President delegates sanctions authority under the National Defense Authorization Act for Fiscal Year 2026 to the Secretaries of the Treasury and State
As of our last check on November 3, 2026, this has been signed by the President. It may need agency action before it affects employers.
We check the Federal Register daily for later actions. We check federal court opinions for rulings on published rules weekly, on Mondays. A ruling can take time to reach us, so not finding one here does not mean there is none.
In short
- What changed
- The President handed off authorities under section 8335 of the National Defense Authorization Act for Fiscal Year 2026 to the Secretary of the Treasury and the Secretary of State. It covers foreign persons the Secretary of State identifies as sanctionable.
- Who's affected
- The memorandum is directed at the Secretary of State, the Secretary of the Treasury and other federal agency heads. It does not address employers directly.
- What to do
- This memorandum creates no duties for employers. Any later effect would come only through sanctions that federal agencies implement after the Secretary of State identifies sanctionable foreign persons.
What changed
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From the sourceSection 1(a)
I hereby delegate to the Secretary of the Treasury, in consultation with the Secretary of State, the functions and authorities vested in the President by section 8335(a) of the National Defense Authorization Act for Fiscal Year 2026
The President delegated to the Secretary of the Treasury, in consultation with the Secretary of State, the President's functions under section 8335(a) of the National Defense Authorization Act for Fiscal Year 2026.
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From the sourceSection 1(a)
Once sanctionable foreign persons are identified by the Secretary of State, I delegate to the heads of relevant executive departments and agencies, commensurate with their respective areas of responsibility, the authority to implement such sanctions.
Once the Secretary of State identifies sanctionable foreign persons, the heads of relevant federal departments and agencies may implement the sanctions within their own areas of responsibility.
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From the sourceSection 1(b)
I hereby delegate to the Secretary of the Treasury the functions and authorities vested in the President by sections 8335(c)(1) and 8335(d)(1) of the Act.
Also: Section 1(c)
I hereby delegate to the Secretary of the Treasury, in consultation with the Secretary of State, the functions and authorities vested in the President by section 8335(f) of the Act.
Also: Section 1(e)
I hereby delegate to the Secretary of the Treasury the functions and authorities vested in the President by section 8335(i) of the Act.
The Secretary of the Treasury also receives the President's functions under sections 8335(c)(1), 8335(d)(1) and 8335(i), and, in consultation with the Secretary of State, section 8335(f).
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From the sourceSection 1(d)
I hereby delegate to the Secretary of State the functions and authorities vested in the President by section 8335(g) of the Act.
The Secretary of State receives the President's functions under section 8335(g).
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From the sourceSec. 2
The delegations in this memorandum shall apply to any provision of any future public law that is the same or substantially the same as the provision referenced in this memorandum.
The delegations also apply to any future law with the same or substantially the same provision.
Who is affected
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From the sourceHeading
Memorandum for the Secretary of State [and] the Secretary of the Treasury
The memorandum is addressed to the Secretary of State and the Secretary of the Treasury.
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Our analysisSection 1(a)
Once sanctionable foreign persons are identified by the Secretary of State
Employers are not addressed. The people the sanctions would reach are foreign persons the Secretary of State identifies, not employers in general.
What it means in practice
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Our analysisSection 1(a)
I delegate to the heads of relevant executive departments and agencies, commensurate with their respective areas of responsibility, the authority to implement such sanctions.
The memorandum has no direct effect on HR, payroll or benefits work. Any practical effect would depend on later agency actions that implement sanctions against identified foreign persons.
What to do
Required
There is no employer obligation yet. The memorandum only delegates authority to federal officials. Watch for the Secretary of State identifying sanctionable foreign persons and for federal agencies implementing sanctions under section 8335.
Worth considering
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Our suggestionSection 1(a)
Once sanctionable foreign persons are identified by the Secretary of State, I delegate to the heads of relevant executive departments and agencies, commensurate with their respective areas of responsibility, the authority to implement such sanctions.
Consider having the legal or compliance team watch for announcements from the Department of State or the Department of the Treasury identifying sanctionable foreign persons under section 8335, if your organization deals with foreign persons.
Open questions
The source leaves these open. We'll update this record if a later document answers them.
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What conduct makes a foreign person sanctionable under section 8335, and could later sanctions affect U.S. employers?
History
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Delegation of Authority Under Section 8335 of the National Defense Authorization Act for Fiscal Year 2026 Source (opens in a new tab)