05-14-2025

Continuation of the National Emergency With Respect to the Stabilization of Iraq

NoticeView the Original .pdf
View the Original .pdf

The 1-Minute Brief

What: This executive action continues a national emergency for one year regarding the stabilization of Iraq. This emergency declaration, in place since 2003, provides legal protections for Iraqi oil and gas assets and the Development Fund for Iraq, shielding them from being seized in legal proceedings. It is intended to support the country's reconstruction and prevent disruptions to its political and economic development.

Money: There is no direct cost or appropriation associated with this executive order. Its financial impact is indirect, aimed at stabilizing Iraq's economy by protecting its main source of revenue—petroleum sales. This action allows for the waiver of a premium pay cap for eligible U.S. civilian employees working in Iraq.

Your Impact: For the average American, the direct effect is minimal. The order primarily affects U.S. companies involved in Iraq's energy sector by providing legal immunity for their activities related to Iraqi oil. Indirectly, it aims to promote stability in a critical region, which can affect global oil prices and U.S. national security interests.

Status: President Joe Biden continued the national emergency on May 9, 2025. The emergency has been renewed annually by successive administrations since it was first declared in 2003.

What's Actually in the Bill

This executive action is a formal notice continuing a national emergency declared under Executive Order 13303. The original order was issued to deal with the "unusual and extraordinary threat to the national security and foreign policy of the United States" posed by obstacles to Iraq's reconstruction after the 2003 invasion.

Core Provisions:

  • Continues the National Emergency: Extends the national emergency concerning Iraq for 1 year beyond its expiration date of May 22, 2025.
  • Protects Iraqi Assets: The underlying Executive Order 13303 grants broad legal immunity to the Development Fund for Iraq, as well as all Iraqi petroleum and petroleum products.
  • Shields from Legal Action: These assets are protected from "attachment, judgment, decree, lien, execution, garnishment, or other judicial process." This protection extends to U.S. entities and individuals involved in the extraction, production, and sale of Iraqi oil.
  • Invokes Emergency Powers: The continuation is made pursuant to the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA).

Stated Purpose (from the Sponsors):

The White House states that the renewal is necessary because obstacles to Iraq's stability continue to pose a significant threat to U.S. national security and foreign policy.

  1. To address challenges to the orderly reconstruction of Iraq.
  2. To support the restoration and maintenance of peace and security in the country.
  3. To foster the development of stable political, administrative, and economic institutions in Iraq.

Key Facts:

Affected Sectors: Energy (specifically oil and gas), Finance, and Defense.
Timeline: The national emergency has been continuously in effect since May 22, 2003, and is now extended until May 22, 2026.
Scope: The order applies to U.S. courts and affects U.S. persons and companies, particularly those with commercial interests in Iraq's petroleum sector.

The Backstory: How We Got Here

Timeline of Events:

Post-Invasion Era (2003-2011):

Following the U.S.-led invasion of Iraq in 2003, the country faced immense challenges, including the collapse of state institutions, sectarian violence, and the need for massive reconstruction. In May 2003, President George W. Bush issued Executive Order 13303 to protect Iraq's primary source of revenue—its oil—from being claimed by creditors or used to satisfy legal judgments against the former regime of Saddam Hussein. This was seen as a critical step to ensure that oil revenues could fund the country's rebuilding through the newly established Development Fund for Iraq. The United Nations Security Council passed Resolution 1483 the same day, which lifted sanctions and supported the creation of the fund.

Insurgency and ISIS (2011-2017):

After the withdrawal of U.S. troops in 2011, Iraq continued to face political instability. The rise of the Islamic State of Iraq and Syria (ISIS) plunged the country back into intense conflict, further devastating its infrastructure and economy. The U.S. and coalition partners re-engaged militarily, and the legal protections afforded by the national emergency remained in place to safeguard the country's economic lifeline during the fight against ISIS.

Relative Stability and Ongoing Threats (2018-Present):

Since the territorial defeat of ISIS in 2017, Iraq has experienced a period of relative stability and has been focused on recovery and rebuilding. However, the country still faces complex challenges, including the presence of armed militias outside of state control, corruption, and regional tensions. The U.S. government maintains that these lingering issues constitute an ongoing threat, justifying the annual renewal of the national emergency. In recent years, U.S. and Iraqi officials have negotiated a timeline for the withdrawal of remaining U.S. forces by 2026.

Why Now? The Political Calculus:

  • Economic Stability: The primary driver for the renewal is to ensure Iraq's economic stability by protecting its oil revenues, which are essential for government function and reconstruction projects.
  • Geopolitical Influence: The continued U.S. engagement, signified by measures like this, is part of a broader strategy to counter Iranian influence in Iraq and promote a stable government allied with the U.S.
  • Preventing Disruption: Allowing the order to lapse could expose Iraqi assets and the U.S. companies working with them to a flood of lawsuits, potentially destabilizing Iraq's economy and disrupting global energy markets.

Your Real-World Impact

The Direct Answer: This directly affects a specific group of U.S. corporations in the energy sector and has an indirect, but significant, impact on U.S. foreign policy and national security.

What Could Change for You:

Potential Benefits:

  • Stable Energy Prices: By helping to ensure the uninterrupted flow of Iraqi oil to the global market, the policy contributes to the stability of global energy supplies, which can help prevent sudden spikes in gasoline prices.
  • Enhanced National Security: The administration's stated goal is to foster a stable and independent Iraq, which is seen as crucial to preventing the resurgence of terrorist groups like ISIS and countering regional instability.

Possible Disruptions or Costs:

Short-term (1-2 years):

  • There are no direct costs or disruptions for the average citizen. For U.S. civilian employees in Iraq, the order allows for a waiver of certain pay caps.

Long-term:

  • Lack of Corporate Accountability: Critics argue that the broad immunity granted by the order shields energy companies from legal liability for potential environmental damage or labor disputes in Iraq, reducing accountability.
  • Perpetual Engagement: The annual renewal of a "national emergency" for over two decades raises questions about the long-term nature of U.S. involvement and emergency powers.

Who's Most Affected:

Primary Groups: U.S. oil and gas companies, financial institutions, and contractors operating in Iraq.
Secondary Groups: U.S. military personnel and federal civilian employees stationed in Iraq; the Iraqi people and government.
Regional Impact: The stability of Iraq has significant effects on its neighbors, including Syria, Iran, and Turkey, as well as the broader Middle East.

Bottom Line: This executive action keeps in place a legal shield that protects Iraq's oil money and the companies that handle it, a policy the White House argues is essential for regional stability and, by extension, U.S. security.

Where the Parties Stand

The renewal of this national emergency has historically been a routine, bipartisan action undertaken by every presidential administration since 2003.

Republican Position: "A Necessary Tool for Stability"

Core Stance: Republicans generally support strong measures to protect U.S. interests abroad and counter Iranian influence, making the continuation of this order consistent with party goals.

Their Arguments:

  • ✓ Supports U.S. energy companies and promotes a stable global oil market.
  • ✓ Acts as a check on Iranian influence in Iraq by supporting an independent Iraqi economy.
  • ✓ Provides a legal basis for continued U.S. engagement and stabilization efforts.
  • ⚠️ Some conservatives aligned with an "America First" foreign policy may question the necessity of a decades-long emergency declaration and continued U.S. involvement in nation-building.

Legislative Strategy: Generally supportive of the executive action, viewing it as a necessary function of presidential foreign policy authority. The focus is often on broader strategy in the region rather than this specific annual renewal.

Democratic Position: "Continuity for Regional Security"

Core Stance: Democrats generally support the renewal as a means of maintaining stability and preventing chaos, while also expressing a desire to eventually end "endless wars" and emergency declarations.

Their Arguments:

  • ✓ Promotes a stable Iraq, which is seen as critical to preventing a resurgence of terrorism.
  • ✓ Upholds international agreements and supports the Iraqi government's economic sovereignty.
  • ⚠️ Progressive members often express concern over the indefinite nature of national emergencies and the broad legal immunity granted to corporations.
  • ✗ Some anti-war voices within the party oppose any U.S. policies that prolong military and economic entanglement in Iraq.

Legislative Strategy: Generally supportive of the renewal as a pragmatic necessity, while simultaneously pushing for a broader diplomatic strategy and an eventual drawdown of U.S. military presence.

Constitutional Check

The Verdict: ✓ Constitutional

Basis of Authority:

The President's action is based on powers granted by two federal laws passed by Congress: the International Emergency Economic Powers Act (IEEPA) of 1977 and the National Emergencies Act (NEA) of 1976. These acts authorize the President to declare a national emergency in response to threats originating abroad and to regulate international economic transactions to address those threats.

Relevant Portion of the Constitution: The authority for Congress to pass laws like IEEPA and NEA is derived from its enumerated powers in Article I, Section 8, which include the powers to regulate commerce with foreign nations, to provide for the common defense, and to make all laws which shall be necessary and proper for carrying into execution the foregoing powers.

Constitutional Implications:

[Delegation of Powers]: The Supreme Court has generally upheld Congress's ability to delegate broad foreign policy and national security powers to the President, as it has done through IEEPA.
[Precedent]: Presidents from both parties have used IEEPA extensively to impose sanctions and regulate foreign commerce in response to declared emergencies. Legal challenges have been mounted, but they have rarely succeeded in overturning the President's authority under the act.
[Federalism]: This action pertains to foreign policy and international commerce, which are firmly within the authority of the federal government, so it does not overstep into powers reserved for the states.

Potential Legal Challenges:

While the renewal itself is unlikely to face a successful challenge, the underlying Executive Order 13303 has been criticized by some legal scholars. They argue its broad grant of immunity from "any judicial process" could be an overreach of executive authority, as it effectively bars U.S. citizens and others from seeking legal recourse in U.S. courts for disputes related to Iraqi oil. However, no such challenge has succeeded to date.

Your Action Options

TO SUPPORT THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I support the President's continuation of the national emergency for the stabilization of Iraq (based on E.O. 13303) as a necessary measure for national security."

30-Minute Deep Dive:

  • Write a Detailed Email: Contact members of the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs to express your support for policies that promote stability in the Middle East.
  • Join an Organization: Look for foreign policy organizations that focus on national security and a strong international presence for the U.S.

TO OPPOSE THIS BILL

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 take action to end the two-decade-long national emergency regarding Iraq. Congress should not allow these emergency powers to be renewed indefinitely."

30-Minute Deep Dive:

  • Write a Letter to the Editor: Submit a letter to your local newspaper arguing that national emergencies should not be perpetually renewed and that corporate immunity, as provided under E.O. 13303, undermines accountability.
  • Join an Organization: Groups that advocate for anti-war policies, corporate accountability, or limitations on executive power may oppose the indefinite renewal of this emergency.