Wilson’s ‘Free Yemen from Iran Act’ Proposes $300 Million in Aid and Sweeping Houthi Sanctions

US Representative Joe Wilson has announced the introduction of the “Free Yemen from Iran Act,” proposing $300 million in assistance for Yemeni security forces, economic stabilisation and civil society, alongside sweeping sanctions targeting the Houthis’ international financing and weapons supply networks.

The proposed legislation also calls for a maritime security strategy developed with Yemen’s internationally recognised government, the designation of the Houthis as a significant transnational criminal organisation, and regular assessments of Iranian, Russian and Chinese activities in Yemen.

In his announcement on X, Wilson said the bill would punish those enabling “Houthi terrorism” and support Yemen’s legitimate government, stressing the importance of stability.

The text sets out a broader policy of supporting the government’s recovery of Houthi-held territory and the restoration of its authority and sovereignty throughout Yemen. Its provisions remain legislative proposals: the funding authorisations, sanctions requirements and implementation deadlines would depend on enactment, with assistance also subject to applicable funding and implementation requirements.

$300 Million Across Three Assistance Tracks

The bill proposes authorising the secretaries of state and defence to provide $100 million to train, equip and professionalise Yemeni security forces. The stated objectives include restoring state authority, protecting Yemen’s sovereignty and territorial integrity, countering the Houthis and foreign terrorist organisations, and strengthening maritime security, border security and legitimate security institutions.

A separate provision would authorise $100 million for economic stabilisation initiatives in areas under the internationally recognised government’s authority. These programmes would seek to reduce dependence on Iranian-backed economic and financial networks and proxy structures while strengthening legitimate Yemeni institutions and economic resilience.

A further $100 million would support Yemeni civil society working against the Houthis, independent Yemeni media countering Houthi propaganda, and educational initiatives addressing Iranian propaganda and sectarian narratives promoted by Iran, the Houthis or other Iranian-backed entities.

The bill also requires the secretary of state to submit a strategy within 180 days of enactment prioritising youth employment, workforce development and local governance programmes to reduce recruitment by foreign terrorist organisations operating in Yemen.

Sanctions on Financing, Weapons and Commercial Support

The proposed sanctions would target foreign persons who knowingly provide significant financial, material or technological support to the Houthis, or engage in significant transactions with the group, its controlled entities or senior political, military, security and financial officials.

The provisions extend to support involving Iran’s Islamic Revolutionary Guard Corps and its Quds Force, people acting on their behalf to assist the Houthis, and foreign government agencies providing significant financial, military, technological, intelligence or logistical support to the group.

Weapons-related activities covered by the bill include helping the Houthis acquire, develop, produce, maintain, transport or deploy ballistic and cruise missiles, drones, unmanned surface and underwater vehicles, anti-ship weapons, naval mines, air defence systems and conventional weapons, as well as their components and associated technology.

The text also targets the provision of aircraft, vessels, vehicles and spare parts used to transport weapons or other significant material support to the Houthis. Related services—including freight, insurance, reinsurance, vessel registration, flagging, port services, bunkering, maintenance and crewing—could also trigger sanctions when the specified knowledge and significance requirements are met.

Other covered activities include significant financial, engineering, construction and commercial services supporting the Houthis; energy transactions known to generate substantial revenue for the group or its controlled entities; and the financing or facilitation of military shipments originating in or transiting Iran, China or other countries.

Transactions intended to evade sanctions, or having that effect, are also covered. The bill explicitly includes in-kind transactions within its scope.

Asset Blocking and Entry Restrictions

The proposed penalties include blocking property and interests in property within US jurisdiction or held or controlled by US persons, alongside restrictions on entry into the United States and the revocation of existing visas.

The provisions could also apply to adult family members of foreign persons involved in covered activities, unless the president determines there is clear and convincing evidence that the relative has distanced themselves from the person concerned and has no history of helping conceal or transfer assets. Entities owned or controlled by covered persons could likewise face sanctions.

The president would be required to issue implementing regulations within 90 days of enactment. Following a joint request from the chair and ranking member of an appropriate congressional committee, the president would have 120 days to determine whether a foreign person meets the sanctions criteria and report whether sanctions have been imposed or are intended.

A Global Review of Houthi Supply Networks

Within 180 days of enactment, the secretary of state, coordinating with the treasury secretary and director of national intelligence, would be required to submit a comprehensive report identifying people and entities worldwide that finance, arm, supply or otherwise materially support the Houthis.

The review would cover financiers, arms brokers, procurement agents, vessels, oil companies, shipping and insurance companies, logistics networks and IRGC-linked actors. It would also identify networks enabling the transfer of Iranian- or Chinese-origin weapons, components and military equipment.

Those identified who meet the applicable criteria would face sanctions under the bill or other relevant authorities. The report would be submitted in unclassified form, with a classified annex permitted.

The legislation separately directs the president to designate Ansar Allah, commonly known as the Houthis, as a significant transnational criminal organisation within 30 days of enactment under Executive Order 13581, as amended, and impose the associated sanctions.

Maritime Security Cooperation with Yemen’s Government

The bill requires the defence secretary, acting through the commander of US Central Command and coordinating with the secretary of state, to submit a strategy within 180 days for working with Yemen’s government to strengthen maritime security and counter Houthi threats.

Its objectives include combating weapons smuggling, strengthening the government’s maritime security capabilities, disrupting Iranian arms trafficking and other illicit support networks, and improving security in the Red Sea, Gulf of Aden and Arabian Sea.

The proposal places cooperation with Yemeni state institutions at the centre of this maritime approach, linking efforts to disrupt Houthi supply networks with the development of government capabilities.

In its findings, the bill argues that continued Houthi territorial control threatens shipping, global energy security, US personnel and assets, and American allies and partners. It also asserts that Houthi rule perpetuates state failure, threatens minorities and creates conditions in which terrorist organisations can thrive.

Scrutiny of Iranian, Russian and Chinese Activities

The bill’s findings accuse the IRGC of enabling Houthi attacks on US persons and interests in the Red Sea and Russia of assisting the group in gathering information about US assets in the region.

It requires an initial briefing within 90 days of enactment, followed by briefings every 180 days, on Iranian, Russian and Chinese influence and activities in Yemen and US efforts to counter them.

These assessments would examine financial, military, intelligence, political and other assistance provided to the Houthis; foreign weapons and military technology supplied to or acquired by the group; and measures taken by Washington in response.

Humanitarian Exceptions and International Accountability

The sanctions provisions include an exception for transactions whose sole purpose is to provide agricultural commodities, food, medicine, medical devices, humanitarian assistance or the goods and services needed to deliver that assistance to Yemenis.

The exception would not apply if the president determines that assistance was knowingly diverted to provide a significant benefit to the Houthis or a person sanctioned under the legislation. Separate entry exceptions cover applicable international obligations and US law enforcement activities.

The bill also requires a strategy within 180 days to support appropriate international accountability mechanisms. This would include documenting violations of international law in Yemen, establishing Iran’s involvement in or support for those violations, preserving evidence and supporting efforts to hold responsible individuals accountable.

Taken together, the proposed measures combine pressure on the Houthis’ external support networks with security, economic and civilian assistance intended to strengthen Yemen’s internationally recognised government and reduce Iranian influence.