'Not America First': Sen. Amy Klobuchar slams Trump's rumored $300 billion reconstruction fund for Iran

With more details being reported on the looming U.S.-Iran peace agreement, critics argue that President Donald Trump is now following the same playbook as the Obama administration by unfreezing cash in exchange for nuclear concessions while going a step further with a potential $300 billion reconstruction fund. Democratic Senator Amy Klobuchar claimed such a fund could solve several long-standing issues within the U.S. and that such a deal wasn't "America First. Not even close."

Reuters on Tuesday reported that a $300 billion private fund designed ​to trigger investment into Iran is outlined in the U.S.-Iran framework agreement, citing a source with direct knowledge of the deal. While the White House says the discourse is being poisoned by Iranian "misinformation," the source told the publication that half of the sum has already been committed. Reacting to the reports, Klobuchar argued that with a $300 billion fund, the U.S. could "end homelessness, fund cancer research for 40 years, and give every child free pre-K for over 7 years." She claimed that instead of doing that, Trump is sending the money to Iran instead. "This is not America First. Not even close."

Citing an anonymous U.S. official, Axios further reported that the memorandum of understanding includes a "definitive and mutually agreed plan" for a fund supporting Iran's "reconstruction and economic development," based on performance. As per the report, the idea of the potential "prosperity fund" came from Qatar and has been discussed with the U.S. and Iran for several weeks. The fund essentially envisions private sector investment from Gulf states and East Asian countries into Iran. Despite the reporting, the plan has not yet been announced as Washington and Tehran are preparing for the formal signing of the peace agreement on Friday. 

Vice President J.D. Vance told CBS News on Monday the $300 billion reconstruction fund was "the sort of thing they [Iran] could have access to, funded by the Gulf Coast Coalition, so long as they honor their end of the obligation." However, Trump on Monday dismissed the notion of the U.S. paying Iran $300 billion, claiming it was "Fake News, put out by the Dumocrats," on Truth Social. What has been confirmed is that both sides have agreed on a framework to end their war, which began on February 28, halt the U.S. blockade of Iran, and reopen the Strait of Hormuz, a shipping lane for crude oil and natural gas.

The MOU is designed to launch 60 days of negotiations on a more detailed nuclear agreement, and U.S. officials, including Vance, have confirmed that the immediate economic benefits that will come in the form of sanction relief to Iran will be tied to the progress in the negotiations. On the other hand, as per Axios, Iranian state media have claimed Tehran will also get immediate access to frozen funds simply for signing the peace agreement, but U.S. officials denied the claims, saying Iran could receive "gestures" in exchange for reciprocal gestures of compliance.