Biden to divide $7B in frozen Afghan funds for terror victims, humanitarian relief

President Biden signed an executive order on Friday intended to free up $7 billion in assets from Afghanistan’s central bank being held in the U.S., half of which could go to humanitarian assistance in Afghanistan and the other half for compensation to the families of 9/11 victims. 

The White House said in a release that the executive order is “designed to provide a path for the funds to reach the people of Afghanistan while keeping them out of the hands of the Taliban and malicious actors.” 

In signing the executive order, Biden is blocking property of Afghanistan’s central bank that is held in the U.S. and requiring American financial institutions to transfer the assets into a consolidated account at the Federal Reserve Bank of New York. 

The effort is unusual, as it involves money held by a foreign government on U.S. soil. It is likely to be the subject of complex litigation. 

The U.S.-backed government fell in Afghanistan in August, as the Taliban took over the country. The U.S. overthrew the Taliban more than 20 years ago after the Sept. 11, 2001, attacks spearheaded by Osama bin Laden, who was then in Afghanistan.