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HR7387119th CongressWALLET

Stop Settlement Slush Funds Act of 2026

Sponsored By: Representative Gooden

Introduced

Summary

This bill would stop federal settlement agreements from directing payments to outside parties except for direct restitution or payment for services. It would add penalties, require annual reporting to the Congressional Budget Office, and mandate yearly Inspector General audits with a 7-year reporting sunset.

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  • Federal agencies and officials would be barred from entering or enforcing settlement agreements that send money to anyone other than the United States, except for payments that directly remedy harm or pay for services. Violations would carry the same penalties that apply under 31 U.S.C. 3302.
  • Heads of each federal agency would have to submit an annual electronic report to the Congressional Budget Office for every settlement that pays third parties for restitution or services. Reports must list the parties, the source of funds, and where and how payments were or will be distributed, and the reporting rule would end after 7 years.
  • Inspectors General would be required to audit annually and publish reports on any settlement made in violation and send those reports to the Judiciary, Budget, and Appropriations Committees of both the Senate and the House. The bill prohibits additional appropriations to carry out the reporting and audit subsections.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Annual settlement reports and audits

This bill would require agency heads to send an annual electronic report to the Congressional Budget Office on each qualifying settlement that paid someone other than the United States. Reports would list the parties, the source of settlement funds, and where and how the funds were or will be distributed. Reporting would start by the end of the first fiscal year after enactment and would end seven years after enactment. Inspectors General would also publish and send yearly reports on any settlement entered in violation of the ban to specified Congressional committees. No additional funds would be authorized to carry out these reporting and audit duties.

Ban third-party settlement payments

This bill would ban federal officials from signing or enforcing any settlement that directs payment to anyone other than the United States. Payments would be allowed only to pay restitution for actual harm (including environmental harm) directly and proximately caused by the paying party, or to pay for services rendered in the case. The ban would apply only to settlement agreements entered on or after the date of enactment. Officials who violate the rule would be subject to the same penalties that apply under current law (section 3302 of title 31, U.S. Code).

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Sponsors & CoSponsors

Sponsor

Gooden

TX • R

Cosponsors

  • Tenney

    NY • R

    Sponsored 2/5/2026

  • Rouzer

    NC • R

    Sponsored 2/5/2026

  • Rep. Moore, Barry [R-AL-1]

    AL • R

    Sponsored 2/5/2026

  • Tiffany

    WI • R

    Sponsored 2/5/2026

  • Rep. Roy, Chip [R-TX-21]

    TX • R

    Sponsored 2/5/2026

  • Rep. Ogles, Andrew [R-TN-5]

    TN • R

    Sponsored 2/5/2026

  • Rep. Palmer, Gary J. [R-AL-6]

    AL • R

    Sponsored 2/5/2026

  • Rep. Fry, Russell [R-SC-7]

    SC • R

    Sponsored 2/5/2026

  • McDowell

    NC • R

    Sponsored 2/5/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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