American Victims of Terrorism Compensation Act
- Bill Number
- H.R. 1530
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Crime and Law Enforcement
- Status
- Introduced
- Latest Action
- 2025-02-24: Referred to the House Committee on the Judiciary.
- Last Updated
- 2026-01-14T09:06:59Z
AI-Generated Summary
Purpose of the Legislation
The American Victims of Terrorism Compensation Act (H.R. 1530) aims to amend the Justice for United States Victims of State Sponsored Terrorism Act. Its main goal is to clarify and expand funding sources for the United States Victims of State Sponsored Terrorism Fund (the Fund). This ensures steady and substantial payments to eligible U.S. victims of terrorism sponsored by foreign states, addressing past funding shortfalls.
Key Provisions
- Funding Transfers and Deposits:
- Specifies deposits from the Binance Holdings Limited case (U.S. v. Binance, No. 2:23-cr-00178), including $898 million already in the Fund, an additional $1.9 billion from related proceedings, and all interest earned. A portion ($1.5 billion) goes to the separate Crime Victims Fund.
- Requires annual transfers of 50% of excess unobligated balances (unused funds) from the Department of Justice (DOJ) Assets Forfeiture Fund and the Department of the Treasury Forfeiture Fund, plus 50% of interest earned on those balances. These transfers occur within 30 days of determination each fiscal year.
- Mandates deposits of all forfeitures and net proceeds from property sales related to violations of U.S. sanctions laws (under the International Emergency Economic Powers Act or Trading with the Enemy Act) or dealings with state sponsors of terrorism. Deposits must happen within 60 days of receipt or 30 days after enactment, whichever is later.
- Includes all interest earned on deposited amounts.
- Payment Schedules:
- Requires fifth-round payments authorized by January 1, 2025, to be distributed by March 14, 2025 (or sooner if claimant information is provided later).
- Establishes annual pro rata (proportional) payments starting January 1, 2026, using all available Fund balances (after administrative costs), to be distributed as soon as practicable that year.
- Directs remaining amounts in a "lump sum catch-up payment reserve fund" (over certain thresholds) to be deposited into the Fund within 30 days of enactment, for a supplemental fifth-round distribution by April 1, 2025, and paid by June 30, 2025.
- Reporting Requirements:
- The Special Master (an official overseeing the Fund) must submit an annual report by January 31 to congressional Judiciary Committees on Fund balance, deposits (with sources and amounts, unless sealed), disbursements, and explanations for non-deposits.
- The Attorney General publishes this report online by March 1 each year.
- The Government Accountability Office (GAO) must submit a one-time report by April 1, 2025, listing major forfeitures and penalties over $10 million since 2020, their deposits, and interest. A triennial (every three years) GAO report starting January 1, 2027, evaluates Fund administration, funding trends, and unpaid claims.
- Administrative Limits:
- Caps Fund administrative support at no more than 10 full-time equivalent DOJ personnel; all related costs come from the Fund.
Significant Changes to Existing Law
- Expanded Funding Sources: Adds specific forfeitures (e.g., from the Binance case and sanctions violations) and ongoing annual transfers from DOJ and Treasury forfeiture funds, which were not previously required at this scale or frequency.
- Clarified Deposit Timing and Scope: Removes ambiguities in existing rules for penalties and fines; explicitly includes post-enactment forfeitures tied to state sponsors of terrorism, even if the designation changes over time. Excludes impacts on prior court-ordered restitution for direct crime victims.
- Shift to Annual Payments: Replaces prior payment structures with mandatory annual distributions starting in 2026, ensuring more consistent payouts rather than one-time or irregular rounds.
- Enhanced Oversight: Introduces detailed annual reporting by the Special Master and Attorney General, plus GAO audits, to improve transparency on Fund activity—previously less comprehensive.
- Rule of Construction: Protects existing equitable sharing with law enforcement and victims' restitution rights, preventing retroactive harm.
Potential Impacts
- On Citizens: Increases financial support for U.S. victims (and families) of state-sponsored terrorism, such as those affected by attacks linked to countries like Iran or North Korea, by boosting Fund resources for compensation claims. This could lead to higher and more reliable payouts, reducing delays in distributions.
- On Government Agencies: DOJ and Treasury must redirect portions of forfeiture funds annually, potentially straining their budgets but streamlining victim compensation without new taxpayer spending. The Special Master gains clearer authority and reporting duties, with limited personnel use to control costs.
- On International Relations: No direct changes, but by channeling sanctions-related forfeitures into victim compensation, it reinforces U.S. enforcement of economic penalties against state sponsors of terrorism, indirectly signaling stronger accountability for such nations.
Main Stakeholders Affected
- Primary Beneficiaries: Eligible claimants—U.S. victims of state-sponsored terrorism, their families, and estates—who rely on the Fund for compensation.
- Government Entities: DOJ (including the Special Master and Assets Forfeiture Fund), Department of the Treasury (Forfeiture Fund), Attorney General, and GAO, which handle deposits, administration, and oversight.
- Congress: Judiciary Committees receive reports, influencing future funding or legislative adjustments.
- Law Enforcement and Victims' Groups: Protected from fund diversions but may see indirect benefits or tensions in asset sharing.
Notable Legal, Constitutional, or Political Implications
- Legal: Clarifies forfeiture deposit rules amid ongoing litigation (e.g., scope of penalties under existing law), deferring disputes to courts or future laws while mandating a GAO report for guidance. Preserves victims' constitutional due process rights to restitution by excluding impacts on prior court orders.
- Constitutional: Aligns with Congress's authority over appropriations and foreign affairs (via sanctions enforcement), without raising separation-of-powers issues, as it builds on existing statutes.
- Political: Bipartisan sponsorship (from 24 representatives) highlights cross-party support for terrorism victims. Enhances Fund sustainability without new taxes, but annual transfers could spark debates on forfeiture fund priorities during budget cycles. The emphasis on transparency may build public trust but requires agencies to adapt quickly to new reporting.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Lawler, Michael [R-NY-17]
Cosponsors (72)
Rep. Gottheimer, Josh [D-NJ-5], Rep. Malliotakis, Nicole [R-NY-11], Rep. Goldman, Daniel S. [D-NY-10], Rep. Langworthy, Nicholas A. [R-NY-23], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Garbarino, Andrew R. [R-NY-2], Rep. Tenney, Claudia [R-NY-24], Rep. Torres, Ritchie [D-NY-15], Rep. Van Drew, Jefferson [R-NJ-2], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. LaLota, Nick [R-NY-1], Rep. Titus, Dina [D-NV-1], Rep. Meng, Grace [D-NY-6], Rep. Nehls, Troy E. [R-TX-22], Rep. Ryan, Patrick [D-NY-18], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Gooden, Lance [R-TX-5], Rep. Nadler, Jerrold [D-NY-12], Rep. Moskowitz, Jared [D-FL-23], Rep. Pallone, Frank [D-NJ-6], Rep. Gillen, Laura [D-NY-4], Rep. Hayes, Jahana [D-CT-5], Rep. Latimer, George [D-NY-16], Rep. Ross, Deborah K. [D-NC-2], Rep. Larsen, Rick [D-WA-2], Rep. Fields, Cleo [D-LA-6], Rep. Morelle, Joseph D. [D-NY-25], Rep. Subramanyam, Suhas [D-VA-10], Rep. Morrison, Kelly [D-MN-3], Rep. Lee, Susie [D-NV-3], Rep. Norcross, Donald [D-NJ-1], Rep. Lieu, Ted [D-CA-36], Rep. Correa, J. Luis [D-CA-46], Rep. Levin, Mike [D-CA-49], Rep. Buchanan, Vern [R-FL-16], Rep. DelBene, Suzan K. [D-WA-1], Rep. Stefanik, Elise M. [R-NY-21], Rep. Bacon, Don [R-NE-2], Rep. Kean, Thomas H. [R-NJ-7], Rep. Hoyle, Val T. [D-OR-4], Rep. Pfluger, August [R-TX-11], Rep. Meeks, Gregory W. [D-NY-5], Rep. Yakym, Rudy [R-IN-2], Rep. Fallon, Pat [R-TX-4], Rep. McIver, LaMonica [D-NJ-10], Rep. Houlahan, Chrissy [D-PA-6], Rep. Fry, Russell [R-SC-7], Rep. Vindman, Eugene Simon [D-VA-7], Rep. McDowell, Addison P. [R-NC-6] and 22 more
Recent Actions
- 2025-02-24: Referred to the House Committee on the Judiciary.
- 2025-02-24: Introduced in House
- 2025-02-24: Introduced in House
Bill Versions
- American Victims of Terrorism Compensation Act — issued 2025-02-24 — PDF (21 pages)