This Act authorizes the Treasury to provide $3 billion in annual loans to the U.S. Victims of State Sponsored Terrorism Fund from 2027 to 2029 to ensure mandatory distributions to victims.
Laura Gillen
Representative
NY-4
The Never Forget the Victims of Terrorism: Joseph D. Mistrulli and Alan Kleinberg USVSST Fund Solvency Act ensures the continued support of victims by authorizing the Treasury to loan $3 billion to the U.S. Victims of State Sponsored Terrorism Fund annually from 2027 through 2029. These funds are mandated for immediate distribution to eligible claimants, providing a critical financial bridge for those affected by state-sponsored terrorism. The act establishes a clear repayment structure for these loans, utilizing future civil and criminal penalties collected from state sponsors of terrorism.
Terrorism Victims Fund Secures $9 Billion Lifeline: Treasury Loans to Bridge Payment Gaps Through 2029
The Never Forget the Victims of Terrorism Act steps in to fix a math problem that has real-world consequences for families affected by state-sponsored violence. Under Section 2, the bill authorizes the Treasury to loan $3 billion annually to the United States Victims of State Sponsored Terrorism (USVSST) Fund for fiscal years 2027, 2028, and 2029. This isn't just a suggestion; the bill mandates that these funds be deposited within 30 days of the start of each fiscal year to ensure the money is actually there when it’s time to cut checks to eligible claimants.
Bridging the Solvency Gap
Think of the USVSST Fund like a community trust that relies on unpredictable income—specifically, fines and forfeitures seized from countries that sponsor terrorism. When those seizures are low, the fund risks running dry, leaving victims waiting years for promised compensation. This bill acts as a line of credit for the fund. By injecting $3 billion a year for three years, the legislation ensures that payments to individuals—like a family member of a 9/11 victim or someone injured in an embassy bombing—don't stall out because of a temporary lack of seized assets. The bill specifically states that these borrowed funds cannot be held back or carried forward; they must be included in the annual distribution to victims.
The Repayment Roadmap
While this is technically direct spending, it isn't a permanent gift from the taxpayer. The Treasury Secretary will set an interest rate based on current market yields for government debt, and the fund is on the hook to pay it back. However, the repayment terms are unique: the bill stipulates that the loan plus interest will be repaid only after the fund eventually terminates. The money for that repayment will come from future criminal and civil penalties collected from state sponsors of terrorism. For a small business owner or a worker paying into the system, this structure aims to provide immediate relief to victims without creating a permanent hole in the federal budget, essentially betting that future enforcement actions against bad actors will eventually cover the tab.