Message to the Congress Reporting on the Executive Order Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Sanctions Act of 1996
Issued 2011-05-23 by Barack Obama
Plain-English Overview
AI-generated summary explaining what this action does, who it affects, and why it matters
President Obama issued an executive order to implement sanctions against Iran under existing laws passed by Congress. The order builds on a national emergency that was first declared in 1995 based on findings that Iran's actions and policies threaten U.S. national security, foreign policy, and economy. Congress had passed laws requiring sanctions on individuals and companies that invest in Iran's energy sector or engage in certain activities related to Iran's refined petroleum sector, and this executive order puts those requirements into effect.
The sanctions target people and entities determined to have made certain investments in Iran's energy sector. When sanctions are imposed on someone, U.S. financial institutions can be prohibited from making loans to them, certain foreign exchange transactions involving them can be blocked, and transfers of credit or payments through financial institutions can be restricted if they involve the sanctioned person's interests. The Treasury Department, working with the State Department, is authorized to take these actions.
This action affects companies and individuals doing business with Iran's energy sector, as well as U.S. financial institutions that might otherwise conduct transactions with them. Congress found that Iran's nuclear activities, weapons development, and support for terrorism threaten U.S. security, and saw a potential connection between Iran's nuclear program and its energy sector. The executive order provides the mechanism to enforce the sanctions Congress required through existing emergency powers laws.
AI-generated summary for educational purposes
Constitutional Analysis
How this action fits (or doesn't) within Article II authority and existing law
This executive order ("Message to the Congress Reporting on the Executive Order Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Sanctions Act of 1996") imposes sanctions or economic restrictions targeting Iran. The President's stated rationale: "the potential connection between Iran's illicit nuclear program and its energy sector, CISADA amended ISA to expand the types of activities that are sanctionable under that Act." The International Emergency Economic Powers Act (IEEPA) grants the President broad authority to regulate international economic transactions when a national emergency has been declared. Presidents from both parties have used IEEPA extensively for foreign policy sanctions.
While the statutory authority is well-established, IEEPA's breadth has drawn constitutional criticism. The statute delegates sweeping power to the President during emergencies that can last for years or decades. The non-delegation doctrine questions whether Congress can transfer such broad economic regulatory authority to the executive branch. Despite these concerns, courts have generally deferred to presidential sanctions decisions.
Official Summary
Administration of Barack Obama, 2011 Message to the Congress Reporting on the Executive Order Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Sanctions Act of 1996 May 23, 2011 To the Congress of the United States: Pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq .) (IEEPA), I hereby report that I have issued an Executive Order (the "order") that takes additional steps with respect to the national emergency declared in Executive Order 12957 of March 15, 1995, and implements the existing statutory requirements of the Iran Sanctions Act of 1996 (Public Law 104–172) (50 U.S.C. 1701 note) (ISA), as amended by, inter alia , the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195) (CISADA). In Executive Order 12957, the President found that the actions and policies of the Government of Iran threaten the national security, foreign policy, and economy of the United States. To deal with that threat, the President in Executive Order 12957 declared a national emergency and imposed prohibitions on certain transactions with respect to the development of Iranian