A bill to amend the Justice for United States Victims of State Sponsored Terrorism Act to provide rules for payments to Havlish Settling Judgment Creditors.
- Bill Number
- S. 2776
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Crime and Law Enforcement
- Status
- Introduced
- Latest Action
- 2025-09-11: Read twice and referred to the Committee on the Judiciary.
- Last Updated
- 2026-04-01T21:23:06Z
AI-Generated Summary
Purpose
This bill, S. 2776, aims to amend the Justice for United States Victims of State Sponsored Terrorism Act (a law that creates a fund to compensate U.S. victims of state-sponsored terrorism, including the September 11, 2001, attacks). The amendment establishes specific rules for distributing payments from the fund to a defined group of judgment creditors related to a 2014 court order, ensuring they can access withheld funds and participate in future distributions.
Key Provisions
- Exception to Payment Restrictions: Adds a new clause (vi) to subsection (e)(2)(B) of the Act, creating an exception that allows certain "Havlish Settling Judgment Creditors" to receive payments despite general rules that might otherwise block them. This applies to:
- Creditors who previously chose to join the fund or applied for conditional (temporary) payments.
- Assets or proceeds from the sale of properties linked to these creditors.
- Release of Escrow Funds: Requires the immediate release and payment of any funds previously allocated to these creditors but held back (in escrow, meaning temporarily withheld) under prior rules.
- Future Eligibility: Permits these creditors to join future payment rounds on equal terms with other eligible claimants (as defined in subsections (j)(10) through (j)(14) of the Act).
- Definition of Havlish Settling Judgment Creditor: Introduces a new term in subsection (j)(17) defining these as plaintiffs (or their estates/successors) with valid claims under the Act stemming from the 9/11 attacks, who are identified as "Settling Judgment Creditors" in a specific April 16, 2014, court order from the case In re 650 Fifth Avenue and Related Properties (a Southern District of New York proceeding involving properties allegedly tied to terrorism funding).
- Effective Date: The changes apply retroactively, as if enacted on December 29, 2022.
Significant Changes to Existing Law
- Bypassing Prior Restrictions: The original Act limits payments in certain scenarios (e.g., to avoid double recovery or conflicts with other claims). This amendment carves out an explicit exception for the defined group, overriding those limits for their benefit.
- Retroactive Application and Fund Release: Introduces a mechanism to unlock previously frozen funds and ensures ongoing equal access, which was not previously specified for this group.
- New Definitional Clarity: Adds a precise legal definition tied to a specific court order, narrowing the scope to a subset of 9/11-related claimants without altering broader eligibility rules for others.
Potential Impacts
- On Citizens: Primarily benefits a specific group of 9/11 victims or their families/estates by providing access to compensation from seized assets linked to terrorism sponsors (e.g., Iran), potentially resolving long-standing payment delays and offering financial relief.
- On Government Agencies: The U.S. Department of Justice (which administers the fund) will need to process releases of escrow funds and adjust future distributions, possibly increasing administrative workload but streamlining claims for this group. No direct impact on international relations is evident, though it reinforces U.S. efforts to compensate terrorism victims using forfeited assets.
- Broader Effects: Could set a precedent for handling similar judgment creditor disputes, ensuring equitable treatment among 9/11 claimants without depleting the fund for others.
Main Stakeholders Affected
- Havlish Settling Judgment Creditors: The primary beneficiaries—9/11 victims, their estates, or legal successors identified in the 2014 court order—who gain access to withheld and future payments.
- Other 9/11 Claimants: Eligible victims under the Act who may see adjusted distribution processes but retain equal future access.
- U.S. Department of Justice and Fund Administrators: Responsible for implementing the changes, including fund releases and eligibility verifications.
- Courts and Legal Entities: References the 2014 Southern District of New York order, potentially closing related litigation loops without creating new burdens.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens enforcement of prior court judgments by integrating them into federal compensation rules, reducing potential for further lawsuits over withheld funds. The retroactive effective date may address timing disputes from 2022 onward, promoting finality in claims.
- Constitutional Implications: None apparent; the bill aligns with Congress's authority to regulate compensation for terrorism victims and manage seized assets, without infringing on due process or equal protection (as it equalizes treatment for a defined class).
- Political Implications: Signals bipartisan support (introduced by Senators Fetterman and McCormick) for 9/11 victim justice, potentially aiding closure for affected families on the anniversary of the attacks (introduced September 11, 2025). It avoids broader policy shifts, focusing narrowly on one group to maintain fund sustainability.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-09-11: Read twice and referred to the Committee on the Judiciary.
- 2025-09-11: Introduced in Senate
Bill Versions
- To amend the Justice for United States Victims of State Sponsored Terrorism Act to provide rules for payments to Havlish Settling Judgment Creditors. — issued 2025-09-11 — PDF (4 pages)