The GOP-led House approved legislation late Thursday to prohibit the United States from making cash payments to Iran and require that Congress be notified before any future claims settlements with Tehran are conducted. The bill passed by a wide margin, 254-163.
The measure, an election-year broadside, won ample support from Republicans aiming to rebuke the Obama administration for paying Iran $1.7 billion in cash earlier this year to settle a decades-old arbitration claim. Democrats have accused Republicans of trying to score political points with the bill.
Since the initial payment was made the same day Tehran agreed to release four American prisoners, GOP lawmakers decried the payments as ransom, a charge the White House has rejected. Citing Iran’s status as a leading state sponsor of terrorism, Republicans have contended the untraceable cash will be used to finance terrorism around the world. Although the bill targets Iran, lawmakers also passed an amendment that would bar the U.S. from paying cash to other designated sponsors of terrorism and North Korea.
“Cash does not leave a paper trail,” said Rep. Ed Royce, R-Calif., the Foreign Affairs Committee chairman and the bill’s sponsor. “Cash is the currency of terror.”
The Obama administration has threatened a veto of the bill, calling it “an ill-advised attempt to respond to a problem — so-called ‘ransom’ payments to Iran — that does not exist.”
House Democrats accused Republicans of trying to score political points. Rep. Eliot Engel of New York, the top Democrat on the Foreign Affairs Committee, said holding Tehran’s money until Iran released the Americans “was a pretty shrewd bargain.” But by using the word ransom, Engel said, Republicans turned the bill “into a political hot button — a poke in the eye of the administration.”
An initial $400 million payment in euros, Swiss francs and other foreign currency was delivered on pallets on Jan. 17, the same day Tehran agreed to release the prisoners. The remaining $1.3 billion was paid in cash installments made on Jan. 22 and Feb. 5.
The administration has said the arbitration payment and prisoner release were separate, but later acknowledged that the cash was used as leverage until the Americans were allowed to leave Iran.
Republicans on a House panel pressed Treasury Secretary Jack Lew Thursday about the cash payments at a Financial Services Committee hearing on the condition of the financial system. The exchanges became heated.
Lew insisted the payment wasn’t ransom. He said it complied with sanctions rules and said settling a contract dispute for less than what the Iranians had claimed “saved the American people billions of dollars.”
Rep. Jeb Hensarling, R-Texas, the committee’s chairman, cut him off. “Can you trace the money?” he demanded.
The payment was deposited in a bank account that Iran held in a third country, and the actual method of the payment is “a technical detail,” according to Lew.
Rep. Maxine Waters of California, the committee’s top Democrat, said the Republicans’ questioning was part of an effort to “dismantle” the landmark Iran nuclear agreement that gave Tehran relief from many international economic sanctions.
“What we find is an undermining of this president (Obama) at every turn,” Waters said. To Lew, she said, “I’m sorry that you have to endure this.”
The money settled a dispute over a $400 million payment made in the 1970s by the U.S.-backed shah’s government for military gear. The equipment was never delivered because of the 1979 Islamic Revolution, which overthrew the shah and ended diplomatic relations between the U.S. and Iran. The $1.3 billion covers what Iran and the U.S. agreed would be the interest on the $400 million over the decades.
The Associated Press contributed to this article.
Obumma could sell ice cubes to an Eskimo. He has no shame
WOW…. This is really great no more payments without congressional approval. But lets get real THE PAYMENTS ALREADY BEEN MADE AND IRAN HAS 1.7 BILLION (POSSIBLY MORE) IN CASE THAT CAN BE USED FOR ANYTHING THEY WISH AND NOTHING IS GOING TO BE DONE TO THE SHITBAG CIC SO BIG DEAL THE DAMAGE IS ALREADY DONE
Maybe – NO!! I am sure he is stashing money in Iran so he can return “home.” That’s the reason why the money can not be traced. We are being taken by fools if we do not ASK, ASK more questions. After all, it’s OUR MONEY!!!
Obama and his administration are all sorry terrorists dogs. So happy when they are finally out and to never be heard from again, I hope. the worse 8 years I can remember and this idiot and those idiots that voted for him are responsible.
Not so Fast,We better Hope Email and demand Justice after 8 years of Insanity and a Refugee Illegal Alien Mess to clean up.Our Honorable Me,there families and America’s Flag will never be Stomped,Spat on or ass wiped again,as The Rioters will fall,The neocon Establishment ends.Then we will see Hopefully LAW AND ORDER RESTORED. Women children innocents KIA in an Illegal War on Terror. if Not Scourch The Earth Policy wil ensue.read about Shermans march and Kit Carsons and Powells Take down.Civilization or Anarchy ! Savannah Georgia had to fall as the heathen Who Practiced Human Sacrifices in the West ,the Indian Wars in N America had to fall.
I hope and Pray the real men behind TRUMP are not gong to let any of THEM Go anywhere.It’s Time for the Donkey Deck party to end.Then One Nation Under God ¨ no more PC Proud left wingnut Progressive Academia,Federal Govt, ACLU,SPLC,NAMBLA,LGBT Party. Running the Show. I hope FOIAS, Seizures of ALL Assets, No retirement or SS Protection and No Guns allowed as Felony Charges will be Pending. a Tribunal.Then a sentencing, and then a firing Squad Period !
Don,t forget George Soros he is wanted by Russian.arrest George with no bail or ankle bracelet..
Since Obama was never authorized to give Iran the $1.7B in cash payments which is illegal as hell, Congress should take I out of his current and retirement pay until it is paid off. Do what he did in the military or civilian service and you are tagged with a repayment plan.
Obuttwipe is the worse Piece of crap EVER to disgrace our now tarnished white house. He should be tried and shot for aiding and abetting the enemy. If Congress had a spine!
Yeah congress, do your job after the fact. What the he!! good is that? It’s reported that wealth redistribution payment was actually over 33 billion. We need some drastic measures to get this country back from an out of control government. Sitting on our but complaining will not suffice.
Definitely need Constitutional convention of the States.
Congress needs to approve payouts and settlements. Congress are elected by the people and they should take our concerns to the table on every issue. I’m glad to see that an attempt is being made to deal with power-hungry presidents.
I still wondering about the one hundred and fifty billion that Obama gave to Iran about five months ago, lets talk about that . he need to quit supporting the very people that is hell bent on trying to destroy us.
this president has proven over and over again his total disregard for the welfare of our country. the secret payouts to iran is just another example, in a long list, of him acting in furtherance of a self-serving agenda. his explanation for the payout was, iran paid us for weapons in the 1970’s, we never delivered. they weren’t delivered because of the islamic revolution that overthrew the shah and ended our diplomatic relations with iran. to my knowledge, our relations and the leaders of the islamic revolution remain unchanged. what was obamas motivation for making this payout now and in the way he made it. if in fact, he truly believed he was doing the right thing, why in secret, at night, in cash and without permission from congress? first he said he did it because we owed it and we would save billions, then it was for the release of the prisoners. the best one, was his explanation of the cash, it could only be done in unmarked, foreign currency because it was against the law to pay them in u s dollars. do any of you, like i do, find it strange that not one sitting u s president, since the fall of the shah, has not even had the slightest interest in addressing this issue, other than obama? if you were him, wouldn’t you rather say you did it to free our prisoners, than tell the truth?
Can someone please explain why Obama got away with sending billions to Iran? IT WAS PAYOFF…PERIOD! He can use the prisoners as an excuse, but anyone with a brain knows. In addition, one of the men that was released was on national television saying that “It was a ransom” payoff!!