In January 2026, the U.S. Department of Justice announced the largest compensation distribution ever authorized by the U.S. Victims of State Sponsored Terrorism Fund. The Special Master approved $2.825 billion in payments to nearly 22,000 eligible victims and family members.
The authorization marked a major milestone for the federally established Fund and increased the total compensation authorized to more than $10 billion since the program’s creation by Congress. You can read the entire PDF about this announcement by clicking here.
According to the Department of Justice, the January 2026 distribution represents the largest single authorization since the Fund was established.
Key figures from the announcement include:
$2.825 billion approved for distribution
Nearly 22,000 eligible recipients
More than $10 billion total authorized compensation to date
Over 1,300 new eligible claimants added since the previous distribution
Officials emphasized that while the distribution is historic in size, the total funds available remain insufficient to fully satisfy all compensatory judgments entered against state sponsors of terrorism.
The U.S. Victims of State Sponsored Terrorism Fund was created by Congress to provide compensation to individuals who obtained final judgments in U.S. courts against foreign state sponsors of terrorism for acts of international terrorism.
The Department of Justice reiterated that the Fund exists to provide financial compensation, not to determine liability or replace the court system.
The Department of Justice stated that funds available for the January 2026 distribution were derived from:
Federal law enforcement and enforcement actions, and
The termination of certain terrorism-related reserve funds, including those associated with the Beirut barracks and Khobar Towers cases.
These funds were made available for distribution in accordance with federal law governing the program.
In announcing the distribution, Justice Department officials acknowledged that no amount of money can fully compensate victims for the harm caused by acts of terrorism. The authorization was described as an effort to provide meaningful financial relief to victims and their families who have waited years for compensation.
Additional details about the U.S. Victims of State Sponsored Terrorism Fund, including background information and eligibility requirements, are available on our dedicated resource page for victims of state sponsored terrorism compensation.
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