PolicyBrief
S. 226
119th CongressJan 23rd 2025
No Tax Dollars for Terrorists Act
IN COMMITTEE

The "No Tax Dollars for Terrorists Act" requires the State Department to develop a strategy to prevent foreign countries and NGOs from providing financial or material support to the Taliban, and to report on U.S. cash assistance programs and the status of the Afghan Fund.

Tim Sheehy
R

Tim Sheehy

Senator

MT

LEGISLATION

New Bill Aims to Cut Off Funds to Taliban: Requires Strategy and Reports on Foreign Support

The "No Tax Dollars for Terrorists Act" is a new bill that pushes for a serious crackdown on any money flowing to the Taliban from other countries or NGOs. The law tasks the Secretary of State with figuring out who's still supporting the Taliban, how much aid they're getting from the U.S., and how the Taliban is using any funds they receive. It is not just about identifying the problem. The bill demands a strategy, within 30 days, to cut off this support, and that strategy has to be implemented within 60 days.

Following the Money

The law requires a deep dive into where U.S. aid money in Afghanistan has been going. Specifically, within 60 days, the Secretary of State, along with USAID, has to report on all direct cash assistance programs in Afghanistan from August 1, 2021, to 30 days after this bill becomes law (SEC. 4). This includes detailing who got the money, how it was sent, and, importantly, how the government kept tabs on informal money transfer systems called "hawalas" to make sure the cash didn't end up with the Taliban.

Watching Over the Afghan Fund

The bill also zeroes in on the Afghan Fund. The Secretary of State needs to report back to Congress within 60 days (and regularly after that) on any Taliban members working at Da Afghanistan Bank or influencing its Supreme Council (SEC. 5). The report has to lay out the Taliban's sway over the bank, how the Afghan Fund's trustees are chosen, the rules for releasing money to the bank, and how they'll prevent funds from being misused once they're released.

Real-World Impact and Potential Issues

For the average American, this bill is about ensuring tax dollars aren't, directly or indirectly, supporting a group like the Taliban. If successful, it could mean more aid getting to regular Afghan people who need it, rather than being siphoned off. It also aims to bolster U.S. national security by choking off a potential source of terrorism financing. The challenge? "Material support" is a tricky term. It could end up blocking legitimate aid if it's interpreted too broadly. Plus, tracking money through systems like hawalas is notoriously difficult, and strategies to discourage foreign support could create diplomatic friction.