Latest USVSST news and status: where the seventh round, the Fund's balance and H.R. 9795 stand today, each dated and sourced.
Why we wrote this
A lot of what circulates online about the USVSST Fund and "seized Iranian money" is speculation. This page sticks to what the Fund itself publishes: how it is funded, how it pays families, and what is actually known about the next round.What the USVSST Fund is
Congress created the United States Victims of State Sponsored Terrorism (USVSST) Fund by statute in 2015 to compensate a specific group of people: U.S. persons who hold a final judgment from a United States district court against a foreign state sponsor of terrorism, plus the 1979-1981 Tehran embassy hostages and certain of their spouses and children. The Fund is run by a Special Master, currently Mary Patrice Brown, under 34 U.S.C. § 20144.
Where the money actually comes from
The honest answer is on the Fund's own website. In its words, "aside from certain specific and limited appropriations, all funding for the USVSST Fund comes from proceeds of federal enforcement actions." The governing statute, 34 U.S.C. § 20144(e)(2), directs that certain forfeitures, penalties, and fines paid to the United States be transferred into the Fund.
Not every enforcement action counts. To feed the Fund, a case has to arise from a violation of U.S. sanctions law, either the International Emergency Economic Powers Act (IEEPA) or the Trading with the Enemy Act (TWEA), or a related offense tied to doing business with or on behalf of a state sponsor of terrorism. When a case meets that test, the Fund calls it a "qualifying case." For criminal matters, all of the qualifying funds go into the Fund; for civil matters resolved on or after November 21, 2019, seventy-five percent does.
Justice Department attorneys, not the Special Master, decide which case proceeds qualify, and the government has to have collected the money before any transfer happens. The Fund publishes the running list on its Qualifying Cases page and its balance on the Fund Balance page. If you want the authoritative answer to "will more money reach the Fund," those two pages are where families should look, not the headlines.
How the money reaches families
The Special Master pays claims in rounds. When enough money is available, she authorizes a distribution and pays eligible claims pro rata, meaning a proportional share of what is available, not the full judgment. By statute, each distribution is split in half: one half for 9/11-related victims and one half for all other eligible victims. In the sixth round, the Fund allocated $2.825 billion, divided evenly between the two pools. Awards are also subject to a per-claim cap that treats compensatory damages above $20 million as $20 million.
Across all six rounds to date, the Fund reports that it has paid or allocated more than $10 billion to eligible claimants. That is the real, documented number, and it accumulated gradually, one round at a time.
What this means for 9/11 families
For families who lost someone on September 11, this is not abstract. Their eligibility rests on the final federal judgments entered against Iran in the consolidated September 11 terrorism litigation (MDL 1570). Because the statute reserves half of every distribution for 9/11-related claimants, and because recoveries from qualifying cases against a state sponsor of terrorism can flow into the Fund, those judgments are the mechanism that can turn into a real payment over time.
The next round: announced July 17, 2026
The sixth round was authorized at the start of 2026, and payments began on a rolling basis on January 5, 2026. For the seventh round, the application deadline for new claimants was June 1, 2026. As a general rule, and per the Fund's Important Dates page, the Special Master authorizes an additional round of payments "if funds are available." For this round that condition has been settled: on July 17, 2026 the Special Master announced she will authorize seventh-round payments for all eligible claims by January 1, 2027.
Announced is not paid. The payments are authorized by that date, not yet made. The size is now set: on October 16, 2026 the Fund announced that $320 million is available, $160 million for 9/11-related claimants and $160 million for non-9/11-related claimants. In July it had said at least $275 million; the Fund says the final amount resulted from continuing deposits from qualifying cases, the forfeitures and penalties described above. No payment percentage has been published; the Fund says it will tell claimants their payment amounts in December 2026. (Source: Special Master's announcement, October 16, 2026.)
Be careful with predictions
The Fund is candid about the uncertainty. In its own FAQs, it notes there is "no way to precisely predict the number of eligible claims or the total amounts to be deposited" over time, and therefore no way to predict what percentage of claims will be paid before the Fund sunsets in 2039. Anyone promising a specific dollar figure, a specific seizure, or a specific payout date is guessing. We would rather tell you what is documented and let you plan around what is knowable.
A note on taxes
How a USVSST payment is treated for taxes is not one-size-fits-all. It depends on the character of the underlying award. The Fund does not issue a Form 1099, and its Special Master recommends directing any tax question to a tax professional. We agree: before you assume a distribution is or isn't taxable, review your specific situation with your CPA or tax advisor.
Free handbook
The 9/11 Family Handbook, 2027 Edition
How the USVSST Fund and the VCF pay, how they affect each other, and how the taxes generally work, with every figure traced to its source. Leave your email for the handbook and the 9/11 Family Update, a short note when the Fund posts something new, such as the December seventh-round payment notices.
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Practical steps for families
- Keep your claim current. The Fund asks every claimant to update it on any change to the judgment and on compensation received from other sources. Keeping your file clean is what protects your place in future rounds.
- Track the official pages, not the headlines. The Fund's Important Dates, Qualifying Cases, and Fund Balance pages are the real signal on whether and when more money is coming.
- Plan around what's known. Fit any USVSST payment into your broader plan without assuming an amount or a date, and confirm the tax treatment with your CPA.
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Working with us: Sirmium Capital works with 9/11 families deciding what to do with a VCF or USVSST award. What we do, how the firm is paid and how to start.
Reviewed by William Harrison, Co-Founder & Chief Investment Officer, Sirmium Capital.
Sirmium Capital | Fiduciary Wealth Management for 9/11 Families, First Responders & Veterans.
Disclaimer: This content is for informational purposes only and does not constitute legal or tax advice. Sirmium Capital LLC is a New York state-registered investment adviser and is not registered with the SEC. It is not a law firm. Legislation and program rules are subject to change. For legal questions about your eligibility, a judgment, or a claim, consult your attorney; for tax questions, a qualified tax professional. Our role is helping a distribution, if one comes, fit the rest of your financial plan.