US Senate passes bill allowing 9/11 victims to sue Saudi Arabia

White House says President Obama would veto the legislation

The US Senate has passed a bill that would allow families of victims of 9/11 attacks to sue Saudi Arabia even as the White House said President Barack Obama would veto the legislation.

Saudi Arabia has reportedly threatened to withdraw its $750 billion worth of investments in America, if it became law.

While the bill is yet to be passed by the House of Representatives before it lands up on the table of Obama to sign it into law, the White House has said that Obama would veto it.

"This legislation would change longstanding international law regarding sovereign immunity," White House Press Secretary Josh Earnest said on Tuesday after the Senate passed the Justice Against Sponsors of Terrorism Act (JASTA).

"The President of the US continues to harbour serious concerns that this legislation would make the US vulnerable in other court systems around the world," he said.

"Given the concerns that we have expressed, it's difficult to imagine the President signing this legislation. That continues to be true," he said in response to a question.

Earnest said there is also a concern that hasn't gotten as much attention about the potential vulnerability that is created for some of US allies and partners in US courts.

"The concern is related to the fact that sovereign immunity is a principle that is critical to our national security. The US is more engaged in activities in other countries than any other country in the world," he said.

"Typically, those are actually activities that other countries benefit from significantly. These are peacekeeping activities, or humanitarian relief activities, or other activities in which the US is supporting the national security activities of other countries, and the national security of other countries is enhanced by the involvement of the US," Earnest said.

Sponsored by Democratic Senator Charles Schumer and Republican John Cornyn, who is also co-chair of the Senate India Caucus, would allow victims of terror attacks on US soil or surviving family members to bring lawsuits against nation-states for activities.

"The US needs to use every tool available to stop the financing of terrorism. Victims and families who have lost loved ones in terror attacks deserve the opportunity to seek justice," Cornyn said.