POSSIBLE NEGATIVE IMPACTS
In opposing the law, Obama has said the bill "would be detrimental to U.S. national interests."
"Enacting JASTA into law, however, would neither protect Americans from terrorist attacks nor improve the effectiveness of our response to such attacks," Obama said.
Analysts on Thursday warned that Saudi Arabia could reduce valuable security and intelligence cooperation with longstanding ally Washington after the congressional "stab in the back."
"I'm afraid that this bill will have dire strategic implications" for the United States, Salman al-Ansari, head of the Saudi American Public Relation Affairs Committee, told AFP.
Saudi Arabia has threatened to sell off hundreds of billions of dollars' worth of American assets held by the kingdom if the United States passes and enacts the bill.
On the other hand, technically, it will be hard to prove a foreign nation is responsible for acts of terrorism, said attorneys and law experts, who expected drawn-out legal wrangling.
Jack Quinn, co-counsel for more than 2,000 family members of Sept. 11 victims, said the plaintiffs will now ask the U.S. Court of Appeals for the Second Circuit to reconsider the issue in light of the new law.
"We will next attempt to complete the development of evidence and find out what the truth is," said Quinn.
However, even under the new law, the White House can still request a court to halt related cases.
The law allows a court to put a proceeding against a foreign state on hold if the United Stats says it "is engaged in good faith discussions" with the country to resolve the claims.