MoU’s $300bn Iran reconstruction fund becomes US political flashpoint

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. Recommended Stories list of 3 items end of list 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, with the US committing to grant any needed licences, sanctions waivers or other permissions. 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. He called the issue Democrat “propaganda”. Vance, meanwhile, in an interview with The New York Times published on Thursday, said that the plan will not be “paid for by American taxpayers”. …