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In early July, the Director of National Intelligence warned that Iran is funding and providing material support to anti-American and anti-Israel protestors across the United States. On July 24, Israeli Prime Minister Benjamin Netanyahu cited the DNI report in his address to a joint session of Congress, White House National Security Spokesman John Kirby affirmed it and protesters summarily burned American flags and vandalized statues outside Union Station in Washington, D.C., forcing the shutdown of the train station.

Worse yet, intelligence reports indicate that Iran has been planning to assassinate former President Donald Trump and other former and active senior government officials.

This is, of course, on top of the work Iran does to arm and fund Hamas in Israel, Hezbollah in Lebanon, the Houthis in Yemen, and a cadre of other terrorists in Iraq and Syria.

How does New Jersey fit in?

What does any of this have to do with New Jersey?

To begin, we are not immune or isolated from Iran’s dangerous behavior. In September 2022, the U.S. Attorney for New Jersey charged two Iranian nationals with hacking and attempting to extort a business in Morris County and a municipality in Union County. And there is no telling whether the anti-America protests that have taken place in New Jersey were among those funded by Iran.

Fortunately, there are tools at our disposal to isolate Iran. Under current law, companies competing for public contracts within the state are ineligible if they concurrently do more than $20 million of business with Iran’s energy or finance sectors. Put another way, these companies are eligible if they do a little less than $20 million of business with Iran’s energy or finance sectors. I believe New Jersey can do better than that. And given Iran’s aggressive and potentially deadly agenda inside the United States, I believe we have to do better than that.

In June, I introduced Assembly Bill 4632 to redefine “persons engaging in investment activities in Iran,” cutting the threshold in half, from $20 million to $10 million. This is an important first step in isolating Iran and dramatically reducing any indirect support gained from New Jersey public contracts. My ultimate goal and intention is for this threshold to be reduced to zero.

Under federal law, states have the flexibility to determine their financial posture towards Iran. The federal Comprehensive Iran Sanctions, Accountability, and Investment Act, signed into law in July 2010, empowered state and local governments to prevent or discontinue contracts with companies doing business in Iran. Then-Governor Chris Christie did so in 2012, establishing the $20 million threshold. As of July, New Jersey has 31 companies on its prohibited list. My bill strengthens this law — and would grow the prohibited list — at a critical time.

At least 13 other states have similar bans to New Jersey’s 2012 law, including California, Connecticut, Florida, Indiana, Maryland, Michigan, Mississippi, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina and Tennessee. Some of these states go further, by not just setting a threshold for Iran investment, but also limiting the size of the public contracts themselves. California and Florida ban public contracts of $1 million or more, Tennessee’s threshold is $1,000, and New York bans all contracts.

Notably, the bill does not create any additional work local certified purchasing agents, as the responsibility for certifying compliance rests with the vendors and bidders. The Division of Purchase and Property within the Department of the Treasury maintains its role in monitoring and enforcing the list of prohibited companies, with stiff penalties at its disposal. 

By lowering the financial threshold in New Jersey, we ensure more individuals and companies are scrutinized, putting our state at the front of national efforts to isolate Iran. We cannot leave room for ambiguity when it comes to our position on Iran. It is imperative that we send a clear and unequivocal message: New Jersey will not tolerate indirect support of Iran’s dangerous agenda. Our state’s integrity and security depend on such decisive actions.

Michael Inganamort represents New Jersey’s 24th Legislative District, which includes all of Sussex County and parts of Morris and Warren counties, in the State Assembly.