US House passes resolution to block Iran's access to $6bn from prisoner swap

Republicans say bill is aimed at stopping Tehran from diverting funds to Hamas

US officials have said not a single dollar has yet to be made available to Iran and insisting that when it is, it can only be used for humanitarian needs. EPA

The House of Representatives passed a bipartisan measure on Thursday that would block Iran from ever gaining access to the $6 billion recently transferred by the US in a prisoner swap, a step Republicans pushed in response to the nation's alleged role in the deadly attacks last month by Hamas on Israel.

The measure – titled the No Funds for Iranian Terrorism Act – passed 307-119 as Republicans sought to hold President Joe Biden's administration accountable for what they call its complicity in funding Iranian-backed terrorism in the Middle East.

“With such instability in the region, the last thing we need to do is to give access to $6 billion to be diverted to more Iranian-sponsored terrorism,” Michael McCaul, the Republican chairman of the House Foreign Affairs Committee, said during a debate.

US officials have rebuffed this criticism, noting that not a single dollar has yet to be made available to Iran and insisting that when it is, it can only be used for humanitarian needs.

Republican critics like Mr McCaul say that despite the money being restricted to aid, it is fungible, and could free up other funds for Tehran to provide support to Hamas like they believe it did before it attacked Israel in early October.

The US and Iran reached the tentative agreement in August that eventually led to the release of five detained Americans in Tehran and an unknown number of Iranians imprisoned in the US after billions of dollars in frozen Iranian assets were transferred from banks in South Korea to Qatar.

But days after the October 7 attack by Hamas, the US and Qatar agreed that Iran would not be able to gain access to the money in the meantime, with officials stopping short of a full refreezing of the funds.

The Republican-backed resolution, which now goes to the Senate where it is unlikely to be supported by the Democratic majority, would impose new sanctions on the funds to prevent the transfer of any monies to Iran.

Several Democrats who opposed the measure defended the Biden administration's decision to transfer the money in exchange for American hostages, especially in light of the US citizens now being kept by Hamas in Gaza.

The complex deal between Washington and Tehran came together over the summer after months of indirect negotiations between US and Iranian officials.

But the beginning of the Israel-Gaza war has inflamed criticism of the deal as Iran has historically maintained strong ties with both Hamas and the Lebanese militant group Hezbollah.

High-ranking officials have sought to defend the decision to negotiate with Iran despite its track record of supporting terrorism against the US and its allies. But officials have also conceded that Iran's influence over the various militant groups is undeniable.

“Hamas wouldn’t be around in the way that it is without the support that it’s received from Iran over the years,” Secretary of State Antony Blinken said during interviews after the attack.

But he acknowledged that “we have not yet seen evidence that Iran directed or was behind this particular attack”.

Five US prisoners released from Iran in swap - video