A provision in a memorandum of understanding (MoU) to end the US-Israel war with Iran has become the latest political flashpoint in Washington, with President Donald Trump defending the commitment to create a $300bn reconstruction plan for Iran.
Trump and Vice President JD Vance both sought to reassure on Thursday that the commitment would not be funded by US taxpayers. Still, several Democrats and a handful of Republicans have seized on the planned fund at a time when affordability and economic populism have dominated the country’s electoral politics.
The MoU, signed by Trump and Iranian President Masoud Pezeshkian on Wednesday, says only that the US “undertakes with regional partners to develop a definitive, mutually agreed plan with at least $300 billion for the reconstruction and economic development of the Islamic Republic of Iran”. It left the “mechanism for implementation” to be decided over a 60-day negotiation period.
While the terms remain undetermined, Trump, in a Truth Social post on Thursday, ruled out any direct US funding for the scheme. “There is no 300 Billion Dollar payment to Iran by the U.S. That’s Fake News!” he wrote. Vance, in an interview with The New York Times, said that the plan will not be “paid for by American taxpayers”. “Not a cent of American money goes to Iran,” he said.
Several top Democrats have sought to connect the $300bn fund to domestic social and economic issues. Senator Amy Klobuchar said in a post on X: “With $300 billion, we could end homelessness, fund cancer research for 40 years, and give every child free pre-K for over 7 years. Instead, Trump is sending it to Iran.” US Senator Chuck Schumer said “Democrats will not be helping Trump send $300 billion to Iran”.
A handful of Republicans have also joined in the criticism, including Iran hawk and Trump ally Senator Roger Wicker. In a statement on Thursday, Wicker said the $300bn, even if not funded by US taxpayers, would make “Iran’s payoff under President [Barack] Obama’s 2015 deal look like a pittance by comparison”.
Beyond the reconstruction fund, the new US-Iran MoU also commits to the immediate lifting of sanctions on Iran’s fossil fuel industry. It also launches negotiations to unfreeze billions in Iranian assets and lift sanctions.
Source: www.aljazeera.com