HB2658, titled the Free Iraq from Iran Act, would direct the executive branch to develop an interagency strategy within 180 days to support Iraq in reducing Iranian influence. The strategy would be led by the Secretary of State, in coordination with Treasury and the U.S. Agency for Global Media, and would focus on countering Iran-backed militias, supporting Iraqi civil society, exposing disinformation, and expanding media and intelligence efforts aimed at Iranian influence operations in Iraq.
The bill also seeks to reshape U.S. policy toward Iraq by conditioning or ending security assistance unless Iraq dismantles Iran-backed militias, removes them from government security structures, and stops supporting terrorism. It would require the Secretary of State to designate several named Iraqi militias and related entities as foreign terrorist organizations, bar federal funds from supporting those groups, direct Treasury to prepare a sanctions report on specified Iraqi political and financial actors, and impose sanctions on persons identified in that report. It further prohibits Iraqi imports of liquefied natural gas from Iran and requires an implementation plan and unclassified submission of the strategy.
If enacted, the bill would significantly alter U.S. statutory and policy treatment of Iraq by imposing new reporting, designation, sanctions, and funding restrictions tied to Iranian influence and militia activity. It would require the executive branch to use foreign terrorist organization designations, Treasury sanctions authorities, and foreign assistance restrictions against specified militias, officials, and institutions, while also limiting U.S. security assistance to the Iraqi government unless waiver conditions are met. The bill would affect the Department of State, Treasury, Defense, intelligence agencies, and USAGM, and would likely have direct consequences for Iraqi government entities, militia-linked organizations, and individuals named in the legislation.
Based on the bill text and the absence of recorded committee debate or votes, the measure appears to be framed by its sponsors as a strong anti-Iran, pro-democracy initiative intended to support Iraqi sovereignty and civil society. The overall tone is assertive and punitive toward Iran-aligned militias and officials, with a clear emphasis on sanctions, designations, and assistance restrictions rather than diplomatic engagement. No formal vote history or transcript material is available here to show broader legislative support or opposition.
The main points of contention are likely to be the bill’s sweeping characterization of Iraqi militias and officials as Iranian proxies, the mandatory terrorist-designation and sanctions provisions, and the near-total prohibition on U.S. security assistance to Iraq absent broad policy changes. Critics could argue that the bill risks undermining U.S.-Iraq security cooperation, overreaches by targeting named Iraqi political and institutional actors, and may complicate Iraqi sovereignty and internal politics. Supporters would likely emphasize the need to curb Iranian influence, dismantle militia power, and protect Iraqi protesters, journalists, and civil society.