29–010 

Calendar No. 183 

113TH CONGRESS REPORT " ! SENATE 1st Session 113–104 

JUSTICE FOR FORMER AMERICAN HOSTAGES 

IN IRAN ACT OF 2013 

SEPTEMBER 12, 2013.—Ordered to be printed 

Mr. MENENDEZ, from the Committee on Foreign Relations, 

submitted the following 

R E P O R T 

[To accompany S. 559] 

The Committee on Foreign Relations, having had under consideration the bill S. 559, to establish a fund to make payments to the 

Americans held hostage in Iran, and to members of their families, 

who are identified as members of the proposed class in case number 1:08–CV–00487 (EGS) of the United States District Court for 

the District of Columbia, and for other purposes, reports favorably 

thereon with an amendment and an amendment to the title and 

recommends that the bill, as amended, do pass. 

CONTENTS 

Page 

I. Purpose ........................................................................................................... 1 

II. Committee Action .......................................................................................... 1 

III. Discussion ....................................................................................................... 2 

IV. Cost Estimate ................................................................................................. 3 

V. Evaluation of Regulatory Impact .................................................................. 3 

VI. Changes in Existing Law .............................................................................. 3 

I. PURPOSE

The purpose of S. 559 is to establish in the Treasury a fund to 

provide compensation to the 52 Americans held hostage in the 

United States embassy in Tehran, Iran, between November 3, 

1979, and January 20, 1981. 

II. COMMITTEE ACTION

S. 559 was introduced on March 13, 2013, by Senator Isakson 

and co-sponsored by Senators Blumenthal, Heinrich, Coons, Murray, and Wicker. On June 25, 2013, the committee considered S. 

559 and ordered it reported favorably, with amendments. 


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III. DISCUSSION

The bill establishes in the Treasury a fund, to be known as the 

‘‘American Hostages in Iran Compensation Fund’’ for the purpose 

of providing compensation to the 52 Americans held hostage in the 

United States embassy in Tehran, Iran, between November 3, 

1979, and January 20, 1981. 

The 1981 Algiers Accords, which ended the hostage crisis, established numerous conditions to secure the hostages’ release including, among other things, a ban on asserting claims against Iran 

arising from the hostage taking. In 2000, the hostages and their 

families sued Iran in the United States for compensatory and punitive damages in federal court for their 444-day captivity. The 

courts have held that United States law, including the provisions 

of the Foreign Sovereign Immunities Act, does not provide the 

former hostages with a cause of action against Iran. While ruling 

against the former hostages, United States District Judge Emmet 

Sullivan repeatedly noted the compelling nature of the hostages’ 

claims, stating: ‘‘[These are] heart-wrenching, compelling stories. 

I’ve never heard of such horror . . . No United States citizen should 

ever suffer like that, and if they do, [the state sponsor of terrorism] 

should pay the price . . . Someone should pay the price for this.’’ On 

May 29, 2012, the Supreme Court denied certiorari in Roeder v. Islamic Republic of Iran, letting stand the D.C. Circuit Court of Appeal’s rejection of the former hostages’ claims. As a result, the 

former hostages appear to have now exhausted all means of judicial relief. 

The bill provides for funding for the Fund through the imposition 

of a surcharge equal to 30 percent of the amount of (1) any fine 

or other monetary penalty assessed for violations of the United 

States’ Iran sanctions laws related to activities undertaken on or 

after the date of enactment; or (2) the monetary amount of a settlement associated with such laws related to activities undertaken on 

or after the date of enactment. The Secretary of State is authorized 

to accept contributions to the Fund by individuals, business concerns, foreign governments, or other entities. The Fund is to be administered by the Secretary of State, and payments shall be made 

from the fund in the following amounts: (1) to each living former 

hostage, $150,000, plus $5,000 for each day of captivity of the 

former hostage; and (2) to the estate of each deceased former hostage, $150,000, plus $5,000 for each day of captivity of the former 

hostage. Priority of payments shall be first, to each living former 

hostage and second to the estate of each deceased former hostage. 

The bill provides for notification by the Secretary of State to each 

individual, and allows an individual to submit additional information to the Secretary of State where appropriate. The bill clarifies 

that the actions of the Secretary of State in identifying individuals 

qualified to receive payments and in disbursing amounts are not 

subject to review. A recipient of a payment waives and releases all 

claims arising out of the hostage events. Any extra money remaining in the Fund after the recipients have been paid shall return to 

the general fund of the Treasury. Finally, the Secretary of State 

must submit an annual report to the appropriate committees of 

Congress on the status of the Fund. 


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The Chairman noted that the amendments offered retain the innovative framework of the original bill by linking funding to compensate the former hostages with violations of U.S.-Iran sanctions 

law, and that the compensation amounts are consistent with the 

past practice in the area of hostage compensation. Noting the importance of the bill, he emphasized that the 52 Americans held hostage in the United States embassy in Tehran faced unique circumstances in seeking appropriate redress in that the Algiers Accords barred them from pursuing legal action. 

IV. COST ESTIMATE

In accordance with rule XXVI, paragraph 11(a) of the Standing 

Rules of the Senate, the committee notes that the cost estimate 

provided by the Congressional Budget Office was not available for 

inclusion in this report. The estimate will be printed in the Congressional Record when it is available. 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to rule XXVI, paragraph 11(b) of the Standing Rules of 

the Senate, the committee has determined that there is no regulatory impact as a result of this legislation. 

VI. CHANGES IN EXISTING LAW

In compliance with rule XXVI, paragraph 12 of the Standing 

Rules of the Senate, the committee notes that no changes in existing legislation will result from the enactment of S. 559. 

Æ 


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