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Tipsheet

State Department Defends Giving the Taliban Taxpayer-Funded Money

AP Photo/Khwaja Tawfiq Sediqi

A recent report has revealed shocking information indicating that the U.S. State Department found it acceptable to channel taxpayer money to the Taliban despite the group being a designated terrorist organization. This deeply troubling decision raises serious questions about former President Joe Biden’s approach to foreign policy, particularly following the botched withdrawal from Afghanistan in 2021. Some argue that this move not only undermines national security but also disrespects the sacrifices made by U.S. service members, all while empowering a regime that oppresses its people and destabilizes the region. 

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According to a report by the Department of Defense (DOD) inspector general released this week, it revealed that $1.8 million in taxpayer dollars was used to empower Afghanistan's Islamic terror regime. The alarming aspect is that this amount was just a tiny fraction of what the Biden administration used to incite terrorism. 

State’s implementing partners made payments to the Taliban. One State office reported that between September 2021 and December 2024 its implementing partners paid $1.8 million to the Taliban for a variety of expenses, including taxes on local staff salary and vehicle registration fees. State requires implementing partners to report the payments.11 The Department of the Treasury’s Office of Foreign Assets Control authorizes these transaction through general licenses. 

Despite the Treasury Department claiming it “does not view financial transfers to governing institutions in Afghanistan or state-owned or -controlled companies and enterprises in Afghanistan as financial transfers to the Taliban,” the report points out that the U.S. does not “recognize a government in Afghanistan” since the Taliban’s takeover. The State Department also informed the Department of Defense's Inspector General that its million-dollar payments were "authorized" by "General Licenses" issued by the Treasury Department. It asserted that they complied with other regulations. However, according to the Treasury Department's website, these licenses were issued under the premise that they "do not authorize financial transfers to the Taliban."

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