Mandela has remained on the list for 15 years after he was awarded the Nobel prize for peace.
The bill, authored by House Foreign Affairs Committee Chairman Howard L Berman, a Democrat from California, will remove from US databases any notation that would characterise the ANC and its leaders including Mandela as terrorists.
Last month, the US Secretary of State Condoleezza Rice had described the situation as "embarrassing" for the US.
"This is a country with which we now have excellent relations, South Africa, but its frankly rather embarrassing matter that I still have to waive in my own counterpart, the foreign minister of South Africa, not to mention the great leader Nelson Mandela," she had said.
The measure has the backing of the State Department and enjoys broad support in the US Senate where the it would have to be acted upon as well.
The supporters and well-wishers of ex-South African president are hoping that final action can be had on the issue before the elder statesman's 90th Birthday this July.
"This long-overdue bill is the direct result of a stunning and, frankly, embarrassing story for the United States," Berman said in a statement.
- Sri Lanka Guardian
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