President Donald Trump announced Wednesday that he intends to remove Syria from the State Department's list of State Sponsors of Terrorism. The designation, in place since 1979, has been a significant hurdle for Syria's reintegration into the international financial system.

Trump made the announcement alongside Syrian President Ahmed al-Sharaa during a meeting at the NATO summit in Turkey. He offered high praise for al-Sharaa, who previously led an al-Qaeda affiliate in Syria and had an arrest warrant and bounty on his head under the former Bashar al-Assad regime. "He's done a great job. He's unified the country in a very short period of time," Trump stated, describing al-Sharaa as a "strong person" who is "respected by everybody."

The U.S. designated Syria as a state sponsor of terrorism due to the Assad regime's historical support for designated terrorist groups. The removal of this designation, however, requires several steps according to U.S. officials.

Lawmakers have expressed cautious optimism, with a bipartisan group urging Trump to consider the removal. They have also noted that al-Sharaa's government needs to make further progress on issues such as equal representation for women and minorities, and regional security.

This potential policy shift follows previous actions by the Trump administration to re-establish relations with Syria. In May 2025, Trump lifted sanctions on Syria, and in November, the United Nations Security Council adopted a U.S.-led resolution that allowed al-Sharaa to travel to the U.S. for a meeting with Trump. Congress also approved the repeal of comprehensive sanctions under the Caesar Syrian Civilian Protection Act, which Trump signed into law in December.

While the repeal of sanctions allowed Syria to begin engaging with businesses, the state sponsor designation prevented access to significant U.S. foreign assistance. Lifting this designation could open the door for investments in sectors such as oil, banking, technology, and real estate, potentially leading to increased economic stability in Syria. The other countries currently on the State Sponsors of Terrorism list are Cuba, Iran, and North Korea.