In a move that controversially would unlock $10 billion in funds to one of the world's leading state sponsors of terror, the Biden administration renewed its sanctions waiver on Iran with regard to electric energy to Iraq, the Washington Free Beacon reported Thursday.
The waiver allows Iran to receive payments for electricity from Iraq via third parties and was last renewed in November before being set to expire later this month, according to the Free Beacon.
Republicans have been critical of President Joe Biden's policies toward Iran amid Red Sea attacks being waged on shipping by Yemen Houthis and the Hamas and Hezbollah aggressions against Israel — long a target of destruction by Iran.
The Biden administration said it believes the waived sanctions permits money to Iran for humanitarian purposes, but Republicans argue "money is fungible," meaning the humanitarian relief permits Iran to use its other money to assist anti-Israel proxies and terrorists in an increasingly unstable Middle East.
"By waiving the application of sanctions, the administration is maintaining a financial lifeline for the Iranian regime, even as it continues to support terrorist organizations around the world," Rep. Bill Huizenga, R-Mich., and his GOP House colleagues wrote to the Biden administration Wednesday.
Iran "has a history of lying about humanitarian transactions. There is no reason to think that they will not try to skirt these restrictions again. Additionally, money is fungible, and the waiver and subsequent transfer will free up billions in funds that Iran can now spend on its terrorist proxies, nuclear activities, and military."
The State Department declined the Free Beacon's request for confirmation on the sanctions waiver renewal, but did defend its previous renewals.
"Since 2018, the waiver has remained necessary as Iraq weans itself off Iranian energy imports, which cannot happen overnight," the State Department wrote to the Free Beacon in a statement Thursday. "And Iraq is making progress in its path to energy self-sufficiency by increasing regional electricity interconnections, capturing and utilizing natural gas associated with oil production, and developing new domestic gas resources.
"Under these waivers, no money has been permitted to enter Iran.
"Any notion to the contrary is false and misleading. These funds, which are held abroad in third countries, can only be used for transactions for the purchase of food, agricultural commodities, medicine, medical devices, and other non-sanctionable transactions. The money goes straight to the trusted vendor or financial institution in another country. The money never touches Iran."
Former White House National Security Council member Richard Goldberg warned of the Biden sanctions waiver for Iran.
"This is not the same waiver for Iraqi electricity imports that has been issued since 2018," Goldberg told the Free Beacon. "This is an Iran sanctions relief waiver that allows Tehran to access money and use it for budget support, including debt payments and import subsidies.
"The fact that the administration will not even tell the American people how much money Iran has accessed over the last four months — money that subsidized three American soldier deaths and nonstop attacks on the American Navy — should prompt the U.S. Senate to immediately pass the No Funds for Iranian Terrorism Act and send to the president's desk."