‘Failing the promise:’ Fund for U.S. victims of foreign terrorism running low on money

WASHINGTON — A fund to help American victims of international terrorism is running low on money, according to a new watchdog report.

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The findings from the U.S. Government Accountability Office (GAO) looked into the “U.S. Victims of State Sponsored Terrorism Fund” (USVSST Fund). The money is for survivors and family members of victims who have won judgments in court against state sponsors of terrorism.

GAO said while the fund collected more than $2 billion in FY 2016-2023, balances are now declining.

According to the report, the fund “did not authorize a round of payments in January 2024 due to insufficient funds.”

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Money for the fund is paid for with criminal and civil penalties and seized assets linked to state sponsored terrorism. It is not funded by U.S. taxpayer money.

Angela Mistrulli understands the need for the fund first-hand. She was just 17 when her dad Joseph Mistrulli was killed in the September 11th terror attacks.

“I lost my dad in the World Trade Center. He was in Windows on the World,” Mistrulli told our Washington News Bureau. “It changes your life, and it shapes you.”

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Since her loss, Mistrulli has become an outspoke advocate for terrorism victims, survivors and their families.

She said she’s frustrated by the obstacles facing families in need of the resources.

“We are now here with a funding that is wilting away and is failing the promise that Congress meant for nearly 18,000 victims of terrorism and growing,” said Mistrulli.

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The report points to potential solutions to increase deposits into the fund, including increasing how much of the criminal penalties go into the fund and expanding which crimes apply for sanctions.

Mistrulli said it’s urgent for Congress to act as soon as possible to ensure the fund doesn’t run dry.

“This fund can operate appropriately if it is carried out through Congress’ intent,” said Mistrulli. “Congress needs to do better.”

A group of lawmakers is now working on a proposal to overhaul how the USVSST functions and to ensure it is adequately funded.

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