GHOST Act of 2025

Bill Number

S. 1490

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

International Affairs

Status

Introduced

Latest Action

2025-04-10: Read twice and referred to the Committee on the Judiciary.

Last Updated

2025-07-21T19:32:26Z

AI-Generated Summary

Purpose of the Legislation

The Global Hunt for Offshore Smuggling and Trafficking Act of 2025 (GHOST Act) aims to strengthen U.S. enforcement of sanctions against Russia, particularly targeting its "ghost ship fleet" (vessels used to evade sanctions by transporting restricted goods like oil). It creates a dedicated fund to cover enforcement costs, with excess funds directed toward reducing the U.S. public debt. Additionally, it formalizes an existing interagency center to improve coordination on export control enforcement, enhancing overall national security and economic measures against sanctions violators.

Key Provisions

• Russia Sanctions Enforcement Fund (Section 2):
• Establishes a fund in the U.S. Treasury within 15 days of enactment to pay for expenses related to seizing and forfeiting property from violations of U.S. sanctions by Russia or its "covered merchant ships" (vessels flagged to transport sanctioned oil or supported by the Russian government, including entities like Gazprom).
• Appoints an administrator from the Department of Homeland Security (DHS), in consultation with the Treasury Secretary.
• Allows fund expenditures (without needing yearly budget approval) for:
• Investigative costs by DHS or Department of Justice (DOJ) law enforcement.
• Property handling (e.g., storage, security, sale).
• Contracts for services, expert consultations, and reimbursements to federal, state, local, or foreign partners.
• Rewards to informers (individuals providing tips leading to seizures).
• Equipment and overtime for joint operations.
• Prioritizes actions targeting oil, petroleum, or other commodities that help Russia evade sanctions.
• Initial funding: $150 million authorized for fiscal year 2026, to be repaid to the Treasury by September 30, 2036 (adjusted for inflation).
• Excess balances above $500 million (adjusted annually for inflation using the Consumer Price Index) transfer to the general Treasury fund to pay down public debt.
• Requires annual reports to Congress (starting September 1, 2026) on fund activities, seizures (including impacts on U.S. security and estimated losses to violators), financial status, and informant payments.
• Penalties for non-compliance: 5% of fund transfers to debt payment for late reports; fund termination and full transfer to debt if unused for seizures (waivable by the President for national security reasons, with a required report).
• Prohibits unauthorized transfers; any congressional changes must be published in the Federal Register.

• Export Enforcement Coordination Center (Section 3):
• Codifies (makes permanent in law) the center, originally created by a 2010 executive order, within DHS's Homeland Security Investigations.
• Involves nine key agencies (e.g., State, Treasury, Defense, DOJ, Commerce, Energy, DHS, Office of the Director of National Intelligence) plus others as designated by the President.
• Functions include:
• Sharing information between law enforcement and intelligence agencies on export control violations (rules restricting exports of sensitive goods or technology).
• Acting as a contact point for licensing agencies and coordinating investigations.
• Public outreach, statistical tracking, and deconfliction (avoiding overlaps) in enforcement.
• Led by a DHS Senior Executive Service special agent as Director, with Deputy Directors from Commerce and DOJ.
• Requires liaisons (representatives) from intelligence community and 18+ agencies (e.g., FBI, Customs and Border Protection, military investigative services) to support coordination.

Significant Changes to Existing Law

• New Fund Creation: Introduces a dedicated, revolving fund for Russia-specific sanctions enforcement, unlike general asset forfeiture funds; ties excess proceeds directly to public debt reduction, a novel fiscal mechanism not previously codified for this purpose.
• Codification of Center: Converts the Export Enforcement Coordination Center from an executive order (temporary and changeable by presidents) into statutory law, ensuring its permanence and expanding its duties (e.g., adding integrated tracking and outreach).
• Enforcement Enhancements: Adds prioritization for oil-related seizures and informant rewards specific to Russian sanctions; imposes reporting and termination rules to ensure active use, which could alter how agencies manage similar funds under laws like the Justice for Victims of State Sponsored Terrorism Act (which remains unaffected).
• No direct amendments to existing sanctions laws, but strengthens implementation tools.

Potential Impacts

• Government Agencies: Boosts resources for DHS, DOJ, Treasury, and others involved in sanctions enforcement, enabling faster seizures and better interagency coordination; could reduce budget strains on export control investigations but requires annual reporting, increasing administrative workload.
• Citizens: Indirect benefits through debt reduction (potentially lowering long-term interest costs on national debt); possible rewards for informers could encourage public tips on violations.
• International Relations: Intensifies pressure on Russia by targeting its evasion tactics (e.g., ghost fleet), potentially disrupting its oil exports and revenue; may strain U.S.-Russia ties or affect global trade, while equitable sharing could build cooperation with foreign governments on enforcement.

Main Stakeholders Affected

• U.S. Government Agencies: DHS (leads fund and center), Treasury (fund management), DOJ, Commerce, State, Defense, Energy, intelligence community, and state/local law enforcement (eligible for reimbursements and equipment).
• Private Individuals and Entities: Informers (eligible for compensation), contractors/experts hired for seizures, and U.S. businesses involved in exports (benefit from better enforcement coordination to prevent unfair competition).
• Foreign Actors: Russian government and affiliated entities (e.g., Gazprom, ghost fleet operators) face heightened seizure risks; international partners (e.g., foreign governments) may receive shared proceeds or collaborate on operations.
• Congress and Public: Oversight committees (e.g., Senate Banking, House Financial Services) monitor reports; taxpayers indirectly affected via debt payments.

Notable Legal, Constitutional, or Political Implications

• Legal: Enhances forfeiture authority under existing sanctions laws (e.g., no new crimes defined, but streamlines processes); fund management mirrors trust funds under tax law, ensuring fiscal accountability. Reporting requirements promote transparency, but presidential waiver for fund termination raises questions about executive discretion in national security.
• Constitutional: Aligns with Congress's powers over spending, foreign affairs, and commerce; debt reduction provision supports fiscal responsibility without violating balanced budget norms. Potential for equitable sharing with foreign entities could implicate treaties or international law on asset recovery.
• Political: Bipartisan sponsorship (by Sens. Ernst and Blumenthal) signals broad support for anti-Russia measures amid ongoing geopolitical tensions (e.g., Ukraine conflict); ties enforcement to debt paydown may appeal across aisles for economic nationalism, but could politicize agency decisions if waivers or terminations occur. No overt bias in text, focusing on enforcement efficacy.

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

Sponsor

Sen. Ernst, Joni [R-IA]

Cosponsors (1)

Sen. Blumenthal, Richard [D-CT]

Recent Actions

• 2025-04-10: Read twice and referred to the Committee on the Judiciary.
• 2025-04-10: Introduced in Senate

Bill Versions

• Global Hunt for Offshore Smuggling and Trafficking Act of 2025 — issued 2025-04-10 — PDF (19 pages)