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UNITED STATES September 27, 2026—Given the national attention on inflation, the cost of war, uncertain outlook for interest rates, one might expect a congressman representing a largely middle-class district in Tennessee to ask the Treasury Secretary about an array of issues affecting Americans.
But when Treasury Secretary Scott Bessent appeared before the House Financial Services Committee this month, Rep. John Rose, R-Tenn., had a different part of the world in mind: The Horn of Africa. What is curious is that Rose asked about a breakaway movement within the country of Somalia that calls itself Somaliland.
“Somaliland is a valuable partner for the United States and has the potential to become an even greater partner,” said Rose, noting its strategic position along a key shipping route.
Rose has a robust legislative plan to include the breakaway movement into the SWIFT financial payment system, clear its leaders and organizations of any U.S. Somalia-related sanctions, and economically clear the dissident faction for
Sanctioned Entity or Strategic Faction?
Somaliland representatives and security forces have a history of working with the U.S. government in countering al-Qaeda affiliate al-Shabaab, according to West Point’s Combatting Terrorism Center. The extent of those relations appears opaque—apparently prompting Rose’s request for a report. Also, it is not clear to what extent political or militant factions in Somalia would fall under U.S. sanctions. The United Nations also maintains some restrictions on weapons flows in the area.
The Somaliland Controversy
In late 2025, Israel became the only UN member to recognize the region of Somaliland as an independent state. Specifically, Israeli Prime Minister Benjamin Netanyahu said recognition uphelp “the spirit of the Abraham Accords.”
“The State of Israel plans to immediately expand its relations with the Republic of Somaliland through extensive cooperation in the fields of agriculture, health, technology, and economy,” he said.
That drew widespread condemnation across the world. China’s foreign ministry spokesman, for example, argued that a country should not encourage “internal separatist forces for its own selfish interests.”
Certainly, it opens a dangerous avenue encroaching on national sovereignty if it becomes normalized.
In its condemnation of the recognition, the Toronto-based Organization for World Peace noted the internal political infighting in Somalia that’s turned lethal.
“Furthermore, there is tension between Somaliland and neighboring Puntland (the western part of Somalia), as well as between Somalia and Somaliland. These challenges mean Somaliland is neither stable nor peaceful,” the nonprofit said. “The declarations’ focus on prosperity is true. However, it is for the prosperity of Israel, not both states.”
US Drift Towards Recognition?
Officially, the U.S. State Department recognizes the sovereignty and territorial integrity of the Federal Republic of Somalia, viewing Somaliland as part of that territory. But that might be evolving. Earlier this year, State announced plans to strengthen relations with Somaliland authorities.
It appears freedom of navigation—an issue of growing importance in the wake of wars—is the primary reason.
“Somaliland’s strategic location near Yemen and the Bab al-Mandab Strait positions it as a potential partner on shared security interests, including freedom of commercial and military navigation from the Red Sea to the Indian Ocean,” State announced.
