Daniels made the right decision. The Sept. 11 attack was horrific, but not a single one of its perpetrators was an Afghan. While al-Qaeda used Afghanistan as a base, the country's population is innocent of the crime and should not have to suffer so as to compensate the families of the victims. Biden overreached his power and made a morally questionable move in earmarking these funds as potential compensation last year.
Though the issue of reparations for the victims of the Sept. 11 attacks has been portrayed as resulting from Biden's executive order to split the Afghan funds last year, in reality, the order was in response to an already ongoing litigation and the Biden admin. managed the situation as delicately as possible — respecting the US justice system's role in determining how some of the assets may be used, while also shielding half of the funds to ensure they would go to humanitarian aid.
Even if Biden has acted entirely morally and diplomatically in this situation, it cannot be ignored that his poor international policy led to the return of Taliban rule to Kabul, and the subsequent quashing of the population's liberties. The administration's response to this issue is about more than just the Afghan assets, it's about Biden attempting to salvage his credibility and prove that the country is more to the US than just a convenient pawn in the greater struggle between American and Soviet global systems.