SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘No Funds for Iranian 
Terrorism Act’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) On October 7, 2023, Iran-backed Hamas 
terrorists launched a massive, unprovoked war on 
Israel by air, land, and sea, in which they engaged 
in the brutal murder of over 1,300 people and kid-
napped at least 230 people who are now being held 
hostage. 
(2) Hamas, Palestinian Islamic Jihad, and 
Hezbollah have all been designated by the United 
States as Foreign Terrorist Organizations pursuant 
to section 219 of the Immigration and Nationality 
Act (8 U.S.C. 1189). 
(3) Hamas, Palestinian Islamic Jihad, and as-
sociated terrorist organizations backed by Iran rou-
tinely and unabashedly use civilians as ‘‘human 
shields’’ to shield their weapons and terrorist mili-
tants from legitimate military engagement, a con-
travention of international humanitarian law and a 
heinous violation of the rights and dignity of civilian 
noncombatants. 
(4) Only the cessation of Hamas’ operations, 
the unconditional surrender of Hamas, and the im-
mediate dismantlement of Hamas and all other Iran- 
backed terrorist organizations that participated in 
the massacre of Israelis on and since October 7, 
2023, will ensure that innocent Israeli and Pales-
tinian civilian lives are saved. 
(5) According to an unclassified United States 
government assessment, ‘‘Iran has historically pro-
vided up to $100 million annually in combined sup-
port to Palestinian terrorist groups, including 
Hamas, Palestinian Islamic Jihad (PIJ), and the 
Popular Front for the Liberation of Palestine-Gen-
eral Command.’’. 
(6) As National Security Advisor Jake Sullivan 
stated on October 10, 2023, ‘‘Iran is complicit in 
this attack in a broad sense because they have pro-
vided the lion’s share of the funding for the military 
wing of Hamas, they have provided training, they 
have provided capabilities, they have provided sup-
port, and they have provided engagement and con-
tact with Hamas over years and years.’’. 
(7) President Biden reached an agreement with 
the Iranian regime to bring home Siamak Namazi, 
Morad Tahbaz, Emad Shargi, and two additional 
American hostages all of whom were wrongfully de-
tained in Iran.
SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO COV-
ERED IRANIAN ASSETS. 
(a) IN GENERAL.—On and after the date of the en-
actment of this Act, the President shall impose the sanc-
tion described in subsection (c) with respect to each for-
eign financial institution that the President determines en-
gages in an activity described in subsection (b). 
(b) ACTIVITIES DESCRIBED.—A foreign financial in-
stitution engages in an activity described in this subsection 
if the institution processes, participates in, or facilitates 
a transaction using or involving covered Iranian funds. 
(c) BLOCKING
OF PROPERTY.—The sanction de-
scribed in this subsection is the exercise of all of the pow-
ers granted to the President under the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) to the extent necessary to block and prohibit all 
transactions in property and interests in property of a for-
eign financial institution described in subsection (a) if 
such property and interests in property are in the United 
States, come within the United States, or are or come 
within the possession or control of a United States person. 
(d) PENALTIES.—The penalties provided for in sub-
sections (b) and (c) of section 206 of the International 
Emergency Economic Powers Act (50 U.S.C. 1705) shall 
apply to a person that violates, attempts to violate, con-
spires to violate, or causes a violation of this section or
any regulations promulgated to carry out this section to 
the same extent that such penalties apply to a person that 
commits an unlawful act described in section 206(a) of 
that Act. 
(e) TERMINATION OF SANCTIONS.—The President 
shall not be required to impose sanctions under this sec-
tion with respect to a foreign financial institution or inter-
national financial institution described in subsection (a) 
if the President certifies in writing to the appropriate con-
gressional committees not later than 45 days before the 
termination of such sanctions that the Government of 
Iran— 
(1) no longer repeatedly provides support for 
international terrorism as determined by the Sec-
retary of State pursuant to— 
(A) section 1754(c)(1)(A) of the Export 
Control Reform Act of 2018 (50 U.S.C. 
4318(c)(1)(A)); 
(B) section 620A of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2371); 
(C) section 40 of the Arms Export Control 
Act (22 U.S.C. 2780); or 
(D) any other provision of law; and 
(2) has ceased the pursuit, acquisition, and de-
velopment of, and verifiably dismantled its, nuclear,
biological, and chemical weapons and ballistic mis-
siles and ballistic missile launch technology. 
(f) EXCEPTION RELATING TO IMPORTATION OF 
GOODS.— 
(1) IN GENERAL.—The authorities and require-
ments to impose sanctions authorized under this Act 
shall not include the authority or requirement to im-
pose sanctions on the importation of goods. 
(2) GOOD
DEFINED.—In this subsection, the 
term ‘‘good’’ means any article, natural or man- 
made substance, material, supply, or manufactured 
product, including inspection and test equipment, 
and excluding technical data. 
SEC. 4. SENSE OF CONGRESS. 
It is the sense of Congress that the terrorist-funding, 
human rights-violating Iranian regime should receive no 
additional funds but that basic humanitarian assistance 
for the people of Iran is important. 
SEC. 5. LIMITATION OF APPLICABILITY OF CERTAIN LI-
CENSES. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, on and after the date of the enactment of 
this Act, the President may not— 
(1) exercise the waiver authority described in 
section 1245(d)(5) of the National Defense Author-
ization Act for Fiscal Year 2012 and sections 
1244(i) and 1247(f) of the Iran Freedom and 
Counter-Proliferation Act of 2012 permitting the 
Government of Iran or any Iranian person access to 
any account established or maintained pursuant to 
or in accordance with section 1245(d)(4)(D)(ii)(II) 
of the National Defense Authorization Act for Fiscal 
Year 2012; or 
(2) issue a general or specific license, frequently 
asked question, or any other licensing action or 
guidance permitting the Government of Iran or any 
Iranian person access to or to benefit directly or in-
directly from any account established pursuant to or 
in accordance with any account described in 
1245(d)(4)(D)(ii)(II) of the National Defense Au-
thorization Act for Fiscal Year 2012. 
(b) IMPORTATION OF GOODS.— 
(1) IN GENERAL.—The exercise of the authori-
ties and requirements under paragraph (1) or (2) of 
subsection (a)— 
(A) shall not include the authority or re-
quirement to impose sanctions on the importa-
tion of goods; and 
(B) shall not apply to any procurement 
sanctions.
(2) GOOD
DEFINED.—In this subsection, the 
term ‘‘good’’ means any article, natural or manmade 
substance, material, supply or manufactured prod-
uct, including inspection and test equipment, and ex-
cluding technical data. 
SEC. 6. DEFINITIONS. 
In this Act: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Foreign Affairs and 
the Committee on Financial Services of the 
House of Representatives; and 
(B) the Committee on Foreign Relations 
and the Committee on Banking, Housing, and 
Urban Affairs of the Senate. 
(2) COVERED IRANIAN FUNDS.—The term ‘‘cov-
ered Iranian funds’’ means any funds transferred 
from accounts in the Republic of Korea to Qatar 
pursuant to or under the authority or guaranty of 
a waiver, license, assurance letter, or other guidance 
issued pursuant to or in furtherance of the waiver 
determination made pursuant to sections 1244(i) 
(22 U.S.C. 8803(i)) and 1247(f) of the Iran Free-
dom and Counter-Proliferation Act of 2012 (22
U.S.C. 8806(f)) and section 1245(d)(5) of the Na-
tional Defense Authorization Act for Fiscal Year 
2012 (22 U.S.C. 8513a(d)(5)) that is the subject of 
the document entitled ‘‘Waiver of Sanctions with Re-
spect to the Transfer of Funds from the Republic of 
Korea to Qatar’’ and was transmitted to Congress in 
September 2023. 
(3) FOREIGN
FINANCIAL
INSTITUTION.—The 
term ‘‘foreign financial institution’’ has the meaning 
given such term under section 561.308 of title 31, 
Code of Federal Regulations. 
SEC. 7. SENSE OF CONGRESS ON QATAR. 
It is the sense of Congress that the Government of 
Qatar should publicly condemn Hamas, turn Hamas lead-
ership over the United States or Israeli control, and pledge 
never to facilitate the transfer of any covered Iranian 
funds to Iran or any agency or instrumentality of Iran. 
SEC. 8. REPORT ON IRANIAN INTERNET CENSORSHIP. 
(a) IN GENERAL.—The Secretary of the Treasury 
and the Secretary of State shall jointly submit to Congress 
a report regarding Iranian internet censorship and appli-
cable United States licensing requirements. Such report 
shall include the following: 
(1) An assessment of the Iranian Government’s 
ability to impose internet shutdowns, censor the
internet, and track Iranian dissidents, labor orga-
nizers, political activists, or human rights defenders 
inside Iran through targeted digital surveillance or 
other digital means. 
(2) An assessment of the impact of General Li-
cense D-2, issued on September 23, 2022, on the 
availability of private communications tools inside 
Iran, including encryption tools to assist the people 
of Iran in circumventing targeted digital surveillance 
by the Iranian Government. 
(3) A determination of whether additional up-
dates to General License D-2 or other licenses are 
needed to keep up with the pace of technology and 
ensure that United States restrictions do not unin-
tentionally inhibit the flow of vital communication 
tools to the people of Iran, including cloud tech-
nology, hardware, software, and services incident to 
personal communications, including set-top boxes 
(STB), satellites, and web developer tools. 
(4) A strategy to ensure that resources are 
available for digital rights experts to study Iran’s 
online repression and identify opportunities to 
counter it. 
(5) A strategy to prevent the Government of 
Iran from acquiring or developing tools that could be
exploited against activists, including facial recogni-
tion software. 
(b) FORM.—The report required pursuant to sub-
section (a) shall be submitted in unclassified form but may 
include a classified annex if such annex is provided sepa-
rately from such unclassified version. 
(c) DEFINITION.—In this section, the term ‘‘targeted 
digital surveillance’’ means the use of items or services 
that enable an individual or entity (with or without the 
knowing authorization of the product’s owner) to detect, 
monitor, intercept, collect, exploit, preserve, protect, trans-
mit, retain, or otherwise gain access to the communica-
tions, sensitive or protected information, work product, 
browsing data, research, identifying information, location 
history, or online or offline activities of other individuals, 
organizations, or entities. 
SEC. 9. SENSE OF CONGRESS. 
It is the sense of Congress that all United States al-
lies in the Middle East should publicly and unequivocally 
condemn the antisemitism displayed by Iranian-backed 
terrorist groups, including Hamas. 
SEC. 10. PROHIBITION ON FUNDS. 
No federal funds may be used to make any funds (as 
such term is defined in section 2339C(e)(1) of title 18, 
United States Code) available to Iran.
SEC. 11. SENSE OF CONGRESS ON THE HOUTHIS. 
It is the sense of Congress that the Houthis, an Iran- 
backed terrorist group which has hijacked a Japanese-op-
erated cargo ship, kidnapped and tortured United States 
citizens, and supports Hamas’ ongoing war against Israel, 
continues to benefit from the Biden Administration’s fail-
ure to unequivocally condemn it. 
SEC. 12. REPORT ON POLICY RELATING TO HUMAN RIGHTS, 
NUCLEAR PROLIFERATION, BALLISTIC MIS-
SILES, AND REGIONAL TERRORISM IN IRAN. 
Not later than 120 days after the date of the enact-
ment of this Act, the President shall submit to Congress 
a report (which may contain a classified annex) outlining 
the policy of the United States with respect to human 
rights, nuclear proliferation, the ballistic missile program, 
and regional terrorism in Iran. 
Passed the House of Representatives November 30, 
2023. 
Attest: 
Clerk.
118TH CONGRESS 
1ST SESSION 
H. R. 5961 
AN ACT 
To freeze certain Iranian funds involved in the 
2023 hostage deal between the United States and 
Iran, and for other purposes.