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Stop Settlement Slush Funds Act of 2023
12/14/2023, 2:50 AM
Summary of Bill S 225
The bill aims to prevent what some lawmakers refer to as "slush funds," where federal agencies are able to direct settlement funds to organizations of their choosing, rather than using the funds for their intended purpose. Supporters of the bill argue that this practice can lead to misuse of taxpayer dollars and lack of transparency in how settlement funds are distributed.
If passed, the Stop Settlement Slush Funds Act of 2023 would require that any settlement funds obtained by federal agencies be deposited into the Treasury and used for the intended purpose of the settlement agreement. This would ensure that the funds are used in a transparent and accountable manner. Overall, the bill seeks to promote fiscal responsibility and transparency in the handling of settlement funds by federal agencies. It is currently being debated in Congress, with supporters and opponents voicing their opinions on the potential impact of the legislation.
Congressional Summary of S 225
Stop Settlement Slush Funds Act of 2023
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.
