According to the WSJ's report on Wednesday, the DOJ's objection - that the money would be seen as a ransom payment - was overruled by the State Department.
To read the full WSJ report, click here.
The WSJ reported on Tuesday that the cash was the first installment of a $1.7 billion settlement the U.S. Government had reached with Iran to solve a 1979 arms deal dispute.
The cash was packed in pallets and airlifted to Tehran by cargo plane, and was portrayed in the Iranian press as a random payment for five Americans, the WSJ reported.
The American prisoners were released on January 16, at the same time as the U.S. released seven Iranians - a prisoner swap that coincided with the lifting of international sanctions. At the time, the U.S, said that it had released $400 million in funds as part of a settlement of the arms deal dispute, but did not specify that cash had been airlifted to Tehran.
White House spokesman Josh Earnest said on Wednesday that the payment was neither a ransom, nor paid in secret.