Terrorism victims to receive $2.8B in forfeited criminal assets

What it does

This bill amends the Justice for United States Victims of State Sponsored Terrorism Act to clarify and expand funding sources for the U.S. Victims of State Sponsored Terrorism Fund. It directs specific forfeited assets—including $898.6 million already deposited and $1.9 billion in additional funds from the Binance criminal case—into the fund, mandates annual transfers of 50% of excess balances from DOJ and Treasury forfeiture accounts, and requires the Special Master to distribute all available funds to eligible terrorism victims on a pro-rata basis starting January 1, 2026. The bill also adds reporting requirements and ensures fifth-round payments are distributed by March 14, 2025.

Why we flagged it

The bill's core mechanism is redirecting forfeited criminal assets and government seizure proceeds into a dedicated compensation fund for terrorism victims. It is functionally a reallocation of existing government revenue streams (forfeiture accounts) to a specific beneficiary class (terrorism victims), not a new appropriation or tax.

What the text implies

• The bill's requirement to transfer 50% of excess DOJ and Treasury forfeiture balances annually may reduce funds available for law enforcement equitable sharing with state/local agencies, potentially affecting police department budgets and inter-agency cooperation.
• The Binance case proceeds ($2.8B) are one-time; the bill's annual mechanism depends on ongoing criminal forfeitures and asset seizures, creating uncertainty about long-term fund stability if enforcement activity declines.
• The rule of construction preserving court-ordered restitution rights may create competing claims if a single forfeiture case involves both terrorism victims and direct crime victims with court orders, requiring judicial resolution.
• Mandatory reporting to Congress on fund activity and GAO audits may expose classified or sealed case information, though the bill includes a sealing-order carve-out—implementation will depend on DOJ's interpretation of what can be redacted.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Terrorism victims gain direct access to forfeited criminal proceeds and government asset seizures that would otherwise remain in federal accounts or be allocated to law enforcement equitable sharing. The bill accelerates and guarantees distributions, adds transparency through mandatory reporting, and creates a predictable annual funding mechanism—all benefiting a defined class of citizens harmed by state-sponsored terrorism.

Who stands to gain

• U.S. victims of state-sponsored terrorism (eligible claimants under the fund)

Named in the bill

Special Master (Justice for United States Victims of State Sponsored Terrorism Act), Department of Justice, Department of the Treasury, Binance Holdings Limited (criminal case No. 2:23–cr–00178, W.D. Wash.), Crime Victims Fund (Victims of Crime Act of 1984), DOJ Assets Forfeiture Fund (28 U.S.C. § 524), Treasury Forfeiture Fund (31 U.S.C. § 9705), House Committee on the Judiciary, Senate Committee on the Judiciary, Comptroller General of the United States

Where it stands

73 cosponsors: 46 Democrats, 27 Republicans.

• Feb 24, 2025 — Introduced · Congress.gov: “Introduced in House”
• Feb 24, 2025 — Referred to House Committee on the Judiciary · Congress.gov: “Referred to the House Committee on the Judiciary”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

5 lobbying clients named this bill on 6 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $857,000 in lobbying spend. A filing names 2 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 78% of bills with at least one filing.

Michael Lawler, the sponsor, reported $2,042,071 in PAC receipts in the 2026 cycle.

• Chubb Ina Holdings Inc. — $750,000 on 1 filing
• Kreindler & Kreindler Llp (for Certain Plaintiffs in "9/11" Litigation) — $50,000 on 1 filing
• Sparacino Pllc — $30,000 on 1 filing
• Epplin Strategic Planning, on Behalf of Kreindler & Kreindler — $27,000 on 1 filing
• Victims of Terrorism - East Africa — $0 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.