01-31-2025

Designation of Ansar Allah as a Foreign Terrorist Organization

Executive OrderView the Original .pdf
View the Original .pdf

The 1-Minute Brief

What: Executive Order 14175, signed on January 22, 2025, directs the U.S. Secretary of State to initiate the process of designating Ansar Allah, commonly known as the Houthis, as a Foreign Terrorist Organization (FTO). This reverses a 2021 Biden administration decision to revoke the same designation.

Money: The order itself does not appropriate new funds. However, an FTO designation triggers powerful financial sanctions, including freezing the group's assets in U.S. financial institutions and prohibiting Americans from providing any "material support," which includes financial transactions. Critics fear this will disrupt Yemen's fragile economy and the flow of commercial goods and humanitarian aid, which over 21 million people rely on.

Your Impact: The most likely direct effect on an average American is indirect. The designation aims to deter Houthi attacks on international shipping in the Red Sea. If successful, it could help stabilize global supply chains and prevent price increases on consumer goods. However, if it exacerbates the conflict or fails to stop the attacks, it could lead to sustained higher shipping insurance and costs, which may be passed on to consumers.

Status: The Executive Order was signed and published on January 31, 2025. The process is underway for the Secretary of State to make a final determination.

What's Actually in the Bill

This Executive Order (E.O.) does not immediately designate the Houthis as a Foreign Terrorist Organization. Instead, it legally compels the executive branch to formally review and act on the designation, citing Houthi attacks on U.S. forces, civilian infrastructure, and commercial shipping as the primary justification.

Core Provisions:

  • The Secretary of State, in consultation with the Director of National Intelligence and the Secretary of the Treasury, must submit a report to the President on designating the Houthis as an FTO within 30 days of the order.
  • Within 15 days of submitting that report, the Secretary of State is required to take all appropriate actions regarding the designation, consistent with federal law.
  • Following a designation, the Secretary of State and the Administrator of USAID must conduct a review of all UN partners and NGOs operating in Yemen.
  • USAID is directed to terminate grants or contracts with any organization found to have made payments to the Houthis or to have criticized international counter-Houthi efforts while insufficiently documenting Houthi abuses.

Stated Purpose (from the Sponsors):

The E.O. states its purpose is to counter the threat posed by Ansar Allah, which it claims is supported by Iran's Islamic Revolutionary Guard Corps Quds Force (IRGC-QF). The order's stated goals are to:

  1. Eliminate Ansar Allah's capabilities and operations.
  2. Deprive the group of resources.
  3. End its attacks on U.S. personnel, regional partners, and maritime shipping in the Red Sea.

Key Facts:

Affected Sectors: Foreign Affairs, Defense, International Shipping, Humanitarian Aid.
Timeline: The report to the President is due by late February 2025, with a final decision on designation expected by mid-March 2025.
Scope: The order targets Ansar Allah, a group that controls territory containing 70-80% of Yemen's population, including the capital, Sana'a.

The Backstory: How We Got Here

Timeline of Events:

The Houthi Rise and Civil War (2004-2015):

The Houthi movement, rooted in Zaydi Shia Islam, began as a revivalist movement in northern Yemen and engaged in a series of rebellions against the government of President Ali Abdullah Saleh starting in 2004. In September 2014, Houthi forces captured Yemen's capital, Sana'a, amid political turmoil. By March 2015, they had advanced on the port city of Aden, prompting Yemeni President Abdrabbuh Mansur Hadi to flee and a coalition led by Saudi Arabia to intervene militarily, escalating the conflict into a full-blown civil war.

Shifting U.S. Policy (2021-2024):

In its final days in January 2021, the Trump administration designated the Houthis as an FTO, citing attacks on civilian targets. In February 2021, the incoming Biden administration revoked the designation, arguing it was a primary obstacle to delivering humanitarian aid in what the UN called the world's worst humanitarian crisis. Following the outbreak of the Israel-Hamas war in October 2023, the Houthis began launching missiles toward Israel and attacking commercial ships in the Red Sea, claiming solidarity with Palestinians.

The Red Sea Crisis (2023-Present):

The attacks on shipping, a critical artery for global trade, led the U.S. and its allies to form a multinational naval task force, "Operation Prosperity Guardian," in December 2023 to protect vessels. In January 2024, the Biden administration re-designated the Houthis as a "Specially Designated Global Terrorist" (SDGT) group, a less stringent label than FTO, but attacks continued.

Why Now? The Political Calculus:

  • Escalating Attacks: The E.O. is a direct response to what it describes as over 100 Houthi attacks on commercial vessels and dozens of attacks against U.S. Navy warships since 2023.
  • Reversal of Prior Policy: The order marks a decisive reversal of the Biden administration's 2021 revocation, framing the previous approach as a failure that emboldened the Houthis.
  • Perceived Ineffectiveness of Other Measures: The SDGT designation and retaliatory military strikes by U.S. and U.K. forces did not halt Houthi attacks, creating political pressure for a more forceful tool to cut off the group's resources.

Your Real-World Impact

The Direct Answer: This action primarily affects humanitarian organizations, the Yemeni people, and global shipping industries, with most Americans only feeling potential indirect economic effects.

What Could Change for You:

Potential Benefits:

  • Safer Seas: If the FTO designation successfully pressures the Houthis to stop their attacks, it could lower the security risk in the Red Sea, reducing shipping delays and potentially lowering costs for imported goods.
  • Deterring Aggression: Supporters argue the designation isolates the Houthis diplomatically and financially, weakening their ability to conduct attacks and project power.

Possible Disruptions or Costs:

Short-term (First 1-6 months):

  • Humanitarian Crisis: Aid organizations warn the designation will severely complicate their work. Banks and private companies, fearing legal penalties for "material support," may refuse to process transactions or ship goods to Yemen, even for permitted humanitarian aid. This could worsen food and medicine shortages for millions of Yemenis.

Long-term:

  • Entrenched Conflict: Critics argue the designation could make a political settlement to the war more difficult by criminalizing engagement with the Houthis, who are a key party to the conflict.
  • Sustained Price Hikes: If attacks continue despite the designation, the increased costs for shipping insurance and rerouting vessels around Africa could become a persistent feature of global trade, contributing to inflation on imported goods.

Who's Most Affected:

Primary Groups: Yemeni civilians who depend on international aid and commercial imports for survival; international NGOs operating in Yemen.
Secondary Groups: Global shipping companies, insurance firms, and manufacturers who rely on the Suez Canal trade route.
Regional Impact: The designation will have the most significant impact on Yemen and its immediate neighbors, Saudi Arabia and Oman, who are involved in peace negotiations.

Bottom Line: This Executive Order aims to cripple the Houthis' ability to attack shipping through severe sanctions, but it risks deepening one of the world's worst humanitarian disasters.

Where the Parties Stand

Republican Position: "Holding Terrorists Accountable"

Core Stance: Overwhelmingly support the FTO designation as a necessary and overdue step to counter Iranian-backed terrorism.

Their Arguments:

  • ✓ The designation rightfully punishes the Houthis for attacks on U.S. military assets, international shipping, and regional allies.
  • ✓ It is a key tool to sever the financial and material support networks that enable Houthi aggression.
  • ⚠️ While acknowledging potential humanitarian impacts, they argue that these can be managed through specific licenses and waivers from the Treasury Department and do not outweigh the security threat.
  • ✗ They strongly oppose the previous administration's decision to revoke the FTO status, viewing it as an act of appeasement that failed.

Legislative Strategy: The executive order was signed by a Republican administration. They will support its full implementation by the State and Treasury Departments and will likely work to block any legislative attempts by opponents to revoke it.

Democratic Position: "Prioritizing the Humanitarian Catastrophe"

Core Stance: Generally oppose the FTO designation, arguing it is a blunt instrument that will harm innocent Yemenis more than Houthi leadership.

Their Arguments:

  • ✓ They support countering Houthi attacks through more targeted measures, such as the previous SDGT designation and military action, without jeopardizing the entire Yemeni economy.
  • ⚠️ They are deeply concerned that a broad FTO designation will cause commercial shippers and banks to "de-risk" and halt all business with Yemen, leading to famine.
  • ✗ They argue the designation will sabotage UN-led efforts to secure a lasting peace deal in Yemen by making it illegal for U.S. actors to engage with a primary party in the conflict.

Legislative Strategy: Likely to vocally oppose the designation, hold committee hearings focused on the humanitarian fallout, and pressure the administration to issue broad general licenses to permit aid and commercial imports. Some members may introduce legislation to revoke the designation.

Constitutional Check

The Verdict: ✓ Constitutional

Basis of Authority:

The President's order is based on authority granted by Congress in Section 219 of the Immigration and Nationality Act (INA), (8 U.S.C. 1189). This law explicitly authorizes the Secretary of State to designate foreign organizations as terrorist groups if they meet specific criteria.

Immigration and Nationality Act, Section 219(a)(1): "The Secretary is authorized to designate an organization as a foreign terrorist organization... if the Secretary finds that— (A) the organization is a foreign organization; (B) the organization engages in terrorist activity... or retains the capability and intent to engage in terrorist activity or terrorism; and (C) the terrorist activity or terrorism of the organization threatens the security of United States nationals or the national security of the United States."

Constitutional Implications:

Legal Principle: The Executive Order follows the statutory framework established by Congress. The executive branch is not creating a new power but exercising a delegated one.
Precedent: The U.S. government has designated and de-listed dozens of organizations as FTOs since the law was enacted in 1996. The process for designating and revoking the Houthi's status has been used before by different administrations.
Federalism: This is a matter of foreign policy and national security, which are powers constitutionally vested in the federal government, not the states.

Potential Legal Challenges:

Under the INA, Ansar Allah would have 30 days after the final designation is published in the Federal Register to file for judicial review in the U.S. Court of Appeals for the D.C. Circuit. However, such challenges are rarely successful, as the government is permitted to use classified evidence that the challenging party cannot see. Humanitarian organizations are more likely to pursue legal action to ensure that general licenses permitting their work are honored by banks and other private sector entities.

Your Action Options

TO SUPPORT THIS DESIGNATION

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to support Executive Order 14175 and the FTO designation of Ansar Allah to protect international security."

30-Minute Deep Dive:

  • Write a Detailed Email: Find the contact information for members of the House Foreign Affairs Committee and the Senate Foreign Relations Committee to explain your support for holding the Houthis accountable.
  • Join an Organization: Look for advocacy groups that focus on U.S. national security, countering Iranian influence, and supporting strong counter-terrorism policies.

TO OPPOSE THIS DESIGNATION

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to oppose the FTO designation of Ansar Allah due to its devastating humanitarian consequences for the people of Yemen."

30-Minute Deep Dive:

  • Write a Letter to the Editor: Submit a letter to your local newspaper explaining the potential for the designation to worsen famine and obstruct peace efforts in Yemen.
  • Join an Organization: Support humanitarian and peace-building organizations working in Yemen. Groups like the Norwegian Refugee Council, Mercy Corps, Oxfam, and the Charity & Security Network have publicly opposed the designation.