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119-s-4978119th Congress

Stop Settlement Slush Funds Act of 2026

Sponsored By: Senator Tuberville, Tommy [R-AL]

Introduced

Summary

Ban on settlement payments to outside parties. This bill would bar federal officials from approving settlement agreements that send payments to anyone other than the United States except when the payment is direct restitution for harm caused by the wrongdoer or is payment for services tied to the case.

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  • Federal agencies would have to report each qualifying settlement to the Congressional Budget Office every year. Agency Inspectors General would publish annual audit reports online and the reporting and audit rules expire after 7 years.
  • Government officials who agree to prohibited payments would face the penalties that apply under 31 U.S.C. 3302.
  • Nonfederal recipients would generally be barred from receiving settlement money unless the payment restores direct harm caused by the defendant or pays for services rendered in connection with the case.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Ban federal settlement donations to outsiders

If enacted, federal officials and agencies would not be able to enter or enforce settlement agreements that direct payments to any person or entity other than the United States. Two exceptions would apply: payments that provide restitution for or otherwise directly remedy actual harm (including environmental harm) caused by the paying party, and payments that compensate for services rendered in connection with the case. Officials who violate the rule would be subject to the same penalties that apply under 31 U.S.C. 3302. This rule would only cover settlement agreements entered on or after the date of enactment.

Sponsors & CoSponsors

Sponsor

Tuberville, Tommy [R-AL]

AL • R

Cosponsors

  • Sen. Johnson, Ron [R-WI]

    WI • R

    Sponsored 7/14/2026

  • Sen. Budd, Ted [R-NC]

    NC • R

    Sponsored 7/14/2026

  • Sen. Lee, Mike [R-UT]

    UT • R

    Sponsored 7/14/2026

  • Sen. Scott, Rick [R-FL]

    FL • R

    Sponsored 7/14/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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