Justice Dept. Allocates $1B+ to Terrorism Victims

Justice Dept. Allocates $1B+ to Terrorism Victims

Introduction

On December 30, 2024, the Special Master overseeing the U.S. Victims of State Sponsored Terrorism Fund (the Fund) authorized payments totaling $1.035 billion to nearly 19,000 victims of state-sponsored terrorism.

Initial Payments Issued in Early January

During the first week of January, the Fund distributed over $766 million to approximately 14,700 claimants. Payments will continue to be issued on a rolling basis until all authorized distributions are completed.

Justice Department’s Commitment to Victims

“This year, the Fund has authorized over $1 billion in compensation, bringing the total amount distributed to more than $7 billion,” stated the Principal Deputy Assistant Attorney General, who leads the Justice Department’s Criminal Division. “Our division, through its Money Laundering and Asset Recovery Section, remains committed to seeking justice for victims of state-sponsored terrorism.”

Importance of Justice Over Monetary Compensation

While acknowledging the significance of the payout, the Special Master emphasized that no financial compensation can fully account for the losses and trauma suffered by victims. “As many victims have expressed, this is not just about the money—it is about justice,” the Special Master said. “The department’s dedicated team continues to fight for justice on behalf of these victims.”

Fund’s Background and Financial Sources

The Fund was established by Congress and is managed by the Justice Department’s Criminal Division, specifically the Money Laundering and Asset Recovery Section. Since its inception, the Fund has allocated over $6 billion in four rounds of distributions and one set of lump sum catch-up payments. With this latest distribution, total authorized payouts now exceed $7 billion.

Apart from an initial congressional appropriation of approximately $1 billion, the Fund relies on proceeds from Justice Department prosecutions, U.S. government enforcement actions, and additional congressional appropriations for lump sum payments.

Increasing Number of Eligible Claimants

In 2024, the Fund accepted over 4,500 new claimants, increasing the total number of eligible recipients to more than 20,000. However, outstanding and unpaid claims now exceed $120 billion. As more victims of state-sponsored terrorism apply, claims are expected to continue rising in the coming years.

While the available funds are insufficient to fully compensate all claims, the Fund aims to provide a measure of justice and support to those affected by acts of terrorism.