House Passes Bill to Refreeze $6 Billion in Iranian Assets Amid Hamas-Israel War

The House has passed a bill to block U.S. funds from reaching the Iranian regime.

The U.S. Capitol building in Washington on Sept. 20, 2023. Madalina Vasiliu/The Epoch Times

The House passed a bill on Nov. 30 to block U.S. funds from reaching the Iranian regime, especially the $6 billion in Iranian assets the Biden administration recently unfroze.

The No Funds for Iranian Terrorism Act, introduced by House Foreign Affairs Committee Chairman Michael McCaul (R-Texas), passed 307–119, with one voting “present.”

The bill would refreeze the $6 billion in Iranian assets the Biden administration unfroze as part of a prisoner exchange in September. The legislation comes as Hamas, a U.S.-designated terrorist group backed by Iran, has launched rockets and invaded Israel since the Oct. 7 massacre, shooting and killing people, raping women, and taking people hostage.

The State Department has said it has the ability to refreeze the $6 billion, which is oil revenue sitting in an account in Qatar.

The bill would block Iranian funds being held in Qatar—which, like Iran, supports Hamas—and South Korea.

The Biden administration has said the funds are not fungible as they can only be used for humanitarian and other non-sanctioned activities. However, critics have pointed out that because the funds are indeed fungible, Iran can get $6 billion from elsewhere to fund its malign activities, such as supporting terrorism.

Mr. McCaul has said the administration’s assurance that the funds could not be used for terrorism does not hold water.

“No matter what assurances the Biden administration makes, the president of Iran has said he would use this money however he wants,” he said in an Oct. 17 statement.

“Iran is the largest state sponsor of terror in the world,” Mr. McCaul said. “We cannot give them another $6 billion for their terror operations, which include ongoing support for Hamas’ unprovoked war against our ally Israel.”

On the House floor on Nov. 30, Mr. McCaul remarked that the $6 billion was an attempt by the Biden administration to return the 2015 Joint Comprehensive Plan of Action (JCPOA), colloquially known as the Iran nuclear deal, from which the United States withdrew in 2018, reimposing sanctions lifted under it in addition to slapping fresh sanctions on Tehran.

Mr. McCaul noted that the administration has yet to release the terms of the hostage deal.

There is a companion bill in the Senate.

“The path of resources, training, and lethal weapons from Tehran to terrorists throughout the Middle East is crystal clear. On Saturday, it enabled cold-blooded killers like Hamas and Palestinian Islamic Jihad to perpetrate the deadliest day of violence against Jews in decades,” said Senate Minority Leader Mitch McConnell (R-Ky.) in an Oct. 11 statement.

“The civilized world must reimpose serious consequences on the regime that aids and abets murderous evil against innocent Israelis,” he said.

“The United States must lead that effort by our example, and freezing Iranian assets is an important first step.”

There have been bipartisan calls in both the House and Senate to refreeze the $6 billion, which, since the Oct. 7 attacks, the Biden administration has said will not be accessible despite being unfrozen.

“Not a single penny has moved into Iran,” House Foreign Affairs Committee Chairman Gregory Meeks (D-N.Y.) said on the House floor in opposing Mr. McCaul’s bill.

Mr. Meeks said the frozen accounts in Qatar and South Korea were created under President Donald Trump’s administration. However, as noted by Gabriel Noronha, who worked on Iran policy in the State Department under President Trump, those accounts were created in accordance with a law signed in 2012 by President Barack Obama.

Mr. Meeks stated that the bill would make the United States break its deal, similar to withdrawing from the JCPOA.

“This legislation will shoot American global credibility in the foot without even touching Iranian regime leaders,” he said.

Ahead of House passage of the bill, the lower congressional chamber voted on seven amendments—five put forth by Republicans and two by Democrats.

An amendment put forth by Rep. Brian Fitzpatrick (R-Pa.) to state condemnation for Iran-backed terrorist groups, including Hamas, for using human shields, and saying that their surrender is the only way to save lives, passed overwhelmingly 412–11, with one voting “present.”

The second amendment, introduced by Rep. Andy Ogles (R-Tenn.), “express[ing] a Sense of Congress that all U.S. allies in the Middle East should publicly and unequivocally condemn the antisemitism displayed by Iranian-backed terror groups, including Hamas,” passed 422–1, with one voting “present.”

The third amendment, also from Mr. Ogles, prohibiting U.S. funds from going to the Iranian regime, passed overwhelmingly, 421–181, with one voting “present.”

The fourth amendment, also introduced by Mr. Ogles, “expresses a Sense of Congress that the Houthis continue to benefit from the Biden Administration’s unwillingness to unequivocally condemn them.” It passed 226–199, with one voting “present.”

The fifth amendment, introduced by Rep. Austin Pfluger (R-Texas), prohibiting the president from waiving sanctions related to purchasing Iranian oil, passed, 231–198, with one voting “present.”

The sixth amendment added to the bill, introduced by Rep. Katie Porter (D-Calif.), which would commission “a report regarding Iranian internet censorship and applicable United States licensing requirements,” passed, 399–28, with one voting “present.”

An amendment by Rep. Jonathan Jackson (D-Ill.) that would have the legislation expire after five years, failed.