Democracy Defenders Action asks Senate and House committees to investigate sanctions waivers, contractor screening, and potential Trump family conflicts tied to $300 billion Iran reconstruction plan

WASHINGTON, D.C.–Democracy Defenders Action today called on Congress to conduct oversight of the Trump administration’s recently announced Islamabad Memorandum of Understanding between Iran and the United States, citing the staggering $300 billion reconstruction and economic development plan for Iran. The figure is nearly twice the total U.S. expenditure between 2002 and 2021 in Afghanistan and six times the cost of Iraq reconstruction between 2003 and 2012.

In letters sent to the House and Senate, DDA noted that monetary commitments by the president for reconstruction generally must be first authorized by Congress and the Iran agreement raises serious questions about funding sources, budgetary authority, and accountability. DDA’s letters highlight that the agreement provides no assurances about how the money will be handled and how the U.S. will ensure accountability. The unprecedented agreement raises questions about whether decisions about war and peace could enrich the president, his family, or their associates.

"Americans have a right to know whether decisions about this war are being made fully in the nation's interest or whether they will create opportunities for the president’s and his family’s financial enrichment,” said Virginia Canter, chief counsel and director of anti-corruption and ethics at Democracy Defenders Action. Congress holds the power of the purse and “any [financial] commitments must be carefully considered, given both the immense risk of fraud and abuse as well as the risk that funding will be used to support American adversaries or empower anti-democratic regimes and human rights abuses,” the letters state.

The letters call on congressional committees to examine:

• The source of the $300 billion reconstruction and development financing;

• The budgetary and legal authority for any U.S. role;

• The agencies responsible for implementation;

• How beneficiaries and contractors of the funds will be identified and screened; and

• The restrictions needed to prevent U.S.-enabled financing from benefiting terrorist organizations, sanctioned entities, corrupt actors, or businesses tied to the president and his family.

The letters also raise concerns that funding may flow through the Board of Peace, an unaccountable nongovernmental entity chaired by President Trump, and that the entity could be used to administer reconstruction, attract investment, mobilize capital, or carry out commitments made by the president without congressional oversight.

President Trump and his family members have extensive and growing financial interests across the Middle East, spanning real estate, hospitality, digital assets, and private investment funds. Congress has the oversight power to determine whether those interests could directly benefit from a war initiated by the administration and any subsequent reconstruction efforts. The letters call for an investigation into whether any Trump family business, investment vehicle, business partner, or politically connected entity could profit from contracts, fees, equity stakes, investment deals, or other financial windfalls tied to the rebuilding of Iran.

“The Trump family has substantial and expanding financial stakes throughout the Middle East, and Congress cannot assume those interests played no role in decisions that could reshape the region and generate billions of dollars in reconstruction, investment, and development contracts,” Canter said. “The American people deserve answers."

You can read the letters here:

House Letter

Senate Letter

###

Democracy Defenders Action brings together a nonpartisan team to work with national, state and local allies across the country to defend in real-time the foundations of our democracy.