Tim Scott unveils bill to block Iran funds

Sen. Tim Scott on Tuesday released legislation that would stop Iran from accessing $6 billion made available in exchange for the release of American prisoners, as lawmakers scrambled to sharpen the U.S. response to the Israel-Hamas war.

The South Carolina Republican, the top GOP member of the Banking Committee, unveiled his plan as Senate Minority Leader Mitch McConnell (R-Ky.) and Sen. Tom Cotton (R-Ark.) planned to seek unanimous consent to pass a bill with similar aims.

“My bill is a comprehensive approach to wielding our economic sanctions tools against Iran by freezing the $6 billion and ensuring Congress has the information necessary to prevent Iran from accessing funds in the future,” Scott said in a statement. “We must be unequivocal that the United States will not back down and waive sanctions on frozen Iranian funds held by other nations.”

Scott’s bill would restrict the ability of the Treasury and State departments to loosen sanctions for the Iranian funds. It would also direct the Treasury Department to report to Congress on other Iranian assets blocked by U.S. sanctions.

Scott’s bill has 21 Republican co-sponsors, including Sens. Bill Cassidy of Louisiana, Mike Crapo of Idaho, Lindsey Graham of South Carolina, Marco Rubio of Florida and J.D. Vance of Ohio. Cotton is also signed on.

The Scott bill’s backers see it as complementary to the Cotton-McConnell legislation.

Scott has also called on Senate Banking Chair Sherrod Brown (D-Ohio) to hold a hearing with Treasury Secretary Janet Yellen on Iran sanctions. Brown, who has worked closely with Scott on other matters, said last week that the committee will scrutinize the financing behind the Hamas attacks and consider what measures are needed to stop Iran and other Hamas backers from supporting the group.