US Defense Bill Lifts Syria Sanctions, Ends Iraq War Authorizations

On Thursday, US President Donald Trump signed the National Defense Authorization Act (NDAA) for Fiscal Year 2026. This bill, valued at approximately $900 billion, includes an amendment to repeal the “Caesar Act” sanctions imposed on Syria since 2019. Congress had previously approved the NDAA 2026 in both the House and Senate. The Senate, on Wednesday, passed the legislation with a strong bipartisan vote of 77 to 20. Lawmakers stated the law’s provision to end broad sanctions on Syria aims to support Damascus’s economic recovery after more than a decade of conflict.

Repealing Caesar Sanctions on Syria

The US Senate, on Wednesday, approved the annual defense policy bill, which included an amendment to repeal the “Caesar Act” sanctions on Syria. This law mandates the President, or their designee, to submit a report to Congress every six months for the next four years. These reports will assess the Syrian government’s performance and its “concrete actions” across several key areas. One primary focus involves the elimination of threats from “terrorist groups.”

Trump and Al-Sharaa Meeting

Last month, Syrian President Ahmad Al-Sharaa visited Washington, with a primary objective of seeking a full lifting of US sanctions. During his visit, he met with President Trump at the White House. Following their closed-door meeting, the US Treasury Department announced in November a 180-day extension of the “Caesar Act” sanctions suspension. However, a complete repeal of these sanctions required Congressional approval.

Why Were Caesar Sanctions Imposed?

In 2019, the “Caesar Act” imposed extensive sanctions on Syria. These measures targeted individuals, companies, and institutions linked to former Syrian President Bashar al-Assad. The Caesar Act stood as one of the most stringent laws applied against Damascus. It specifically prohibited any country or entity from engaging with or providing financial or economic support to the Syrian government.

Syrian Welcome to the American Decision

On Wednesday, Syrian Foreign Minister Asaad Al-Shaibani expressed his country’s appreciation and gratitude to the US Senate. He thanked them for voting to repeal the “Caesar Act” sanctions on Syria. Al-Shaibani stated on the “X” platform: “We consider this step a positive development that opens new horizons for cooperation and partnership between our country and the world.”

Repeal of Two Authorizations for Use of Force Against Iraq

The approved bill, upon taking effect, also repeals the 1991 and 2002 authorizations for the use of military force against Iraq. On Wednesday, the Iraqi Foreign Ministry welcomed what it termed a “historic vote” by the US Congress, encompassing both the House and Senate, to revoke these two military force authorizations.

The Ministry stated in a press release that this repeal marks a fundamental turning point in the legal nature of relations between the two countries. It establishes a new form of relationship built on respecting Iraq’s sovereignty and ending the legacy of war. This move also strengthens the strategic partnership framework, sending a message to the international community that Iraq has become a safe and attractive environment for investment.

The Ministry emphasized that repealing the 1991 and 2002 authorizations does not undermine counter-terrorism efforts. The 2001 Authorization for Use of Military Force (AUMF), specifically for counter-terrorism following the September 11 events, remains in effect. This authorization addresses threats from Al-Qaeda and other associated terrorist organizations.

Iraq’s government remains committed to strengthening bilateral relations, contributing to a long-term partnership that serves both countries’ interests and supports Middle East stability. The new bill confirms the 2001 authorization for the global war on terror will remain active.

The 1991 and 2002 authorizations were rarely used and specifically focused on Iraq. In contrast, the 2001 authorization granted then-President George W. Bush broad authority to invade Afghanistan. It permitted the use of force against “nations, organizations, or persons” who planned or supported the September 11, 2001, attacks against the United States.

Since its enactment in September 2001, this authorization has justified US military operations in recent years. These operations targeted groups such as Al-Qaeda and its affiliates, including ISIS, and Somalia’s Al-Shabaab movement. Learn more about the NDAA’s provisions.

Saudi Arabia Welcomes Sanctions Repeal

The Saudi Ministry of Foreign Affairs stated its appreciation for the Syrian government’s steps to restore stability across all regions of the country. It also acknowledged efforts to create necessary conditions for rebuilding the state and its economy. The Saudi Foreign Ministry added that the US decision to repeal sanctions imposed on Syria under the “Caesar Act” will support stability and development in the country. Furthermore, the Ministry commended US President Donald Trump’s positive role in lifting the sanctions on Syria.

What Does the Repeal of Caesar Sanctions Mean for Syria’s Rating?

Abdul Qader Al-Hassarie, Governor of the Central Bank of Syria, indicated on his personal Facebook page that the repeal of Caesar Act sanctions will open significant opportunities for the country. These opportunities include obtaining a sovereign credit rating. Al-Hassarie added that this repeal removes a fundamental legal barrier to Syria’s reintegration into the international financial system. He pointed to the possibility of seeking an unannounced and advisory sovereign credit rating as a first step. A public rating would follow when conditions permit. Al-Hassarie noted that Syria would likely receive a low credit rating initially, considering this normal for countries emerging from conflicts.

US Conditions for Repealing “Caesar Sanctions” on Syria

The law outlines specific conditions for the repeal of Caesar Act sanctions on Syria, requiring regular reports from the US President or their designee. Within 90 days of the law’s enactment, and every 180 days thereafter for the next four years, the President must submit a non-classified report, with a classified annex if necessary, to relevant Congressional committees. This report will certify whether the Syrian government is meeting several criteria.

The Syrian government must take concrete, genuine actions to eliminate the threat posed by ISIS and other extremist groups, including Al-Qaeda and its affiliates, in partnership with the United States. It must also prevent ISIS’s resurgence.

Furthermore, the government needs to remove, or take steps to remove, foreign fighters from senior positions within the Syrian government, including state and security institutions.

Respect for the rights of religious and ethnic minorities in Syria is required, encompassing freedom of worship and belief, and ensuring fair and balanced representation in government, including ministries and parliament.

The Syrian government must not engage in unilateral and unjustified military action against its neighbors, including Israel. It must also continue progress towards international security agreements as needed.

Tangible and credible steps are required to implement the March 10, 2025 agreement negotiated between the Syrian government and the Syrian Democratic Forces (SDF). This includes proportional integration measures for security forces and political representation.

Finally, the government must take effective steps to combat money laundering, terrorism financing, and the financing of weapons of mass destruction proliferation, in line with international standards. It must also refrain from knowingly funding or assisting (financially or through arms transfers) any such activities.