Stop Settlement Slush Funds Act of 2026

Limits federal settlement payments to private parties

If enacted, the bill would bar a federal official or agent from making or enforcing any settlement that directs payment to anyone other than the United States. Payments would still be allowed when they provide restitution for actual harm (including environmental harm) directly and proximately caused by the payer, or when they pay for services rendered in the case. Officials who violate the rule would face penalties like those under 31 U.S.C. §3302. The rule would apply only to settlements entered on or after enactment. Agencies would have to report annually to the Congressional Budget Office about qualifying settlements, and agency inspectors general would publish annual audit reports of violations. The bill would not provide extra funding for these reports, and the CBO reporting requirement would end seven years after enactment.