Texas Senator Ted Cruz launched a scathing critique of the Trump administration’s new agreement with Iran, warning that the deal would provide a massive financial windfall to terrorists and directly threaten American lives.

Speaking on his podcast, Cruz condemned the proposed plan, which envisions channeling hundreds of billions of dollars back into the region following recent U.S. military strikes.

Cruz Warns of $300 Billion Windfall for Tehran

The Texas Republican focused his criticism on the financial scope of the agreement, arguing that the influx of capital would inevitably be weaponized against the West.

“Handing billions of dollars to theocratic extremists who openly want to destroy us is a disastrous move,” Cruz said during his broadcast. “This plan outlines a path to funnel $300 billion to the Iranian regime. That is a catastrophic blunder. If the ayatollah secures $300 billion, those funds will directly bankroll terrorism and the killing of Americans.”

Cruz also warned that the deal lacks strict, enforceable safeguards to prevent Iran from leveraging these assets to develop nuclear weapons. Furthermore, he noted that the current Memorandum of Understanding (MOU) seems to allow Tehran to impose transit tolls on vessels navigating the critical Strait of Hormuz shipping lane.

2028 Presidential Ambitions Shape Republican Backlash

Cruz’s aggressive stance highlights a widening fracture within the Republican Party, carrying heavy implications for the 2028 presidential primary. As potential contenders begin positioning themselves to succeed President Donald Trump, the Iran policy has emerged as a key battleground.

While Vice President JD Vance has acted as the administration’s primary defender of the deal in recent media appearances, Cruz—who ran for the GOP nomination in 2016—has signaled renewed interest in a future White House bid.

Other Republican lawmakers have mirrored Cruz’s skepticism, questioning the strategic logic of lifting economic sanctions and establishing a reconstruction fund for an adversary. However, Cruz took care to soften his personal criticism of the president, suggesting that Trump is simply receiving flawed counsel from his inner circle.

Trump Administration and Donald Trump Jr. Push Back

The White House and its allies have fiercely rejected Cruz’s characterization of the deal. Donald Trump Jr. fired back on X, accusing the Texas senator of misrepresenting the framework of the peace agreement.

“He is lying completely about the MOU,” Trump Jr. posted. “We aren’t giving them a single cent, and he is well aware of that. Weaponizing fake news about this peace deal to undercut the president is entirely counter to the MAGA movement.” President Trump also addressed the financial dispute during the G7 summit in France, explicitly stating that American taxpayers would not be financing the rebuilding of Iran.

“We are not investing any money,” Trump told reporters. “We retain the right to take action down the road if necessary, but we are not putting up ten cents.”

The Rebuild Debate: A “Marshall Plan” for Iran?

In response to administration denials, Cruz read directly from the text of the MOU during his podcast. He pointed to a clause stating the U.S. “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.” According to the document, implementation logistics must be finalized within 60 days, with the U.S. committed to granting all necessary financial waivers and licenses. Cruz argued that even if regional allies provide the bulk of the funding instead of U.S. taxpayers, the core danger remains unchanged.

“I do not want a radical religious zealot who chants ‘Death to America’ to get their hands on $300 billion, regardless of whether it comes from us or regional partners,” Cruz stated, adding that the deal would immediately unlock up to $30 billion for Tehran. While some critics have compared the framework to the 2015 nuclear deal brokered by the Obama administration, Cruz rejected the parallel. He praised Trump’s previous “heroic” decision to launch decisive military strikes that dismantled Iran’s naval, air, and missile capabilities.

“It makes zero sense to turn around and rebuild everything we just dismantled,” Cruz said. “What was the purpose of neutralizing their military infrastructure if we are going to fund its restoration? Implementing a Marshall Plan for Iran is fundamentally against American interests.”