The Fairness for Khobar Act of 2025 fixes an eligibility problem that prevented certain victims of two terrorist attacks from receiving compensation they were entitled to. The bill allows victims of the 1983 Beirut barracks bombing and the 1996 Khobar Towers bombing in Saudi Arabia to receive "lump sum catch-up payments"—additional one-time payments to make up for benefits they missed. Previously, these victims were blocked from applying for these extra payments because the Department of Justice had a rule stating that people already receiving regular compensation payments could not also get the lump sum payments, and applicants could only submit one application per claim. Under this bill, the Special Master (the official administering the terrorism victim compensation fund) must develop procedures within 30 days to allow eligible victims to demonstrate they relied on this confusing guidance, then authorize their catch-up payments from reserve funds or the main compensation fund. The legislation essentially corrects what lawmakers view as an unfair restriction that prevented deserving victims from receiving full compensation.
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