Tim Scott calls on Yellen to testify on $6B in funds released to Iran after Hamas attacks Israel

Sen. Tim Scott, R-S.C., has called for a Senate hearing with Treasury Secretary Janet Yellen to focus on the $6 billion in frozen funds that the Biden administration released to Iran in exchange for American prisoners following the deadly Hamas terror attack on Israel.

Scott, a Republican presidential candidate and ranking member on the Senate Banking Committee, released a statement on Tuesday calling on the committee to hold an investigation into the funds and how Iran could potentially use them to fund terrorism.

"The Senate should also investigate what led the Biden administration to allow a transfer of $6 billion to Iran and how it could expect Iran to not use that money to continue to fuel terrorism," Scott said in the statement. "The American people and Israel, our closest ally in the Middle East, deserve transparency and answers."

He asked Banking Committee Chairman Sen. Sherrod Brown, D-Ohio, to invite Yellen to testify regarding the recently transferred $6 billion and "any sanctions gaps we might have with respect to Iran."

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"In the face of evil, we must use every tool, weapon, and economic sanction available to provide for our nation's security and the security of Israel," Scott said.

Republicans have criticized the Biden administration’s release of the $6 billion in frozen Iranian funds, which was part of a swap for five Americans being held prisoner in Iran. 

The deal allows the transfer of the money held in a South Korean bank to accounts in Qatar. The administration says the money can only be used for humanitarian purposes, and the U.S. will have oversight as to how and when the funds are used, emphasizing after the Hamas attacks that there is no evidence that any of that $6 billion has left the Qatari account yet.

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However, critics have argued that the money is fungible and could be diverted elsewhere. Iran is a known backer of Hamas and praised the Saturday attacks on Israel. The State Department has previously said that Iran provides roughly $100 million a year to Palestinian armed groups, including Hamas and Islamic Jihad.

In calling for a hearing and investigation into the funds, Scott said that the U.S. should be "signaling strength - not leniency" regarding Iran.

Earlier this year, Scott introduced a bill, the Solidify Iran Sanctions Act, which would remove the expiration date of U.S. sanctions on Iran to make them permanent.

"The unprecedented attack on Israel by Hamas – a U.S. designated terrorist organization – warrants the strongest response encompassing both military assistance and the most stringent economic sanctions," Scott said.

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The fighting already has killed hundreds on both sides. The Israeli military said more than 900 people have died in Israel since Saturday's incursion. On the Palestinian side, 765 people have been killed, according to authorities there, which includes terrorists, who are the targets of Israel's response.

President Biden announced that the American death toll in the war had gone up to 11.

Fox News’ Adam Shaw and the Associated Press contributed to this report.