American Victims of Terrorism Compensation Act

The American Victims of Terrorism Compensation Act aims to strengthen the financial stability and distribution capabilities of the United States Victims of State Sponsored Terrorism Fund (USVSST Fund). It achieves this by amending the Justice for United States Victims of State Sponsored Terrorism Act, primarily by clarifying and supplementing the sources of funding available to the Fund. A key provision directs substantial forfeited assets, including over $2.8 billion from the Binance Holdings Limited case, into the USVSST Fund, along with interest earned on these amounts.

Additionally, the bill mandates annual transfers of 50 percent of the excess unobligated balances from both the Department of Justice Assets Forfeiture Fund and the Department of the Treasury Forfeiture Fund into the USVSST Fund. It also clarifies that all funds and net proceeds from property forfeited after the bill's enactment, arising from violations related to state sponsors of terrorism, must be deposited into the Fund. These deposits are required within 30 to 60 days of receipt by a United States agency.

To ensure timely compensation, the bill requires the distribution of all fifth-round payments to eligible claimants by March 14, 2025. Starting January 1, 2026, and annually thereafter, the Special Master or Attorney General must authorize additional pro rata payments to claimants, incorporating all newly received funds and interest. A supplemental fifth-round distribution from remaining reserve funds is also mandated by June 30, 2025.

The legislation enhances transparency and oversight by requiring the Special Master to submit an annual report to Congress detailing the Fund's balance, activity, deposits, and disbursements, which the Attorney General must publish online. Furthermore, the Comptroller General (GAO) is tasked with producing a report by April 2025 on forfeited funds over $10 million since 2020, and a triennial report evaluating the Fund's administration, funding sufficiency, and payment trends. The bill also allows the Special Master to utilize up to 10 Department of Justice personnel, with associated administrative costs paid from the Fund, while ensuring that the amendments do not impair equitable sharing with law enforcement or direct crime victims' court-ordered restitution rights.