Why It Matters

The House Foreign Affairs Subcommittee on the Middle East and North Africa held a hearing September 1 on countering Houthi terrorism and protecting U.S. interests in the Red Sea. The hearing came as the Trump administration continued efforts to pressure the Iran-backed group after redesignating Ansarallah, commonly known as the Houthis, as a Foreign Terrorist Organization.

The designation reversed the Biden administration’s February 2021 decision to revoke the Houthis’ Foreign Terrorist Organization status over concerns that the designation could worsen Yemen’s humanitarian crisis.

The Houthis possess ballistic missiles, cruise missiles and attack drones and have used those systems against U.S. forces, commercial vessels and regional targets. Treasury has repeatedly sanctioned procurement and smuggling networks that it says help the group acquire dual-use components and military-grade materials for missiles and unmanned aerial vehicles.

The group’s Foreign Terrorist Organization designation increases legal and financial pressure on its supporters, but lawmakers and witnesses focused on whether U.S. and partner efforts are sufficiently disrupting the financing, smuggling and procurement networks that sustain Houthi military capabilities.

The Big Picture

The regional picture has worsened since the hearing. On September 10, Houthi forces seized the strategic Red Sea port of Mokha and advanced toward the Bab el-Mandeb Strait, increasing concerns about maritime security and Saudi oil exports. The group has said it does not threaten international shipping generally but has reiterated threats against Saudi vessels.

In March 2025, the Trump administration redesignated Ansarallah as a Foreign Terrorist Organization, undoing the Biden administration’s February 2021 delisting. The designation makes it unlawful in many circumstances to knowingly provide material support or resources to the group and authorizes additional financial and immigration-related restrictions.

The Houthis have repeatedly threatened shipping in and around the Red Sea and Bab el-Mandeb. Treasury has described the group as relying on international procurement operatives, front companies, shipping firms and suppliers to obtain components used in missile and drone production.

Broader Context

Rep. Mike Lawler (R-NY) chairs the subcommittee. The hearing featured two witnesses: Nadwa Al-Dawsari, an associate fellow at the Middle East Institute, and Allison Minor, director of the Project for Middle East Integration at the Atlantic Council.

Lawmakers focused on the networks sustaining Houthi operations and the challenge of degrading military capabilities that can be replenished through illicit procurement. Treasury has documented networks involving companies and operatives in Yemen, Iran, China, Hong Kong, Oman and the United Arab Emirates that facilitated transfers of dual-use or military-grade materials to the Houthis.

Rep. Brad Sherman (D-CA) highlighted Yemen’s humanitarian crisis. UNICEF reported that 10.8 million Yemeni children needed humanitarian assistance at the start of the year and that 40 percent of the country’s health facilities were only partially functioning or completely out of service.

The humanitarian situation remains severe more broadly. UNICEF reported in March that 19.5 million people in Yemen required humanitarian assistance under the 2025 Humanitarian Needs and Response Plan.

Political Stakes

For the Trump administration, the Houthi redesignation represents a reversal of the Biden administration’s 2021 policy and a renewed emphasis on disrupting the group’s financing, procurement and military capabilities.

The hearing also placed the Houthi threat within a wider regional security problem. U.S. officials have repeatedly described the Houthis as Iran-backed, while Treasury has targeted financial and procurement networks it says connect the group to Iranian support and international suppliers.

Recent developments have heightened those concerns. Houthi advances along Yemen’s Red Sea coast and attacks on Saudi infrastructure have increased the risk to shipping through the Bab el-Mandeb and added pressure on Saudi Arabia and other regional governments.

The Bottom Line

The policy debate is complicated by Yemen’s humanitarian crisis. The World Food Programme warned in July 2025 that funding cuts could leave 4.8 million people in Yemen without life-saving food assistance, the largest projected reduction for any country in its analysis.

At the same time, U.S. sanctions actions have documented Houthi procurement networks seeking missile-guidance equipment, UAV components, electronics, chemical precursors and other dual-use materials. Treasury has said the group uses front companies, shipping facilitators and commercial suppliers to move those materials into Houthi-controlled areas.

The Bottom Line

The hearing highlighted a central challenge for U.S. policy, disrupting Houthi financing, procurement and weapons networks without worsening Yemen’s already severe humanitarian crisis. Since the hearing, Houthi territorial gains along the Red Sea coast have increased the urgency of that debate by bringing the group closer to one of the world’s most important maritime chokepoints.

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