WASHINGTON — In its largest single distribution since its inception, the United States Victims of State Sponsored Terrorism Fund (USVSST) has authorized the release of $2.825 billion to compensate nearly 22,000 individuals impacted by international terror. The announcement, made by the Department of Justice on January 7, 2026, marks a watershed moment in the nation’s effort to provide financial recourse for victims of heinous acts facilitated by foreign states.
Administered by the Criminal Division’s Money Laundering and Asset Recovery Section, the Fund has now authorized more than $10 billion in total compensation since Congress established it in 2015.
A Milestone in Restorative Justice
The 2026 distribution—referred to as the “Sixth Round”—surpasses all previous general payment cycles in scale. Special Master Mary Patrice Brown, who led the authorization, noted that the funds began rolling out on January 5, with nearly 90% of eligible claims processed within the first 24 hours.
- Broad Reach: Compensation is being directed to 21,723 eligible claimants, including over 1,300 new applicants who qualified this year.
- The Victim Community: Recipients include survivors and family members of the September 11 attacks, the 1983 Beirut barracks bombing, and the 1996 Khobar Towers bombing, among other incidents.
- A Measure of Solace: “No amount of money can ever make the victims of these terrible acts whole,” stated Assistant Attorney General A. Tysen Duva, “but this distribution aims to provide some measure of justice.”
How the Fund is Capitalized
Unlike many government programs, the USVSST Fund does not rely solely on taxpayer appropriations. Instead, its primary engine is the seizure of assets from those who violate U.S. laws and support terror.
| Funding Source | Contribution Detail |
|---|---|
| Federal Enforcement | Assets seized from bank forfeiture cases and sanctions violations. |
| Reserve Terminations | Funds previously held in reserve for Beirut and Khobar Towers victims have been fully integrated. |
| Congressional Acts | Initial seed funding and specific catch-up appropriations like the Fairness for 9/11 Families Act. |
| Asset Forfeiture | Proceeds from Justice Department prosecutions involving state-sponsored entities. |
The Scale of the Tragedy
Despite the historic size of this distribution, the financial chasm remains vast. As of late 2025, the total outstanding compensatory damages awarded by U.S. courts against state sponsors of terrorism—including Iran, Syria, North Korea, and Cuba—exceeded $100 billion.
- 9/11 Related Claims: Approximately 12,972 claimants.
- Non-9/11 Related Claims: Approximately 8,751 claimants.
- The “Sunset” Provision: The Fund is currently scheduled to operate until 2039, ensuring a long-term mechanism for asset recovery.
Looking Ahead: Expanding Eligibility
The Justice Department expects the number of eligible claimants to grow as more victims secure court judgments under the Foreign Sovereign Immunities Act (FSIA). The Special Master emphasized that the department remains committed to ensuring that every available dollar from qualifying enforcement actions reaches the hands of those who have suffered.
The Bottom Line: Transforming Fines into Reparations
By channeling the proceeds of criminal forfeitures directly to the victims of international state-sponsored crime, the USVSST Fund effectively weaponizes the U.S. legal system against the very entities that fund terror. For the thousands of American families receiving support this month, the $2.8 billion is more than a payment—it is a tangible acknowledgment of their endurance and a forceful rebuke of those who utilize violence as a state tool.
Flag of the United States Department of Justice (DOJ), Picture from Picryl. Public Domain
