Bills
| 3.23.22

Does Congress Need to Reauthorize Sanctions on Iran? (H.R. 6297)

Do you support or oppose this bill?

What is H.R. 6297?

(Updated July 16, 2019)

This bill was enacted on December 15, 2016

This bill would reauthorize the Iran Sanctions Act of 1996 for 10 years through December 31, 2026. Under current law, it would expire on December 31, 2016.

The Iran Sanctions Act of 1996 originally sanctioned businesses that did business with Libya and Iran, but Libya was dropped from the law in 2006. It imposed financial sanctions on both U.S. and non-U.S. business that make investments in Iran. Sanctions could include:

  • Denial of Export-Import Bank of the U.S. assistance;

  • Denial of export licenses for exports to the violating company;

  • Prohibition of loans or credits from U.S. financial institutions of over $10 million in any 12-month period;

  • Prohibition on designation as a primary dealer for U.S. treasury securities;

  • Prohibition on serving as an agent of the U.S. or as a repository for government funds;

  • Denial of U.S. government procurement opportunities (consistent with World Trade Organization obligations);

  • A ban on all or some imports of the violating company.

Argument in favor

The U.S. needs to keep pressure on Iran to ensure that it continues to abide by the nuclear agreement. Keeping these sanctions in place as they’re currently structured will also give Iran a financial reason to stop supporting terrorism.

Argument opposed

Congress is jeopardizing the Iran nuclear deal by reauthorizing these sanctions. While this bill is only a reauthorization and doesn’t tack on new sanctions, it will undermine whatever goodwill currently exists between the U.S. and Iran.

Impact

Businesses that do business with Iran; and federal agencies that would enforce these sanctions.

Cost of H.R. 6297

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Ed Royce (R-CA) introduced this bill to prevent existing sanctions against Iran from being lifted:

“The Iran Sanctions Act was enacted to curb Tehran’s support for terrorism and its very dangerous weapons proliferation. It should remain in place until the regime stops exporting terror and threatening us and our allies with deadly weapons.”

The Obama administration hasn’t said whether the president would sign this bill into law, though the fact that it’s a “clean” renewal that doesn’t impose new sanctions will likely help the legislation’s chances of gaining bipartisan support in Congress and becoming law.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user Commandernavy)