Sponsor
W. Greg Steube
Representative · R-FL
Representative · R-FL
The bill strengthens U.S. tools and oversight to prevent IMF resources and U.S. aid from benefiting genocidal or terrorist actors and increases transparency, but at the cost of added burdens and delays for aid providers and risks of straining IMF cooperation and global financial stability.
Taxpayers and the U.S. government can block IMF Special Drawing Rights (SDRs) from regimes the Secretary of State designates as perpetrators of genocide or state sponsors of terrorism, reducing the risk that international liquidity indirectly supports malign actors.
Nonprofits and aid recipients gain stronger assurance that U.S. foreign assistance won’t be diverted to terrorist groups because prime awardees must vet subawardees and grant processes include tighter safeguards, reducing misuse risk and legal exposure.
Congress (and thus taxpayers) receives faster, more transparent oversight of pertinent foreign assistance flows through a required report within 90 days, improving accountability of U.S. funds overseas.
U.S. actions to block or politicize SDR allocations risk disrupting IMF liquidity mechanisms and global financial stability, which could raise borrowing and consumer costs for U.S. households and businesses.
Limiting SDR allocations and relying on unilateral U.S. designations could erode international consensus, create diplomatic friction with allies and other IMF members, and reduce U.S. influence in future multilateral financial decisions.
Tighter vetting and additional paperwork can delay disbursement of aid and complicate partnerships with local groups in high-need areas, slowing assistance to vulnerable beneficiaries.
Based on analysis of 3 sections of legislative text.
Directs the U.S. to oppose IMF SDR allocations to countries designated for genocide or state‑sponsoring terrorism and requires reviews/verifications to prevent U.S. aid reaching terrorist groups.
Official title: To prevent allocations of Special Drawing Rights at the International Monetary Fund for countries that are perpetrators of genocide or state sponsors of terrorism, and to prevent United States tax dollars from directly going to the Taliban or other terrorists or terrorist-harboring nations.
Introduced January 15, 2025 by W. Greg Steube · Last progress January 15, 2025
Directs the Treasury to instruct the U.S. Executive Director at the IMF to oppose Special Drawing Right (SDR) allocations to countries the State Department finds to be perpetrators of genocide or state sponsors of terrorism, and to push the IMF to adopt a rule barring such allocations. It also requires Treasury, State, and USAID to review U.S. assistance to NGOs and international organizations to ensure funds are not being passed to the Taliban, terrorist groups, or countries that harbor terrorists, and to report to Congress and require prime awardees to verify subawardee compliance with U.S. anti‑terrorism financing laws.