Iran's parliament passed a law on Sunday earmarking $20 million to support terror groups opposing the West and investigate alleged US and British plots against the Islamic republic.
The text of the legislation says the money is to "support progressive currents that resist illegal activities by by the governments of the US and Britain." Iranian officials often use such terms to describe terror groups.
The bill also taps funds to "confront plots and unjust restrictions" by the Washington and London against Tehran and to disclose "human rights abuses by the two countries."
It was not immediately clear which groups would receive funding from Iran, but Teheran already backs Hizbullah and Hamas.
The legislation is widely seen as a response to Western criticism of Iran's violent crackdown against protesters following the disputed June presidential election. Lawmakers started debating the outline of the bill in August when Iran's hardline leaders were fending off allegations that security forces had tortured opposition activists detained during the demonstrations.