Stop Settlement Slush Funds Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7387 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7387

To limit donations made pursuant to settlement agreements to which the
           United States is a party, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 5, 2026

Mr. Gooden (for himself, Ms. Tenney, Mr. Rouzer, Mr. Moore of Alabama,
Mr. Tiffany, Mr. Roy, Mr. Ogles, Mr. Palmer, Mr. Fry, and Mr. McDowell)
 introduced the following bill; which was referred to the Committee on
                             the Judiciary

_______________________________________________________________________

                                 A BILL

To limit donations made pursuant to settlement agreements to which the
           United States is a party, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Settlement Slush Funds Act of
2026''.

SEC. 2. LIMITATION ON DONATIONS MADE PURSUANT TO SETTLEMENT AGREEMENTS
              TO WHICH THE UNITED STATES IS A PARTY.

    (a) Limitation on Required Donations.--An official or agent of the
Government may not enter into or enforce any settlement agreement on
behalf of the United States directing or providing for a payment to any
person or entity other than the United States, other than a payment
that provides restitution for or otherwise directly remedies actual
harm (including to the environment) directly and proximately caused by
the party making the payment, or constitutes payment for services
rendered in connection with the case.
    (b) Penalty.--Any official or agent of the Government who violates
subsection (a) shall be subject to the same penalties that would apply
in the case of a violation of section 3302 of title 31, United States
Code.
    (c) Effective Date.--Subsections (a) and (b) apply only in the case
of a settlement agreement entered on or after the date of enactment of
this Act.
    (d) Definition.--The term ``settlement agreement'' means a
settlement agreement resolving a civil action or potential civil
action.
    (e) Reports on Settlement Agreements.--
            (1) In general.--Not later than at the end of the first
        fiscal year that begins after the date of enactment of this
        Act, and annually thereafter, the head of each Federal agency
        shall submit electronically to the Congressional Budget Office
        a report on each settlement agreement entered into by that
        agency during that fiscal year that directs or provides for a
        payment to a person or entity other than the United States that
        is providing restitution for or otherwise directly remedies
        actual harm (including to the environment) directly and
        proximately caused by the party making the payment, or that
        constitutes payment for services rendered in connection with
        the case, which shall include the parties to each settlement
        agreement, the source of the settlement funds, and where and
        how such funds were and will be distributed.
            (2) Prohibition on additional funding.--No additional funds
        are authorized to be appropriated to carry out this subsection.
            (3) Sunset.--This subsection shall cease to be effective on
        the date that is 7 years after the date of enactment of this
        Act.
    (f) Annual Audit Requirement.--
            (1) In general.--Not later than at the end of the first
        fiscal year that begins after the date of enactment of this
        Act, and annually thereafter, the Inspector General of each
        Federal agency shall submit, and make available on a publicly
        accessible website, a report on any settlement agreement
        entered into in violation of this section by that agency to--
                    (A) the Committee on the Judiciary, the Committee
                on the Budget, and the Committee on Appropriations of
                the Senate; and
                    (B) the Committee on the Judiciary, the Committee
                on the Budget, and the Committee on Appropriations of
                the House of Representatives.
            (2) Prohibition on additional funding.--No additional funds
        are authorized to be appropriated to carry out this subsection.
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