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The U.S. government has officially designated non-state actors as terrorist organizations when they target Americans or American facilities abroad. The recent designation of drug cartels and international gangs has reignited discussions on the broader impacts of terrorist designations. While these designations can intimidate some groups, others remain persistent in pursuing their terroristic objectives. This paper will analyze the current list of terrorist organizations, focusing on the impact of these designations on counterterrorism strategies. It will explore the operational capacities of various groups, including religious jihadist organizations like ISIS and Al-Qaeda, as well as Iran-backed militia groups such as Hezbollah and the Houthis, to understand how these designations shape the global threat landscape.