Stop Settlement Slush Funds Act of 2016

Bill 114 hr 5063, also known as the Stop Settlement Slush Funds Act of 2016, aims to prohibit the Department of Justice (DOJ) from entering into settlement agreements that require the defendant to make donations to third-party organizations. These donations are often referred to as "slush funds" because they allow the DOJ to direct funds to organizations of its choosing, rather than to victims or the US Treasury.

The bill states that any funds obtained through settlements must be deposited into the Treasury, where they can be used for the benefit of the American people. It also requires the DOJ to provide detailed reports to Congress on any settlements reached, including information on how the funds will be allocated.

Supporters of the bill argue that it will increase transparency and accountability in the settlement process, ensuring that funds are used appropriately and in accordance with the law. Critics, however, argue that the bill could limit the DOJ's ability to negotiate settlements and could potentially harm victims who would benefit from donations to third-party organizations. Overall, the Stop Settlement Slush Funds Act of 2016 seeks to reform the settlement process within the DOJ and ensure that funds obtained through legal settlements are used in a fair and transparent manner.