American Victims of Terrorism Compensation Act
- Bill Number
- S. 706
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Crime and Law Enforcement
- Status
- Introduced
- Latest Action
- 2025-02-25: Read twice and referred to the Committee on the Judiciary.
- Last Updated
- 2025-12-05T22:49:32Z
AI-Generated Summary
Purpose
The American Victims of Terrorism Compensation Act (S. 706) aims to amend the Justice for United States Victims of State Sponsored Terrorism Act (JUSVSSA) to clarify and expand funding sources for the United States Victims of State Sponsored Terrorism Fund. This ensures more reliable and substantial payments to eligible U.S. victims of state-sponsored terrorism, including through transfers from specific forfeitures, penalties, and excess balances in government funds.
Key Provisions
- Funding Transfers: Directs deposits into the Fund from:
- Specific amounts from the Binance Holdings Limited plea agreement (approximately $898 million already deposited, plus up to $1.9 billion additional, including interest; a portion goes to the Crime Victims Fund).
- 50% of excess unobligated balances (plus interest) from the Department of Justice (DOJ) Assets Forfeiture Fund and the Department of the Treasury Forfeiture Fund, calculated annually as of January 31 or the date of final appropriations, transferred within 30 days.
- All post-enactment forfeitures related to violations of economic sanctions laws (e.g., International Emergency Economic Powers Act or Trading with the Enemy Act) or actions involving state sponsors of terrorism, deposited within 60 days of receipt or 30 days of enactment.
- Payment Timing and Structure:
- Mandates fifth-round payments authorized by January 1, 2025, to be distributed by March 14, 2025 (or sooner if claimant information is provided later).
- Requires annual pro rata payments to eligible claimants starting January 1, 2026, using all available Fund balances (excluding administrative costs), distributed as soon as practicable.
- Deposits remaining amounts from a prior lump-sum reserve fund into the main Fund by 30 days after enactment, for a supplemental fifth-round distribution by June 30, 2025.
- Reporting Requirements:
- Annual report from the Special Master to congressional Judiciary Committees on Fund balance, deposits, disbursements, and explanations for non-deposits, published by the Attorney General by March 1.
- One-time Government Accountability Office (GAO) report by April 1, 2025, listing major forfeitures and penalties since 2020 (over $10 million), their deposits, and interest.
- Triennial GAO reports starting January 1, 2027, evaluating Fund administration, funding sufficiency, trends, and unpaid claims by victim group.
- Administrative Provisions: Allows the Special Master to use up to 10 full-time equivalent DOJ personnel, with all related costs paid from the Fund.
Significant Changes to Existing Law
- Expanded Funding Sources: Adds mandatory transfers from excess balances in DOJ and Treasury forfeiture funds (previously not directed to this Fund) and clarifies inclusion of all relevant post-enactment forfeitures tied to sanctions violations or state sponsors of terrorism, regardless of offense type.
- Payment Reforms: Shifts from irregular distributions to mandatory annual payments starting in 2026, incorporating all qualifying inflows and interest; accelerates fifth-round payments and adds a supplemental distribution from reserves.
- Enhanced Oversight: Introduces detailed annual and periodic reporting not previously required, including GAO analyses of historical forfeitures and Fund performance; specifies timing for deposits (e.g., 30-60 days) to speed up inflows.
- Administrative Limits: Replaces prior cost provisions with a cap on DOJ personnel usage, ensuring costs are Fund-borne without broader changes to victim eligibility or claims processes.
- Rules of Construction: Protects prior court-ordered restitution for direct crime victims and equitable sharing with law enforcement; excludes transfers from counting against appropriations limits or rescissions.
Potential Impacts
- On Citizens: Provides more consistent and potentially larger compensation payments to U.S. victims (and families) of state-sponsored terrorism, reducing delays in accessing funds from past awards; may increase total distributions through new revenue streams.
- On Government Agencies: Increases administrative workload for DOJ (Special Master and personnel), Treasury, and GAO due to reporting, transfers, and oversight; requires agencies to promptly deposit forfeitures, potentially redirecting funds from other uses like general law enforcement.
- On International Relations: Strengthens enforcement of U.S. sanctions by channeling related forfeiture proceeds to victim compensation, which could deter state sponsors of terrorism (e.g., those designated under U.S. law) but may complicate inter-agency budgeting without affecting foreign policy directly.
Main Stakeholders Affected
- Victims and Claimants: Primary beneficiaries, including individuals and estates with approved claims under JUSVSSA for harms from state-sponsored terrorism (e.g., attacks by designated countries like Iran).
- U.S. Department of Justice: Oversees the Special Master, Fund administration, personnel usage, and reporting; must transfer from its Assets Forfeiture Fund.
- U.S. Department of the Treasury: Responsible for transfers from its Forfeiture Fund and handling sanctions-related forfeitures.
- Congress: Receives reports for oversight, particularly Judiciary Committees; influences through appropriations.
- Government Accountability Office (GAO) and Comptroller General: Conducts required audits and reports on Fund operations and historical data.
- Law Enforcement Agencies: Indirectly affected, as transfers do not harm prior equitable sharing but may limit future use of excess forfeiture balances.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Clarifies the scope of deposits from sanctions-related cases amid pending litigation on penalties/fines, directing future resolution via courts or legislation; includes GAO report to inform disputes without altering ongoing cases. Protects victims' restitution rights and law enforcement sharing, avoiding retroactive impacts.
- Constitutional Implications: None explicitly raised; amendments align with Congress's powers over appropriations and victim compensation under the Spending Clause, without infringing on due process or property rights.
- Political Implications: Bipartisan sponsorship (e.g., Senators Cornyn, Blumenthal, Cramer, Schumer, Schiff) signals broad support for victim aid; enhances transparency to build trust in Fund management, potentially influencing future appropriations debates on forfeiture funds without partisan controversy evident in the text.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (6)
Sen. Blumenthal, Richard [D-CT], Sen. Cramer, Kevin [R-ND], Sen. Schumer, Charles E. [D-NY], Sen. Schiff, Adam B. [D-CA], Sen. Cruz, Ted [R-TX], Sen. McCormick, David [R-PA]
Recent Actions
- 2025-02-25: Read twice and referred to the Committee on the Judiciary.
- 2025-02-25: Introduced in Senate
Bill Versions
- American Victims of Terrorism Compensation Act — issued 2025-02-25 — PDF (21 pages)