Failing to prosecute Iraqi officials, the bill said, "would establish a dangerous precedent."
And prosecuting officials in connection with negligence is the responsibility of the attorney general's office, which has shown little appetite for taking on the company.
Experts disagreed about how difficult the decision will make it to prosecute officials for bribery and other forms of corruption in the future.
The decision not to prosecute other officials in the scandal has also been challenged by liberal Israelis.
Until recently, the Justice Department had sole responsibility for prosecuting such officials.
In the past few years dozens of developing countries have begun programs to cut corruption and prosecute officials who take bribes.
Prosecuting high-level officials for war crimes in foreign countries has a patchy record, legal experts say.
As for prosecuting individual officials, appellate decisions have made it especially difficult.
But as they struggle for balance, lawmakers should remember how hard it is in Connecticut to prosecute public officials of such crimes.
Prosecute guilty and corrupt public officials, no matter their position or political ties.