Stop Settlement Slush Funds Act of 2026

Tommy Tuberville

Republican · AL · Senator

Source: Congress.gov · FEC

• Mike Lee (R-UT)Original· 2026-07-14
• Rick Scott (R-FL)Original· 2026-07-14
• Ron Johnson (R-WI)Original· 2026-07-14
• Ted Budd (R-NC)Original· 2026-07-14

Read twice and referred to the Committee on the Judiciary.

2026-07-14

Source: Congress.gov

When the federal government settles lawsuits, it sometimes agrees to let defendants donate money to charities or causes instead of paying the full settlement amount to the government. This bill would restrict or eliminate that practice, ensuring that settlement money goes directly to the U.S. Treasury rather than to third-party organizations chosen by the defendant. The change would affect companies and individuals who settle cases with federal agencies, as well as nonprofits that currently receive donations through these settlement agreements.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

119 S4978 IS: Stop Settlement Slush Funds Act of 2026 U.S. Senate 2026-07-14 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. II119th CONGRESS2d SessionS. 4978IN THE SENATE OF THE UNITED STATESJuly 14, 2026Mr. Tuberville (for himself, Mr. Johnson, Mr. Budd, Mr. Lee, and Mr. Scott of Florida) introduced the following bill; which was read twice and referred to the Committee on the JudiciaryA BILLTo limit donations made pursuant to settlement agreements to which the United States is a party, and for other purposes.1.Short titleThis Act may be cited as the Stop Settlement Slush Funds Act of 2026.2.Limitation on donations made pursuant to settlement agreements to which the united states is a party(a)Limitation on required donationsAn 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)PenaltyAny 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 dateSubsections (a) and (b) apply only in the case of a settlement agreement entered on or after the date of enactment of this Act.(d)DefinitionThe term settlement agreement means a settlement agreement resolving a civil action or potential civil action.(e)Reports on settlement agreements(1)In generalNot later than 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 fundingNo additional funds are authorized to be appropriated to carry out this subsection.(3)SunsetThis 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 generalNot later than 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 fundingNo additional funds are authorized to be appropriated to carry out this subsection.

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