Why It Matters

The Trump administration's pivot toward energy deals and geopolitical competition in the Western Balkans collided head-on with congressional concerns about corruption and democratic backsliding during a House Foreign Affairs Subcommittee on Europe hearing held on September 15. Rep. William R. Keating (D-MA-9) accused the administration of enabling oligarchs and profiteers while dismantling sanctions, putting the State Department witness in a defensive position.

The Big Picture

The Trump administration's commercial interests clash with bipartisan congressional demands for accountability. The administration has reoriented U.S. engagement away from democracy promotion toward what it frames as stability and strategic advantage, focusing on energy security, infrastructure corridors, and countering Russian and Chinese influence, according to the Atlantic Council.

Congress passed the Western Balkans Democracy and Prosperity Act in December 2025, mandating sanctions on destabilizers. Yet weeks before it took effect, the administration lifted long-standing sanctions on Bosnian Serb leader Milorad Dodik in October 2025. The State Department published a required policy report in May emphasizing "stability and mutually beneficial partnerships" rather than democracy-building. The fiscal year 2026 National Defense Authorization Act reinforces a heightened focus on countering malign Russian and Chinese influence in the Western Balkans, and included the Western Balkans Prosperity Act, which codifies U.S. priorities to expand trade and investment in the region alongside energy diversification away from Russia.

The tension crystallized in September when Deputy Assistant Secretary Daniel Lawton from the State Department testified as the sole witness. Deputy Assistant Secretary Daniel J. Lawton is a career Senior Foreign Service officer with over 30 years of experience.

What They're Saying

The hearing exposed a fundamental disagreement about means and ends. Rep. Keating released a report titled "Pay for Play in the Balkans," alleging the administration enriched presidential allies through energy contracts while weakening democratic safeguards.

Keating detailed a timeline that raised eyebrows: On November 20, 2025, the U.S. Embassy in Sarajevo announced a potential role for a U.S. company in Bosnia's Southern Interconnection Gas Pipeline. Four days later, Trump affiliates Jesse Binall and Joseph Flynn, brother of former National Security Advisor Michael Flynn, established AAFS Infrastructure and Energy LLC. After consultations with the State Department, Benell and Flynn's company was written into Bosnian legislation as the sole eligible bidder.

"This is not foreign policy. This is a shakedown," Keating argued, pointing out that neither Benell nor Flynn had experience operating LNG pipelines or working in the Western Balkans.

Rep. Keith Self (R-TX-3), the subcommittee chair, framed instability in the Western Balkans as "the preeminent threat to U.S. national security interests in a post-Ukraine war in Europe." He had led a congressional delegation to the region in May to assess conditions firsthand. Rep. Self urged the Trump administration to put forward nominations for ambassadors to Kosovo and North Macedonia.

Lawton testified that normalization between Kosovo and Serbia remained essential for stability. Secretary Rubio met with Serbian Foreign Minister Djuric in August 2025, and they agreed the United States and Serbia would hold a bilateral strategic dialogue later that year to deepen economic and security ties. That dialogue convened in Washington on July 17, which Serbia's Foreign Ministry called "a historic milestone." Rubio also met Kosovo President Vjosa Osmani in February, thanking her for being a dedicated regional partner.

Yet the normalization process has stalled. According to the European Policy Centre's shadow report, implementation stood at just 21.1 percent three years after the Ohrid Agreement. The report found external EU facilitation drove progress far more than genuine political will from either side. Carnegie Endowment analysis from June concluded Kosovo and Serbia remain "far from normalization."

Keating also raised alarm about Jared Kushner, the president's son-in-law, pursuing billion-dollar real estate deals in Serbia and Albania.

Political Stakes

The hearing exposed a bipartisan fracture over how aggressively to condition aid and engagement on democratic performance. Ranking Member Gregory Meeks (D-5-NY) and other Democrats in the subcommittee signed on to Rep. Keating's report on alleged corruption in the Trump administration's Bosnia policy. Senators including Jeanne Shaheen (D-NH) and others sent a bipartisan letter in March warning that reports of U.S. pressure to wind down the NATO-led Kosovo Force risked destabilizing the region. They also urged sanctions on Milorad Dodik under the Democracy and Prosperity Act.

The Western Balkans Democracy and Prosperity Act requires the Trump administration to impose sanctions on any individual threatening peace and stability in the Western Balkans.

The Other Side

The Trump administration's focus in the Western Balkans includes hard geopolitical interests such as liquefied natural gas terminals, gas interconnections, transport corridors, cybersecurity, defense capabilities, and limiting Russian and Chinese influence. The State Department's May report stated that promoting stability and advancing U.S. economic interests in the Western Balkans makes the nation "safer, stronger, and more prosperous."

Despite the broader transactional shift, the administration has continued support for Bosnia and Herzegovina's territorial integrity, universal recognition for Kosovo, and the stabilizing influence of transparent institutions.

According to Rep. Keating, the Trump administration delisted Milorad Dodik in October 2025; four days after the U.S. Embassy in Sarajevo's November 20, 2025 announcement, Binall and Flynn established their company AAFS; and after numerous consultations with the State Department, AAFS was written into Bosnian legislation as the only company eligible to receive the contract for the Southern Interconnection Gas Pipeline.

What's Next

No bills were directly associated with the September 15 hearing, but the Western Balkans Democracy and Prosperity Act remains in force. The Western Balkans Democracy and Prosperity Act requires the Trump administration to impose sanctions on any individual threatening peace and stability in the Western Balkans.

Self indicated he plans to continue pushing for ambassador nominations to Kosovo and North Macedonia. Three years after the Ohrid Agreement, overall implementation of the Kosovo-Serbia normalization process stands at 21.1%. The Atlantic Council advised regional actors that economic ties with American partners build influence that outlasts any single administration.

The Bottom Line

The hearing revealed an administration pursuing energy and geopolitical advantage in the Balkans while Congress demands that democratic safeguards and sanctions remain in place.

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