No Support for Terror Act

Bill Number

H.R. 462

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-01-15: Referred to the Committee on Financial Services, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2025-03-13T10:41:51Z

AI-Generated Summary

Purpose

The "No Support for Terror Act" (H.R. 462) aims to block International Monetary Fund (IMF) allocations of Special Drawing Rights (SDRs)—a type of international reserve asset that acts like an extra line of credit for countries—from going to nations involved in genocide or sponsoring terrorism. It also seeks to ensure U.S. taxpayer-funded aid does not indirectly reach the Taliban, other terrorist groups, or countries that shelter them, by strengthening oversight of foreign assistance programs.

Key Provisions

• IMF SDR Restrictions (Section 2): Amends the Bretton Woods Agreements Act to require the U.S. Secretary of the Treasury to direct the U.S. representative at the IMF to oppose SDR allocations to any country designated by the U.S. Secretary of State as a perpetrator of genocide or a state sponsor of terrorism. The U.S. must also push for the IMF to create a formal rule banning such allocations.
• Review of U.S. Foreign Aid (Section 3):
• Mandates a joint review by the Secretaries of the Treasury and State, and the USAID Administrator, of all U.S. assistance given to nongovernmental organizations (NGOs) and international organizations. The goal is to confirm that this aid is not passed on to the Taliban, other terrorist groups, or terrorism-harboring countries, in line with existing U.S. laws against terrorism financing.
• Requires a report on the review's findings to be submitted to Congress within 90 days of the bill's enactment.
• Within 180 days of enactment, these officials must impose new rules on primary recipients of U.S. aid, requiring them to submit proof that all secondary recipients (sub-awardees) are following U.S. anti-terrorism financing laws.

Significant Changes to Existing Law

• Adds a new Section 75 to the Bretton Woods Agreements Act (22 U.S.C. 286 et seq.), which previously did not include specific prohibitions on SDR allocations based on human rights or terrorism designations. This introduces U.S. leverage within the IMF to influence global financial decisions.
• Builds on existing U.S. anti-terrorism financing laws (such as those under the USA PATRIOT Act or related executive orders) by adding mandatory reviews, reporting, and compliance evidence requirements for aid recipients. Previously, such oversight was more discretionary and not tied to strict timelines or joint agency action.

Potential Impacts

• On Government Agencies: The U.S. Departments of Treasury and State, and USAID, will face increased administrative burdens from conducting reviews, issuing reports, and enforcing new compliance rules on aid programs. This could lead to more rigorous vetting processes for international funding.
• On Citizens: U.S. taxpayers may benefit from assurances that their funds are not supporting terrorism, potentially enhancing public trust in foreign aid. However, it could indirectly affect humanitarian efforts if aid flows are delayed or restricted due to compliance hurdles.
• On International Relations: Could strain U.S. ties with the IMF and allied nations if it leads to vetoes or blocks on SDR allocations, potentially isolating designated countries economically. It reinforces U.S. foreign policy against terrorism and genocide but might complicate multilateral diplomacy in global finance.

Main Stakeholders Affected

• U.S. Government Agencies: Treasury, State Department, and USAID, which must implement reviews, reporting, and enforcement.
• International Organizations: The IMF, where U.S. influence will push for policy changes on SDRs.
• NGOs and Aid Recipients: Primary and secondary recipients of U.S. foreign assistance, now subject to stricter anti-terrorism compliance checks.
• Designated Countries and Groups: Nations labeled as genocide perpetrators or terrorism sponsors (e.g., those on the State Department's list of state sponsors of terrorism), and groups like the Taliban, which could lose access to indirect U.S. funding.
• Congress: Gains new oversight tools through required reports, allowing closer monitoring of aid and IMF activities.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens enforcement of existing anti-terrorism laws by making compliance mandatory for aid chains, potentially reducing legal risks of inadvertent support for prohibited entities. The genocide and terrorism designations rely on the Secretary of State's authority, which could invite challenges if determinations are seen as politically motivated.
• Constitutional: Aligns with Congress's power of the purse (Article I, Section 9) to control federal spending, ensuring U.S. funds align with national security priorities. No direct conflicts with free speech or due process, as it targets foreign aid rather than domestic activities.
• Political: Signals a tough U.S. stance on global terrorism and human rights abuses, appealing to constituencies focused on national security. It may polarize international forums like the IMF, where the U.S. holds significant voting power (about 17%), but could face pushback from countries advocating for neutral financial aid during crises.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Steube, W. Gregory [R-FL-17]

Recent Actions

• 2025-01-15: Referred to the Committee on Financial Services, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-01-15: Referred to the Committee on Financial Services, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-01-15: Introduced in House
• 2025-01-15: Introduced in House

Bill Versions

• No Support for Terror Act — issued 2025-01-15 — PDF (4 pages)