President Joe Biden's administration is moving to revoke the designation of Yemen's Houthis as a terrorist group, citing the need to mitigate one of the world's worst humanitarian disasters.
President Donald Trump's administration had branded the Iranian-backed Houthis as a foreign terrorist organisation, a move that limited the provision of aid to the beleaguered Yemeni people, who have suffered under a years-long civil war and famine.
A senior State Department official confirmed the move on Friday after members of Congress were notified of the administration's plans.
The official, who spoke on condition of anonymity, said the removal changed nothing about the Biden administration's views of the Houthis, who have targeted civilians and kidnapped Americans.
"Our action is due entirely to the humanitarian consequences of this last-minute designation from the prior administration, which the United Nations and humanitarian organizations have since made clear would accelerate the world's worst humanitarian crisis," the official said.
The move comes a day after Mr Biden announced an end to offensive support to Saudi Arabia's campaign against the Houthis.