US lawmakers call for sanctions on Iran-backed militias in Iraq

12 members of the United States Congress have urged the Trump administration to designate Iran-backed militias in Iraq as “terrorist organisations”, impose sanctions, and end all security assistance to Iraq as long as these groups remain legally part of the Iraqi state. 

The call comes amid growing US pressure on Iraq to prevent its financial system from breaching sanctions on neighbouring Iran.

Republican Representative Greg Steube of Florida announced on 7 February that he had joined Republican Representative Joe Wilson of South Carolina’s second district in backing the initiative. Steube also published the original letter, dated 28 January, which was signed by all the 12 Republican lawmakers.

The letter, addressed to Secretary of State Marco Rubio and National Security Adviser Michael Waltz, urges immediate action against Iranian-aligned militias entrenched within Iraq’s security forces. The lawmakers cite nearly $3.5 billion in humanitarian and development assistance provided by US taxpayers to help Iraqis recover from ISIS, alongside an additional $7.9 billion for counter-ISIS train-and-equip programmes.

Despite this, Iran-backed militias, armed and trained by the Islamic Revolutionary Guard Corps (IRGC), continue to be an integral part of Iraq’s state security forces.

The letter highlights findings from the Department of Defence Inspector General, which confirm the deep influence of Iran-aligned militias within Iraq’s Ministry of Interior and Ministry of Defence. 

It references the Badr Corps and claims that its senior figure, Iraq’s National Security Adviser Qasim al-Araji, has been “linked to previous attacks on US forces. Araji was detained twice by the US during the Iraq War for allegedly smuggling Iranian-made bombs used against American troops.”

“The Iranian-linked militias, which operate within Iraq’s state security apparatus, have reportedly carried out at least 170 attacks on US forces over the past two years, injuring multiple service members. Despite the United States providing more than $11.4 billion in aid to Iraq, these militias remain an integral part of the country’s security infrastructure, a situation Steube and Wilson argue is unacceptable,” the letter states.

The lawmakers condemned the Obama administration’s cooperation with Iran-backed militias during the fight against ISIS, arguing that this has led to disastrous consequences for US national security. They claim that many Iran-backed militias, including the Badr Corps, have not even been designated as Foreign Terrorist Organisations (FTOs), despite their involvement in violent attacks.

Wilson echoed these concerns, advocating for a fundamental shift in US policy towards Iraq. “It’s time for a new Iraq policy. It doesn’t make sense to continue sending billions of dollars to Iraq while it simultaneously funds Iranian-backed militias that attack Americans. It’s time to put America First. In President Trump’s first term, the maximum pressure campaign bankrupted Iran, and I believe that through his leadership, we will counter Iran‘s malign role in Iraq,” he stated to the press.

Moreover, the lawmakers outlined three key recommendations:  First, they propose the designation of Foreign Terrorist Organisations (FTOs) for groups such as the Badr Corps and Abu Fadl al-Abbas Brigades, officially recognising them as terrorist entities.

Second, they advocate for sanctions implementation under Executive Order 13224 against militias including Sarayya al-Jihad and Kata’ib al-Imam Ali, restricting their financial and operational capabilities.

Third, they call for the suspension of security assistance to Iraq, urging an immediate halt to all US security aid until Iranian-backed militias are removed from Iraq’s state forces.

Since the 7 October attacks led by Hamas and subsequent Israeli genocidal war on Gaza, the Islamic Resistance in Iraq—comprising factions close to Tehran such as Kata’ib Hezbollah, Al-Nujaba, Sayyid al-Shuhada and Imam Ali —conducted hundreds of attacks targeting Israeli and US assets. This includes a drone attack in January on a US base near the Syrian border in Jordan, resulting in the deaths of three US soldiers.

Iraqi journalist Omar Al-Janabi underscores contradictions in US policy toward armed factions in Iraq, particularly those aligned with Iran. He contends that U.S. sanctions have been largely ineffective, as many sanctioned groups and individuals “continue to participate in elections, hold government positions, and even meet with US and UN officials.”

Speaking to The New Arab, Al-Janabi pointed out that despite Washington designating these factions as terrorist organisations, they remain part of the Popular Mobilization Forces (PMF), which receive “salaries, weapons, and funding from the Iraqi state,” with financial support indirectly originating from the US through Iraq’s Central Bank. Moreover, the US-led coalition “supports the PMF in its operations, including training and arming,” exposing a contradiction in American policy.

He further notes that Trump has de-prioritised Iraq, allowing Prime Minister Mohammed Shia’ Al-Sudani to urge the Trump administration to extend Iraq’s exemption from US sanctions on Iran until 2028. As a result, “Iraqi support for Iran will persist until the end of Trump’s term.”

Al-Janabi also criticises Iraq’s selective approach to defining terrorism, arguing that while Sunni extremist groups are classified as terrorists, “Shia armed groups linked to Iran, regardless of their actions, remain protected, receive state funding, participate in elections, and hold political positions.”

Ultimately, he asserts that these factions are deeply entrenched in Iraq’s political system and enjoy backing from religious authorities, making it “difficult to hold them accountable.”

According to Al-Janabi, “Washington has no real interest in altering Iraq’s political landscape,” and any sanctions imposed will remain superficial unless they target the system as a whole in a meaningful way.

Iraq is trying to convince powerful armed factions in the country that have fought US forces and fired rockets and drones at Israel to lay down their weapons or join official security forces, Foreign Minister Fuad Hussein last month said. 

The push from Steube and Wilson signals growing concerns in Washington over Iran’s expanding influence in Iraq and its implications for US military personnel and national security. The Trump administration has yet to respond to the recommendations.

On 4 February, US President Donald Trump signed an executive order, entitled The National Security Presidential Memorandum (NSPM-2), which aims to impose “maximum pressure” on the Iranian government, denying Iran the ability to produce a nuclear weapon and countering Iran’s “malign influence”. However, it also impacts Iraq’s energy and financial systems.

Despite the grave consequences for Iraq if the US were to stop its military aid, such a move could significantly increase insecurity.

Iraq relies heavily on US assistance and cooperation in fighting the Islamic State, particularly in acquiring spare parts for its F-16 fighter jets. A disruption in this support could compromise Iraq‘s ability to counterterrorism effectively, raising concerns over increased instability in the region.