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WASHINGTON – Today, the U.S. Department of the Treasury announced the full list of awardees receiving funding to support small business growth through the Biden-Harris Administration’s State Small Business Credit Initiative (SSBCI) Investing in America Small Business Opportunity Program (SBOP) following recent announcements of several initial awards. SBOP is a $75 million competitive grant program that provides funding to connect underserved and very small businesses to the financing necessary to participate in key Investing in America supply chains, including electric vehicle manufacturing, semiconductor manufacturing, construction, transportation, clean energy generation, and more.  

As part of the Biden-Harris Administration’s economic agenda, the SBOP was designed to catalyze additional private sector investment by supporting small business in getting the legal, accounting, and financial advisory services they need and helping them to secure SSBCI-supported financing or other state and federal program support.  

“By increasing access to capital and making historic investments in infrastructure, clean energy, and manufacturing, we have spurred record-breaking small business growth over the last three years,” said Vice President Kamala Harris. “Since taking office, I have been proud to work to expand access to opportunity by investing in the small businesses that are the backbone of our communities. This funding from the Small Business Opportunity Program will build on this momentum by allowing tens of thousands of entrepreneurs from historically underserved communities to access the technical assistance they need in order to hire more employees, grow their businesses, and advance innovation.”

“More than 19 million new small business applications have been filed during the Biden-Harris Administration and we’re working to support these entrepreneurs and connect them to the customers and capital they need to grow,” said Secretary of the Treasury Janet L. Yellen. “The Biden-Harris Administration has fueled major investments in key sectors of our economy, and these resources will support technical assistance that connects small businesses around the country to important supply chains and new opportunities.”   

Overview of 14 SBOP Awardees: 

• Arizona, $7.9 million: The Arizona Commerce Authority will expand three existing programs: DreamBuilder, Moonshot, and the Arizona Manufacturing Extension Partnership. These programs will target business owners in rural and mining communities, conduct pitch competitions, and will provide training and advisory services.   
• California, $10 million: The California Office of the Small Business Advocate (CalOSBA) will create a new Procurement & Innovation Capital Leadership for Entrepreneurs (PINNACLE) program. This initiative will be supported by $16.25 million in matching funds from CalOSBA. 
• Cherokee Nation, $2 million: Cherokee Nation Commerce Services will connect underserved small businesses in the 14 Cherokee Nation counties in Oklahoma with industry experts and foster collaboration with local financial institutions. 
• Chickasaw Nation, $2 million: Chickasaw Nation will support businesses located in the Chickasaw Nation treaty territory, as well as Chickasaw-owned businesses across the U.S., with a focus on agriculture and construction businesses. Partners include Murray State College, the Ardmore Chamber of Commerce, and i2E, Inc. This initiative will be supported by $225,000 in matching funds by the Chickasaw Nation Community Development Endeavor.  
• Hawaii, $1.6 million: The Hawaii Technology Development Corporation will build a one-stop marketplace of vetted technical assistance providers. The Chamber of Commerce Hawaii will be an implementation partner.  
• Kansas, $2.6 million: The Kansas Department of Commerce Office of Small Business Development and Entrepreneurship will support the Kansas Launchpad program. Partners include the Kansas Office of Minority and Women Business Development, the Kansas Office of Innovation, the Kansas Office of Rural Prosperity, the Kansas Department of Agriculture, and NetWork Kansas.  
• Louisiana, $5.3 million: The Louisiana Department of Economic Development (LED) will work with regional economic development organizations and accelerators to connect businesses to capital, particularly SSBCI-supported equity capital. This initiative will be supported by $2.4 million in matching funds from LED. 
• Maryland, $10 million: The Maryland Technology Development Corporation will establish the Business Resource Information, Development, and Guidance Ecosystem (BRIDGE) to deliver services through a regional network of new and existing technical assistance providers, and will serve businesses in Maryland, Delaware, D.C., and Virginia. The University of Maryland, University of Maryland Baltimore, and Loaned Executives will be implementation partners. This initiative is supported by $2.2 million in matching funds by TEDCO and the University of Maryland. 
• Michigan, $9.1 million: The Michigan Strategic Fund and the Michigan Economic Development Corporation will implement the Michigan Auto Supplier Transition Program which will serve businesses in their transition from the internal combustion engine auto supply chain to electric vehicle production or an adjacent industry. Partners include the Michigan Minority Supplier Development Council, the University of Michigan Economic Growth Institute, Automaton Alley, the Michigan Manufacturing Technology Center, and the Michigan Manufacturers Association. This initiative is supported by $500 million in matching funds from Michigan Infrastructure Office.   
• Mississippi, $4.8 million: The Mississippi Development Authority will launch the Connect MS program, which will engage eight regional clusters and two program pathways to improve small businesses chances of a successful capital raise. Partners include the Mississippi Small Business Development Center network and Innovate Mississippi. This initiative is supported by $2.2 million in matching funds from Innovate Mississippi  
• Nevada, $4.2 million: The Nevada Governor’s Office of Economic Development will deliver programming to startups, healthcare businesses, rural and Tribal businesses, and advanced manufacturing businesses, particularly those producing lithium batteries and other EV components. Partners include the Nevada Small Business Development Center, the Nevada Tech Hub, and National Science Foundation Engines grantees in Nevada. 
• New York, $9.4 million: Empire State Development (ESD) will launch the Semiconductor Growth Access Program (SGAP) to help businesses grow in or pivot to the semiconductor supply chain in upstate New York. Key partners include NY Smart I-Corridor Tech Hub, Mohawk Valley Economic Development Growth Enterprises Corporation, and the Capital Region Center for Economic Growth. This initiative is supported by $1.5 million in matching funds from ESD.  
• Oklahoma, $4.2 million: The Oklahoma Center of Science and Technology (OCAST) will launch Roadmap2Success, focused on businesses that safeguard Oklahoma’s telecommunications infrastructure from cyber threats and bolster biotechnology and advanced mobility industries. Partners include Oklahoma Biotech Innovation Cluster, Oklahoma Broadband Office, University of Tulsa’s Oklahoma Cyber Innovation Institute, and the Tulsa Regional Advanced Mobility Corridor. This initiative is supported by $384,000 in matching funds by OCAST. 
• Rhode Island, $1.6 million: The Rhode Island Commerce Corporation will expand the RI Rebounds Technical Assistance Program focused on the construction, transportation, and renewable energy industries. Rhode Island’s Future will be an implementation partner. 

A fact sheet summarizing all 14 SBOP awards can be found here. 

Selected jurisdictions will build or expand technical assistance programs focused on connecting very small and underserved businesses to financing available through SSBCI, or other state or federal small business programs, including in infrastructure, manufacturing, clean energy, or climate resiliency. Jurisdictions have been selected based on their plans to create innovative, high-impact models of small business technical assistance delivery that demonstrate a vision to improve access to capital for historically overlooked businesses across the nation.   

The American Rescue Plan Act reauthorized and expanded SSBCI, which provides nearly $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities. SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities. Through the SSBCI Capital Program, Treasury has approved plans for small business financing programs totaling over $8.7 billion and representing every state and territory, the District of Columbia, and 280 Tribal governments. 

In addition to today’s announcement, Treasury has announced the approvals of SSBCI Technical Assistance grants allocated by formula to states, the District of Columbia, territories, and Tribal governments, representing $145 million for 48 jurisdictions. Treasury anticipates additional approvals of applications to follow. See the full list of approved programs here.  

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WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Algoney Hamdan Daglo Musa (Algoney), pursuant to Executive Order (E.O.) 14098, for leading efforts to supply weapons to continue the war in Sudan. The war between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) has caused immense devastation, leaving tens of thousands dead, more than 11 million displaced, and millions facing emergency levels of hunger.  Algoney is the procurement director of the RSF and a brother of Mohammed Hamdan Daglo (Hemedti), the leader of the RSF. Algoney has extended this war by leading RSF efforts to procure weapons and military materiel. By arming the RSF, his actions have directly contributed to the RSF’s ongoing siege of El Fasher in North Darfur, a city of nearly two million vulnerable civilians, and the RSF’s operations elsewhere in Sudan.

“At a time when the United States, the United Nations, the African Union, and others are advocating for peace, key individuals on both sides—including Algoney Hamdan Daglo Musa—continue to procure weapons to facilitate attacks and other atrocities against their own citizens,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “The United States will continue to hold accountable those who seek to prolong this conflict and restrict access to vital humanitarian assistance at a time of famine and fragility.”

Key RSF procurement official

Algoney is the RSF’s procurement director and one of the younger brothers of Mohammed Hamdan Daglo (Hemedti), the head of the RSF. He is close to Hemedti, having also previously worked as his personal secretary. Algoney is a key officer within the RSF, especially given Hemedti’s preference for staffing key roles in the organization with his family members. Algoney has controlled RSF front companies, including the OFAC-sanctioned Tradive General Trading, which imported vehicles to Sudan on behalf of the RSF. 

Algoney is being designated, pursuant to E.O. 14098, for being a foreign person who is or has been a leader, official, senior executive officer, or member of the board of directors of the RSF, an entity that has, or whose members have, engaged in actions or policies that threaten the peace, security, or stability of Sudan relating to the tenure of such leader, official, senior executive officer, or member of the board of directors.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. 

In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons (SDN) List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for more information on the individuals and entities designated today.

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Proposed rules describe that Tribally chartered entities have same federal tax status as their owning Tribes and clarify Tribal eligibility for elective pay to access Inflation Reduction Act tax credits

WASHINGTON – Today, the U.S. Department of the Treasury and the IRS issued a Notice of Proposed Rulemaking (NPRM) clarifying that wholly-owned Tribal entities chartered or organized by one or more Tribes have the same tax status of their owning Tribes. This means that these Tribal entities – businesses entirely owned by a Tribe – would not be subject to federal income tax. The proposed rule recognizes that Tribal economies are unique and rely on Tribal businesses to generate government revenue. The rule also would make these Tribal entities eligible for certain Inflation Reduction Act clean energy tax credits through a payment mechanism known as elective pay, commonly referred to as direct pay, that allows entities without federal tax liability to receive the full benefit of these incentives.

“For far too long, tax uncertainty has held back tribes’ economic opportunity, and the Biden-Harris Administration is reversing that trend. Tribally chartered entities generate critical revenue for their communities, and today’s rules recognize their tax status to enable them to further their contributions to economic development,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “The Biden-Harris Administration will continue to support Tribal communities, ensuring Tribes are able to easily access the Inflation Reduction Act’s clean energy tax credits to help lower utility costs and strengthen energy security.”

“The Biden-Harris Administration’s new policy clarifying that Tribally chartered businesses are exempt from income taxes is a crucial step in the development of Native communities,” said U.S. Senator Catherine Cortez Masto. “This will give tribes the certainty they need to use new tools, including the Inflation Reduction Act, to expand opportunity and support economic development on Tribal lands. As a member of the Senate Indian Affairs Committee, I will continue fighting for the economic prosperity of tribes in Nevada.”

“We must ensure that our tax code recognizes the unique challenges facing Native American families and communities,” said U.S. Congressman Dan Kildee. “Thanks to the Biden-Harris Administration and new laws passed by Democrats like the Inflation Reduction Act, tribes can now take advantage of new tax credits to create new clean energy investments. This new effort will help support more clean energy projects and good-paying jobs across Indian Country.”

“Tribal governments have long requested guidance from Treasury and the IRS on the tax status of Tribally chartered corporations. Without guidance, Tribal Nations face uncertainty and the threat of a potential audit, which has hindered their economic growth,” said U.S. Congresswoman Gwen Moore. “I appreciate that the Biden-Harris Administration is making progress by addressing the Federal tax status of corporations chartered under Tribal law that are wholly owned. And, I eagerly await further guidance on the treatment of such corporations that are majority owned or jointly owned by a Tribe.”

“Today’s proposed regulations from the Department of the Treasury and the IRS signify a pivotal moment for tribal economic development,” said Mashantucket Pequot Tribal Nation Chairman Rodney Butler, President of NAFOA (founded as the Native American Finance Officers Association). Chairman Butler is also a member of the Treasury Tribal Advisory Committee (TTAC), where NAFOA serves as a technical advisor. “These regulations recognize the importance of Tribal economies and Tribal sovereignty and demonstrate the value of meaningful Tribal consultation and the essential work of the TTAC and its advisors.”

“This second tranche of new draft regulations makes clear that the U.S. Treasury Department values the input of Tribal Nations and Tribal leadership it has received through the years. These proposed new rules use Tribal sovereignty as a foundation and put a premium on Tribal self-determination,” said Mark Macarro, President of the National Congress of American Indians. “Representation also matters. The Biden-Harris Administration has appointed Tribal leadership into critical policy seats as exemplified by US Treasurer Lynn Malerba, Chief of the Mohegan Tribe and her team at Treasury. This tilt toward embracing Tribal sovereignty in federal rulemaking should not be anomalous. With the leadership Treasury has shown, now other agencies’ leadership will see that the primacy of Tribal government decision-making is valued.”

“This guidance will increase those tribal entities’ access to credit, the larger capital market, and provide the certainty we need to negotiate better terms and expand the breadth and depth of what these entities bring to tribal governments to fund basic services to tribal citizens,” said Coalition of Large Tribes Executive Director OJ Semans, Sr.

“For over 30 years, Tribal Nations have been awaiting confirmation that Tribally chartered corporations and entities are not subject to federal income tax. Uncertainty regarding the tax status of Tribal entities has been a significant federal policy barrier faced by Tribal Nations as we seek to build our economies and generate our own governmental revenues. Today, Treasury and IRS are taking historic steps to remove this barrier to economic development in Indian Country,” said United South and Eastern Tribes Sovereignty Protection Fund President, Chief Kirk Francis. “While we recognize there is still more to do on this front, we extend our deep appreciation to Treasury, especially its Office of Tribal and Native Affairs, the IRS, and the TTAC, for the considerable work involved in developing this guidance and urge its swift finalization.”

“Adoption of the proposed rule will immediately foster improved access to credit and directly enhance resources needed for economic development, service provision, and infrastructure investment across America’s Native nations. The tribal and non-tribal citizens of the United States will benefit,” said Joseph P. Kalt, Co-Founder and Director of Harvard University’s Harvard Project on Indigenous Governance and Development.

Today’s guidance is needed because, as a result of federal policy, Tribal Nations largely lack the same property, income, and sales tax bases as non-Tribal governments. Tribal Nations, therefore, rely on commercial entities to generate government revenue and have historically accorded their sovereign privileges and immunities to these entities. Over the past 30 years, Tribes have requested confirmation that their wholly-owned entities chartered under Tribal law (Tribally chartered entities) share their tax status because tax certainty is critical to Tribal economic development.

Upon the passage of the Inflation Reduction Act, the question of the tax status of Tribally chartered entities became especially critical as many Tribes began projects, owned by their Tribally chartered entities, to seek clean energy tax credits that are available to Indian tribal governments for the first time.

The proposed rule describes that federally-chartered Tribal corporations and wholly-owned Tribal entities may directly register for and claim applicable clean energy tax credits through a payment mechanism known as elective pay. In addition, Tribally chartered entities and Federally chartered Tribal corporations that are wholly owned by multiple Tribes may also be the entity that registers for and claims applicable clean energy tax credits via elective pay.

Tribes may rely on the rules issued today for tax years that precede the date of the NPRM.

Today’s guidance follows robust consultations with Tribal Nations and the Treasury Tribal Advisory Committee (TTAC) that explained that wholly owned Tribally chartered entities are an exercise of their inherent sovereign authority to generate governmental revenue, self-govern the use of that revenue according to their own laws, and self-determine the use of that revenue for their citizenry. This guidance demonstrates Treasury’s recognition, support, and protection of principles of Tribal sovereignty, sovereign immunity, and self-governance that have been repeatedly reaffirmed by the Supreme Court and outlined in the Biden-Harris Administration’s Executive Order 14112.

This guidance follows on our September 2024 publication of a proposed rule on the Tribal General Welfare Exclusion Act, which would enable Tribes to provide assistance to Tribal communities that is excludable from gross income. Like today’s proposed rule, that NPRM addresses a decade of tax uncertainty and supports deference to Tribal Nations and support for Tribal self-determination on their community’s needs.

Today’s proposed regulations build upon Treasury’s historic investment in its Tribal relations through creation of its first Office of Tribal and Native Affairs under the first Native American Treasurer, former TTAC member Chief Malerba. This Office has worked across the Department to support the administration of $30 billion in recovery set asides to Tribal Nations and support for Tribal access to the billions in clean energy tax credits through the Inflation Reduction Act.

Treasury welcomes public comment on this rule and is commencing Tribal consultation on these proposed regulations. To learn more about this rule, see the Dear Tribal Leader Letter, Consultation and Federal Feedback Summary, and Tribal Fact Sheet.

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WASHINGTON – Today, the U.S. Department of the Treasury (Treasury) announced that the California Office of the Small Business Advocate is being awarded $10 million to support small business growth through the Biden-Harris Administration’s State Small Business Credit Initiative (SSBCI) Investing in America Small Business Opportunity Program (SBOP). California’s initiative will be supported by $16.25 million in matching funds.

Part of the Biden-Harris Administration’s economic agenda, this $75 million program provides funding to connect underserved and very small businesses to the capital needed to participate in key Investing in America supply chains, including electric vehicle manufacturing, semiconductor manufacturing, construction, transportation, clean energy generation, and more. The SBOP was designed to catalyze additional private sector investment by supporting small business technical assistance services like accounting and legal services.

“The Biden-Harris Administration’s economic agenda is focused on continuing the historic small business boom by helping small businesses across the country grow and hire,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “With this new funding, California will be able to provide one-on-one support to help entrepreneurs seize new opportunities created by state investments in infrastructure and innovation.”  

“Today’s announcement to fund critical small business technical assistance programs will help ensure that more small businesses can thrive, as part of the Biden-Harris Administration plan that is powering a small business boom with a record 19 million new business applications so far,” said National Economic Advisor Lael Brainard.  

“America’s small businesses are the engine of our economy – and as I often say, there is nothing more optimistic than starting a small business,” said Speaker Emerita Nancy Pelosi. “As Speaker, I was proud to partner with President Biden and lead House Democrats in delivering transformative investments for our small businesses – and I’m thrilled to join in celebrating this federal funding to bring those investments to California. Democrats are proud to support small businesses and their great optimism, entrepreneurialism and courage, which are the lifeblood of the American economy.” 

“This $10 million investment is a huge win for California’s small businesses, helping them grow, create jobs, and lead in industries that drive our future,” said California Lieutenant Governor Eleni Kounalakis. “By supporting California’s efforts to provide essential resources, technical support, and access to capital, this investment will ensure our state remains at the forefront of economic growth and innovation, especially for small businesses owned by women and people of color. I am grateful for the Biden-Harris Administration’s commitment to fostering inclusive economic opportunity and supporting the backbone of California’s economy.” 

“This funding will go a long way in making sure that small businesses across California not only know about billions of dollars in low cost federal and state financing available to them, but also receive any technical assistance necessary to apply for these funds.” said U.S. Congresswoman Maxine Waters. “I am particularly pleased that this award is coming from the State Small Business Credit Initiative, an initiative I helped to create in 2010 and later led the effort to renew and expand in partnership with the Biden-Harris Administration in 2021. California’s small businesses, and especially its diverse-owned businesses, are too often ignored by our traditional banking system, but through this program can receive critical capital financing to better serve their communities. I look forward to working with the Treasury Department and state agencies to spread the word about these resources.” 

“Reauthorized and expanded by Congressional Democrats and the Biden-Harris Administration through the American Rescue Plan, SBOP supports small businesses nationwide receive the access to capital and technical assistance they need to succeed–barriers disproportionately impacting businesses owned by women and people of color,” said U.S. Congresswoman Judy Chu. “With today’s announcement, entrepreneurs in the San Gabriel Valley and around California will be able to take advantage of the new PINNACLE program’s wealth of resources, training, and other forms of assistance to help them not just stay afloat but thrive and magnify their contributions to their communities.” 

“CalOSBA is honored and grateful that the U.S. Treasury has chosen our application through this competitive process,” said CalOSBA Director Tara Lynn Gray. “Our proposal is designed to complement both the existing federal investment in our Technical Assistance for Capital Readiness Program and state-level investment from Governor Newsom’s administration in our Accelerate California program. The team at CalOSBA is tasked with diversifying California’s innovation economy and increasing small business participation in state contracting – both of which will be greatly assisted by this new funding.” 

The Office of the Small Business Advocate within the Governor’s Office of Business and Economic Development submitted the application for the SBOP award, which was selected through a competitive process. Using this $10 million, CalOSBA will create a new Procurement & Innovation Capital Leadership for Entrepreneurs (PINNACLE) program. 

PINNACLE will build upon the $25.3 million in SSBCI Formula Technical Assistance funding invested in building CalOSBA’s SCALE technical assistance network. The PINNACLE program would help small businesses take advantage of opportunities created by a requirement for all state agencies to meet or exceed 25% small business participation in their procurement pipelines; $180 billion in infrastructure spending over the next 10 years; and the Accelerate California network of 13 Inclusive Innovations Hubs supporting diverse creation and growth of new fast-growth, high-wage businesses.

PINNACLE funding will be used to support underserved small businesses, including those owned by people of color and women, with the capacity to take advantage of these opportunities by providing one-on-one counseling, training, and resources. 

Selected SBOP jurisdictions will build or expand technical assistance programs focused on connecting very small and underserved businesses to financing available through SSBCI, or other state or federal small business programs, including in the infrastructure, manufacturing, clean energy, or climate resiliency space. Jurisdictions have been selected based on their plans to create innovative, high-impact models of small business technical assistance delivery that demonstrate a vision to improve access to capital for historically overlooked businesses across the nation.

The American Rescue Plan Act reauthorized and expanded SSBCI, which provides nearly $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities. SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities. Through the SSBCI Capital Program, Treasury has approved plans for small business financing programs totaling over $8.7 billion and representing every state and territory, the District of Columbia, and 280 Tribal governments. 

In addition to today’s announcement, Treasury has announced the approvals of SSBCI Technical Assistance grants allocated by formula to states, the District of Columbia, territories, and Tribal governments, representing $145 million for 48 jurisdictions. Treasury anticipates additional approvals of applications to follow. See the full list of approved programs here.

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WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated three individuals and one sham charity that are prominent international financial supporters of Hamas, as well as one Hamas-controlled financial institution in Gaza. OFAC also designated a longstanding Hamas supporter and nine of his businesses. These actors play critical roles in external fundraising for Hamas, often under the guise of charitable work, that finance the group’s terrorist activities. Today’s action, which is being taken pursuant to the counterterrorism authority Executive Order (E.O.) 13224, as amended, highlights the abuse of the non-profit organization (NPO) sector by terrorist financiers through the use of sham charities to generate revenue. 

“As we mark one year since Hamas’s brutal terrorist attack, Treasury will continue relentlessly degrading the ability of Hamas and other destabilizing Iranian proxies to finance their operations and carry out additional violent acts,” said Secretary of the Treasury Janet L. Yellen. “The Treasury Department will use all available tools at our disposal to hold Hamas and its enablers accountable, including those who seek to exploit the situation to secure additional sources of revenue.”

Treasury is committed to exposing terrorists and terrorist organizations that abuse the NPO sector. By publicly identifying a sham charity, this action reduces the overall risk of the NPO sector and helps preserve access by legitimate humanitarian organizations to financial services. 

Today’s action is the eighth tranche of U.S. designations targeting Hamas’s financial support networks since the horrifying terrorist attack of October 7, 2023. This includes an April 12, 2024 action sanctioning Hamas cyber actors, and October 18, 2023 and October 27, 2023 actions targeting sources of Hamas financing and financial facilitators. The United States continues to closely coordinate with its partners in targeting Hamas, including a joint designation with Australia and the United Kingdom on January 22, 2024 that targeted Hamas financial facilitators, as well as three actions with the United Kingdom on March 27, 2024, December 13, 2023, and November 14, 2023 targeting Hamas leaders and financiers. 

The United States remains committed to working with our key partners and allies to counter the terrorist threats or terrorist organizations in the region. These designations were also enabled by key analysis and information from Treasury’s Financial Crimes Enforcement Network (FinCEN).

HAMAS’S USE OF SHAM & FRONT CHARITIES 

Hamas has exploited the suffering in Gaza to solicit funds through sham and front charities that falsely claim to help civilians in Gaza. Hamas affiliates raise funds through sham or front charities and also seek to garner public support for the group. As of early 2024, Hamas may have received as much as $10 million a month through such donations. Hamas considers Europe to be a key source of fundraising and has maintained representation across the continent for many years in part to raise funds through sham charities.  

HAMID AL AHMAR: INTERNATIONAL HAMAS SUPPORTER AND BUSINESSMAN

Hamid Abdullah Hussein al Ahmar (al Ahmar), a Yemeni national living in Türkiye, is one of the most prominent international supporters of Hamas. He is a key member of Hamas’s once-secret investment portfolio, which at its peak managed over $500 million worth of assets enabling Hamas’s leaders to live in luxury outside the Palestinian territories despite the real humanitarian needs of the people of Gaza. Since at least 2013, Al Ahmar has also been the chairman of the Lebanon-based Hamas sham charity Al-Quds International Foundation, which OFAC designated in October 2012 for being controlled by Hamas. 

Al Ahmar is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Hamas. Al Ahmar is also being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Al-Quds International Foundation.

OFAC is also designating the following nine entities pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, directly or indirectly, al Ahmar:

• Al Ahmar Trading Group, based in Yemen.
• Al Ahmar Oils Supply and Distribution, based in Yemen.
• Sama International Media, based in Yemen.
• Al Salam Trading and Agencies General Establishment, based in Yemen. 
• Saba, Trade & Investment S.R.O., based in Czechia.
• Sabafon International SAL (Offshore), based in Lebanon.
• Sabaturk Dis Ticaret Anonim Sirketi, based in Türkiye.
• Vivid Enerji Yatirimlari Anonim Sirketi, based in Türkiye.
• Investrade Portfoy Yonetimi Anonim Sirketi, based in Türkiye.

EUROPE-BASED HAMAS FUNDRAISERS

Mohammad Hannoun (Hannoun) is an Italy-based Hamas member who established the Charity Association of Solidarity with the Palestinian People, or Associazione Benefica di Solidarietà con il Popolo Palestinese (ABSPP), a sham charity in Italy which ostensibly raises funds for humanitarian purposes, but in reality helps bankroll Hamas’s military wing. As an executive at ABSPP, Hannoun has sent money to Hamas-controlled organizations since at least 2018. He has solicited funding for Hamas with senior Hamas officials and sent at least $4 million to Hamas over a 10-year period.

Majed al-Zeer (al-Zeer) is the senior Hamas representative in Germany, who is also one of the senior Hamas members in Europe and has played a central role in the terrorist group’s European fundraising. He has appeared publicly with other senior Hamas members in order to generate funding and other support for Hamas. Al-Zeer has also served in Hamas delegations in the Middle East along with Adel Doughman and Hannoun.

Adel Doughman (Doughman) is in charge of Hamas activity in Austria and is another one of the most prominent Hamas representatives in Europe. He has been closely associated with senior Hamas leaders and has held senior positions in institutions affiliated with Hamas, which transfer money to the organization. Doughman participates in conferences and delegations on behalf of Hamas and works with other institutions designated by the United States for their affiliation with Hamas, to include Union of Good and the al-Quds International Institution.

Hannoun and ABSPP are being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, Hamas.

Al-Zeer and Doughman are being designated for having acted or purported to act for or on behalf of, directly or indirectly, Hamas.

HAMAS-CONTROLLED BANK

Hamas uses unlicensed banks, like Al-Intaj Bank (Al-Intaj), to continue to fund internal operations and to skirt international sanctions by operating outside the international financial system. Founded in 2013, Al-Intaj is an unlicensed Hamas-run bank in Gaza that provides financial services for Hamas despite not being connected to international banks. The Palestine Monetary Authority did not provide a license for this bank to operate; instead, the bank received a permit from the Hamas-led administration in Gaza.

Al-Intaj is being designated pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, directly or indirectly, Hamas.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above, and of any entities that are owned directly or indirectly, 50 percent or more by them, individually, or with other blocked persons, that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. 

U.S. persons must comply with OFAC regulations, including all U.S. citizens and permanent resident aliens regardless of where they are located, all persons within the United States, and all U.S.-incorporated entities and their foreign branches. Non-U.S. persons are also subject to certain OFAC prohibitions. For example, non-U.S. persons are prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. Violations of OFAC regulations may result in civil or criminal penalties.

In addition, non-U.S. financial institutions and other persons that engage in certain transactions or activities with sanctioned entities and individuals may expose themselves to sanctions risk or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

OFAC may impose civil penalties for sanctions violations based on strict liability, meaning that a person subject to U.S. jurisdiction may be held civilly liable even if such person did not know or have reason to know that it was engaging in a transaction that was prohibited under sanctions laws and regulations administered by OFAC. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. economic sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation. For additional information on complying with U.S. sanctions and export control laws, please see Department of Commerce, Department of the Treasury, and Department of Justice Tri-Seal Compliance Note.

Furthermore, engaging in certain transactions with the individuals designated today entails risk of secondary sanctions pursuant to E.O. 13224, as amended. Pursuant to this authority, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account of a foreign financial institution that knowingly conducted or facilitated any significant transaction on behalf of a Specially Designated Global Terrorist.

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons (SDN) List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Treasury remains committed to enabling the flow of legitimate humanitarian assistance supporting the basic human needs of vulnerable populations, while continuing to deny resources to malicious actors. Accordingly, OFAC sanctions programs contain provisions for legitimate humanitarian support to vulnerable populations, including authorizations for certain humanitarian transactions in support of nongovernmental organizations’ activities. For more information, please review relevant authorizations and guidance on OFAC’s website.

Click here for more information on the persons designated today.

Additional Treasury resources on countering the financing of terrorism and providing humanitarian assistance to the Palestinian people:

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As Prepared for Delivery

Let me start by thanking you all for having me here today at the end of your conference. It’s great to be back in Milwaukee and to join the Building Trades.

Just four years ago, we wouldn’t be able to have a meeting like this because of the pandemic. COVID upended our communities and our economy. The unemployment rate soared to almost 15 percent and climbed even higher in the Milwaukee area.^[1] In just a few months, the country lost almost two and a half million construction and manufacturing jobs.^[2]

I remember how much uncertainty we had then—not only about the health of our loved ones, but about how people were going to be able to provide for their families and if communities would be able to rebound.

When President Biden and Vice President Harris were elected, they were committed to not only ending the pandemic but building an economy that works for working families—an economy where wages are higher, housing costs are lower, and child care is more affordable. Because we know that costs are too high for families, and they have been for decades now. That’s why we’ve put lowering prices for Americans at the top of our economic agenda. And to do so, we know we’ll have to build millions of new houses, modern infrastructure, and all the parts of a clean energy economy. We need more building trades! 

Now no one knows more about how to build things than the Building Trades. That’s why to build a better economy, this administration has partnered with your leaders over the last four years to pass the most pro-union legislative agenda that our country has seen. Because we all know that what’s good for unions is good for America. Today, we’re excited that we have been able to pass three historic pieces of law that have made generational investments into our economy and created good-paying union jobs.

We’re excited that the CHIPS & Science Act has spurred nearly $400 billion in investment across the country, creating over 115,000 construction and manufacturing jobs.^[3] And the law included over $250 million of funding for local community workforce development to make sure employees will have the skills they need to contribute to these projects—projects that will also pay construction workers prevailing wages. 

We’re excited that through the Bipartisan Infrastructure Law we’ve already allocated funding for over 56,000 projects and awards across the country.^[4]That includes over $1 billion to replace the Blatnik Bridge between Superior and Duluth. It includes over $200 million to Wisconsin to replace every toxic led pipe and deliver clean water, with over $30 million just in Milwaukee. And it includes $5 million to make Milwaukee’s Mitchell Airport more resilient.^[5] 

And we’re excited that because of the passage of the Inflation Reduction Act, companies have announced over $380 billion in investments in more than 2,000 clean energy projects These projects are creating opportunity across the nation, not just the coasts. They are creating opportunities in communities that haven’t received the investment they deserve. The jobs they create will be good-paying and many won’t require a college degree. 

And, because of the Biden-Harris Administration, under the Inflation Reduction Act, federal prevailing wage and apprenticeship requirements are being applied to clean energy projects for the first time. One thing we know to be true is these requirements only work if they are enforced. That’s why the Treasury Department and the Department of Labor are jointly committed to ensuring the IRS has the resources, expertise, and manpower to ensure compliance among employers claiming this enhanced benefit. We are committed to make sure that if a company gets tax benefits from these provisions, it fulfills its obligations to pay the prevailing wage and employ apprentices. 

We were able to pass these laws because of the leadership of President Biden and Vice President Harris. And, because of their leadership, America is building again—building with American union labor because that’s the way you build things to last. That’s the way you build a strong economy. 

As the President says, we know who built the economy. The middle class built America, and unions built the middle class. That’s why we’re committed to continuing to partner with unions in everything we do. Thank you again for having me. 

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WASHINGTON – Today, the U.S. Department of the Treasury and Internal Revenue Service (IRS) announced that more than 30 million taxpayers in 24 participating states will be eligible for Direct File in Filing Season 2025. The average American spends $270 and 13 hours filing their taxes. Through Direct File, made possible by the Biden-Harris Administration’s Inflation Reduction Act, eligible Americans are able file their taxes online for free, directly with the IRS, saving potentially hundreds of dollars and hours of time.

“Thanks to the Biden-Harris Administration’s Inflation Reduction Act, the IRS is able to provide more than 30 million Americans with the option to file their taxes for free in an easy way,” said Secretary of the Treasury Janet L. Yellen. “By doubling the number of participating states and expanding eligibility, Direct File has the potential to save Americans tens of millions of dollars in filing fees in the upcoming filing season, advancing the Biden-Harris Administration’s goal of reducing costs for American families. As Filing Season approaches, taxpayers in the 24 participating states should check their eligibility for this free and easy tool to see if it’s the right option for them.” 

In Filing Season 2025, Direct File will be available in Alaska, Arizona, California, Connecticut, Florida, Idaho, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin, and Wyoming. 

Direct File provides a free, easy, and secure option for taxpayers with simple tax situations in participating states. Direct File has no hidden fees, is available in Spanish, and works as well on a smartphone as it does on a tablet or computer. Direct File shows taxpayers the math so they can be sure that their return is accurate, and they are getting their maximum refund.

For years, many other countries have offered their taxpayers an option to file their taxes online for free, but due to decades of underfunding the IRS was unable to provide this and other online services to Americans, raising the cost of tax filing and delaying refunds. The Biden-Harris Administration’s Inflation Reduction Act has changed this by providing the IRS with the resources to deliver world class service to American taxpayers.

In Filing Season 2024, the IRS ran a pilot program for Direct File in 12 states and more than 140,000 taxpayers successfully filed their taxes using the tool. Reviews were overwhelmingly positive with more than 90% of respondents rating their experience with Direct File as “excellent” or “above average” in a GSA Touchpoints survey of 11,000 users, and users reporting filing their taxes in around an hour or less.

The number of states offering Direct File will double in Filing Season 2025 to 24, and 62% of Americans will live in states that will offer Direct File. Treasury and the IRS have also secured commitments from additional states to join Direct File in Filing Season 2026, as part of their work to progressively expand the tool’s reach.

Building on last year’s success, Direct File will now cover additional types of income, credits, and deductions with an estimated more than 30 million taxpayers eligible to use Direct File across the 24 participating states. 

As it did in Filing Season 2025, Direct File will support common tax situations including: 

• A parent with W-2 income that claims the Earned Income Tax Credit and Child Tax Credit.
• A recent graduate with W-2 income, who pays student loan interest.
• A retired senior citizen with Social Security income.

For Filing Season 2025, Direct File will now also support additional income types and credits for individuals who meet other eligibility requirements, including the Credit for Other Dependents, Child and Dependent Care Credit, Premium Tax Credit, Retirement Savings Contributions Credit, as well as the deduction for Health Savings Accounts. Treasury Department and the IRS’ goal in the coming years is to expand the reach and tax scope of Direct File to provide an option for working-and middle-class taxpayers nationwide. More comprehensive information on the eligibility requirements for Filing Season 2025 can be found here.

The IRS will also bolster Direct File’s already robust customer service support. In the Direct File Pilot, customer service representatives handled 38,600 chats with an average wait time of less than a minute and resolved taxpayer questions in nine minutes on average. In addition, 90% of survey respondents who used customer support rated their experience as “excellent” or “above average.”

In Filing Season 2025, Direct File will have a new chat bot to provide guided help on the eligibility checker. Live Chat will again be available in English and Spanish and will have enhanced authentication and verification features to allow customer service representatives to provide more information. Taxpayers will also be able to request a callback where IRS customer service representatives can provide technical support and answer basic tax questions in English and Spanish.

State-by-state eligibility:

State	Estimate of Potentially  Eligible Taxpayers
Alaska	100,000
Arizona	1,140,000
California	5,620,000
Connecticut	520,000
Florida	3,220,000
Idaho	210,000
Kansas	410,000
Maine	170,000
Maryland	870,000
Massachusetts	1,050,000
Nevada	490,000
New Hampshire	180,000
New Jersey	1,370,000
New Mexico	300,000
New York	3,250,000
North Carolina	1,670,000
Oregon	640,000
Pennsylvania	2,140,000
South Dakota	110,000
Tennessee	800,000
Texas	4,200,000
Washington	920,000
Wisconsin	830,000
Wyoming	60,000

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