S. 706 — American Victims of Terrorism Compensation Act

This section amends section 404 of the Justice for United States Victims of State Sponsored Terrorism Act (34 U.S.C. 20144)—which established the U.S. Victims of State Sponsored Terrorism Fund to compensate eligible U.S. victims of state-sponsored terrorism and their family members—by (1) requiring the Special Master to distribute all fifth-round payments authorized on or before January 1, 2025, to eligible claimants no later than March 14, 2025 (or as soon as practicable after receiving required payment information); and (2) designating additional amounts for deposit into the fund, including all interest earned on such deposits. Among the designated amounts, this section (1) specifies $898,619,225 already deposited into the fund and $1,912,031,763 in additional funds and net proceeds (plus interest) from the plea agreement in United States v. Binance Holdings Limited (W.D. Wash. 2023), with $1,505,475,575 of related proceeds instead deposited into the Crime Victims Fund (34 U.S.C. 20101) within the later of 30 days of agency receipt or 15 days of enactment; (2) requires annual transfers, within 30 days of determination (the later of January 31 or final FY appropriations enactment), of 50% of the excess unobligated balance (per 28 U.S.C. 524(c)(8)) plus 50% of interest from the Department of Justice Assets Forfeiture Fund (28 U.S.C. 524(c)), excluding certain rescissions under 1 U.S.C. 105; and (3) requires similar annual transfers of 50% of the excess unobligated balance (defined as unobligated balance as of September 30 of prior FY minus required retention for next FY) plus 50% of interest from the Department of the Treasury Forfeiture Fund (31 U.S.C. 9705), also excluding rescissions under 1 U.S.C. 105. (Thus, transfers do not count against appropriations limitations on excess balances.)

This section revises the requirements for depositing penalties, fines, and forfeited funds and property into the United States Victims of State Sponsored Terrorism Fund—which compensates U.S. persons who are victims of state-sponsored terrorism—by (1) striking "forfeited or" from clauses (i) and (ii) covering civil and criminal penalties and fines, (2) requiring deposit of all funds and net proceeds from property forfeited to the United States after enactment of the American Victims of Terrorism Compensation Act in matters arising from violations of the International Emergency Economic Powers Act (IEEPA) or Trading with the Enemy Act (TWEA), or involving or relating to a state sponsor of terrorism (if so designated at the time of the penalty or fine, during related proceedings, or for related conduct), and (3) directing agencies to make such deposits not later than the later of 60 days after receipt or 30 days after enactment of this provision. (Thus, the changes clarify and expand Fund deposits from certain forfeiture proceeds while preserving direct crime victims' restitution rights and the scope of penalties and fines under existing clauses, which are subject to pending litigation.)

This section revises the annual payment procedures for the United States Victims of State Sponsored Terrorism Fund (34 U.S.C. 20144(d)(4)(A)). Beginning January 1, 2026, and annually thereafter, it requires the Special Master or Attorney General to authorize pro rata payments to eligible claimants under subsection (c)(2) using all qualifying amounts received by U.S. agencies for deposit or transfer into the Fund—including interest earned from receipt to deposit/transfer—not previously distributed and not needed for administrative costs or Special Master compensation. (The Fund compensates U.S. persons who are victims of state-sponsored terrorism.) All authorized payments must be distributed as soon as practicable in the calendar year of authorization, or within one year if authorized earlier.

This section requires new reports on the United States Victims of State Sponsored Terrorism Fund (USVST Fund), which compensates eligible U.S. victims of state-sponsored terrorism attacks (34 U.S.C. 20144). (1) Annual report.—The Special Master must submit to the chairmen and ranking minority members of the Senate and House Judiciary Committees, by January 31 each year, a report on the Fund's prior fiscal year balance and activity, including total balance; deposits by source, case name, and amount (except confidential portions); disbursements for victim compensation, administrative costs, and Department of Justice personnel; deposits from the Department of Justice Assets Forfeiture Fund (28 U.S.C. 524(c)(1)) and Department of the Treasury Forfeiture Fund (31 U.S.C. 9705), with calculation basis; and explanations for non-deposits due to statutory rules, inter-agency credits, administrative costs, or other reasons. The Attorney General must publish the report on the Fund's website by March 1. (2) One-time GAO report.—By April 1, 2025, the Comptroller General must report to Congress on all funds and net proceeds from property sales exceeding $10 million forfeited or paid to the United States since January 1, 2020, as criminal or civil penalties or fines—listing sources, case names, and amounts (except confidential portions); deposit locations (e.g., USVST Fund or Crime Victims Fund), nature, and statutory basis; and interest earned. (3) GAO triennial reports.—By January 1, 2027, and every three years thereafter, the Comptroller General must report to Congress evaluating USVST Fund administration and funding sufficiency, analyzing funding and payment trends, and describing outstanding unpaid eligible claims overall (disaggregated by victim group and claim entry date).

This section increases to 10 (from 5) the maximum number of full-time equivalent Department of Justice personnel that the Special Master may utilize, as necessary, to administer compensation from the United States Victims of State Sponsored Terrorism Fund to eligible U.S. persons who are victims of state-sponsored terrorism. (Thus, it eliminates prior temporary authorizations for an additional 5 personnel during specified one-year periods.)

This section requires the deposit into the United States Victims of State Sponsored Terrorism Fund (i.e., the Fund that compensates U.S. persons who are victims of state-sponsored terrorism), not later than 30 days after enactment of the American Victims of Terrorism Compensation Act, of all amounts remaining in the lump sum catch-up payment reserve fund in excess of the amounts described in subclauses (I) and (II) of clause (iii), including all interest earned on such reserve fund. The Special Master must authorize a supplemental fifth-round distribution of those amounts by April 1, 2025, for distribution by June 30, 2025, to all claimants for whom the Special Master authorized fifth-round distributions.