House Bill Would Enhance U.S. States’ Iran Sanctions Authority

On July 26, 2017, a bill was introduced in the House that would bolster U.S. states’ authority to impose sanctions on parties that engage in certain business with or in Iran. The State Sanctions Against Iranian Terrorism Act, H.R. 3425, would “amend the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 to secure the authority of State and local governments to adopt and enforce measures restricting investment in business enterprises in Iran, and for other purposes.”

Among other measures, the House Bill would expand U.S. states’ authority to impose indirect Iran sanctions by excluding or debarring from state procurement and investments parties that do business in or with Iran, where such business meets the standards (e.g., minimum monetary thresholds) of the House Bill. The State Sanctions Against Iranian Terrorism Act, which as of August 8, 2017 has 20 co-sponsors, can be viewed here.


More Information

For more information about the State Sanctions Against Iranian Terrorism Act and how the bill, if passed, would alter the U.S. state sanctions landscape, contact Hdeel Abdelhady at habdelhady@masspointpllc.com or +1-202-630-2512.


Related Publication 

For information about U.S. states’ authority to impose indirect sanctions, see Do U.S. States Have Authority to Enforce U.S. OFAC Economic and Trade Sanctions Against Banks? under the heading “Affirmation of Federal Foreign Affairs Powers: Preemption of State Sanctions Law” (this section discusses U.S. state sanctions laws in the context of U.S. federalism).