The United States Supreme Court has agreed to hear a case determining whether Iran’s central bank must pay $1.75 billion to victims of Iranian terror, Reuters reported Thursday.

The high court agreed to hear an appeal filed by Bank Markazi, the Iranian central bank. The bank is contesting a July 2014 ruling by the New York-based 2nd U.S. Circuit Court of Appeals, which said the money, currently held in a trust account in New York, should be handed over.

The money would be used to pay off a $2.65 billion judgment the victims’ families won in a U.S. court against Iran in 2007.

The lawsuit was filed by families of the victims of the 1983 Marine barracks bombing in Beirut, which was perpetrated by Hezbollah with material support provided by Iran.

NBC explained further:

Because Iran refused to pay, the victims asked a federal court to let them seize Iranian assets held by Bank Markazi in New York that were frozen by the Obama administration.

Normally, those assets would be beyond the reach of the victims, but they asked Congress to pass a law allowing them to seize the Iranian bank’s money. Congress complied in 2012.

The Supreme Court will rule on whether it was constitutional for Congress to pass a law that designated these funds to pay the terror victims. The White House asked the Supreme Court not to consider the case, allow the lower court ruling to stand, and use the funds to pay the judgment.

President Barack Obama has threatened to veto new legislation which would require Iran to pay victims of Iranian-sponsored terror before it receives any sanctions relief as part of the nuclear deal. The Justice for Victims of Iranian Terrorism Act passed the House of Representatives Thursday.

[Photo: Mark Fischer / Flickr ]