Stop Settlement Slush Funds Act of 2026

This bill would bar federal officials from making or enforcing settlement agreements in civil cases that direct payments to anyone other than the United States. Exceptions are allowed for payments that repair actual harm, including environmental harm, directly caused by the paying party, and for payments for services related to the case. Officials who break this rule would face the same penalties as for violating a federal law requiring money received by the government to be deposited in the Treasury. Federal agencies would report allowed third-party settlement payments to the Congressional Budget Office each year for 7 years, and agency Inspectors General would report yearly on any settlements made in violation of the bill.

Full text and official record on Congress.gov

Sponsors

• Lance Gooden Republican sponsor
• 9 cosponsors