WASHINGTON — The State Department has taken the formal step of moving to remove Syria from the U.S. list of state sponsors of terrorism, marking another major turn in the Trump administration’s effort to rebuild ties with Damascus, the Treasury Department said.

The planned delisting had been disclosed several weeks earlier and must still go through a congressional review process. Syria has carried the U.S. state sponsor of terrorism label since 1979.

“This action unlocks new potential for Syria’s economic revitalization and progress,” Secretary of State Marco Rubio said, describing the decision as part of a broader regional strategy. “The Trump Administration continues to advance U.S. national security to achieve peace, prosperity, and security in the Middle East.”

Countries designated as state sponsors of terrorism face sweeping restrictions, including limits on foreign assistance and military exports, along with significant financial sanctions.

Since the fall of Bashar al-Assad’s government in late 2024, Syrian President Ahmed al-Sharaa has pushed to normalize relations with Washington and pressed U.S. officials to lift the blacklists and sanctions targeting his country.

Monday’s action was paired with the removal of the Nusrah Front — the group founded by al-Sharaa that fought Assad’s forces during Syria’s civil war — from the U.S. list of specially designated global terrorist organizations.

“Today’s action will help foster additional investment in Syria to promote political and economic stability,” Treasury Secretary Scott Bessent said in a statement announcing the move.

Al-Sharaa remains a controversial figure for some observers because of his former ties to al-Qaeda, though he later broke with the network and ultimately battled ISIS during the Syrian civil war.

President Trump met with al-Sharaa in Turkey while attending the NATO summit last month and praised the Syrian leader as “fantastic” and “highly respected.”

At the time, he indicated that he planned to take Syria off America’s state sponsors of terrorism list.

“I think I will, yeah. Why wouldn’t I?” Trump told reporters when asked. “He’s done a great job.”

Syrian Finance Minister Muhammad Yasser Bernia heralded Monday’s move as a “major and historic success for Syrian diplomacy.”

“This represents a significant and final step in strengthening Syria’s connection to the global economic and financial system, attracting modern investments and technologies, and supporting development opportunities,” Bernia added.