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119-s-4616119th CongressWALLET

SLUSH FUND Act of 2026

Sponsored By: Senator Wyden, Ron [D-OR]

Introduced

Summary

100 percent tax on settlement payments tied to suits by Presidents and their families. This bill would create a new tax chapter that treats any amount received by a President, a family member, or an entity they control from a civil action against the United States as fully taxable and adds penalties and reporting duties for payers.

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  • People who "have served as President," their spouses, close relatives defined by tax law, and entities they control would face a 100 percent tax on any payment from settlement funds linked to civil actions they filed against the federal government. Those payments would be excluded from gross income and taxed under the new rule.
  • The bill disallows deductions for these payments and creates a penalty equal to 50 percent of the tax for willful failure to pay or willful attempts to evade the tax.
  • Trustees, administrators, or other fiduciaries who make these payments must file returns showing amounts and payee identities, give written statements to payees, and publicly disclose the returns within one month. A $10,000 penalty can apply for each failure to file. The rules apply to amounts paid on or after May 20, 2026 and to taxable years ending on or after that date.

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Bill Overview

Analyzed Economic Effects

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

100% tax on presidential settlements

This bill would impose a tax equal to 100% of any "specified settlement fund payment" you receive on or after May 20, 2026. A specified settlement fund payment comes from a fund whose assets come from the outcome of a civil action filed by a "specified person," including anyone who has served as President, that person's spouse and close relatives, and persons they control. The bill would also stop certain deductions tied to these payments by adding the new chapter to the Code's deduction rule. If you willfully fail to pay or try to evade this tax, the bill would add a penalty equal to 50% of the tax for the year (effective for taxable years ending on or after May 20, 2026).

Public reporting for settlement payments

The bill would require any trustee, administrator, or other fiduciary who makes a specified settlement fund payment on or after May 20, 2026 to file an IRS return showing each recipient's name, address, and the aggregate amount paid for the year. Payers would have to give each recipient a written statement by January 31 of the next year saying who paid them, the total amount, and that the payments are subject to the new tax. The Secretary would be required to make those returns public within one month after receipt. The bill would also add a $10,000 penalty for each required return not timely filed unless there is reasonable cause.

Sponsors & CoSponsors

Sponsor

Wyden, Ron [D-OR]

OR • D

Cosponsors

  • Sen. Schumer, Charles E. [D-NY]

    NY • D

    Sponsored 5/21/2026

  • Sen. Hickenlooper, John W. [D-CO]

    CO • D

    Sponsored 6/1/2026

Roll Call Votes

No roll call votes available for this bill.

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