Ayotte: Obama Administration Cash Payments to Iran Will Support Iranian Military Expansion and Terrorism

Press Release

Today, U.S. Senator Kelly Ayotte, a member of the Senate Armed Services Committee, sent a letter to Secretary of Defense Ash Carter and Director of National Intelligence (DNI) James Clapper expressing concern and asking questions about reports that Iran received $1.7 billion in cash payments from the Obama administration that Tehran plans to use to directly fund its military expansion.

"The plain purpose of transferring the money in cash was to circumvent the effects of U.S. and international financial sanctions. Giving Tehran the money in cash provides the regime liquidity that it can use to skirt the arms embargo and illicitly purchase weapons for the Islamic Revolutionary Guard Corps (IRGC), the terrorist organization Hezbollah, or the murderous Assad regime," wrote Ayotte. "I am deeply troubled that this large infusion of U.S. taxpayer-funded cash into the defense coffers of the world's worst state sponsor of terrorism is going to further embolden Iran and result in our troops and our allies confronting more lethal and better equipped adversaries and potential adversaries."

This week, Ayotte helped introduce the No Ransom Payments Act of 2016, which would prohibit the federal government from paying ransom, and stop payments to Iran from the U.S. Treasury Department's Judgment Fund until Iran returns the ransom money it received and pays American victims of Iranian terrorism what they are owed.

Ayotte's letter today and legislation this week follows a report last week that the $1.7 billion payment to Iran-including the $400 million cash ransom payment-will help directly fund the Iranian military.

The full text of the letter is below.

Dear Secretary Carter and Director Clapper,

As you know, following the Obama administration's $400 million cash ransom payment to Iran, the Wall Street Journal reported yesterday that the administration then paid an additional $1.3 billion in cash as well. These cash payments were reportedly made in Swiss francs, euros, and other foreign currencies. It has also been reported that the $1.7 billion payment to Iran-including the $400 million cash ransom payment-will help directly fund Iran's military expansion.

The plain purpose of transferring the money in cash was to circumvent the effects of U.S. and international financial sanctions. Giving Tehran the money in cash provides the regime liquidity that it can use to skirt the arms embargo and illicitly purchase weapons for the Islamic Revolutionary Guard Corps (IRGC), the terrorist organization Hezbollah, or the murderous Assad regime. I am deeply troubled that this large infusion of U.S. taxpayer-funded cash into the defense coffers of the world's worst state sponsor of terrorism is going to further embolden Iran and result in our troops and our allies confronting more lethal and better equipped adversaries and potential adversaries.

Based on these concerns, I request that you answer the following questions in writing without delay:

1. What percentage of the annual defense budget of Iran does $1.7 billion constitute?

2. How do you assess that Iran will spend this $1.7 billion defense windfall? How will this $1.7 billion defense windfall free up resources for top defense priorities that Iran may not have been able to afford previously?

3. Do you assess that the IRGC may directly or indirectly use these funds to improve Iran's ballistic missile capabilities?

4. Iranian maritime forces have conducted more than 30 unsafe harassments of U.S. naval vessels this year alone. With this significant increase in defense funding, do you assess that Tehran will better equip its forces in the Arabian Gulf-perhaps purchasing more of the Fast In-shore Attack Craft (FIAC) that are often used to harass U.S. naval vessels?

5. Do you assess that it is possible or likely that the IRGC will directly or indirectly use these funds to better equip or support Hezbollah or the Assad regime?

Thank you for your service to our country and for answering these important questions.

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