[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]


                     EXAMINING THE CURRENT STATUS OF IRAN'S 
                      AXIS OF RESISTANCE AND THE IMPLICATIONS 
                      FOR HOMELAND SECURITY AND U.S. INTERESTS

=======================================================================

                                HEARING

                               BEFORE THE

                     COMMITTEE ON HOMELAND SECURITY
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             SECOND SESSION

                               __________

                             MARCH 20, 2024

                               __________

                           Serial No. 118-55

                               __________

       Printed for the use of the Committee on Homeland Security
                                     

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        Available via the World Wide Web: http://www.govinfo.gov

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                  U.S. GOVERNMENT PUBLISHING OFFICE                    
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                     COMMITTEE ON HOMELAND SECURITY

                 Mark E. Green, MD, Tennessee, Chairman
Michael T. McCaul, Texas             Bennie G. Thompson, Mississippi, 
Clay Higgins, Louisiana                  Ranking Member
Michael Guest, Mississippi           Sheila Jackson Lee, Texas
Dan Bishop, North Carolina           Donald M. Payne, Jr., New Jersey
Carlos A. Gimenez, Florida           Eric Swalwell, California
August Pfluger, Texas                J. Luis Correa, California
Andrew R. Garbarino, New York        Troy A. Carter, Louisiana
Marjorie Taylor Greene, Georgia      Shri Thanedar, Michigan
Tony Gonzales, Texas                 Seth Magaziner, Rhode Island
Nick LaLota, New York                Glenn Ivey, Maryland
Mike Ezell, Mississippi              Daniel S. Goldman, New York
Anthony D'Esposito, New York         Robert Garcia, California
Laurel M. Lee, Florida               Delia C. Ramirez, Illinois
Morgan Luttrell, Texas               Robert Menendez, New Jersey
Dale W. Strong, Alabama              Thomas R. Suozzi, New York
Josh Brecheen, Oklahoma              Yvette D. Clarke, New York
Elijah Crane, Arizona
                      Stephen Siao, Staff Director
                  Hope Goins, Minority Staff Director
                       Sean Corcoran, Chief Clerk
                            
                            C O N T E N T S

                              ----------                              
                                                                   Page

                               Statements

Honorable Mark E. Green, a Representative in Congress From the 
  State of Tennessee, and Chairman, Committee on Homeland 
  Security:
  Oral Statement.................................................     1
  Prepared Statement.............................................     3
Honorable Bennie G. Thompson, a Representative in Congress From 
  the State of Mississippi, and Ranking Member, Committee on 
  Homeland Security:
  Oral Statement.................................................     5
  Prepared Statement.............................................     6

                               Witnesses

Mr. James Dunlap, Deputy Under Secretary for Analysis, Office of 
  Intelligence and Analysis (I&A), Department of Homeland 
  Security:
  Oral Statement.................................................     8
  Prepared Statement.............................................    10
Mr. Robert Wells, Assistant Director, Counterterrorism Division, 
  Federal Bureau of Investigation (FBI):
  Oral Statement.................................................    11
  Prepared Statement.............................................    13
Ms. Carrie Thompson, Chief of Intelligence, Drug Enforcement 
  Administration (DEA):
  Oral Statement.................................................    17
  Prepared Statement.............................................    19
Ms. Elizabeth Richard, Ambassador-At-Large, Coordinator for 
  Counterterrorism, Bureau of Counterterrorism, U.S. Department 
  of State:
  Oral Statement.................................................    24
  Prepared Statement.............................................    25

 
   EXAMINING THE CURRENT STATUS OF IRAN'S AXIS OF RESISTANCE AND THE 
         IMPLICATIONS FOR HOMELAND SECURITY AND U.S. INTERESTS

                              ----------                              


                       Wednesday, March 20, 2024

             U.S. House of Representatives,
                    Committee on Homeland Security,
                                            Washington, DC.
    The committee met, pursuant to notice, at 10:05 a.m., in 
room 310, Cannon House Office Building, Hon. Mark E. Green 
(Chairman of the committee) presiding.
    Present: Representatives Green, Higgins, Guest, Gimenez, 
Pfluger, Garbarino, Gonzales, Ezell, D'Esposito, Lee, Strong, 
Brecheen, Crane, Thompson, Jackson Lee, Thanedar, Menendez, and 
Suozzi.
    Chairman Green. The Committee on Homeland Security will 
come to order. Without objection, the Chair may declare the 
committee in recess at any point.
    Before I get started this morning, I want to welcome a new 
Member to our committee. Mr. Suozzi, the gentleman from New 
York, is now joining us, and we're glad to have you on the 
committee.
    Mr. Suozzi. Thank you, Mr. Chairman.
    Chairman Green. Were you on this committee when you were 
here before?
    Mr. Suozzi. No.
    Chairman Green. Excellent. Excellent. We're glad to have 
you.
    Also, at 10:30 precisely we're going to vote on a measure 
to go into Classified setting, and we have to have that at 
10:30 even if the witness testimony here in the open session 
lasts beyond 10:30. So right at 10:30 we'll stop and vote and 
then continue.
    The purpose of this hearing is to receive testimony on the 
full scale, scope, and pace of threats posed to the homeland by 
Iran's proxy forces, and I now recognize myself for an opening 
statement.
    The Islamic Republic of Iran presents a clear and present 
danger to the United States homeland and our allies. Last 
October, the committee heard testimony from a variety of 
witnesses that highlighted the national security threats posed 
by the Iranian regime. Two of the witnesses, former Ambassador 
Nathan Sales and Robert Greenway, discussed the Iranian 
regime's terror capabilities and the threats the regime poses 
to the United States.
    In addition, we heard the harrowing testimony of human 
rights activist Masih Alinejad, who had been targeted multiple 
times by the Iranian regime on U.S. soil. The stories she 
shared opened the eyes of every Member of this committee to the 
lengths that the regime will go to silence those who speak 
truth to the regime's brutality.
    Since our last hearing pertaining to the threats posed by 
Iran, the security threats from Iran and their proxies have 
metastasized even more.
    These threats include assassination plots on former Trump 
administration officials, targeting and attacking U.S. service 
members abroad, disrupting trade and commerce and endangering 
maritime security in the Red Sea, and attempting to coordinate 
external terror operations in Europe and South America.
    Today we will focus our efforts on the threats posed by 
Iran's proxy networks, more commonly known as Iran's Axis of 
Resistance.
    The Axis of Resistance is a network of independent militia 
groups that Iran uses to enhance their power projection 
capabilities, provide plausible deniability for attacks 
conducted on behalf of the Iranian regime, and create 
instability for Iran's enemies in the region.
    Most notably, these terrorist proxies include Hezbollah, 
Hamas, the Houthis, Palestinian Islamic Jihad, and various 
Iraqi and Syrian militia groups. These proxies and their 
sympathizers are present in countries such as Lebanon, Iran, 
Yemen, Iraq, and Syria.
    In exchange for these groups' support and actions, they 
receive significant financial backing, material support, and 
training from the Iranian regime.
    Although we regularly hear about these groups' activities 
in the Middle East, their operations are not confined solely to 
that region.
    Hezbollah, arguably the most powerful proxy within the Axis 
of Resistance, has spent decades building the infrastructure 
needed to carry out its agenda in all parts of the world.
    As FBI Director Wray testified before the committee last 
November, and I quote, ``The arrests of individuals in the 
United States allegedly linked to Hezbollah's main overseas 
terrorist arm and their intelligence collection and procurement 
efforts demonstrate Hezbollah's interests in long-term 
contingency planning activities here in our homeland.''
    In addition, this terrorist organization has conducted 
operations throughout Europe and South America and has 
extensive ties to Venezuelan dictator Nicolas Maduro and his 
authoritarian regime.
    Last, Hezbollah has also engaged in narcotics, weapons, and 
human trafficking, as well as money laundering, for 
authoritarian regimes, transnational criminal organizations, 
and other terror networks.
    The Houthis, a Yemeni militia group, has been a long-time 
proxy for the Iranian regime. The Houthis have conducted 
operations that target U.S. partners in the Persian Gulf, such 
as Saudi Arabia.
    These attacks on one of our greatest allies in the Middle 
East have shown evidence that Iran has provided the Houthis 
with unmanned aerial vehicles equipped with explosives and 
long-range missiles. These weapons have not only advanced 
Iran's interests in the region, but have also helped the regime 
test weapon systems before fielding their capabilities 
elsewhere.
    Recently, the Houthis targeted Western commercial shipping 
with anti-ship missiles. These attacks have not only killed 
innocent commercial sailors, but have created significant 
delays in supply chains that will eventually cause the price of 
goods to rise.
    Sadly, the world is familiar with the dangers that Hamas 
poses. Their barbaric terror attack against Israel on October 7 
demonstrates this group is committed to carry out its hateful 
agenda at any cost and that Iran is dedicated to bankrolling 
the organization's quest to destroy Israel and the West.
    Hamas' reach is not limited to the Gaza Strip and Israel. 
In December of last year, German authorities detained 4 
individuals with ties to Hamas for plotting attacks on Jewish 
institutions in Europe. Their orders came from Hamas leaders in 
Lebanon.
    As mentioned earlier, these threats are not localized. What 
happens in someone else's backyard will eventually make its way 
to our own.
    We must acknowledge that the Axis of Resistance is 
committed to destroying Israel and the West. They've shown the 
intent to conduct operations abroad and have demonstrated a 
willingness to do so here in the United States.
    These groups have also exploited conflicts via news outlets 
and on-line communications to call on their supporters located 
in the United States to carry out attacks.
    I hope that today's hearing will give Members of this 
committee the opportunity to fully examine these terror groups 
and the current status of the threats they pose to the homeland 
and U.S. interests.
    We have circulated this proceeding in advance and have 
coordinated with the Minority, but I want to reiterate so all 
of our Members are aware: After the Ranking Member's statement 
we're going to hear opening statements from our witnesses and 
then there will be a vote to move into a closed session.
    We have a space set aside in the SCIF at HVC-301, and we 
will go over there with a goal of learning as much from our 
witnesses on this topic as possible.
    I look forward to our witnesses' testimony today, and I 
want to thank them all for being here.
    [The statement of Chairman Green follows:]
                  Statement of Chairman Mark E. Green
                             March 20, 2024
    The Islamic Republic of Iran presents a clear and present danger to 
the United States homeland and our allies.
    Last October, the committee heard testimony from a variety of 
witnesses that highlighted the national security threats posed by the 
Iranian regime.
    Two of the witnesses, Former Ambassador Nathan Sales and Robert 
Greenway, discussed the Iranian regime's terror capabilities and the 
threats the regime poses to the United States.
    In addition, we heard the harrowing testimony of human rights 
activist Masih Alinjead, who has been targeted multiple times by the 
Iranian regime on U.S. soil. The stories she shared opened the eyes of 
every Member of this committee to the lengths that the regime will go 
to silence those who speak truth to the regime's brutality.
    Since our last hearing pertaining to the threats posed by Iran, the 
security threats from Iran and their proxies have metastasized even 
more.
    These threats include:
   assassination plots on former Trump administration 
        officials;
   targeting and attacking U.S. service members abroad;
   disrupting trade and commerce and endangering maritime 
        security in the Red Sea;
   and attempting to coordinate external terror operations in 
        Europe and South America.
    Today we will focus our efforts on the threats posed by Iran's 
proxy networks, more commonly known as Iran's ``Axis of Resistance.''
    The ``Axis of Resistance'' is a network of independent militant 
Islamist groups that Iran uses to enhance their power projection 
capabilities, provide plausible deniability for attacks conducted on 
behalf of the Iranian regime, and create instability for Iran's enemies 
in the region.
    Most notably, these terror proxies include Hizballah, Hamas, the 
Houthis, Palestinian Islamic Jihad, and various Iraqi and Syrian 
militia groups.
    These proxies and their sympathizers are present in countries, such 
as Lebanon, Iran, Yemen, Iraq, and Syria.
    In exchange for these groups' support and actions, they receive 
significant financial backing, material support, and training from the 
Iranian regime.
    Although we regularly hear about these groups' activities in the 
Middle East, their operations are not confined solely to that region.
    Hizballah, arguably the most powerful proxy within the ``Axis of 
Resistance,'' has spent decades building the infrastructure needed to 
carry out its agenda in all parts of the world. As FBI Director Wray 
testified before the committee last November, ``the arrests of 
individuals in the United States allegedly linked to Hizballah's main 
overseas terrorist arm, and their intelligence-collection and--
procurement efforts, demonstrate Hizballah's interest in long-term 
contingency planning activities here in the homeland.\1\
---------------------------------------------------------------------------
    \1\ Worldwide Threats to the Homeland: Hearing Before the H. Comm. 
on Homeland Sec., 118th Cong. (Nov. 15, 2023).
---------------------------------------------------------------------------
    In addition, this terror organization has conducted operations 
throughout Europe and South America and has extensive ties to 
Venezuelan dictator, Nicolas Maduro, and his authoritarian regime.
    Last, Hizballah has also engaged in narcotics, weapons, and human 
trafficking, as well as money laundering for authoritarian regimes, 
transnational criminal organizations, and other terror networks.
    The Houthis, a Yemeni militia group, has been a long-time proxy for 
the Iranian regime. The Houthis have conducted operations that target 
U.S. partners in the Persian Gulf, such as Saudi Arabia. These attacks 
on our Middle East partners have shown evidence that Iran has provided 
the Houthis with unmanned aerial vehicles equipped with explosives and 
long-range missiles. These weapons have not only advanced Iran's 
interests in the region but have also helped the regime test weapons 
systems before fielding the capabilities elsewhere.
    Recently, the Houthis targeted Western commercial ships with 
antiship missiles. These attacks have not only killed innocent 
commercial sailors but have created significant delays in supply chains 
that will eventually cause the prices of goods to rise.
    Sadly, the world is familiar with the dangers that Hamas terrorist 
pose. Their barbaric terror attack against Israel, on October 7 
demonstrates this group is committed to carry out its hateful agenda at 
any cost and that Iran is dedicated to bankrolling the organization's 
quest to destroy Israel and the West.
    Hamas's reach is not limited to the Gaza Strip and Israel. In 
December of last year, German authorities detained 4 individuals with 
ties to Hamas for plotting attacks on Jewish institutions in Europe. 
Their orders came from Hamas leaders in Lebanon.
    As mentioned earlier, these threats are not localized. What happens 
in someone else's backyard will eventually make its way to ours.
    We must acknowledge that the ``Axis of Resistance'' is committed to 
destroying Israel and the West.
    They have shown the intent to conduct operations abroad and have 
demonstrated a willingness to do so. These groups have also exploited 
conflicts via news outlets and on-line communications to call on their 
supporters located in the United States to carry out attacks.
    I hope that today's hearing will give Members of this committee the 
opportunity to fully examine these terror groups and the current status 
of the threats they pose to the homeland and U.S. interests.
    We have circulated this proceeding in advance and have coordinated 
with the Minority, but I want to reiterate so all of our Members are 
aware: after the Ranking Member's statement, we are going to hear 
opening statements from our witness and then there will be a vote to 
move into a closed session. We have a space set up in the SCIF at HVC-
301, and we will go over there with the goal of learning as much from 
our witnesses on the topic as possible.
    I look forward to our witnesses' testimony today and thank them all 
for being here.

    Chairman Green. I now recognize the Ranking Member, the 
gentleman from Mississippi, Mr. Thompson, for his opening 
statement.
    Mr. Thompson of Mississippi. Thank you very much, Mr. 
Chairman.
    Good morning to our witnesses. I look forward to your 
testimony.
    I want to first welcome Representative Suozzi of New York 
to the committee.
    We're pleased to have you join us and look forward to 
working with you on many issues that come before this 
committee. Even if you're from New York, we welcome you to the 
committee.
    [Laughter.]
    Mr. Thompson of Mississippi. It's been more than 5 months 
since the horrific terrorist attack by Iranian-backed Hamas 
against Israel, which left more than 1,100 people dead. Still 
today, Hamas is holding an estimated 130 Israelis, including 
dual U.S. citizens, hostage.
    That deadly October 7 attack caused a war that has claimed 
tens of thousands of lives, including innocent civilians and 
children both in Israel and Gaza.
    Beyond the war in Gaza, Hamas' deadly attack has begun to 
spill over and destabilize regional peace and global economic 
security. We've seen Lebanese Hezbollah, also backed by the 
Iranian regime, launch attacks against Israel since October 7, 
killing a dozen Israeli soldiers and 6 civilians.
    Just a few days ago, it was publicly reported that the head 
of Iran's Quds Force met with Lebanese Hezbollah, and 
Hezbollah's leaders told the Iranian regime that the terrorist 
group is willing to fight Israel on its own without pulling in 
Iranian armed forces. That should trouble us all.
    Moreover, Houthis in Yemen have repeatedly attacked 
commercial shipping, demonstrating how the United States and 
our allies are threatened by Iranian-backed terrorist groups.
    The Houthis have also claimed responsibilities for 
attacking the U.S. Navy. While the claims have been refuted by 
U.S. defense officials, it shed light on the group's terrorism-
related aspirations.
    Today's hearing is an opportunity for the committee to hear 
from national security agencies in a closed setting about the 
threat Iranian-backed terrorist groups, like Hamas, Hezbollah, 
and the Houthis, pose to the homeland and to U.S. interests 
world-wide.
    As I said in the immediate aftermath of the heinous attacks 
on October 7, the United States condemns Hamas' actions.
    We also keep the innocent civilians in Gaza who have died 
in our prayers and call for lasting peace in the region.
    Unfortunately, as the administration has worked tirelessly 
to support Israel, bringing Americans home from the conflict 
zone, prevent a wider war in the region, and address the 
humanitarian crisis in Gaza, House Republicans have absolutely 
refused to provide Israel with the resources they need to push 
back the threats of terrorists and terroristic regimes.
    Republican leaders are also refusing to work with Democrats 
to provide humanitarian relief for civilians in Gaza.
    Now, while I'm pleased that an apparent deal has been 
reached to fund the Government, it is shameful that more than 5 
months into fiscal year 2024 House Republicans' refusal to 
govern has us once again on the precipice of a partial 
Government shut-down.
    If House Republicans do not put politics aside and pass the 
agreed-upon spending packages, all 4 of the witnesses 
testifying before us today are facing the shuttering of their 
agencies.
    This is a do-nothing Republican Majority.
    Although I'm glad that we have an opportunity today to 
better understand the current threat posed by Iranian-backed 
terrorist groups, I have zero faith that my Republican 
colleagues will actually do anything meaningful about it when 
they leave this room.
    Even Republican Members have acknowledged how dysfunctional 
Congress has become under their own party's leadership.
    I cannot believe I'm agreeing with Congressman Andy Biggs, 
but I agree with his characterization of this Republican 
Majority: It's embarrassing.
    Republican dysfunction is a threat to the peace and 
stability around the world, because under their so-called 
leadership Congress cannot even come to the aid of its allies.
    There is much to be done as Iran and other adversaries, 
like Russia, North Korea, and China, continue to be a threat to 
the United States.
    I hope that today's hearing, particularly as we are 
receiving information in a Classified setting, will serve as a 
turning point.
    I hope that Republicans will get serious about addressing 
the threats that this country faces. It's time that we finally 
focus our energy on helping Israel and other allies stand 
against evil, and we must help provide much-needed humanitarian 
aid to the Palestinian civilians.
    I thank the panel for joining us today, and I yield back.
    [The statement of Ranking Member Thompson follows:]
             Statement of Ranking Member Bennie G. Thompson
                             March 20, 2024
    It has been more than 5 months since the horrific terrorist attack 
by Iranian-backed Hamas against Israel, which left more than 1,100 
people dead. Still today, Hamas is holding an estimated 130 Israelis--
including dual-U.S. citizens--hostage. That deadly October 7 attack 
caused a war that has claimed tens of thousands of lives--including 
innocent civilians and children both in Israel and Gaza.
    Beyond the war in Gaza, Hamas' deadly attack has begun to spill 
over and destabilize regional peace and global economic security. We 
have seen Lebanese Hizballah--also backed by the Iranian regime--launch 
attacks against Israel since October 7, killing a dozen Israeli 
soldiers and 6 civilians. And just a few days ago, it was publicly 
reported that the head of Iran's Quds Force met with Lebanese 
Hizballah, and Hizballah's leader told the Iranian regime that the 
terrorist group is willing to fight Israel on its own, without pulling 
in Iranian armed forces. That should trouble us all.
    Moreover, Houthis in Yemen have repeatedly attacked commercial 
shipping, demonstrating how the United States and our allies are 
threatened by Iranian-backed terrorist groups. The Houthis have also 
claimed responsibility for attacking the U.S. Navy. While the claim has 
been refuted by U.S. defense officials, it sheds light on the group's 
terrorism-related aspirations.
    Today's hearing is an opportunity for the committee to hear from 
national security agencies in a closed setting about the threat 
Iranian-backed terrorist groups like Hamas, Hizballah, and the Houthis 
pose to the homeland and to U.S. interests world-wide. As I said in the 
immediate aftermath of the heinous attacks on October 7, the United 
States condemns Hamas' actions. We also keep the innocent civilians in 
Gaza who have died in our prayers and call for lasting peace in the 
region.
    Unfortunately, as the administration has worked tirelessly to 
support Israel, bring Americans home from the conflict zone, prevent a 
wider war in the region, and address the humanitarian crisis in Gaza, 
House Republicans have absolutely refused to provide Israel with the 
resources they need to push back the threat of terrorists and 
terroristic regimes. Republican leaders are also refusing to work with 
Democrats to provide humanitarian relief for civilians in Gaza.
    Now, while I am pleased that an apparent deal has been reached to 
fund the Government, it is shameful that more than 5 months into fiscal 
year 2024, House Republicans' refusal to govern has us once again on 
the precipice of a partial Government shut-down. If House Republicans 
do not put politics aside and pass the agreed-upon spending package, 
all 4 of the witnesses testifying before us today are facing the 
shuttering of their agencies. This is a do-nothing Republican Majority.
    Although I am glad that we have an opportunity today to better 
understand the current threat posed by Iranian-backed terrorist groups, 
I have zero faith that my Republican colleagues will actually do 
anything meaningful about it when they leave this room. Even Republican 
Members have acknowledged how dysfunctional Congress has become under 
their own party's leadership. I cannot believe I am agreeing with 
Congressman Andy Biggs, but I agree with his characterization of this 
Republican Majority--``It's embarrassing''.
    Republican dysfunction is a threat to peace and stability around 
the world because under their so-called leadership, Congress cannot 
even come to the aid of its allies. There is much to be done, as Iran 
and other adversaries like Russia, North Korea, and China continue to 
be a threat to the United States.
    I hope that today's hearing--particularly as we are receiving 
information in a Classified setting--will serve as a turning point. I 
hope that Republicans will get serious about addressing the threats 
this country faces. It is time that we finally focus our energy on 
helping Israel, and other allies, stand against evil. And we must help 
provide much-needed humanitarian aid to Palestinian civilians.

    Chairman Green. The gentleman yields.
    Other Members of the committee are reminded that opening 
statements may be submitted for the record, and I am pleased to 
have a very important panel of witnesses for us today.
    I ask that our witnesses please rise and raise your right 
hand.
    [Witnesses sworn.]
    Chairman Green. Thank you. Please be seated.
    Let the record reflect that the witnesses have answered in 
the affirmative.
    I would now like to formally introduce our witnesses.
    Mr. James Dunlap serves as the deputy under secretary for 
analysis within the Department of Homeland Security's Office of 
Intelligence and Analysis, where he oversees a staff of 250 
personnel and generates all of DHS's finished intel products 
for a wide range of customers.
    Prior to his appointment as deputy under secretary, Mr. 
Dunlap served as the executive director of I&A's 
Counterterrorism Center, where he oversaw all aspects of I&A's 
counterterrorism analysis and represented DHS as the senior I&A 
counterterrorism intelligence official within the intelligence 
community and DHS intelligence enterprise.
    Mr. Robert Wells serves as the assistant director of the 
counterterrorism division within the FBI. He has served in a 
variety of roles throughout his career and has served as the 
assistant director since 2022.
    Ms. Carrie Thompson serves as the chief of intelligence for 
the Drug Enforcement Agency. In her role, she serves as a 
strategic adviser to the DEA administrator on intelligence 
matters and works daily to achieve DEA mission goals.
    Ambassador Elizabeth Richard serves as the coordinator for 
counterterrorism with the rank and status of ambassador-at-
large, leading the State Department's Counterterrorism Bureau 
and serving as the principal adviser to the Secretary of State 
on international counterterrorism matters.
    Ambassador Richard also oversees U.S. engagement in the 
Global Coalition to Defeat ISIS. Prior to her current role, she 
served as the U.S. Ambassador to the Lebanese Republic from 
2016 until 2020.
    I thank all the witnesses for being here today. I now 
recognize Mr. Dunlap for 5 minutes to summarize his opening 
statement.

STATEMENT OF JAMES DUNLAP, DEPUTY UNDER SECRETARY FOR ANALYSIS, 
   OFFICE OF INTELLIGENCE AND ANALYSIS (I&A), DEPARTMENT OF 
                       HOMELAND SECURITY

    Mr. Dunlap. Thank you, Chairman Green, Ranking Member 
Thompson, and distinguished Members of the committee.
    As noted, my name is James Dunlap, and I serve as the 
deputy under secretary for analysis within the Department of 
Homeland Security's Office of Intelligence and Analysis.
    In that capacity, I have the honor of representing the 
almost 1,000 dedicated Government and contractor professionals 
I work with every day to generate all of DHS I&A's intelligence 
products for the full range of our customers, including the 
President and senior national security staff, the Secretary of 
the Department and senior leaders within DHS, and our Federal, 
State, local, territorial, Tribal, and private-sector security 
partners.
    I&A's analytic expertise includes specialties in 
counterterrorism and cyber threats to our Nation's critical 
infrastructure, trans-border security and transnational 
organized crime, and nation-state economic and 
counterintelligence threats.
    Iran's so-called Axis of Resistance, or its network of 
proxies in the Middle East, poses a variety of threats to the 
United States and to homeland security.
    While correctly associated in the minds of many as a state 
sponsor of terrorism, Iran poses a threat to the United States 
from a variety of threat vectors, and it's on these vectors 
that I will begin my remarks today.
    Here at I&A, the work of our analysts examining the threats 
from Iran span all 4 of our analytic centers.
    A key part of our mission in I&A is to build the capacity 
of our State, local, territorial, Tribal, and private-sector 
partners to react to and prevent threats from developing in 
their own jurisdictions, and, as such, we strive to publish 
intelligence on this critical threat at the Secret level and 
below.
    Indeed, with regard to many of the threat vectors I will 
discuss, we have been successful publishing at the 
Unclassified, for Official Use Only level to maximize 
readership among our authorized stakeholders.
    Turning to cyber threats, I&A works routinely with the 
Department's Cybersecurity and Infrastructure Security Agency, 
or CISA, to publish intelligence on the cyber threat from Iran, 
which continues to pose a threat to U.S. systems, networks, and 
information.
    Iranian Government cyber actors employ a variety of 
tactics, techniques, and procedures, including social 
engineering, using easily accessible scanning and computer 
hacking tools, and exploiting publicly-known software and 
hardware vulnerabilities, to conduct cyber espionage operations 
targeting the U.S. Government and the defense industry, and to 
disrupt critical infrastructure.
    The Israel-Hamas conflict shows how Iran uses cyber 
operations to respond to geopolitical events while attempting 
to maintain plausible deniability.
    In November 2023, the Iranian Islamic Revolutionary Guard 
Corps, or IRGC-affiliated cyber actors, posing as a criminal 
hactivist group called the Cyber Av3ngers, defaced Israeli-
manufactured operational technology devices in the United 
States, specifically devices in water and wastewater systems 
and other critical infrastructure sector entities.
    While the attacks did not result in disruption of services 
or impact public health, they are demonstrative of the Iranian 
regime and its proxies' desires to target our citizens here in 
the United States.
    I&A also works with our interagency partners to produce 
intelligence on Iran's efforts to target dissidents here in the 
homeland and abroad. Iran continues to conduct transnational 
repression activities within the homeland against anti-regime 
critics. Tactics used in the past to target dissidents include 
assassination attempts, digital threats and harassment, family 
intimidation, spyware, and unlawful detention.
    Iran has targeted Iranian dissidents in the United States 
to suppress anti-regime protests and calls for social and 
political reform in Iran. Notably, in January 2024 the United 
States Department of Justice indicted one Iranian and two 
Canadian nationals in a murder-for-hire scheme consistent with 
these tactics.
    Turning, finally, to terrorism, I&A works regularly with 
our partners at the Federal Bureau of Investigation, the 
National Counterterrorism Center, and other agencies to assess 
the counterterrorism threat from Iran and its proxies, 
including Lebanese Hezbollah.
    I&A assesses that Iran will remain the primary state 
sponsor of terrorism and continue its efforts to advance plots 
against individuals in the United States.
    Specifically, Iran maintains its intent to plot attacks 
against current and former U.S. Government officials in 
retaliation for the 2020 death of IRGC Quds Force Commander 
Qasem Soleimani.
    Iran typically relies on individuals with preexisting 
access to the United States for surveillance and lethal 
plotting, having previously used dual nationals, members of 
criminal networks, and private investigators, and has attempted 
plots that do not require international travel for operatives.
    Thank you very much for the opportunity to appear here 
today, and I look forward to answering your questions.
    [The prepared statement of Mr. Dunlap follows:]
                   Prepared Statement of James Dunlap
                             March 20, 2024
                              introduction
    Thank you, Chairman Green, Ranking Member Thompson, and 
distinguished Members of the committee. My name is James Dunlap and I 
am the deputy under secretary for analysis within the Department of 
Homeland Security's (DHS or the Department) Office of Intelligence and 
Analysis (I&A). I direct a staff of over 250 Government and contractor 
personnel generating all of DHS/I&A's finished intelligence products 
for I&A's full range of customers, including the President and senior 
National Security Council staff, to the DHS Secretary and senior 
leaders within the Department, and Federal and State, local, 
territorial, Tribal, and private-sector (SLTT/PS) partners. I&A's 
analytic expertise includes specialties in counterterrorism and cyber 
threats to our Nation's critical infrastructure; transborder security 
and transnational organized crime; and nation-state economic and 
counterintelligence threats.
    Now, Iran's so-called ``axis of resistance''--its network of 
proxies in the Middle East--poses a variety of threats to United States 
interests and homeland security. While correctly associated in the 
minds of many as a state sponsor of terrorism, Iran poses a threat to 
the United States from multiple threat vectors, and it is on these 
vectors that I will begin my remarks today. Here at I&A, the work of 
our analysts examining the threats from Iran span all 4 of our analytic 
centers. A key part of our mission in I&A is building the capacity of 
our SLTT/PS security partners to react to and prevent threats from 
developing, and as such we strive to publish intelligence on this 
critical threat at the SECRET level and below; indeed, with regard to 
many of the threat vectors I will discuss, we have been successful 
publishing at the UNCLASSIFIED level to maximize readership of our 
intelligence.
                                 cyber
    Our Cyber Intelligence Center routinely works with the Department's 
Cybersecurity and Infrastructure Security Agency (CISA) to publish 
intelligence on the cyber threat from Iran, which continues to pose a 
threat to U.S. systems, networks, and information. Iranian government 
cyber actors employ a variety of tactics, techniques, and procedures--
including social engineering, using easily accessible scanning and 
computer hacking tools, and exploiting publicly-known software and 
hardware vulnerabilities--to conduct cyber espionage operations 
targeting the U.S. Government and the defense industry, and to disrupt 
critical infrastructure.
    The Israel-HAMAS conflict shows how Iran uses cyber operations to 
respond to geopolitical events while attempting to maintain plausible 
deniability. For example, in November 2023, Iranian Islamic 
Revolutionary Guard Corps (IRGC)-affiliated cyber actors--ostensibly 
posing as a criminal hacktivist group called the ``Cyber Av3ngers''--
defaced Israeli-manufactured operational technology devices in the 
United States, specifically devices in water and wastewater systems and 
other critical infrastructure sector entities (energy, food and 
beverage manufacturing, and health care). The IRGC-affiliated actors 
left a defacement image on the devices stating, ``You have been hacked, 
down with Israel. Every equipment `made in Israel' is CyberAv3ngers 
legal target.'' While the attacks did not result in disruption of 
services or impact public health, they are demonstrative of the Iranian 
regime's and its proxies' desires to target our citizens here in the 
United States.
        iran's transnational repression efforts in the homeland
    Our Nation-State Threats Center works with our interagency partners 
to produce intelligence on Iran's efforts to target dissidents. Iran 
continues to conduct transnational repression activities within the 
homeland against anti-regime critics. Tactics used in the past to 
target dissidents and critics of the regime include assassination 
attempts, digital threats and harassment, family intimidation, mobility 
controls, spyware, and unlawful detention.
    Iran has targeted Iranian dissidents in the United States to 
suppress anti-regime protests and calls for social and political reform 
in Iran. In January 2024, the U.S. Department of Justice (DOJ) indicted 
1 Iranian and 2 Canadian nationals in a murder-for-hire scheme 
targeting 2 U.S. residents.
    DHS I&A has not observed Iranian transnational repression 
activities against the United States in relation to the Israel-HAMAS 
conflict. However, Iran has previously targeted outspoken critics, and 
could target individuals critical of Iran's role in the conflict should 
it perceive them as a threat.
                               terrorism
    Finally, I&A works regularly with our partners at the Federal 
Bureau of Investigation (FBI), the National Counterterrorism Center 
(NCTC), and other interagency partners to assess the counterterrorism 
threat from Iran and its proxies, including Lebanese Hizballah. I&A 
assesses that Iran will remain the primary state sponsor of terrorism 
and continue its efforts to advance plots against individuals in the 
United States. Specifically, Iran maintains its intent to plot attacks 
against current and former U.S. Government officials in retaliation for 
the 2020 death of IRGC-Qods Force (IRGC-QF) Commander Qassem Soleimani.
    Iran relies on individuals with pre-existing access to the United 
States for surveillance and lethal plotting--having previously used 
dual nationals, members of criminal networks, and private 
investigators--and has attempted plots that do not require 
international travel for operatives.
   In August 2022, the DOJ indicted an IRGC-QF member for 
        allegedly conspiring to assassinate a former U.S. National 
        Security Advisor between late 2021 to mid-2022.
    With regard to Lebanese Hizballah, DHS I&A does not have any 
indication that Hizballah is pursuing attacks in the homeland directly 
in response to the Israel-HAMAS conflict. We most commonly see 
individuals involved in financial facilitation to support Hizballah, 
through money laundering, although Hizballah-affiliated individuals 
have also been involved in attack plotting.
   The most recently disrupted homeland plot was in 2017 when 
        an individual affiliated with Hizballah was arrested for 
        surveilling potential government and military targets in New 
        York City. The individual, a naturalized U.S. citizen from 
        Lebanon, received weapons training in Lebanon before allegedly 
        being tasked to conduct surveillance of the government and 
        military facilities. The individual also allegedly collected 
        intelligence on former members of the Israel Defense Forces as 
        well as New York's LaGuardia Airport.
    DHS I&A believes that lone offenders inspired by, or reacting to, 
the Israel-HAMAS conflict pose the most likely threat to the homeland 
compared to Iranian-directed or -supported attacks in the homeland. 
Since the conflict began, leaders from the IRGC, Hizballah, and Iran-
aligned militant groups have issued strong statements of support for 
HAMAS's attack on Israel, although we have not seen this translate to 
operations in the homeland directly in response to the conflict. We 
believe that Iran-backed militant groups and proxies such as the 
Houthis are regionally focused and do not have the intent or capability 
to target the homeland.
    HAMAS itself has not conducted attacks in the United States, as the 
group historically has been focused on opposition to Israel rather than 
supporting or directing attacks in the West. However, in recent years, 
a small number of individuals in the United States have been arrested 
and convicted for attempting to provide material support to HAMAS.
   In September 2020, the FBI arrested two individuals who 
        allegedly sought to overthrow the U.S. Government and enact 
        violence against police officers, among other targets, whose 
        claimed motivation was Boogaloo ideology. Although they 
        possessed no direct ties to HAMAS, the individuals believed 
        they could act as mercenaries for the group, who they believed 
        shared and could help advance their anti-U.S. Government goals.
    Thank you very much for the opportunity to appear here today and I 
look forward to answering your questions.

    Chairman Green. Thank you, Mr. Dunlap.
    I now recognize Mr. Wells for 5 minutes to summarize his 
opening statement.

STATEMENT OF ROBERT WELLS, ASSISTANT DIRECTOR, COUNTERTERRORISM 
        DIVISION, FEDERAL BUREAU OF INVESTIGATION (FBI)

    Mr. Wells. Good morning, Chairman Green, Ranking Member 
Thompson, and distinguished Members of the committee. I'm 
honored to represent thousands of men and women in the FBI who 
tackle some of the most complex terrorism threats here in the 
United States and throughout the world.
    Thank you for inviting me to join you this morning. I 
appreciate the opportunity to speak with you about our current 
threat environment, specifically as it relates to Iran and its 
proxies.
    As I am sure you've heard from Director Wray, we are 
currently in a heightened terrorism threat environment. Since 
the Hamas attack against Israel, we've seen almost every major 
terrorist organization in the world, including al-Qaeda, AQAP, 
and ISIS, call for terrorist attacks against the United States. 
We've also seen an uptick in threats against the Jewish 
community here in the United States and abroad.
    We remain concerned about threats from lone actors or small 
cells radicalized to violence on-line. In addition, we are very 
focused on the threat posed by the more traditional foreign 
terrorist organizations and the state-sponsored terrorism 
threat from Iran.
    Iran continues to plot attacks against former Government 
officials in retaliation for the death of IRGC Quds Force 
Commander Qasem Soleimani. They also have continued to provide 
support to their proxies and terrorist organizations throughout 
the world, to include Lebanese Hezbollah.
    The FBI believes Iran is capable of a variety of attack 
options against U.S. targets, to include cyber operations 
intended to sabotage public and private infrastructure and 
targeted assassinations of individuals who are deemed to be a 
threat to the regime or its stability.
    The FBI continues to use intelligence to identify threats 
related to Iran's lethal capabilities targeting U.S. persons. 
We work closely with other U.S. Government agencies and foreign 
partners to address the threat to U.S. interests from Iran and 
its proxies.
    There have been several examples of Iran's intention to 
carry out lethal attacks in the United States.
    In 2022, an Iranian Quds Force officer, Shahram Poursafi, 
was charged related to his attempt to arrange the murder of 
former National Security Advisor John Bolton.
    Poursafi attempted to pay individuals in the United States 
$300,000 to carry out the murder in the Washington, DC area.
    Thankfully, Poursafi attempted to pay one of our 
confidential human sources to carry out the attack.
    This incredible investigative work by our Washington Field 
Office resulted in charges against Poursafi.
    Even though Poursafi remains at large abroad, this 
investigation highlighted Iran's incredibly bold plot to murder 
a former U.S. Government official.
    In 2023, 3 members of an Eastern European criminal 
organization were charged for plotting the murder of a U.S. 
citizen who has been targeted by the Government of Iran for 
speaking out against the regime's human rights abuses. The 
victim was targeted for exercising the rights to which every 
American citizen is entitled.
    An attempted assassination on U.S. soil shows how far 
Iranian actors are willing to go to silence their critics.
    These brazen attempted attacks by Iran are not new. You may 
also recall that in September 2011, Mansour Arbabsiar was 
arrested for plotting to murder the Saudi Ambassador to the 
United States on U.S. soil. This plot was directed and approved 
by the IRGC Quds Force.
    As I just described, it is clear the Iranians are 
determined to carry out attacks in the United States, whether 
it be to avenge the death of Soleimani, to silence one of their 
critics, or to kill the ambassador of an ally nation.
    I would also like to highlight an example of Iranian 
efforts to support terrorist activities overseas.
    In February 2024, 4 foreign nationals were intercepted by a 
U.S. military vessel during their alleged transportation of 
suspected Iranian-made weapons parts to Houthi rebel forces in 
Yemen.
    These individuals were recently brought to the United 
States to face charges. Tragically, 2 Navy SEALs lost their 
lives in the pursuit of this mission.
    The disruption of these individuals prevented Iranian-made 
weapons parts from getting into the hands of the Houthis who 
could have used these weapons to target U.S. forces.
    The persistent threat from Iran came into sharper focus 
following the October 7 Hamas attack. Despite their praise for 
the attack and threat to join the conflict should Israel invade 
Gaza, Iran will likely still rely on their proxy networks to 
action retaliatory attacks focused in the region. We also 
assess that the Iran IRGC will continue to provide training, 
weapons, and financial support to Hamas.
    The FBI remains concerned that Hezbollah, Iran's primary 
strategic partner, could conduct retaliatory attacks against 
former U.S. officials, not only overseas but also in the United 
States.
    Since its inception in 1982, Hezbollah has been involved in 
numerous anti-U.S. terrorist attacks. Historically, they have 
sent operatives to build terrorist infrastructure world-wide 
and are likely to continue conducting intelligence collection, 
financial activities, and procurement efforts.
    In summary, the threat from Iran and its proxies remains 
persistent, and the FBI continues to engage with our partners 
to ensure protection of the American people and U.S. interests, 
both at home and abroad.
    Thank you for the opportunity to speak with you today, and 
I look forward to answering your questions.
    [The prepared statement of Mr. Wells follows:]
                   Prepared Statement of Robert Wells
                             March 20, 2024
    Good morning Chairman Green, Ranking Member Thompson, and 
distinguished Members of the committee. My name is Robert Wells and I 
am the assistant director for the FBI's Counterterrorism Division. I am 
honored to be here representing the FBI's counterterrorism personnel 
who tackle some of the most complex terrorism threats here in the 
United States and throughout the world.
    Thank you for inviting me to join you this morning. I appreciate 
the opportunity to speak with you about our current threat environment, 
specifically as it relates to Iran and its proxies.
                      terrorism threat assessment
    As I'm sure you've heard from Director Wray, we are currently in a 
heightened terrorism threat environment. Since the HAMAS attack against 
Israel, we've seen almost every major terrorist organization in the 
world, including al-Qaeda, AQAP, and ISIS, call for terrorist attacks 
against the United States. We've also seen an uptick in threats against 
the Jewish community here in the United States and abroad. We remain 
concerned about threats from lone actors or small cells radicalized to 
violence on-line. In addition, we are very focused on the threat posed 
by the more traditional foreign terrorist organizations and the state-
sponsored terrorism threat from Iran.
                          iran threat overview
    Iran continues to plot attacks against former government officials 
in retaliation for the death of IRGC-QF, Commander Qassem Soleimani. 
They also have continued to provide support to their proxies and 
terrorist organizations throughout the world, to include Lebanese 
Hizballah.
    The FBI believes Iran is capable of a variety of attack options 
against U.S. targets, to include cyber operations intended to sabotage 
public and private infrastructure, and targeted assassinations of 
individuals who are deemed to be a threat to the regime or its 
stability.
    The FBI continues to use intelligence to identify threats related 
to Iran's lethal capabilities targeting U.S. persons. We work closely 
with other U.S. Government agencies and foreign partners to address the 
threat to U.S. interests from Iran and its proxies.
    There have been several examples of Iran's intention to carry out 
lethal attacks in the United States. For instance, in 2022, an Iranian 
IRGC-QF Officer, Shahram Poursafi was charged related to his attempt to 
arrange the murder of former National Security Advisor, John Bolton. 
Poursafi attempted to pay individuals in the United States $300,000 to 
carry out the murder in the Washington, DC area. Thankfully, Poursafi 
attempted to pay one of our confidential human sources to carry out the 
attack. This incredible investigative work by our Washington Field 
office resulted in charges against Poursafi. Even though Poursafi 
remains at large abroad, this investigation highlighted Iran's 
incredibly bold plot to murder a former U.S. Government official.
    In 2023, 3 members of an Eastern European criminal organization 
were charged for plotting the murder of a U.S. citizen, who has been 
targeted by the government of Iran for speaking out against the 
regime's human rights abuses. The victim was targeted for exercising 
the rights to which every American citizen is entitled. An attempted 
assassination on U.S. soil shows how far Iranian actors are willing to 
go to silence their critics.
    These brazen attempted attacks on U.S. soil by Iran are not new. 
You may also recall that in September 2011, Mansour Arbabsiar was 
arrested for plotting to murder the Saudi Ambassador to the United 
States on U.S. soil. This plot was directed and approved by the IRGC-
QF.
    Based on the examples I just described, it's clear the Iranians are 
determined to carry out attacks in the United States, whether it be to 
avenge the death of Soleimani, to silence one of their critics, or to 
kill the Ambassador of an ally nation. The FBI's mission is to work 
with our partners in the United States and throughout the world to 
prevent attacks like this.
    In January 2024, 14 foreign nationals were intercepted by a U.S. 
military vessel during their alleged transportation of suspected 
Iranian-made weapon parts to Houthi rebel forces in Yemen. Four of 
these individuals were recently brought to the United States to face 
charges outlined in a criminal complaint unsealed in February. 
Tragically, 2 Navy SEALS lost their lives in the pursuit of this 
mission. The disruption of these individuals prevented Iranian-made 
weapon parts from getting into the hands of the Houthis, who could have 
used the weapons to target U.S. forces.
                      post-october 7--iran & hamas
    The persistent threat from Iran came into sharper focus following 
the October 7 HAMAS attack against Israel. Despite their praise for the 
attack and threat to join the conflict should Israel invade Gaza, Iran 
will likely still rely on their proxy networks to action retaliatory 
attacks focused in the region, in the near term. We assess that Iran 
IRGC will continue to provide training, weapons, and financial support 
to HAMAS.
                               hizballah
    The FBI remains concerned Hizballah, Iran's primary strategic 
partner, could conduct retaliatory attacks against former U.S. 
officials, not only overseas but also within the United States.
    Since its inception in 1982, Hizballah has been involved in 
numerous anti-U.S. terrorist attacks. Historically, Hizballah has sent 
operatives to build terrorist infrastructures world-wide, and are 
likely to continue conducting intelligence collection, financial 
activities, and procurement efforts world-wide to support their 
terrorist capabilities.
                               conclusion
    In summary, the threat from Iran and its proxies remains persistent 
and the FBI continues to engage with our partners to ensure protection 
of the American people and U.S. interests, both at home and abroad. 
Thank you for the opportunity to speak with you today and I look 
forward to answering your questions.

    Chairman Green. Thank you, Mr. Wells.
    We are now going to do that vote that we spoke about.
    I now recognize the gentleman from Mississippi, Mr. Guest, 
for the purpose of offering a motion.
    Mr. Guest. Mr. Chairman, I move that the hearing be closed 
to the public under Rule XI, clause 2(g), for Member 
questioning, because disclosure of testimony, evidence, or 
other matters would endanger national security or compromise 
sensitive law enforcement information.
    Chairman Green. The motion is nondebatable and a recorded 
vote is mandatory under the rule. The clerk will call the roll.
    [Disturbance in hearing room.]
    Chairman Green. The Chair would like to remind our guests 
that verbal outbursts are a violation of House rules.
    Call the roll.
    The Clerk. Mr. McCaul.
    [No response.]
    The Clerk. Mr. Higgins.
    [No response.]
    The Clerk. Mr. Guest.
    Mr. Guest. Aye.
    The Clerk. Mr. Guest votes aye.
    Mr. Bishop.
    [No response.]
    The Clerk. Mr. Gimenez.
    Mr. Gimenez. Aye.
    The Clerk. Mr. Gimenez votes aye.
    Mr. Pfluger.
    Mr. Pfluger. Aye.
    The Clerk. Mr. Pfluger votes aye.
    Mr. Garbarino.
    Mr. Garbarino. Aye.
    The Clerk. Mr. Garbarino votes aye.
    Ms. Greene.
    [No response.]
    The Clerk. Mr. Gonzales.
    [No response.]
    The Clerk. Mr. LaLota.
    [No response.]
    The Clerk. Mr. Ezell.
    Mr. Ezell. Aye.
    The Clerk. Mr. Ezell votes aye.
    Mr. D'Esposito.
    Mr. D'Esposito. Aye.
    The Clerk. Mr. D'Esposito votes aye.
    Ms. Lee.
    Ms. Lee. Aye.
    The Clerk. Ms. Lee votes aye.
    Mr. Luttrell.
    [No response.]
    The Clerk. Mr. Strong.
    Mr. Strong. Aye.
    The Clerk. Mr. Strong votes aye.
    Mr. Brecheen.
    Mr. Brecheen. Aye.
    The Clerk. Mr. Brecheen votes aye.
    Mr. Crane.
    Mr. Crane. Aye.
    The Clerk. Mr. Crane votes aye.
    Ranking Member Thompson.
    Mr. Thompson of Mississippi. Aye.
    The Clerk. Ranking Member Thompson votes aye.
    Ms. Jackson Lee.
    [No response.]
    The Clerk. Mr. Payne.
    [No response.]
    The Clerk. Mr. Swalwell.
    [No response.]
    The Clerk. Mr. Correa.
    [No response.]
    The Clerk. Mr. Carter.
    [No response.]
    The Clerk. Mr. Thanedar.
    Mr. Thanedar. Aye.
    The Clerk. Mr. Thanedar votes aye.
    Mr. Magaziner.
    [No response.]
    The Clerk. Mr. Ivey.
    [No response.]
    The Clerk. Mr. Goldman.
    [No response.]
    The Clerk. Mr. Garcia.
    [No response.]
    The Clerk. Mrs. Ramirez.
    [No response.]
    The Clerk. Mr. Menendez.
    Mr. Menendez. Aye.
    The Clerk. Mr. Menendez votes aye.
    Mr. Suozzi.
    Mr. Suozzi. Aye.
    The Clerk. Mr. Suozzi votes aye.
    Ms. Clarke.
    [No response.]
    Mr. Higgins. How is Higgins recorded?
    The Clerk. Mr. Higgins is not recorded.
    Mr. Higgins. Mr. Higgins votes aye.
    The Clerk. Mr. Higgins votes aye.
    [Pause.]
    Chairman Green. For the Members wondering what we're doing 
with the pause, we're waiting for one more vote that is en 
route. We have to have a majority for this rule to work. So for 
those of you who are wondering why there's a pause right now. 
And, no, you can't vote again.
    [Pause.]
    Chairman Green. While we're waiting, Ms. Thompson and 
Ambassador Richard, you'll give your testimony here as soon as 
this vote is completed and then we'll go into Classified 
session.
    [Pause.]
    Chairman Green. Are there any other Members who wish to 
record their vote?
    Always playing the pivotal role.
    Ms. Jackson Lee. Please, Chairman, Ranking Member, forgive 
me for being delayed. I was at another meeting. But I vote aye.
    The Clerk. Ms. Jackson Lee votes aye.
    Chairman Green. How is the Chair recorded?
    The Clerk. The Chair is not recorded.
    Chairman Green. The Chair votes aye.
    The Clerk. Chairman Green votes aye.
    Chairman Green. The clerk report the tally.
    The Clerk. On that vote, Mr. Chairman, there were 17 ayes 
and zero noes.
    Chairman Green. The motion is agreed to.
    Without objection, the motion to reconsider is laid upon 
the table.
    We'll now go back into our open session. I ask the clerks 
to reset the desks for our witnesses.
    [Pause.]
    Chairman Green. I now recognize Ms. Thompson for 5 minutes 
to summarize her opening statement.

   STATEMENT OF CARRIE THOMPSON, CHIEF OF INTELLIGENCE, DRUG 
                ENFORCEMENT ADMINISTRATION (DEA)

    Ms. Thompson. Good morning, Chairman Green, Ranking Member 
Thompson, and distinguished Members of the committee.
    On behalf of the Department of Justice, and in particular 
the more than 9,000 employees of the Drug Enforcement 
Administration, it is my honor to appear before you today.
    Today's hearing comes at a critical moment in our country's 
history. I thank the committee for bringing attention to this 
important topic.
    I have had the privilege of being a DEA intelligence 
research specialist for nearly 26 years. I started my DEA 
career in Detroit, Michigan, and have worked in multiple DEA 
foreign offices, including Bogota, Colombia, and Islamabad, 
Pakistan.
    I have also served as the field intelligence manager for 
Europe and Africa responsible for DEA intelligence collection, 
analysis, and dissemination across those two continents.
    I can assure you that the drug-poisoning epidemic that our 
country is facing today is unprecedented. Last year our country 
lost more than 110,000 people to drug poisonings.
    These needless deaths were caused by synthetic drugs like 
fentanyl and methamphetamine, which we view as a game changer 
for drug cartels. Unlike plant-based drugs, which require large 
amounts of land, extensive manual labor, and are dependent on 
weather conditions, synthetic drugs only need the right 
chemicals, a small room, and someone who knows how to mix them.
    The only limitation on the amount of fentanyl that can be 
produced is the amount of chemicals that can be purchased.
    There is a nexus between the expanding synthetic drug trade 
and the financing of terrorist organizations and rogue state 
actors, which includes the Iranian regime.
    Cartels and traffickers partner with these regimes and 
their proxies--whether it's Hezbollah or the Assad regime in 
Syria or the Taliban in Afghanistan--to spread their deadly 
poisons through the world.
    Hezbollah, in particular, has been identified by DEA as 
operating a global criminal network.
    To counter this threat, DEA formed Project Cassandra to 
disrupt and dismantle Hezbollah's global criminal network by 
targeting drug-terror convergence targets through indictments, 
arrests, extraditions, seizures, and coordinated OFAC 
designations in order to degrade Hezbollah's illicit revenue 
stream.
    Furthermore, last month the Department of Justice indicted 
Takeshi Ebisawa, an alleged leader of the Yakuza, a Japanese 
international criminal organization, for trafficking weapons-
grade nuclear material and lethal narcotics from Burma. Ebisawa 
allegedly sought to traffic material containing uranium and 
weapons-grade plutonium into Iran, fully aware the materials 
would be used to produce nuclear weapons for the Iranian 
regime.
    Through the hard work of DEA and its international 
partners, DEA was able to seize samples of this material, which 
contributed to building the case against Ebisawa, who is now in 
Federal custody.
    To save lives and defeat these deadly global criminal 
enterprises, the DEA has created 3 counter-threat teams, one 
for the Sinaloa Cartel, one for the Jalisco Cartel, and one 
team to focus on the illicit finances that fuel the cartels' 
activities.
    These teams synthesize DEA intelligence for a data-driven 
approach to map and strategically target the cartels' entire 
network, supply chain, and infrastructure to identify key nodes 
that can be exploited.
    With our interagency partners throughout the last year, 
we've had some successes against these cartels by focusing on 
their entire network and supply chain, from China, to Mexico, 
to Main Street.
    We've charged 12 Chinese companies and 24 Chinese nationals 
with conspiracy to manufacture and import fentanyl into the 
United States. We've also charged 28 leaders and members of the 
Sinaloa Cartel during a single investigation. We've seized more 
than $104 million in cash and assets from the cartels and took 
more than 8,100 guns off of the American streets during our 
year-long effort targeting the cartels' domestic distributors.
    While we've had some successes, there is clearly more work 
to do. The men and women of DEA are committed to saving lives, 
increasing public awareness of the unprecedented drug threat we 
are facing, and defeating criminal organizations throughout the 
world.
    Thank you for the opportunity to testify before you today 
on this important issue, and I look forward to answering your 
questions.
    [The prepared statement of Ms. Thompson follows:]
                 Prepared Statement of Carrie Thompson
                             March 20, 2024
    Chair Green, Ranking Member Thompson, and distinguished Members of 
the committee: On behalf of the Department of Justice (Department), and 
in particular the nearly 10,000 employees working at the Drug 
Enforcement Administration (DEA), thank you for the opportunity to 
appear before you today to discuss DEA's work to save lives and defeat 
the cartels that are responsible for the deadly drug poisoning epidemic 
in our country.
    Americans today are experiencing the most devastating drug crisis 
in our Nation's history. This is because one drug--fentanyl--has 
transformed the criminal landscape. Fentanyl is exceptionally cheap to 
make, exceptionally easy to disguise, and exceptionally deadly to those 
who take it. It is the leading cause of death for Americans between the 
ages of 18 to 45, and it kills Americans from all walks of life, in 
every State and community in this country. The criminal organizations 
responsible for bringing fentanyl into this country are modern, 
sophisticated, and extremely violent enterprises that rely on a global 
supply chain to manufacture, transport, and sell fentanyl, and rely on 
a global illicit financial network to pocket the billions of dollars in 
revenue from those sales.
    DEA has been hard at work to undertake a transformation of its own 
to meet this moment. DEA has acted with urgency to set a new vision, 
target the global criminal networks most responsible for the influx of 
fentanyl into the United States, and raise public awareness about how 
just one pill can kill. We have transformed our vision by focusing on 
fentanyl--the drug killing the most Americans--and the criminal 
organizations responsible for flooding fentanyl into our communities--
the Sinaloa Cartel and the Jalisco New Generation (Jalisco) Cartel. We 
have transformed our plan by building an entirely new strategic layer--
our counterthreat teams for the Sinaloa Cartel and the Jalisco Cartel 
and their illicit finance networks--that map the cartels, analyze their 
networks, and develop targeting information on the members of those 
networks wherever they operate around the globe. We have transformed 
our execution by providing that targeting information to our 334 
offices world-wide, drawing from our global intelligence and law 
enforcement teams here and abroad, and working as One DEA to take the 
networks down.
    Our efforts are yielding results. In the last year alone, our 
investigations have led to the indictment of 28 members and associates 
of the Chapitos network of the Sinaloa Cartel and the extradition of 
Ovidio Guzman Lopez; the arrest of 3,337 associates of the Sinaloa and 
Jalisco Cartels in the United States responsible for the last mile of 
fentanyl and methamphetamine distribution on our streets and through 
social media; and, charges against 12 companies and 24 individuals in 
the People's Republic of China, for providing customers in the United 
States and Mexico with the precursor chemicals and scientific know-how 
necessary to make fentanyl and other dangerous drugs.
    But, we are just beginning. The nearly 10,000 employees that I have 
the privilege of working with at DEA are the most committed and 
mission-driven people in Federal law enforcement. We are laser-focused 
on one goal--to save American lives.
                      the drug poisoning epidemic
    In 2022, more than 110,000 people in the United States lost their 
lives to drug poisonings. Countless more people are poisoned and 
survive. These drug poisonings are a national crisis.
    A majority of the drug poisoning deaths in the United States 
involve synthetic opioids, such as fentanyl, that are being distributed 
in new forms. Fentanyl is being hidden in and being mixed with other 
illicit drugs such as cocaine, heroin, and methamphetamine. Drug 
traffickers are also flooding our communities with fentanyl disguised 
in the form of fake prescription pills. These fake pills often are made 
to appear legitimate using pill presses and marketed by drug 
traffickers to deceive Americans into thinking that they are real, 
diverted prescription medications. In reality, these fake pills are not 
made by pharmaceutical companies but by drug trafficking organizations, 
and they are highly addictive and potentially deadly. DEA lab testing 
reveals that today 7 out of 10 of these fentanyl-laced fake 
prescription pills contain a potentially lethal dose.
    The availability of fentanyl throughout the United States has 
reached unprecedented heights. DEA seized more than 79 million fake 
pills containing fentanyl in 2023 and nearly 12,000 pounds of fentanyl 
powder. Together, that is more than 380 million deadly doses of 
fentanyl seized in 2023.
                  the drug enforcement administration
Mission
    As the single mission agency tasked with enforcing our Nation's 
drug laws, DEA's top operational priority is to relentlessly pursue and 
defeat the 2 Mexican drug cartels--the Sinaloa Cartel and the Jalisco 
Cartel--that are primarily responsible for driving the current fentanyl 
and drug poisoning epidemic in the United States.
    DEA is the lead agency on the law enforcement elements in the 
administration's whole-of-Government response to defeat the cartels and 
combat the drug poisoning epidemic in our communities. DEA's role in 
leading the law enforcement response to the fentanyl epidemic protects 
the safety of agents, officers, and sources. Importantly, a unified 
response to the fentanyl epidemic ensures that the whole of Government 
is moving in one direction that protects the safety and health of 
Americans.
    DEA operates 30 field divisions with 241 domestic offices, 93 
foreign offices in 69 countries, and 9 forensic labs. DEA's robust 
domestic and international presence allows it to map and target the 
entire Sinaloa Cartel and Jalisco Cartel networks.
Counter-threat Teams
    In addition, DEA has launched 3 cross-agency counterthreat teams to 
execute a network-focused operational strategy to defeat the Sinaloa 
and Jalisco Cartels and their illicit finance networks. These teams are 
mapping, analyzing, and targeting the cartels' entire criminal 
networks. The teams are composed of special agents, intelligence 
analysts, targeters, program analysts, data scientists, and digital 
specialists. This network-focused strategy is critical to defeating the 
Sinaloa and Jalisco Cartels.
    As part of the network-focused strategy, DEA investigations 
resulted in charges against 28 members and associates of the Chapitos 
network of the Sinaloa Cartel, including leaders, suppliers, brokers, 
smugglers, and money launderers in multiple countries, for operating 
the global criminal enterprise that manufactures and traffics most of 
the fentanyl that comes into the United States.
Operation Overdrive
    DEA is simultaneously focused on American communities. We are 
targeting the drug-trafficking organizations and violent gangs located 
in the United States that are responsible for the greatest number of 
drug-related deaths and violence. DEA's Operation Overdrive uses a 
data-driven, intelligence-led approach to identify and dismantle 
criminal drug networks operating in areas with the highest rates of 
violence and drug poisoning deaths. In each of these locations, DEA is 
working with local and State law enforcement officials to conduct 
threat assessments identifying the criminal networks and individuals 
that are causing the most harm. DEA works with State, local, Tribal, 
and Federal law enforcement and prosecutorial partners to pursue 
investigations and prosecutions that will reduce drug-related violence 
and drug poisonings. Phase One of Operation Overdrive took place in 34 
locations across the United States, and Phase Two took place in 57 
locations. Phase Three is currently taking place in 32 locations. So 
far in Operation Overdrive, DEA and its partners have made over 1,800 
arrests, seized over 1,400 firearms, and seized over 13 million 
potentially deadly doses of fentanyl.
``One Pill Can Kill''
    In 2021, DEA launched the ``One Pill Can Kill'' enforcement effort 
and public awareness campaign. Through that, DEA and our law 
enforcement partners have seized millions of fake fentanyl-laced 
prescription pills and hundreds of pounds of fentanyl powder--equating 
to millions of potentially lethal doses of fentanyl, which could have 
entered our communities.
Social Media
    DEA is combatting the sale of fentanyl on social media. Drug 
traffickers are using social media platforms to recruit associates, 
find customers, and sell fentanyl and other deadly drugs. In 
particular, drug traffickers use social media to deceptively advertise 
fake prescription pills--pills that look like oxycodone, Xanax, or 
Adderall but actually contain fentanyl--directly to young people and 
teenagers. DEA has investigated hundreds of cases directly linked to 
the sale of fake pills containing fentanyl on social media, including 
on Snapchat, Facebook, Instagram, and TikTok.
Families and Law Enforcement Partners
    DEA also works closely with families who have lost loved ones to 
drug poisonings. These families are often brave advocates for change, 
and help ensure that people in their communities are aware of the 
dangers of fentanyl and fake pills.
    DEA is working closely with our local, State, Tribal, territorial, 
Federal, and international counterparts to target every part of the 
illegal drug supply chain and every level of the drug trafficking 
organizations that threaten the health and safety of our communities. 
To succeed, we must use every tool to combat this substantial threat 
that is being driven by the Sinaloa and Jalisco Cartels, as well as the 
Chinese-sourced precursor chemicals and global money-laundering 
operations that facilitate the cartels' operations.
                  mexican cartels and drug trafficking
    The Sinaloa and Jalisco Cartels are ruthless, violent, criminal 
organizations that have associates, facilitators, and brokers in all 50 
States and around the world.
    The Sinaloa Cartel, the Jalisco Cartel, and their affiliates 
control the vast majority of the fentanyl global supply chain, from 
manufacture to distribution. The cartels are buying precursor chemicals 
in the People's Republic of China (PRC); transporting the precursor 
chemicals from the PRC to Mexico; using the precursor chemicals to mass 
produce fentanyl; using pill presses to process the fentanyl into fake 
prescription pills; and using cars, trucks, and other routes to 
transport the drugs from Mexico into the United States for 
distribution. It costs the cartels as little as 10 cents to produce a 
fentanyl-laced fake prescription pill that is sold in the United States 
for as much as $10 to $30 per pill. As a result, the cartels make 
billions of dollars from trafficking fentanyl into the United States.
    The business model used by the Sinaloa and Jalisco Cartels is to 
grow at all costs, no matter how many people die in the process. The 
cartels are engaging in deliberate, calculated treachery to deceive 
Americans and drive addiction to achieve higher profits.
The Sinaloa Cartel
    The Sinaloa Cartel, based in the Mexican state of Sinaloa, is one 
of the oldest drug-trafficking organizations in Mexico. The Sinaloa 
Cartel controls drug-trafficking activity in various regions in Mexico, 
particularly along the Pacific Coast. Additionally, it maintains the 
most expansive international footprint of the Mexican cartels. The 
Sinaloa Cartel exports and distributes wholesale amounts of fentanyl, 
methamphetamine, heroin, and cocaine in the United States by 
maintaining distribution hubs in cities that include Phoenix, Los 
Angeles, Denver, and Chicago. Illicit drugs distributed by the Sinaloa 
Cartel are primarily smuggled into the United States through crossing 
points located along Mexico's border with California, Arizona, New 
Mexico, and Texas. The Sinaloa Cartel reportedly has a presence in 19 
of the 32 Mexican states.
The Jalisco Cartel
    The Jalisco Cartel is based in the city of Guadalajara in the 
Mexican state of Jalisco, and was originally formed as a spin-off from 
the Milenio Cartel, a subordinate to the Sinaloa Cartel. The Jalisco 
Cartel maintains illicit drug distribution hubs in Los Angeles, 
Seattle, Charlotte, Chicago, and Atlanta. Internationally, the Jalisco 
Cartel has a presence and influence through associates, facilitators, 
and brokers in countries around the world. The Jalisco Cartel smuggles 
illicit drugs such as fentanyl, methamphetamine, heroin, and cocaine 
into the United States by accessing various trafficking corridors along 
the Southwest Border that include Tijuana, Mexicali, Ciudad Juarez, 
Matamoros, and Nuevo Laredo. The Jalisco Cartel's rapid expansion of 
its drug-trafficking activities is characterized by the organization's 
willingness to engage in violent confrontations with Mexican government 
security forces and rival cartels. The Jalisco Cartel reportedly has a 
presence in 21 of the 32 Mexican states.
           people's republic of china and precursor chemicals
    Chemical companies within the PRC produce and sell the majority of 
precursor chemicals that are used today by the Sinaloa and Jalisco 
Cartels to manufacture fentanyl. These precursor chemicals from 
companies within the PRC are the building blocks for the fentanyl that 
is manufactured and transported from Mexico into the United States, and 
that is causing tens of thousands of drug-related deaths in our 
country.
          chinese money-laundering operations and the cartels
    The Sinaloa and Jalisco Cartels increasingly utilize Chinese Money-
Laundering Organizations (CMLOs) in the United States and around the 
world to facilitate laundering drug proceeds. CMLOs use mirror 
transfers, trade-based money laundering, and bulk cash movement to 
facilitate the exchange of foreign currency. The use of CMLOs has made 
the money-laundering process less expensive--and drug trafficking more 
profitable--for the cartels.
    These money-laundering schemes are designed to remedy two separate 
issues: (1) the desire of Mexican cartels to repatriate drug proceeds 
from the United States into Mexico, and (2) the desire of wealthy 
Chinese nationals to repatriate restricted funds from China into the 
United States. The CMLOs aid both groups by providing U.S. dollars held 
by Mexican cartels in the United States to PRC-based customers who need 
funds in the United States.
     the nexus between drug trafficking and terrorist organizations
    There is a clear connection between the drug trade and the 
financing of terrorist organizations and rogue state actors, including 
the Iranian regime. Members and affiliates of Hezbollah's money-
laundering network have been known to collaborate with South American 
drug cartels, particularly in the tri-border area of Argentina, Brazil, 
and Paraguay, to facilitate the smuggling of drugs into Europe and the 
Middle East. The Taliban in Afghanistan has been heavily involved in 
the production and trafficking of opium and heroin, where they have 
used the profits to fund their insurgency and terrorist activities. The 
Assad regime in Syria has been associated with the production and 
trafficking of a synthetic drug called Captagon, known for its 
stimulant and euphoric effects.
recent enforcement actions against the sinaloa and jalisco cartels and 
                      prc-based chemical suppliers
The Chapitos Network of the Sinaloa Cartel
    On April 14, 2023, Attorney General Merrick Garland, Deputy 
Attorney General Lisa Monaco, DEA Administrator Milgram and 3 U.S. 
Attorneys announced indictments against the Chapitos--the leaders of 
the Sinaloa Cartel--and their criminal network.
    The Sinaloa Cartel supplies the majority of the fentanyl trafficked 
into the United States, which has resulted in the United States' 
unprecedented fentanyl epidemic. The Chapitos, the sons of the cartel's 
notorious former leader Joaquin ``El Chapo'' Guzman, currently lead the 
most violent faction of the Sinaloa Cartel. El Chapo was once the 
world's most dangerous and prolific drug trafficker. Now his sons have 
stepped in to fill their father's void by flooding the United States 
with deadly fentanyl and leaving a wake of destruction across families 
and communities throughout the United States.
    Following their father's arrest by Mexican authorities and 
subsequent extradition and conviction, we allege that the Chapitos 
expanded their enterprise with sophisticated fentanyl laboratories in 
Culiacan, Mexico. We allege that the Chapitos run the largest, most 
violent, and most prolific fentanyl trafficking operation in the world. 
The cartel is highly organized and sophisticated, employing military-
grade weapons and vehicles and hundreds of people who protect the 
cartel and its leadership at all costs. In addition, we allege that the 
Chapitos use extreme violence and intimidation, including murder, 
torture, and kidnapping, to ensure dominance and expand their 
territory.
    The Chapitos are responsible for the massive influx of fentanyl 
into the United States in recent years. The Chapitos oversee and 
control every step in their fentanyl trafficking process: From 
procuring fentanyl precursors from illicit sources of supply in the 
PRC; to distribution in the United States, and, ultimately, reaching 
the hands of Americans; to the repatriation of massive proceeds through 
money launderers to avoid detection.
    The indictments charged 28 members of the Chapitos network. These 
include suppliers of fentanyl precursor chemicals based in the PRC, a 
broker based in Guatemala assisting with the transport of those 
chemicals from the PRC to Mexico, managers of clandestine fentanyl 
laboratories based in Mexico converting the precursor chemicals into 
fentanyl pills and powder, weapons traffickers and assassins 
perpetuating extreme violence in Mexico to protect and expand the 
fentanyl production operation, smugglers transporting the fentanyl from 
Mexico into the United States, and illicit financiers laundering the 
proceeds of fentanyl sales from the United States back to Mexico 
through bulk cash smuggling, trade-based money laundering, and 
cryptocurrency.
    These indictments reflect the work of 32 DEA offices in the United 
States and abroad, as well as our law enforcement partners and other 
Department of Justice components. As part of the investigation, the DEA 
conducted joint operations in 10 countries and seized staggering 
amounts of illicit materials, including 2,557,000 fentanyl-laced pills, 
105 kilograms of fentanyl powder, and 37 kilograms of fentanyl 
precursor chemicals, amounting to 22,747,441 potentially lethal doses 
of fentanyl. Ten defendants have been arrested to date with the 
assistance of DEA's law enforcement partners in the United States and 
abroad. In particular, Mexican military officials arrested Ovidio 
Guzman-Lopez and extradited him to the United States on September 15, 
2023. We are greatly appreciative of Mexican authorities' efforts to 
bring Guzman-Lopez to justice, as the 10 members of the Mexican 
military heroically gave their lives during the operation to capture 
him.
    At the same time as the announcement of these indictments, the 
Department of State announced up to nearly $50 million in monetary 
rewards for information leading to the capture of the defendants who 
remained at large, and the Department of the Treasury Office of Foreign 
Assets Control announced sanctions against 2 chemical companies that 
operate in the PRC, and 5 individuals associated with those companies, 
for supplying precursor chemicals to drug cartels in Mexico for the 
production of illicit fentanyl intended for U.S. markets.
Operation Killer Chemicals
    On June 23, 2023, DEA Administrator Anne Milgram joined Attorney 
General Merrick Garland, Deputy Attorney General Lisa Monaco, and U.S. 
Attorney for the Eastern District of New York Breon Peace and U.S. 
Attorney for the Southern District of New York Damian Williams to 
announce indictments of 4 chemical companies and 8 individuals--all 
based in the PRC--for knowingly providing customers in the United 
States and Mexico with the precursor chemicals and scientific know-how 
to manufacture fentanyl. These indictments were the first-ever charges 
against fentanyl precursor chemical companies. Two PRC nationals were 
taken into custody pursuant to the investigation. DEA also seized more 
than 200 kilograms of precursors in these investigations alone, enough 
to make millions of deadly doses of fentanyl.
    As alleged, these Chinese chemical companies, and the individuals 
working for them, not only provided customers with the ingredients for 
fentanyl, they also gave advice on how to mix and substitute 
ingredients to more efficiently make fentanyl, and employed chemists to 
troubleshoot and provide expert advice when customers had questions. 
The individuals also spoke freely about having clients in the United 
States and Mexico and, specifically, in Sinaloa, Mexico, where the 
Sinaloa Cartel is based.
    The companies went to great lengths to conceal the chemicals during 
transport. They falsified shipping labels and customs paperwork, 
claiming the shipments were ``dog food'' or ``raw cosmetic materials'' 
rather than fentanyl precursors. They even disguised the chemicals at a 
molecular level--adding a molecule to ``mask'' the precursors so they 
would not be detected as banned substances during transport, and 
teaching their customers how to remove that molecule after receipt.
    Operation Killer Chemicals made clear that fentanyl precursors are 
exceptionally cheap. Fentanyl precursors cost less than 1 cent per 
deadly dose of fentanyl. In just one example, a defendant sold 2 
kilograms of fentanyl precursors for approximately $1,000, which can 
make 1.75 million lethal doses of fentanyl. The amount of fentanyl that 
can be made depends only on the amount of chemicals that can be 
purchased.
    The Operation also showed that fentanyl precursors are easily 
bought on-line. Although based in the PRC, the chemical companies and 
individuals reached customers across the world because they advertised 
fentanyl precursors on social media (on Facebook and LinkedIn), used 
encrypted applications like WhatsApp to speak with customers and 
coordinate shipments, and took payment in Bitcoin and other 
cryptocurrencies.
Operation Chem Capture
    On October 3, 2023, Attorney General Merrick Garland, Homeland 
Security Secretary Alejandro Mayorkas, Deputy Attorney General Lisa 
Monaco, Deputy Treasury Secretary Wally Adeyemo, DEA Administrator Anne 
Milgram, and Chief Postal Inspector Gary Barksdale announced 8 
indictments charging 8 companies and 12 individuals. These companies 
and individuals--all based in the PRC--were charged with crimes 
relating to fentanyl and methamphetamine production, distribution of 
synthetic opioids known as nitazenes, and sales resulting from 
precursor chemicals. In addition, according to the indictment, one 
company exported to the United States and Mexico large quantities of 
fentanyl precursors and non-opioid additives, like the animal 
tranquilizer xylazine. These additives make the deadliest drug we have 
ever faced even deadlier. The indictments marked the second set of 
prosecutions to charge China-based chemical manufacturing companies and 
nationals of the PRC for trafficking fentanyl precursor chemicals into 
the United States. During this multi-agency operation, DEA seized more 
than 80 kilograms of synthetic chemicals, enough to make more than 48 
million potentially lethal doses.
    Operation Chem Capture once again showed that these synthetical 
chemicals are cheap--a deadly dose costs mere cents--and sold on-line 
on public websites and through encrypted applications like WhatsApp, 
WeChat, and Wickr. The chemicals were shipped through common carriers, 
by air and by ground through the U.S. Postal Service, UPS, and FedEx, 
and were carefully packaged to deceive customs inspectors. The PRC-
based companies accepted payment in every form--Western Union, 
MoneyGram, PayPal, Alibaba, bank transfers, Bitcoin, and other 
cryptocurrencies.
                               conclusion
    DEA will continue our relentless pursuit of the Sinaloa and Jalisco 
Cartels--the criminal networks most responsible for fentanyl-related 
deaths in our country--and we will continue to work tirelessly with our 
interagency and international partners to defeat these cartels and 
dismantle every part of their global supply chain, in order to protect 
the American people. Thank you again for the opportunity to appear 
before you today. I look forward to answering your questions.

    Chairman Green. Thank you, Ms. Thompson.
    I now recognize Ambassador Richard for 5 minutes to 
summarize her opening statement.

     STATEMENT OF ELIZABETH RICHARD, AMBASSADOR-AT-LARGE, 
 COORDINATOR FOR COUNTERTERRORISM, BUREAU OF COUNTERTERRORISM, 
                    U.S. DEPARTMENT OF STATE

    Ambassador Richard. Thank you, Mr. Chairman, Ranking Member 
Thompson, and distinguished Members of the committee. Good 
morning to everyone and thank you for the opportunity to 
testify on the critical issue of countering Iran and Iranian-
backed threats to the United States.
    The Islamic Republic of Iran has been designated a state 
sponsor of terrorism for 40 years. The threats posed by 
Iranian-backed terrorism are among the most pressing challenges 
we face to international peace and security.
    I'm looking forward today, we can discuss how the 
Department of State's Bureau of Counterterrorism addresses the 
multifaceted threats posed by Iran and by its terrorist 
networks to our homeland and to U.S. personnel and facilities 
overseas.
    For decades, Iran's own Islamic Revolutionary Guard Corps 
Quds Force has engaged in assassination attempts, terrorist 
plots, and other violence targeting U.S. personnel and 
interests. In the past few years in particular, we've seen a 
rise in these threats, including, as my colleagues have pointed 
out, a disrupted plot targeting a former National Security 
Advisor.
    Iran also continues to support a range of terrorist groups 
who pose a threat to the U.S. homeland and to U.S. personnel 
and facilities in the Middle East and beyond.
    Hamas' terrorist attack on Israel on October 7 was a 
sobering reminder of the enduring threat of terrorism enabled 
by Iran. Hamas would not have been able to carry out its 
horrific attack without Iran's long-time assistance, funding, 
and training.
    On that day, Hamas killed more than 1,200 people, including 
approximately 3 dozen American citizens, and of the hundreds 
taken hostage, a number are also American citizens.
    We're doing everything in our power to ensure that they are 
returned to their families.
    For decades, Iran's support for terrorist groups such as 
Hezbollah, various Iranian-aligned militia groups in Iraq and 
Syria, and now the Houthis in Yemen, have resulted in repeated 
assaults against U.S. personnel and interests in the Middle 
East, from the bombing of the Marine Corps barracks in Beirut 
almost 40 years ago, to the death of 3 American service members 
and the wounding of dozens more in Jordan just this past 
January.
    Countering threats posed by Iran to the United States 
homeland and U.S. personnel and facilities abroad requires a 
comprehensive strategy, integrating diplomatic, financial, 
military, and informational tools.
    Importantly, our defense of the homeland does not start at 
our physical border. We must look outward.
    Our approach focuses on 4 key factors.
    First, we counter Iran by strengthening our network of 
partnerships and alliances so that we all present a united 
front against Iran's aggressive actions.
    Particularly over the past several years, we've succeeded 
in convincing other governments to sanction, ban, or otherwise 
limit the ability of Hamas and Hezbollah particularly to access 
funding and move people and materiel.
    Second, we use a variety of sanctions to constrain Iran's 
own finances and support networks. For example, the Biden 
administration recently sanctioned individuals who were part of 
a criminal network directed by Iran's Ministry of Intelligence 
and Security that attempted to assassinate U.S.-based opponents 
of the Iranian regime.
    Third, we help build the counterterrorism capabilities of 
our allies and partners. We've provided new technologies and 
training to improve their border security and have expanded our 
information sharing and global watch-listing.
    Fourth, we expose and counter Iranian disinformation 
campaigns aimed at undermining the United States and inspiring 
attacks against us and our personnel and installations around 
the world.
    These and other efforts help us identify and neutralize the 
terrorist threats before they reach our borders, including 
threats from Iran and Iran-backed terrorists.
    To conclude, I will emphasize that our counter-Iran efforts 
will endure as long as this threat endures, and as always, 
there's a great deal at stake.
    I thank you again for this hearing this morning and look 
forward to your questions.
    [The prepared statement of Ambassador Richard follows:]
                Prepared Statement of Elizabeth Richard
                       Wednesday, March 20, 2024
    Chairman Green, Ranking Member Thompson, distinguished Members of 
the committee, thank you for the opportunity to testify on the critical 
issue of countering Iran and Iran-backed threats to the United States. 
The Department of State is actively engaged in a comprehensive effort 
to address the multifaceted threats posed by the Islamic Republic of 
Iran to the United States homeland and to U.S. personnel and 
facilities.
                iran-backed threats to the united states
    The threats posed by Iran-backed terrorism are among the most 
pressing challenges we face to international peace and security. Today, 
I will focus on Iran-supported terrorism against the U.S. homeland or 
U.S. personnel and facilities abroad and how the Bureau of 
Counterterrorism addresses those threats.
    Iran has been designated as a State Sponsor of Terrorism since 1984 
and has long been directly involved in attack plotting against the U.S. 
homeland and U.S. personnel and activities, mainly but not exclusively 
via Iran's Islamic Revolutionary Guard Corps' (IRGC) Quds Force. For 
decades, the Quds Force has engaged in many assassination attempts, 
terrorist plots, and other violence against those whom the Iranian 
regime views as enemies, including through on-going plots against U.S. 
citizens and former United States Government officials. In the past few 
years, we have seen a rise in plotting attacks against American 
citizens or on American soil, including a disrupted plot targeting a 
former U.S. National Security Advisor in 2022.
    Iran also continues to support a range of proxies, who are engaged 
in terrorist plots and activities in the Middle East and beyond. Hamas 
would not have been able to carry out its devastating October 7 
terrorist attack without Iran's long-time assistance, funding, and 
training. Hamas' terrorist attack on Israel was a sobering reminder of 
the enduring threat of terrorism enabled by Iran and our imperative to 
protect American citizens, as well as our partners and allies, from 
this threat. Approximately 1,200 people were killed and over 3,400 
wounded by Hamas during its October 7 attack, including approximately 3 
dozen American citizens. And among the hundreds taken hostage by Hamas, 
a handful are also American, and we are doing everything in our power 
to ensure that they are returned.
    In addition to Hamas, Iran's support for terrorist groups, such as 
Hizballah, various Iran-aligned militia groups in Iraq and Syria, and 
the Houthis in Yemen, resulted in repeated attacks and hostage taking 
against U.S. personnel and facilities in the Middle East--from the 
Marine Corps barracks bombing in Beirut over 40 years ago to the death 
of 3 American servicemen and the wounding of dozens more in Jordan this 
past January. Iran-backed groups not only directly threaten the U.S. 
homeland and American personnel and facilities, but as we have seen in 
the past few months, also destabilize global commerce. We must remain 
vigilant against and disrupt this plotting and destabilizing activity. 
As Secretary Blinken stated at a United Nations Security Council 
Ministerial Meeting last October regarding Hamas, we know where Iran-
backed terrorism leads to--death, destruction, suffering, and darkness.
    In addition to Iran-backed attacks, Iran's development, 
procurement, and proliferation of unmanned aerial vehicles (UAVs), 
missiles and missile-related technology remains one of the greatest 
challenges to international peace and security. We see the horrific 
impact of Iran's provision of missiles and UAVs to designated terrorist 
organizations and militant proxies that directly threaten the security 
of U.S. personnel and installations as well as our allies, partners, 
and interests. We see the destructive result of Iran's transfer of 
lethal UAVs to Russia that have been used in Russia's war, striking 
civilian infrastructure, and killing civilians in Ukraine.
    The Hamas attack on October 7, enabled by Iran, has also triggered 
a wave of reported anti-Semitic and Islamophobic attacks around the 
world. In Senate testimony earlier this month, Avril Haines, the 
director of national intelligence, highlighted the ``generational 
impact'' that the Gaza conflict, instigated by Hamas, will have on 
terrorism. She stated that both al-Qaeda and ISIS, inspired by Hamas, 
``have directed supporters to conduct attacks against Israeli and U.S. 
interests.'' Furthermore, she emphasized the Hamas attack ``is 
inspiring acts of antisemitism and Islamophobic terror world-wide.''
    In the face of these challenges, it is crucial that we take a 
strong stance against hate and violent extremism. We must ensure that 
the conflict in Gaza does not expand further, because Iran and its 
terrorist proxies would benefit from global instability. As we navigate 
complex global threats, addressing these issues remains a critical 
priority for our broader efforts to preserve a rules-based 
international order.
     countering iran-backed terrorist threats to the united states
    Countering threats posed by Iran to the United States homeland and 
U.S. personnel and facilities abroad requires a comprehensive strategy, 
integrating diplomatic, financial, and informational tools to disrupt 
Iran-backed threats. To counter Iranian and Iran-backed threats, the 
Department of State is taking a multi-pronged approach, including:
1. Strengthening Alliances and Partnerships
    Working closely with our allies and partners in the Middle East and 
beyond to present a united front against Iran's aggressive actions. 
This includes security assistance, joint military exercises, and 
intelligence sharing to counteract Iranian influence and threats. At 
the forefront of our strategy is the reinforcement of diplomatic 
engagements and alliances. We are working closely with our partners 
around the globe to isolate Iran multilaterally and diplomatically 
until it ceases its support for terrorism. Through the Countering 
Transnational Terrorism Forum, at the United Nations, and elsewhere, we 
advocate for stringent sanctions against Iranian entities involved in 
terrorist activities, aiming to cut off the financial and material 
support that fuels these groups.
    The State Department has been leading diplomatic campaigns to press 
other governments to take action to crack down on Iran-backed 
terrorism. We have achieved some good results and will continue the 
effort. Over the past several years, 16 countries have designated, 
banned, or restricted Hizballah, which is not only an important 
symbolic declaration, but also constrains Hizballah's ability to 
operate freely in these locales. Since October 7, a number of 
governments have designated both Hamas and individual leaders and other 
members as terrorists--an important step in ensuring that Hamas is held 
responsible for the October 7 attacks.
2. Economic Sanctions
    Sanctions are another powerful tool to constrain Iran's finances 
and support networks. The State Department implements and enforces 
stringent economic sanctions against the Iranian government, IRGC, and 
affiliated entities to limit their access to the financial resources 
needed to fund their malign activities. Our targeted sanctions are 
designed to dismantle the complex financial networks that underpin 
Iran's support for terrorism. The Department of State, in coordination 
with the Treasury Department, continuously works to identify and 
disrupt individuals, entities, and countries that facilitate the 
funding of terrorism.
    For example, the administration has recently sanctioned individuals 
who were part of a criminal network that attempted to assassinate U.S.-
based dissidents and Iranian regime opponents at the behest of Iran's 
Ministry of Intelligence and Security. Additionally, under 
counterterrorism authority Executive Order (E.O.) 13224, the 
administration designated a procurement network facilitating the 
illegal export of U.S. goods and technology to end-users in Iran, 
including the Central Bank of Iran; the IRGC-Quds Force deputy 
commander; and companies involved in shipping over $100 million in 
Iranian commodities on behalf of Iran's Ministry of Defense and Armed 
Forces Logistics.
3. Supporting Counterterrorism Capacities Globally
    Our defense of the U.S. homeland does not stop at our own physical 
border. Recognizing that no country can face its terrorism challenges 
alone, the United States is committed to enhancing the counterterrorism 
capabilities of our allies and partners. Through training, joint 
exercises, and the provision of counterterrorism equipment, we help 
build the resilience of partner nations, enabling them to better 
prevent and respond to terrorist threats. This collaborative approach 
not only strengthens our collective security but also sends a clear 
message that we stand united against the forces of terror. For years, 
the Bureau of Counterterrorism has dedicated funding to counter Iran-
backed terrorism. We have used this funding to bolster our partners' 
ability to address the Iranian terrorist threat in the Middle East, 
Europe, South America, and elsewhere.
    The Bureau of Counterterrorism is also working to improve border 
security abroad and counter-terrorist travel by encouraging and 
assisting our foreign partners to employ effective threat-based 
security systems, expand information sharing on terrorist threats, and 
strengthen transportation and traveler screening procedures. By 
enhancing the U.S. Government's understanding of the terrorist threat 
and adding layers to our shared defenses against terrorism we are 
identifying and neutralizing terrorist threats before they reach our 
borders.
4. Countering Disinformation
    We also must expose and counter Iran's disinformation campaigns 
aimed at undermining the United States, destabilizing the Middle East, 
and inspiring attacks in the United States and against U.S. personnel 
and installations around the world. In the age of information, the 
battle against terrorism extends into the digital realm. Iran-backed 
groups often exploit social media and the internet to spread 
propaganda, recruit followers, and incite violence. In response, we 
have bolstered our efforts to counter these narratives. Through 
strategic communications and public diplomacy, we aim to discredit the 
violent ideologies that feed terrorism, offering instead a narrative of 
peace, stability, and mutual respect among nations.
                               conclusion
    The threats posed by Iran are complex and evolving, requiring a 
dynamic and multifaceted response from the United States and our 
allies. Through a combination of diplomatic, economic, and military 
strategies, we are committed to countering Iran's aggressive actions 
and ensuring the safety and security of the United States. Protecting 
the United States homeland and U.S. personnel and facilities abroad 
against terrorist threats is our top priority. Thank you again, I look 
forward to answering your questions.

    Chairman Green. Thank you, Ambassador, for your testimony, 
and I know you guys have been working overtime since October. 
Appreciate your efforts.
    I also would like to ask a favor. Would you please tell 
Ambassador Roger Carstens, my West Point classmate, that I said 
hello?
    Ambassador Richard. Absolutely.
    Chairman Green. The committee stands in recess, and we will 
reconvene in executive session in HVC-301.
    [Whereupon, at 11:01 a.m., the committee recessed, to 
proceed in executive session.]

                                 [all]