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Stop Settlement Slush Funds Act of 2021
12/30/2022, 7:33 AM
Summary of Bill HR 5773
The bill specifically prohibits the DOJ from entering into settlement agreements that require payments to non-victim third-party organizations, such as community organizations or advocacy groups. It also requires the DOJ to submit reports to Congress detailing any settlement agreements that include payments to non-victim third-party organizations.
Supporters of the bill argue that it is necessary to prevent the misuse of settlement funds and ensure that victims receive the compensation they deserve. They believe that settlement funds should be used exclusively for compensating victims or remediating harm, rather than being diverted to unrelated organizations. Opponents of the bill argue that it could limit the DOJ's ability to negotiate settlements and could hinder the agency's ability to address complex legal cases. They also raise concerns about the potential impact on non-profit organizations that rely on settlement funds for their operations. Overall, Bill 117 HR 5773 aims to ensure transparency and accountability in the use of settlement funds obtained by the DOJ, while also protecting the interests of victims and preventing the misuse of funds for unrelated purposes.
Congressional Summary of HR 5773
Stop Settlement Slush Funds Act of 2021
This bill prohibits the federal government from entering into or enforcing a settlement agreement on behalf of the United States that provides for a payment to any person or entity other than the United States. The bill provides exceptions to allow payments that (1) remedy actual harm (including to the environment) caused by the party making the payment, or (2) constitute a payment for services rendered in connection with the case.
Government officials or agents who violate this prohibition may be removed from office or required to forfeit to the government any money they hold for such purposes to which they may otherwise be entitled.
Agencies must report annually for seven years to the Congressional Budget Office about the parties, funding sources, and distribution of funds for their settlement agreements permitted by the exceptions in this bill. The Office of Inspector General for each agency must also report annually on any settlement agreements that violate the bill's requirements.
