerbaijani officials and their families may lose access to U.S. travel, assets, and financial services, affecting personal and business ties. Armenian citizens could benefit indirectly from reduced aggression risks and stronger U.S. support. U.S. citizens or businesses involved in humanitarian trade with Azerbaijan are protected from sanctions fallout.

• International Relations: The Act could strain U.S.-Azerbaijan relations by isolating key figures and limiting petroleum trade financing, potentially disrupting global energy markets (Azerbaijan is a major oil exporter). It bolsters U.S. ties with Armenia, counters Russian influence in the Caucasus, and pressures both countries toward peace talks, possibly affecting alliances in the region and broader U.S. diplomacy with former Soviet states.

Main Stakeholders Affected

• Governments: Republic of Armenia (gains U.S. support for sovereignty and peace) and Republic of Azerbaijan (faces potential sanctions on officials and economy).
• Individuals and Entities: Senior Azerbaijani government and military officials, their families, Azerbaijani financial institutions involved in petroleum trade, and foreign banks or persons aiding hostile actions.
• U.S. Entities: Executive branch agencies (e.g., State, Treasury) for implementation; congressional committees (Foreign Affairs, Foreign Relations) for oversight.
• Broader Groups: Armenian and Azerbaijani diaspora communities in the U.S.; international financial institutions with U.S. ties; humanitarian organizations providing aid to Azerbaijan.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on established executive powers under IEEPA for economic sanctions and immigration laws for visa restrictions, but the conditional trigger (Presidential determination of "hostile actions") could invite legal challenges over evidence standards or due process for sanctioned parties. Exceptions for humanitarian aid align with international norms, reducing risks of violating trade agreements.

• Constitutional: Balances executive flexibility in foreign affairs with congressional checks via mandatory certifications, reports, and waiver notifications, upholding separation of powers. The severability clause ensures the law's core survives partial invalidation.

• Political: Signals U.S. prioritization of regional stability and anti-Russian positioning in the Caucasus, potentially influencing bipartisan support for Armenia amid ongoing ethnic tensions. The 7-year sunset provides a temporary mechanism, allowing future Congresses to reassess based on peace progress, but risks escalating conflicts if sanctions are imposed without diplomatic resolution.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Issa, Darrell [R-CA-48]

Cosponsors (2)

Rep. Bilirakis, Gus M. [R-FL-12], Rep. Steil, Bryan [R-WI-1]

Recent Actions

• 2025-09-30: Referred to the Committee on Foreign Affairs, and in addition to the Committees on the Judiciary, and Financial Services, 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.
• 2025-09-30: Referred to the Committee on Foreign Affairs, and in addition to the Committees on the Judiciary, and Financial Services, 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.
• 2025-09-30: Referred to the Committee on Foreign Affairs, and in addition to the Committees on the Judiciary, and Financial Services, 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.
• 2025-09-30: Introduced in House
• 2025-09-30: Introduced in House

Bill Versions

• Preventing Escalation and Advancing Caucasus Engagement Act — issued 2025-09-30 — PDF (14 pages)