Hamas and Other Palestinian Terrorist Groups International Financing Prevention Act

The bill now targets Al-Aqsa Martyrs Brigade and the Lion's Den in addition to Hamas and Palestinian Islamic Jihad throughout all sections, broadening which groups trigger sanctions.

The definition of 'appropriate congressional committees' is expanded to include the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs in addition to the existing Foreign Affairs and Foreign Relations committees.

The report in section 5 now includes a new category listing foreign states from which the named groups 'knowingly engaged in the transfer of surveillance equipment, electronic monitoring equipment, or other means to inhibit communication or the free flow of information in Gaza,' replacing the prior language about inhibiting 'political expression.'

Section 3 no longer requires a preliminary identification report before sanctions are imposed. The President must now directly impose IEEPA property-blocking sanctions within 180 days on any foreign person who knowingly provides significant financial, material, or technological support for acts of terrorism or engages in a significant transaction with a senior member of the named groups.

Section 4 now directly mandates the President to impose measures on foreign states within 180 days if they provide significant material or financial support for acts of international terrorism, provide significant material support to the named groups, or engage in a significant transaction that materially contributes to their terrorist activities. The old two-tier system (basic sanctions plus additional foreign exchange and credit transfer prohibitions for already-designated states) is removed.

The old menu of sanctions options (Export-Import Bank restrictions, arms sales bans, munitions list prohibitions, export control restrictions, and a $10 million loan threshold for financial institutions) is replaced by a single mechanism: IEEPA blocking of all property and interests in property.

The sunset provision is extended from 3 years after enactment to 7 years after enactment, giving the sanctions regime a much longer operational window.

The reporting deadline in section 5 is shortened from 180 days to 90 days after enactment, and the separate semi-annual briefing requirement is eliminated, consolidating everything into a single report due every 180 days with no stated end date.

A new humanitarian exemption is added in both sections 3 and 4, allowing the President to waive any provision if certified as vital to facilitate delivery of humanitarian aid (defined as food, medicine, and medical supplies) and consistent with national security interests, with 15 days advance notice to Congress.

The old exception that exempted agencies or instrumentalities of foreign states that had repeatedly provided support for acts of international terrorism (under ECRA, AECA, or FAA) from identification and sanctions is removed.

New definitions are added for 'act of terrorism' (a violent act intended to intimidate a civilian population, influence government policy, or affect government conduct by mass destruction, assassination, kidnapping, or hostage-taking) and 'humanitarian aid' (food, medicine, and medical supplies).