SLUSH FUND Act of 2026
Sponsored By: Representative Thompson, Mike [D-CA-4]
Introduced
Summary
100% tax on certain settlement fund payments. This bill would create a new federal tax equal to 100% on payments from settlement funds whose assets come from civil actions filed by a person who has served as President, their family members, or entities they control, and it would bar deductions while adding reporting and enforcement requirements.
Show full summary
- Families and recipients: People who receive these specified settlement fund payments and fall into the covered groups would owe a 100% tax on those payments and could not deduct them from income.
- Trustees and fiduciaries: Trustees, administrators, or other fiduciaries who make these payments must report the recipient and aggregate amount, furnish a written statement to the recipient by January 31, and face a $10,000 penalty for each failure to file.
- Enforcement and penalties: A willful failure to pay or an attempt to evade the tax would trigger an additional 50% penalty on the tax in addition to other penalties, and the rules apply to amounts paid on or after May 20, 2026.
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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 tax at 100% any payment you get from a settlement fund whose assets come from a civil suit against the United States. For chapter 1 income-tax rules those payments would be excluded from gross income but still subject to the new 100% tax. The bill would also bar tax deductions for items covered by the new chapter and add a 50% penalty for willful failure to pay or willful evasion. Trustees, administrators, or other fiduciaries who make such payments would have to report totals and give payees a statement by January 31, and the IRS would publicly post the returns within one month. These rules would apply to amounts received on or after May 20, 2026.
New $10,000 penalty for missed reports
This bill would impose a $10,000 penalty for each failure to file the required report (section 6050BB) that shows specified settlement fund payments and payees. No penalty would apply if the filer shows reasonable cause. The penalty would be payable on notice and collected in the same manner as tax for taxable years ending on or after May 20, 2026.
Sponsors & CoSponsors
Sponsor
Thompson, Mike [D-CA-4]
CA • D
Cosponsors
Rep. Doggett, Lloyd [D-TX-37]
TX • D
Sponsored 5/19/2026
Rep. Larson, John B. [D-CT-1]
CT • D
Sponsored 5/19/2026
Rep. Davis, Danny K. [D-IL-7]
IL • D
Sponsored 5/19/2026
Rep. Sánchez, Linda T. [D-CA-38]
CA • D
Sponsored 5/19/2026
Rep. Sewell, Terri A. [D-AL-7]
AL • D
Sponsored 5/19/2026
Rep. DelBene, Suzan K. [D-WA-1]
WA • D
Sponsored 5/19/2026
Rep. Chu, Judy [D-CA-28]
CA • D
Sponsored 5/19/2026
Rep. Moore, Gwen [D-WI-4]
WI • D
Sponsored 5/19/2026
Rep. Boyle, Brendan F. [D-PA-2]
PA • D
Sponsored 5/19/2026
Rep. Beyer, Donald S. [D-VA-8]
VA • D
Sponsored 5/19/2026
Rep. Evans, Dwight [D-PA-3]
PA • D
Sponsored 5/19/2026
Rep. Schneider, Bradley Scott [D-IL-10]
IL • D
Sponsored 5/19/2026
Rep. Panetta, Jimmy [D-CA-19]
CA • D
Sponsored 5/19/2026
Rep. Gomez, Jimmy [D-CA-34]
CA • D
Sponsored 5/19/2026
Rep. Horsford, Steven [D-NV-4]
NV • D
Sponsored 5/19/2026
Rep. Suozzi, Thomas R. [D-NY-3]
NY • D
Sponsored 5/19/2026
Rep. Mannion, John W. [D-NY-22]
NY • D
Sponsored 5/20/2026
Rep. Quigley, Mike [D-IL-5]
IL • D
Sponsored 5/20/2026
Rep. Watson Coleman, Bonnie [D-NJ-12]
NJ • D
Sponsored 5/20/2026
Rep. Amo, Gabe [D-RI-1]
RI • D
Sponsored 5/20/2026
Rep. Jayapal, Pramila [D-WA-7]
WA • D
Sponsored 5/21/2026
Rep. Brown, Shontel M. [D-OH-11]
OH • D
Sponsored 5/21/2026
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 5/21/2026
Rep. Pingree, Chellie [D-ME-1]
ME • D
Sponsored 5/21/2026
Rep. Crockett, Jasmine [D-TX-30]
TX • D
Sponsored 5/21/2026
Rep. Garamendi, John [D-CA-8]
CA • D
Sponsored 5/21/2026
Rep. DeLauro, Rosa L. [D-CT-3]
CT • D
Sponsored 5/21/2026
Rep. Frankel, Lois [D-FL-22]
FL • D
Sponsored 5/21/2026
Rep. Khanna, Ro [D-CA-17]
CA • D
Sponsored 5/21/2026
Rep. Dean, Madeleine [D-PA-4]
PA • D
Sponsored 5/21/2026
Rep. Subramanyam, Suhas [D-VA-10]
VA • D
Sponsored 5/21/2026
Rep. Schakowsky, Janice D. [D-IL-9]
IL • D
Sponsored 5/21/2026
Rep. Kennedy, Timothy M. [D-NY-26]
NY • D
Sponsored 5/21/2026
Rep. Stansbury, Melanie A. [D-NM-1]
NM • D
Sponsored 5/21/2026
Rep. Cisneros, Gilbert Ray [D-CA-31]
CA • D
Sponsored 5/21/2026
Rep. Matsui, Doris O. [D-CA-7]
CA • D
Sponsored 5/22/2026
Rep. Neguse, Joe [D-CO-2]
CO • D
Sponsored 5/22/2026
Rep. Mullin, Kevin [D-CA-15]
CA • D
Sponsored 5/22/2026
Rep. Huffman, Jared [D-CA-2]
CA • D
Sponsored 5/22/2026
Rep. Williams, Nikema [D-GA-5]
GA • D
Sponsored 5/26/2026
Rep. Foushee, Valerie P. [D-NC-4]
NC • D
Sponsored 5/26/2026
Rep. Bell, Wesley [D-MO-1]
MO • D
Sponsored 5/26/2026
Rep. Garcia, Robert [D-CA-42]
CA • D
Sponsored 5/26/2026
Rep. Scholten, Hillary J. [D-MI-3]
MI • D
Sponsored 6/3/2026
Rep. Pocan, Mark [D-WI-2]
WI • D
Sponsored 6/3/2026
Rep. Salinas, Andrea [D-OR-6]
OR • D
Sponsored 6/3/2026
Rep. Tran, Derek [D-CA-45]
CA • D
Sponsored 7/16/2026
Rep. Thanedar, Shri [D-MI-13]
MI • D
Sponsored 8/13/2026
Roll Call Votes
No roll call votes available for this bill.
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