Lafayette Reporter

Senator John Kennedy has introduced the No Dollars for Dictators Act of 2025. The legislation aims to prevent countries identified as state sponsors of terrorism and perpetrators of genocide from receiving American tax dollars through special drawing rights from the International Monetary Fund (IMF) without congressional approval.

"The Biden administration allowed China, Russia, Iran and Syria to collect billions of dollars from the IMF without ever consulting Congress. My bill would ensure that Congress has a say before the IMF doles out American tax dollars to countries that hate us," said Kennedy.

The bill is cosponsored by Senators John Barrasso, Marsha Blackburn, Chuck Grassley, Jim Justice, and Rick Scott. Blackburn commented on the situation by stating, "The Biden-Harris administration bypassed Congress and allocated unauthorized funds to oppressive nations like China, Russia, and Iran, which pose a clear threat to our security. The No Dollars for Dictators Act would prevent taxpayer money from supporting dictators under future administrations through the International Monetary Fund."

Justice added his perspective: "Our enemies should not benefit from U.S. taxpayers, especially when they undermine our nation’s security. It’s time Congress steps in on behalf of the American people and puts an end to this reckless spending that supports dictators and terrorists."

Scott further emphasized his support for the act by saying, "American taxpayers want their dollars to work in their best interests, not financially supporting dictators of dangerous and adversarial regimes like Communist China, Iran, Venezuela and more. Over the course of the Biden administration... billions of dollars [were] funneled to these regimes through the International Monetary Fund (IMF) without a single act of Congress."

In 2021, President Biden approved a $650 billion allocation in special drawing rights at the IMF without congressional consent. Significant portions went to countries opposing American interests such as China ($38 billion), Russia ($16 billion), Iran, Syria, and Venezuela—nations involved in terrorism sponsorship or human rights violations.

Some argue that special drawing rights offer cost-free assistance to poor countries; however, critics claim this process requires U.S.-issued debt with interest payments surpassing any potential loan returns. There is also no repayment obligation for recipient countries regarding principal amounts borrowed via these allocations.