SLUSH FUND Act of 2026

This bill would add a federal tax equal to 100 percent of any payment a person receives from a fund, trust, or account built from the outcome of a lawsuit filed against the United States by a former or current President, a family member of a President, or an entity they control. These payments would not count as regular taxable income, and the new tax could not be deducted. People who willfully fail to pay or try to evade the tax would face an added penalty of 50 percent of the tax. Those who make these payments would have to report them to the IRS and to the recipient, the IRS would have to make the reports public within one month, and failing to file a report would carry a $10,000 penalty per failure. The rules would apply to amounts received or paid on or after May 20, 2026.

Full text and official record on Congress.gov

Sponsors

• Mike Thompson Democrat sponsor
• 48 cosponsors